ADVANCES AND PREPAID EXPENSES June 30, LONG-TERM INVESTMENTS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 42

8. LONG-TERM INVESTMENTS continued

Summarized financial information of the Group’s investments accounted under the equity method for 2015: Telin Tiphone Indonusa Teltranet Melon ILCS Malaysia CSM Statements of financial position Current assets 6,364 186 117 131 105 18 185 Non-current assets 765 471 58 27 32 10 1,221 Current liabilities 1,257 850 35 57 54 17 731 Non-current liabilities 3,056 103 1 2 1 - 1,535 Equity deficit 2,816 296 139 99 82 11 860 Statements of profit or loss and other comprehensive income Revenues 22,040 599 - 89 41 3 164 Operating expenses 21,290 608 21 82 43 17 364 Other income expenses including finance costs - net 249 37 6 2 - 74 Profit loss before tax 501 46 15 9 2 14 274 Income tax expense 130 19 - - - - - Profit loss for the year 371 65 15 9 2 14 274 Using financial information as of December 31, 2015 and for the year then ended. a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers, repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion. As of June 30, 2016 and December 31, 2015, the fair value of investment amounting to R1,184 billion and Rp1,351 billion, respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of June 30, 2016 and December 31, 2015 amounting to Rp675 and Rp770 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2015 is as follows: December, 31 2015 Assets 7,129 Liabilities 4,313 Net assets 2,816 Group’s proportionate share of net assets 24.65 in 2015 694 Goodwill 710 Carrying amount of long-term investment 1,404 b Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80 of its interest in Indonusa. On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57 dated April 23, 2014 of FX Budi Santoso Isbandi, S.H., which was approved by the MoLHR in its Letter No. AHU- 02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid capital by Rp80 billion. The Company has waived its right to own the new shares issued and transferred it to Metra and, as a result, Metra’s ownership in Indonusa increased to 4.33. c Investment in Teltranet is accounted for under the equity method, which covered on an agreement between Metra and Telstra Holding Singapore Pte. Ltd. on August 29, 2014. Teltranet is engaged in communication system services. Metra does not have control as it does not determine the financial and operating policies of Teltranet. d Melon is engaged in providing Digital Content Exchange Hub services “DCEH”. Metra does not have control over Melon due to the existence of substantive participating rights held by the other venturer over the financial and operating policies of Melon. e ILCS is engaged in providing E-trade logistic services and other related services. f Telin Malaysia is engaged in telecommunication services in Malaysia. g CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. The unrecognized share of losses of CSM for the year ended December 31, 2015 amounting to Rp215 billion. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 43

9. PROPERTY AND EQUIPMENT

January 1, Reclassifications June 30, 2016 Additions Deductions Translations 2016 At cost: Directly acquired assets Land rights 1,270 3 - - 1,273 Buildings 6,033 2 2 261 6,294 Leasehold improvements 1,036 54 7 28 1,111 Switching equipment 19,823 107 9 245 20,166 Telegraph, telex and data communication equipment 876 502 - - 1,378 Transmission installation and equipment 119,047 720 1,495 5,832 124,104 Satellite, earth station and equipment 8,146 44 - 45 8,235 Cable network 37,887 2,062 110 602 40,441 Power supply 13,822 19 35 467 14,273 Data processing equipment 11,351 28 40 594 11,933 Other telecommunications peripherals 632 4 - - 636 Office equipment 1,062 75 3 20 1,154 Vehicles 475 17 - - 492 Other equipment 99 - - - 99 Property under construction 4,580 9,805 - 8,862 5,523 Assets under finance lease Transmission installation and equipment 5,940 240 68 17 6,129 Data processing equipment 63 - 39 13 11 Office equipment 73 2 - - 75 Vehicles 94 48 - - 142 CPE assets 22 - - - 22 Power supply 90 - - - 90 RSA assets 252 - - - 252 Total 232,673 13,732 1,808 764 243,833 January 1, Reclassifications June 30, 2016 Additions Deductions Translations 2016 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 2,141 100 - 54 2,295 Leasehold improvements 623 62 7 7 685 Switching equipment 15,223 744 9 4 15,954 Telegrap, telex and data communication equipment 4 - - - 4 Transmission installation and equipment 63,063 4,840 1,355 263 66,285 Satellite, earth station and equipment 6,706 157 - 1 6,862 Cable network 19,524 758 110 374 19,798 Power supply 9,114 595 31 4 9,682 Data processing equipment 8,503 608 40 12 9,059 Other telecommunications peripherals 385 37 - - 422 Office equipment 713 60 3 24 794 Vehicles 166 34 - 1 201 Other equipment 99 - - - 99 Assets under finance lease Transmission installation and equipment 2,327 291 68 7 2,557 Data processing equipment 53 4 39 6 12 Office equipment 51 26 - 2 75 Vehicles 13 9 - - 22 CPE assets 17 1 - - 18 Power supply 18 11 - - 29 RSA assets 230 7 - - 237 Total 128,973 8,344 1,662 565 135,090 Net Book Value 103,700 108,743