Borrowings and other credit facilities continued Others

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 117 43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES Assets and liabilities denominated in foreign currencies are as follows: 2014 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Assets Cash and cash equivalents 364.47 8.45 15.59 4,721 Other current financial assets 15.50 - - 193 Trade receivables Related parties 2.05 - - 26 Third parties 72.88 - 2.83 938 Other receivables 0.39 - 0.11 6 Advances and other non-current assets 4.06 - 0.05 52 Total assets 459.35 8.45 18.58 5,936 Liabilities Trade payables Related parties 0.21 - 0.16 5 Third parties 215.68 19.36 3.41 2,725 Other payables 3.42 - 1.15 57 Accrued expenses 65.91 27.39 1.02 836 Short-term bank loan 100.00 - - 1,244 Advances from customers and suppliers 2.41 - 0.07 31 Current maturities of long-term liabilities 34.60 767.90 - 510 Promissory notes 7.16 - - 88 Long-term liabilities - net of current maturities 71.00 6,911.08 - 1,597 Total liabilities 500.39 7,725.73 5.81 7,093 Liabilities - net 41.04 7,717.28 12.77 1,157 2013 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Assets Cash and cash equivalents 394.30 1.23 11.42 4,940 Other current financial assets 10.78 - - 131 Trade receivables Related parties 2.44 - - 30 Third parties 66.27 - 0.17 808 Other receivables 0.68 - 0.13 10 Advances and other non-current assets 5.76 - - 70 Total assets 480.23 1.23 11.72 5,989 Liabilities Trade payables Related parties 1.40 - - 17 Third parties 275.35 - 4.33 3,409 Other payables 7.62 - 0.09 94 Accrued expenses 51.41 18.63 0.01 629 Short-term bank loan - - - - Advances from customers and suppliers 1.60 - 0.01 20 Current maturities of long-term liabilities 34.85 767.90 - 514 Promissory notes 28.67 - - 349 Long-term liabilities - net of current maturities 78.82 7,678.98 - 1,850 Total liabilities 479.72 8,465.51 4.44 6,882 Liabilities - net 0.51 8,464.28 7.28 893 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. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 118

43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued

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 December 31, 2014 using the exchange rates on February 27, 2015, the unrealized foreign exchange loss will increase by Rp56 billion.

44. FINANCIAL RISK MANAGEMENT

1. Financial risk management The Group’s activities expose it to a variety of financial risks such as market risks including foreign exchange risk and interest rate risk, credit risk and liquidity risk. Overall, the Group’s financial risk management program is intended to minimize losses on the financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of interest rates. Management has a written policy for foreign currency risk management mainly on time deposit placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months. Financial risk management is carried out by the Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial risks. a. Foreign exchange risk The Group is exposed to foreign exchange risk on sales, purchases and borrowings that are denominated in foreign currencies. The foreign currency denominated transactions are primarily in U.S. dollars and Japanese yen. The Group’s exposures to other foreign exchange rates are not material. Increasing risks of foreign currency exchange rates on the obligations of the Group are expected to be offset by the effects of the exchange rates on time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities. The following table presents the Group’s financial assets and financial liabilities exposure to foreign currency risk: 2014 2013 U.S. dollar Japanese yen U.S. dollar Japanese yen in billions in billions in billions in billions Financial assets 0.46 0.01 0.48 0.00 Financial liabilities 0.50 7.73 0.48 8.47 Net exposure 0.04

7.72 0.00

8.47