CASH AND CASH EQUIVALENTS continued OTHER CURRENT FINANCIAL ASSETS June 30, TRADE RECEIVABLES

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 45

6. TRADE RECEIVABLES continued

c. By currency continued ii Third parties June 30, December 31, 2014 2013 Rupiah 8,452 6,699 U.S.dollar 849 806 Euro 1 1 Hong Kong dollar 1 1 Australian dollar 1 - Total 9,303 7,507 Provision for impairment of receivables 2,709 2,381 Net 6,594 5,126 d. Movements in the provision for impairment of receivables June 30, December 31, 2014 2013 Beginning balance 2,872 2,047 Provision recognized during the year Note 29 329 1,589 Receivables written-off 1 622 Acquisition - 1 Disposal Note 3 - 158 Reclassification 15 Ending balance 3,200 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 Rp1,576 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 June 30,

December 31, 2014 2013 Components 525 272 SIM cards, RUIM cards, set top box, and blank prepaid vouchers 140 102 Others 403 157 Total 1,068 531 Provision for obsolescence Components 24 21 SIM cards, RUIM cards, set top box, and blank prepaid vouchers 1 1 Total 25 22 Net 1,043 509 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 46

7. INVENTORIES continued

Movements in the provisionfor obsolescence are as follows: June 30, December 31, 2014 2013 Beginning balance 22 148 Provision reversal recognized during the year 3 29 Divestment Note 3 - 1 Reclassification - 96 Ending balance 25 22 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 as of June 30, 2014 and December 31, 2013 amounted to Rp338 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 Rp35 billion have been pledged as collateral under lending agreements Notes 17 and 21. As of June 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 Rp63 billion and Rp280 billion, respectively. Modules are recorded as part of property and equipment. Total sum insured as of June 30, 2014 and December 31, 2013 amounted to Rp251 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 June 30, December 31, 2014 2013 Frequency license Notes 41c.i and 41c.ii 1,480 2,330 Prepaid rental 1,097 744 Salaries 615 209 Advances 356 297 Deferred expense 96 124 Insurance 3 84 Others each below Rp50 billion 322 159 Total 3,969 3,947 Refer to Note 37 for details of related party transactions. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 47

9. ASSET HELD FOR SALE

This account represents the carrying amount of Telkomsel’s equipment to be exchanged with equipment of Nokia Siemens Network Oy “NSN Oy” and PT Huawei Tech Investment “PT Huawei”. The equipment will be used as part of the settlement for the exchanges of equipment from these companies. In 2014, Telkomsel’s equipment with net carrying amount of Rp57 billion is reclassified to asset held for sale Note 11c.vi. Asset held for sale is presented under personal segment Note 38.

10. LONG-TERM INVESTMENTS

June 30, 2014 Share of net loss Percentage profit of of Beginning Addition associated Translation Ending ownership balance deduction company adjustment balance Long-term investments in associated companies: Indonusaa 20.00 189 32 - 221 PT Melon Indonesia “Melon” b 51.00 39 - 2 - 41 ILCS c 49.00 37 - 5 - 32 Telin Malaysia d 49.00 18 - 10 2 6 CSM e 25.00 - - - - - PSN f 22.38 - - - - - Sub-total 283 32 13 2 300 Other long-term investments 21 - - - 21 Total long-term investments 304 32 13 2 321 June 30, 2014 Assets Liabilities Revenue Gain loss Long-term investments in associated companies: Indonusa 537 706 183 Melon b 124 43 61 4 ILCS c 83 15 65 10 Telin Malaysia d 18 2 5 20 CSM e 1,273 1,387 153 91 PSN f 784 2,050 76 11 Total 2,819 3,904 543 128