Cash flows from investing activities

150 PT Telkom Indonesia Persero Tbk liquidity

a. liquidity Sources

The main source of our corporate liquidity is cash provided by operating activities and long-term debt through the capital markets as well as long-term and short-term loans through bank facilities. We divide our liquidity sources into internal and external liquidity.

1. internal liquidity Sources To fulill our obligations we rely primarily on our

internal liquidity. as of December 31, 2015, we had Rp28,117 billion in cash and cash equivalents available, which increased by Rp10,445 billion compared to Rp17,672 billion as of December 31, 2014. Cash receipts primarily from customer amounted to Rp98,002 billion, are used for payment of operational expenses, acquisition property, plan and equiptment, long-term investment, payment of short-term bank loan and obligation. Our internal liquidity strength is relected in our current ratio, which we calculate as current assets divided by current liabilities, maintain over 100. As of December 31, 2015, our curent ratio was to 135.3 compared to 106.1 as of December 31, 2014.

2. external liquidity Sources

Our primary external sources of liquidity are short and long-term bank loans, bonds and notes payable, and two-step loans. In 2015 we used external liquidity of Rp20,561 billion.

b. external outstanding liquidity Sources

As of December 31, 2015, we had undrawn loan facilities which include the following sources of unused liquidity: • CIMB Niaga loan facility in the amount of Rp582 billion; • BNI loan facility in the amount of Rp2,572 billion; • Bank Ekonomi Raharja loan facility in the amount of Rp41 billion; • The Bank of Tokyo Mitsubishi UFJ, Ltd loan facility in the amount of Rp380 billion; • PT Bank Sumitomo Mitsui Indonesia loan facility in the amount of Rp380 billion; • Bank ANZ loan facility in the amount of Rp410 billion; • Bank Mandiri loan facility in the amount of Rp75 billion; • BRI loan facility in the amount of Rp42 billion; • BSM loan facility in the amount of Rp346 million; and • Syndicated loan facility of BNI, BRI and Bank Mandiri in the amount of Rp103 million. Working Capital Net working capital, calculated as the diference between current assets and current liabilities, amounted to Rp1,976 billion as of December 31, 2014 and Rp12,499 billion US907 million as of December 31, 2015. The increase in net working capital was primarily due to: • An increase in cash and cash equivalent of Rp10,445 billion; • An increase in prepaid taxes of Rp1,782 billion; • An increase in advance and prepaid expenses of Rp1,106 billion; • A decrease in current maturities of long-term liabilities of Rp2,057 billion, and • A decrease in short-term bank loans of Rp1,208 billion. A net increase in current liabilities primarily due to: • An increase in accrued expenses of Rp3,036 billion; • An increase in trade payable of Rp1,632 billion; and • An increase in taxes payable of Rp897 billion. We believe that our working capital is suicient for our present requirements. We expect that our working capital will continue to be addressed by various funding sources, including cash from operating activities and bank loans. Solvency We have strong ability to meet our debt obligations relect to our ratio: debt to equity ratio, debt to EBITDA and times interest earned ratio. Our ability to meet our debt short-term and long-term depending on source of liquidity.