Legal and Compliance Risks If we are found liable for price fixing by the Indonesian

1. Exchange Rate Information The following table shows the exchange rate of Indonesia Rupiah to US Dollar based on the middle exchange rate which is calculated based on the Bank Indonesia buying and selling rates for the periods indicated. Calendar Year at Period End Average Low High RpUS1 2010 1 8,991 9,078 9,365 8,924 2011 1 9,068 8,773 9,170 8,508 2012 1 9,670 9,419 9,670 9,000 2013 1 12,189 10,563 12,189 9,667 2014 1 12,440 11,880 12,440 11,404 September 2 12,212 11,891 12,212 11,710 October 2 12,082 12,145 12,241 11,993 November 2 12,196 12,156 12,206 12,092 December 2 12,440 12,438 12,900 12,264 2015 1 12,932 12,807 12,932 12,625 January 2 12,625 12,578 12,732 12,444 February 2 12,863 12,750 12,887 12,609 March 25 2 12,932 13,069 13,237 12,932 Source: Bank Indonesia Under the current exchange rate system, the exchange rate of the Indonesian rupiah is determined by the market, reflecting the interaction of supply and demand in the market. However, Bank Indonesia may take measures to maintain a stable exchange rate. For the year 2014, the average rate of Rupiah to the US Dollar was Rp11,880, with the lowest and highest rates being Rp12,440 and Rp 11,404, respectively. The exchange rates used for conversion of monetary assets and liabilities denominated in foreign currencies are the buy and sell rates published by Reuters in 2012, 2013 and 2014. The Reuters buy and sell rates, applied respectively to monetary assets and liabilities, were, Rp9,630 and Rp9,645 to US1.00 as of December 31, 2012, Rp12,160 and Rp12,180 to US1.00 as of December 31, 2013 and Rp12,380 and Rp12,390 to US1.00 as of December 31, 2014. The Consolidated Financial Statements are stated in Rupiah. The conversion of Rupiah amounts into US Dollar are included solely for the convenience of the readers and have been made using the average of the market buy and sell rates of Rp12,385 to US1.00 published by Reuters on December 31, 2014. On March 25, 2015, the Reuters bid and ask rates were Rp12,982 and Rp12,990 to US1.00.

2. Foreign Exchange Controls Indonesia operates a liberal foreign exchange system

that permits the free flow of foreign exchange. Capital transactions, including remittances of capital, profits, dividends and interest, are free of exchange controls. A number of regulations, however, have an impact on the exchange system. For example, only banks are authorized to deal in foreign exchange and execute exchange transactions related to the import and export of goods. In addition, Indonesian banks including branches of foreign banks in Indonesia are required to report to Bank Indonesia any fund transfers exceeding US10,000. As a State-Owned Company, and based on the decree of the Head of Pinjaman Komersial Luar Negeri PKLN, we are required to obtain an approval from PKLN prior to acquiring foreign commercial loans and must submit periodical reports to PKLN during the term of the loans. 1 Determined based upon the last day middle exchange rate of each month announced by Bank Indonesia applicable for the period. 2 Determined based upon the daily middle exchange rate announced by Bank Indonesia during the applicable period. 255 2014 Annual Report PT Telkom Indonesia Tbk Persero Outstanding Balance as of December 31, 2014 Expected Maturity Date Fair value Foreign Currency million Rp Equiv. Rp million 2015 2016 2017 2018 2019 Thereafter Rp million ASSETS Cash and cash Equivalents US Dollar 364 4,526,838 4,526,838 - - - - - 4,526,838 Japanese Yen 8 875 875 - - - - - 875 Other 1 16 193,242 193,242 - - - - - 193,242 Other Current Financial Assets US Dollar 16 191,607 191,607 - - - - - 191,607 Trade Receivables Related Parties US Dollar 2 25,442 25,442 - - - - - 25,442 Third Parties US Dollar 73 903,403 903,403 - - - - - 903,403 Other 1 3 35,384 35,384 - - - - - 35,384 Other Receivables US Dollar 4,876 4,876 - - - - - 4,876 Other 1 1,381 1,381 - - - - - 1,381 Advances and Other Non-current Assets US Dollar 4 50,535 49,654 881 - - - - 50,535 Other 1 610 610 - - - - - 610 LIABILITIES Trade Payables Related Parties US Dollar 2,560 2,560 - - - - - 2,560 Other 1 2,001 2,001 - - - - - 2,001 Third Parties US Dollar 216 2,680,998 2,680,998 - - - - - 2,680,998 Japanese Yen 19 2,162 2,162 - - - - - 2,162

3. Exchange Rate Risk We are exposed to foreign exchange risk on sales,

purchases and borrowings that are denominated in foreign currencies, primarily in U.S. dollar and Japanese yen. Our exposures to other foreign exchange rates are not material. Increasing risks of foreign currency exchange rates on our obligations are expected to be offset by time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities. The information presented in the following table is based on assumptions of selling and buying rates in US Dollar as well as other currencies, which were quoted by Reuters on December 31, 2014 and applied respectively to monetary assets and liabilities. The buying and selling rates as of December 31, 2014 were Rp12,380 and Rp12,390 to US1, respectively. However, we believe these assumptions and the information described in the following table may be influenced by a number of factors, including a fluctuation andor depreciation of the Rupiah in the future. 256 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S