PROPERTY AND EQUIPMENT FS TLKM Q3 2014engl

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 55

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c. Others continued iii In 2012, Telkomsel decided to replace certain equipment units with net carrying amount of Rp1,037 billion, as part of a modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment. In 2014, the effect of additional depreciation expense amounted to Rp70 billion. iv In 2014, the useful lives of Telkomsel’s towers were changed from 20 years to 40 years and from 10 years to 20 years to reflect their current economic lives. The impact is a reduction of depreciation expense for the nine months period ended September 30, 2014 is Rp217 billion. The impact of the change in the estimated useful lives of the towers in future periods is to increase the profit before income tax as follows: Years Amount 2014 3 months 72 2015 264 2016 244 2017 198 v Exchange of property and equipment  In 2011, the Company and PT Industri Telekomunikasi Indonesia “INTI” signed Purchase Orders of Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimization of Asset Copper Cable Network with Trade InTrade Off with total procurement value amounting to Rp1,499 billion up to December 31, 2013. In 2013, the Company derecognized the copper cable network asset with net carrying value of Rp1.6 billion, respectively, and recorded the fiber optic network asset from the exchange transaction of Rp203 billion.  In 2014 and 2013, certain equipment units of Telkomsel with net carrying amount of Rp32 million and Rp250 million were exchanged with equipment from NSN Oy and PT Huawei. As of September 30, 2014, Telkomsel’s equipment with net carrying amount of Rp45 billion and Rp73 billion are going to be exchanged with equipment from NSN Oy and PT Huawei; therefore,Telkomsel’s equipment units were reclassified as assets held for sale Note 9. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 56

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