SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM BORROWINGS continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 55

16. LONG-TERM LOANS AND OTHER BORROWINGS continued

b. Bonds and notes continued ii. MTN continued Finnet Notes Currency Principal Issuance date Maturity date Interest payment period Interest rate per annum MTN I Finnet year 2015 Rp 200 July 1, 2015 July 1, 2022 Quarterly 11 Based on Agreement of Debt Acknowledgement of Medium Term Notes MTN I Finnet Year 2015 as covered by notarial deed No. 47 dated June 30, 2015 of Utiek R. Abdurachman, S.H., MLI., MKn., Finnet will issue MTN through private placement with the principal amounting to Rp200 billion. PT BNI Asset Management acts as the arranger, Bank Mega as the trustee and KSEI as the payment agent and custodian. The funds obtained from MTN are used for Finnet’s working capital related to Retail National Channel Bank project as Telkomsel’s billing payment aggregator. The rating of the MTN issued by PT Fitch Rating Indonesia is A ind. The MTN is not secured by an y specific collateral. The MTN are secured by all of Finnet’s assets, movable or non- movable either existing or in the future. Under the agreement, Finnet is required to comply with all covenants or restrictions, including maintaining financial ratios as follows : 1. Debt to equity ratio should not exceed 3.5:1 2. EBITDA to interest ratio should not be less than 2.5:1 In 2016, Finnet has made early payments on MTN amounting to Rp200 billion through refinancing of UOB with the term of the agreement for 2 year. iii. Promissory Notes Supplier Currency Principal Issuance date Principal payment schedule Interest payment period Interest rate per annum PT Huawei a US 0.2 April 30, 2013 - Semi-annually 6 months LIBOR+1.5 ZTE US 0.1 August 20, 2009 b February 4, 2017 Semi-annually 6 months LIBOR+1.5s In original currency a Has been fully paid on July 30, 2016 b Based on the latest amendment on August 15, 2011 Based on Agreement of Frame Supply and Deferred Payment Arrangement between the Company, ZTE and PT Huawei, the promissory notes issued by the Company to ZTE and PT Huawei are vendor financing facilities with no collateral covering 85 of Hand-over Report Berita Acara Serah Terima projects with ZTE and PT Huawei. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 56

16. LONG-TERM LOANS AND OTHER BORROWINGS continued