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PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 46

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c. Others i Loan interest capitalized to assets under construction amounted to Rp323 billion and Rp279 billion for the six month period ended June 30, 2016 and 2015, respectively. Rates capitalization that is used to determine the amount of borrowing costs eligible for capitalization are ranged between 3.94 - 11.00 and 9.74 - 18.31 for the six month period ended June 30, 2016 and 2015, respectively. ii No foreign exchange loss was capitalized as part of property under construction for the six months period ended June 30, 2016 and for the year ended December 31, 2015. iii As of June 30, 2016 and 2015, the Group received proceeds from the insurance claim on the lost and broken property and equipment, with a total value of Rp25 billion and Rp68 billion, respectively and recorded as part of “Other Income” in the consolidated statement of profit or loss and other comprehensive income. As of June 30 2016 dan 2015, the net carrying value of those assets of Rp21 billion and Rp13 billion, respectively, were charged to the consolidated statement of profit or loss and other comprehensive income. iv In 2016, Telkomsel decided to replace certain equipment units with net carrying amount of Rp90 billion, as part of its modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment. The effect of the change is an additional depreciation expense amounting to Rp85 billion for the six months period ended June 30, 2016. In 2015, Telkomsel decided to replace certain equipment with a net carrying value amounting to Rp1,967 billion, as part of a modernization program. Therefore, Telkomsel accelerated the depreciation of such equipment. The impact to depreciation expense for the six month period ended June 30, 2016 amounted to Rp215 billion. The impact of the change in the estimated useful lives of the towers in future periods is an increase in the profit before income tax as follows: Years Amount 2016 6 months 59 2017 30 In 2014, the useful life of buildings and transmission respectively Telkomsel changed from 20 years to 40 years and from 10 years to 15 and 20 years to reflect the economic life of the building and the transmission at this time. Impact of reduction in depreciation expense for the year ended June 30, 2016 amounted to Rp122 billion. Impact of changes in the estimated useful life of the building and its transmission in the coming period is to increase profit before tax as follows: Years Amount 2016 6 months 122 2017 198 2018 135 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 47

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