0.05 FINANCIAL RISK MANAGEMENT continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 114

37. FINANCIAL RISK MANAGEMENT continued

2. Financial risk management continued e. Liquidity risk Liquidity risk arises in situations where the Group has difficulties in fulfilling financial liabilities when they become due. Prudent liquidity risk management implies maintaining sufficient cash in order to meet the Group’s financial obligations. The Group continuously performs an analysis to monitor financial position ratios, such as liquidity ratios and debt-to-equity ratios, against debt covenant requirements. The following is the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments: Carrying amount Contractual cash flows 2017 2018 2019 2020 2021 and thereafter June 30, 2017 Trade and other payables 12,016 12,016 12,016 - - - - Accrued expenses 11,668 11,668 11,668 - - - - Interest bearing loans and other borrowings Bank loans 19,330 24,019 7,881 2,313 4,513 3,338 5,974 Bonds and notes 8,982 18,743 929 465 929 2,873 13,547 Obligations under finance leases 3,859 4,880 1,006 482 859 809 1,724 Two-step loans 1,203 1,373 274 113 220 212 554 Other borrowings 1,295 1,820 122 159 304 285 950 Total 58,353 74,519 33,896 3,532 6,825 7,517 22,749 Carrying amount Contractual cash flows 2017 2018 2019 2020 2021 and thereafter December 31, 2016 Trade and other payables 13,690 13,690 13,690 - - - - Accrued expenses 11,283 11,283 11,283 - - - - Interest bearing loans and other borrowings Bank loans 16,477 20,421 5,875 5,635 2,883 2,565 3,463 Bonds and notes 9,323 19,670 969 967 1,187 3,000 13,547 Obligations under finance leases 4,010 5,160 987 892 816 771 1,694 Two-step loans 1,292 1,487 279 244 216 209 539 Other borrowings 697 1,007 60 118 164 153 512 Total 56,772 72,718 33,143 7,856 5,266 6,698 19,755 The difference between the carrying amount and the contractual cash flows is interest value. The interest value of variable-rate borrowings are determined based on the interest rates effective as of reporting date.