FINANCIAL RISK MANAGEMENT continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 116 1. Financial risk management continued e. Liquidity risk continued The following is the maturity profile of the Company and subsidiaries’ financial liabilities: Carrying Contractual 2014 2015 2016 2017 2018 and amount cash flows thereafter June 30, 2014 Trade and other payables 13,041 13,041 13,041 - - - - Accrued expenses 5,891 5,891 5,891 - - - - Loans and other borrowings Bank loans 13,935 16,475 7,092 2,342 2,731 1,955 2,355 Obligations under finance leases 4,776 6,534 1,009 446 865 834 3,380 Bonds and notes 3,189 4,514 450 1,131 223 203 2,507 Two-step loans 1,810 2,189 295 145 283 273 1,193 Total 42,642 48,644 27,778 4,064 4,102 3,265 9,435 Carrying Contractual 2018 and amount cash flows 2014 2015 2016 2017 thereafter December 31, 2013 Trade and other payables 11,988 11,988 11,988 - - - - Accrued expenses 5,264 5,264 5,264 - - - - Loans and other borrowings Bank loans 10,023 11,618 5,028 3,264 1,248 980 1,098 Obligations under finance leases 4,969 6,904 1,070 885 847 813 3,289 Two-step loans 1,915 2,308 292 285 278 271 1,182 Bonds and notes 3,349 4,817 582 1,311 215 203 2,506 Total 37,508 42,899 24,224 5,745 2,588 2,267 8,075 The difference between the carrying amount and the contractual cash flows is interest value. 2. Fair value of financial assets and financial liabilities a. Fair value measurement Fair value is the amount for which an asset could be exchanged, or liability settled, between in an arm’s length transaction. The Company and subsidiaries determined the fair value measurement for disclosure purposes of each class of financial assets and financial liabilities based on the following methods and assumptions: i The fair values of short-term financial assets and financial liabilities with maturities of one year or less cash and cash equivalents, trade receivables, other receivables, other current assets, trade payables, other payables, dividend payable, accrued expenses, advances from customers and suppliers and short-term bank loans are considered to approximate their carrying amounts as the impact of discounting is not significant . PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 117

44. FINANCIAL RISK MANAGEMENT continued

2. Fair value of financial assets and financial liabilities continued a. Fair value measurement continued ii Available-for-sale financial assets primarily consist of shares, mutual funds and Corporate and Government bonds. Shares and mutual funds actively traded in an established market are stated at fair value using quoted market price or, if unquoted, determined using a valuation technique. Corporate and Government bonds are stated at fair value by reference to prices of similar securities at the reporting date. iii The fair values of long-term financial liabilities are estimated by discounting the future contractual cash flows of each liability at rates offered to the Company and subsidiaries for similar liabilities of comparable maturities by the bankers of the Company and subsidiaries, except for bonds which are based on market prices. The fair value estimates are inherently judgmental and involve various limitations, including: a. Fair values presented do not take into consideration the effect of future currency fluctuations. b. Estimated fair values are not necessarily indicative of the amounts that the Company and subsidiaries would record upon disposaltermination of the financial assets and liabilities. b. Classification and fair value The following table presents the carrying value and estimated fair values of the Company and subsidiaries financial assets and liabilities based on their classifications: June 30, 2014 Other Total Loans and Available for financial carrying Fair Trading receivables sale liabilities amount value Cash and cash equivalents - 16,828 - - 16,828 16,828 Other current financial assets - 435 272 - 707 707 Trade and other receivables, net - 7,968 - - 7,968 7,968 Long-term investments - - 21 - 21 21 Advances and other non-current assets - 557 - - 557 557 Total financial assets - 25,788 293 - 26,081 26,081 Trade and other payables - - - 13,041 13,041 13,041 Accrued expenses - - - 5,891 5,891 5,891 Loans and other borrowings Long-term bank loans - - - 11.317 11,317 10,992 Obligations under finance leases - - - 4,776 4,776 4,776 Bonds and notes - - - 3,189 3,189 3,198 Short-term bank loans - - - 2,618 2,618 2,618 Two-step loans - - - 1,810 1,810 1,949 Total financial liabilities 42,642 42,642 42,465 December 31, 2013 Other Total Loans and Available for financial carrying Fair Trading receivables sale liabilities amount value Cash and cash equivalents - 14,696 - - 14,696 14,696 Other current financial assets - 6,600 272 - 6,872 6,872 Trade and other receivables, net - 6,421 - - 6,421 6,421 Long-term investments - - 21 - 21 21 Advances and other non-current assets - 685 - - 685 685 Total financial assets - 28,402 293 - 28,695 28,695