Indebtedness Cash Flows from Financing Activities Net cash flows used in financing activities totaled Rp13,327

In addition, PT Graha Sarana Duta “TelkomProperty” dan Telin also have material commitment for capital expenditure, facade Unitized System Telkom Landmark Tower project, Development of Infomedia’s building project , Operational Supporting System, Base Sub Station project, Value Added System, System Rollout, Radio Access Network dan Core System Rollout project. For more detailed discussion regarding our material commitments for capital expenditures, see Note 41 to our Consolidated Financial Statements.

B. Source of Funds We have historically funded our capital expenditures

primarily with cash generated from operations. In 2014, we expect that our capital expenditure to revenue ratio will be approximately in the range of 25-30. We expect that of the total increase in amount of capital expenditure in 2014 over 2013, the most significant proportions will be allocated broadband services with a portion of the increase allocated to our subsidiaries. We expect to fund the above commitments with our internal and external source of funds. We expect to fund the above commitments with our internal and external sources of funds. See explanation on “Capital Expenditures”.

C. Denomination of Currency As of December 31, 2014, details of material commitment

for capital investment by currency are as follows: Currencies Amounts in Foreign Currencies in millions Equivalent in Rupiah in billions Rupiah 9.837 US Dollar 512 6.349 Euro 0.35 5 SGD 0.40 4 16,195

D. Planned Actions to Mitigate Foreign Exchange Risks

We are exposed to foreign exchange risk on sales, purchases and borrowings transactions that are denominated in foreign currencies, primarily in US Dollars and Japanese Yen. Nevertheless, our exposure to foreign exchange rates risk is not material. Management provides written policy for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk exposures for the time range of 3 up to 12 months. Increasing risks of foreign currency exchange rates on our obligations are expected to be offset by time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities. For detail discussion on material commitments for capital investment, exchange rate and interest rate see Notes 41 and 44 to our Consolidated Financial Statements. MATERIAL INFORMATIONS OF INVESTMENT, ExPANSION, DIVESTMENT, ACQUISITION AND DEBTCAPITAL RESTRUCTURE In 2014, we did some activities related to investments, divestments, acquisitions and debtcapital restructuring. The activities are as follows:

A. Investment -

On August 29, 2014, Telkom Metra entered into a shareholders agreement with Telstra Holding Singapore Pte. Ltd. to establish a joint venture known as PT TeltraNet Application Solutions Teltranet. Telkom Metra acquired ownership of 51 or US4,29 million of the total issued share capital US8,43 million, but Telkom Metra was not have control in determining the financial and operating policies of Teltranet. Teltranet engaged in services and communication systems. 136 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S