CASH AND CASH EQUIVALENTS continued OTHER CURRENT FINANCIAL ASSETS September 30, December 31,

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 48

6. TRADE RECEIVABLES continued

c. By currency continued ii Third parties September 30, December 31, 2014 2013 Rupiah 8,938 6,699 U.S.dollar 813 806 Euro 2 1 Hong Kong dollar 1 1 Australian dollar 16 - Total 9,770 7,507 Provision for impairment of receivables 2,870 2,381 Net 6,900 5,126 d. Movements in the provision for impairment of receivables September 30, December 31, 2014 2013 Beginning balance 2,872 2,047 Provision recognized during the year Note 29 370 1,589 Receivables written-off 1 622 Acquisition - 1 Disposal Note 3 - 158 Reclassification - 15 Ending balance 3,241 2,872 The receivables written off are related-party and third-party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover losses on uncollectible trade receivables. Certain trade receivables of the subsidiaries amounting to Rp2,029 billion have been pledged as collateral under lending agreements Notes 17 and 21. Refer to Note 37 for details of related party transactions.

7. INVENTORIES September 30, December 31,

2014 2013 Components 382 272 SIM cards, RUIM cards, set top box, and blank prepaid vouchers 115 102 Others 206 157 Total 703 531 Provision for obsolescence Components 26 21 SIM cards, RUIM cards, set top box, and blank prepaid vouchers 1 1 Total 27 22 Net 676 509 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 49

7. INVENTORIES continued

Movements in the provision for obsolescence are as follows: September 30, December 31, 2014 2013 Beginning balance 22 148 Provision reversal recognized during the year 5 29 Reclassification - 96 Divestment Note 3 - 1 Ending balance 27 22 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 as of September 30, 2014 and December 31, 2013 amounted to Rp459 billion and Rp752 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp68 billion have been pledged as collateral under lending agreements Notes 17 and 21. As of September 30, 2014 and December 31, 2013, modules and components held by the Company and subsidiaries have been insured against fire, theft, and other specific risks with book value amounting to Rp59 billion and Rp280 billion, respectively. Modules are recorded as part of property and equipment. Total sum insured as of September 30, 2014 and December 31, 2013 amounted to Rp256 billion and Rp261 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Company and subsidiaries.

8. ADVANCES AND PREPAID EXPENSES September 30, December 31,

2014 2013 Frequency license Notes 41c.i and 41c.ii 1,115 2,330 Prepaid rental 1,063 744 Advances 655 297 Salaries 500 209 Deferred expense 102 124 Insurance 12 84 Tax restitution claims 299 10 Others each below Rp75 billion 468 149 Total 4,214 3,947 Refer to Note 37 for details of related party transactions.