OTHER CURRENT FINANCIAL ASSETS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 40

7. ADVANCES AND PREPAID EXPENSES 2016

2015 Frequency license Notes 34c.i and 34c.ii 3,056 2,935 Prepaid rental 1,234 1,055 Advances 394 729 Salaries 229 347 Advance to employee 32 28 Others 301 745 Total 5,246 5,839 Refer to Note 31 for details of related party transactions.

8. LONG-TERM INVESTMENTS

2016 Percentage of ownership Beginning balance Additions Deductions Share of net profit loss of associated company Dividend Share of other comprehensive income of associated company Ending balance Long-term investments in associated companies: Tiphone a 24.43 1,404 - 108 23 1 1,488 Indonusa b 20.00 221 - - - - 221 Teltranet c 51.00 71 - 33 - - 38 PT Melon Indonesia “Melon” d 51.00 50 67 17 - - - PT Integrasi Logistik Cipta Solusi “ILCS” e 49.00 40 - 2 - - 42 Telin Malaysia f 49.00 6 - 6 - - CSM g 25.00 - - - - - - Sub-total 1,792 67 88 23 1 1,789 Other long-term investments 15 43 - - - 58 Total Long-term investments 1,807 24 88 23 1 1,847 Summarized financial information of the Group’s investments accounted under the equity method for 2016: Tiphone Indonusa Teltranet ILCS Telin Malaysia CSM Statements of financial position Current assets 7,709 170 66 131 9 161 Non-current assets 743 444 88 29 10 761 Current liabilities 1,248 532 78 73 35 594 Non-current liabilities 3,762 405 2 1 6 1,206 Equity deficit 3,442 323 74 86 22 878 Statements of profit or loss and other comprehensive income Revenues 27,310 605 66 116 8 131 Operating expenses 26,445 583 149 112 43 221 Other income expenses including finance costs - net 231 17 3 - 88 Profit loss before tax 634 5 86 4 35 178 Income tax expense 166 33 21 - - Profit loss for the year 468 28 65 4 35 178 Other comprehensive income loss 5 7 - - Total comprehensive income for the year 463 21 65 4 35 178 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 41

8. LONG-TERM INVESTMENTS continued

2015 Percentage of ownership Beginning balance Additions Deductions Share of net loss profit of associated company Dividend Share of other comprehensive income of associated company Ending balance Long-term investments in associated companies: Tiphone a 24.65 1,392 - 32 18 2 1,404 Indonusa b 20.00 221 - - - - 221 Teltranet c 51.00 52 43 24 - - 71 Melon d 51.00 43 - 7 - - 50 ILCS e 49.00 38 - 2 - - 40 Telin Malaysia f 49.00 6 19 19 - 6 CSM g 25.00 - - - - - - Sub-total 1,752 62 2 18 2 1,792 Other long-term investments 15 - - - - 15 Total long-term investments 1,767 62 2 18 2 1,807 Summarized financial information of the Group’s investments accounted under the equity method for 2015: Tiphone Indonusa Teltranet Melon ILCS Telin Malaysia CSM Statements of financial position Current assets 6,539 501 117 131 105 18 185 Non-current assets 1,261 333 58 27 32 10 1,221 Current liabilities 1,657 535 35 57 54 17 731 Non-current liabilities 3,073 568 1 2 1 - 1,535 Equity deficit 3,070 269 139 99 82 11 860 Statements of profit or loss and other comprehensive income Revenues 22,060 599 201 111 6 164 Operating expenses 21,295 559 72 184 108 40 364 Other income expenses including finance costs - net 265 82 9 2 3 74 Profit loss before tax 500 42 63 19 3 37 274 Income tax expense 130 - 16 5 - - Profit loss for the year 370 42 47 14 3 37 274 Other comprehensive income loss 7 - - - - Total comprehensive income for the year 363 42 47 14 3 37 274 a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers, repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion. As of December 31, 2016 and 2015, the fair value of investment amounting to Rp1,500 billion and Rp1,351 billion, respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of December 31, 2016 and 2015 amounting to Rp855 and Rp770 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2016 and 2015 is as follows: 2016 2015 Assets 8.452 7,800 Liabilities 5.010 4,730 Net assets 3,442 3,070 Group’s proportionate share of net assets 24.43 in 2016 and 24.65 in 2015 841 757 Goodwill 647 647 Carrying amount of long-term investment 1,488 1,404