CONTINGENCIES FS English Q3 2016 FINAL ammend2

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 108

37. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued

December 31, 2015 U.S. dollar in millions Japanese yen in millions Others in millions Rupiah equivalent in billions Assets Cash and cash equivalents 494.19 11.37 10.34 6,957 Other current financial assets 30.37 - 1.02 433 Trade receivables Related parties 1.69 - - 23 Third parties 104.19 - 1.18 1,453 Other receivables 0.40 - 0.10 7 Advances and other non-current assets 3.88 - - 54 Total assets 634.72 11.37 12.64 8,927 Liabilities Trade payables Related parties 0.42 - - 6 Third parties 202.04 10.73 2.39 2,819 Other payables 22.26 - 1.65 330 Accrued expenses 34.45 25.45 0.18 481 Advances from customers and suppliers 0.48 - - 7 Current maturities of long-term liabilities 12.04 767.90 - 254 Promissory notes 1.99 - - 28 Long-term liabilities - net of current maturities 187.48 6,143.18 - 3,290 Total liabilities 461.16 6,947.26 4.22 7,215 Assets Liabilities - net 173.56 6,935.89 8.42 1,712 Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period. The Group’s activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates, and interest rates. If the Group reports monetary assets and liabilities in foreign currencies as of September 30, 2016 using the exchange rates on October 24, 2016, the unrealized foreign exchange loss amounted to Rp21 billion.

38. FINANCIAL RISK MANAGEMENT

1. Fair value of financial assets and financial liabilities a. Classification i. Financial asset September 30, 2016 December 31, 2015 Fair value of financial asset through profit or loss Derivative asset – put option - 172 Payables and receivables Cash and cash equivalents 28,852 28,117 Trade receivables and other receivables, net 10,790 7,872 Other current financial assets 3,429 2,486 Other non-current assets 343 379 Available-for-sale financial assets Available-for-sale securities 1,169 160 Total financial asset 44,583 39,186 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 109

38. FINANCIAL RISK MANAGEMENT continued

1. Fair value of financial assets and financial liabilities continued a. Classification continued ii. Financial liabilites September 30, 2016 December 31, 2015 Financial liabilities measured at amortised cost Trade payables and other payables 14,894 14,284 Accrued expenses 10,765 8,247 Loans and other borrowings Short-term bank loans 636 602 Two-step loans 1,455 1,520 Bonds and notes 9,500 9,548 Long-term bank loans 16,738 18,362 Obligation under finance lease 4,314 4,580 Total financial liabilities 58,302 57,143 b. Fair value Fair value measurement at reporting date using September 30, 2016 Carrying amount Fair Value Quoted prices in active markets for identical assets or liabilities level 1 Significant other observable inputs level 2 Significant unobservable inputs level 3 Financial assets Available-for-sale securities 1,169 1,169 1,070 99 - Fair value through profit or loss - - - - - Total 1,169 1,169 1,070 99 - Financial liabilities for which fair value are disclosed Liabilities Two-step loans 1,455 1,489 - - 1,489 Bonds and notes 9,500 10,305 9,771 - 534 Long-term bank loans 16,738 17,202 - - 17,202 Obligation under finance lease 4,314 4,314 - - 4,314 Total 32,007 33,310 9,771 - 23,539