LONG-TERM INVESTMENTS continued FS English Q1 2017 FINAL

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 41

8. LONG-TERM INVESTMENTS continued

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 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 by an agreement between Metra and Telstra Holding Singapore Pte. Ltd. dated 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 In 2015, Metra does not have control over Melon due to the existence of substantive participating rights held by the other venture over the financial and operating policies of Melon. In 2016, the Group purchased 49 state in Melon from SK Planet Co. through Metranet this Melon became a consolidated subsidiary Note 1d e ILCS is engaged in providing E-trade logistic services and other related services. f Telin Malaysia is engaged in telecommunication services in Malaysia. The unrecognized share of losses of Telin Malaysia for the year ended December 31, 2016 is Rp2billion. 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, 2016 is Rp219 billion.

9. PROPERTY AND EQUIPMENT

December 31, 2016 Additions Deductions Reclassifications Translations March 31, 2017 At cost: Directly acquired assets Land rights 1,417 8 - - 1,425 Buildings 7,837 7 - 9 7,835 Leasehold improvements 1,116 - 11 21 1,126 Switching equipment 20,490 21 68 113 20,556 Telegraph, telex and data communication equipment 1,586 - - 21 1,565 Transmission installation and equipment 121,552 472 553 2,850 124,321 Satellite, earth station and equipment 8,445 23 - 50 8,518 Cable network 44,791 625 100 110 45,426 Power supply 15,022 15 139 368 15,266 Data processing equipment 12,515 91 108 167 12,665 Other telecommunications peripherals 700 - - 11 689 Office equipment 1,453 29 5 98 1,379 Vehicles 387 1 2 6 392 Other equipment 100 - - - 100 Property under construction 4,550 4,709 3 3,973 5,283 Assets under finance lease Transmission installation and equipment 5,354 65 - - 5,419 Data processing equipment 84 - - - 84 Vehicles 135 - - - 135 Office equipment 76 - - - 76 CPE assets 22 - - - 22 Power supply 215 - - - 215 RSA assets 252 - - - 252 Total 248,099 6,066 989 427 252,749 December 31, 2016 Additions Deductions Reclassifications Translations March 31, 2017 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 2,435 77 - 4 2,508 Leasehold improvements 692 35 9 - 718 Switching equipment 16,650 378 66 1 16,961 Telegraph, telex and data communication equipment 333 93 - - 426 Transmission installation and equipment 62,302 2,520 500 40 64,282 Satellite, earth station and equipment 7,098 103 - - 7,201 Cable network 20,301 443 99 64 20,581 Power supply 10,164 304 86 3 10,379 Data processing equipment 9,468 296 96 - 9,668 Other telecommunications peripherals 461 23 - - 484 Office equipment 846 46 4 4 884 Vehicles 168 15 2 2 179 Other equipment 99 - - - 99 Assets unde finance lease Transmission installation and equipment 2,054 141 - - 2,195 Data processing equipment 44 7 - - 51 Vehicles 32 6 - - 38 Office equipment 94 10 - - 104 CPE assets 19 1 - - 20 Power supply 98 6 - - 104 RSA assets 243 3 - - 246 Total 133,601 4,507 862 118 137,128 Net Book Value 114,498 115,621 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 42

9. PROPERTY AND EQUIPMENT continued

December 31, 2015 Acquisition Additions Deductions Reclassifications Translations December 31, 2016 At cost: Directly acquired assets Land rights 1,270 89 59 1 - 1,417 Buildings 6,033 10 311 3 1,486 7,837 Leasehold improvements 1,036 - 13 37 104 1,116 Switching equipment 19,823 - 218 160 609 20,490 Telegraph, telex and data communication equipment 876 - 751 41 - 1,586 Transmission installation and equipment 119,047 - 2,603 11,319 11,221 121,552 Satellite, earth station and equipment 8,146 - 80 - 219 8,445 Cable network 37,887 - 6,746 302 460 44,791 Power supply 13,822 - 161 77 1,116 15,022 Data processing equipment 11,351 12 318 82 916 12,515 Other telecommunications peripherals 632 - 73 - 5 700 Office equipment 1,062 5 139 12 259 1,453 Vehicles 475 - 60 147 1 387 Other equipment 99 - 1 - - 100 Property under construction 4,580 - 17,169 - 17,199 4,550 Assets under finance lease Transmission installation and equipment 5,940 - 229 815 - 5,354 Data processing equipment 63 - 77 56 - 84 Vehicles 94 - 63 22 - 135 Office equipment 73 - 3 - - 76 CPE assets 22 - - - - 22 Power supply 90 - 125 - - 215 RSA assets 252 - - - - 252 Total 232,673 116 29,199 13,074 815 248,099 December 31, 2015 Acquisition Additions Deductions Reclassifications Translations December 31, 2016 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 2,141 - 290 2 6 2,435 Leasehold improvements 623 - 106 37 - 692 Switching equipment 15,223 - 1,588 160 1 16,650 Telegraph, telex and data communication equipment 4 - 329 - - 333 Transmission installation and equipment 63,063 - 9,957 10,686 32 62,302 Satellite, earth station and equipment 6,706 - 415 - 23 7,098 Cable network 19,524 - 1,534 302 455 20,301 Power supply 9,114 - 1,145 70 25 10,164 Data processing equipment 8,503 - 1,067 62 40 9,468 Other telecommunications peripherals 385 - 77 - 1 461 Office equipment 713 - 141 11 3 846 Vehicles 166 - 69 66 1 168 Other equipment 99 - - - - 99 Assets unde finance lease Transmission installation and equipment 2,327 - 542 815 - 2,054 Data processing equipment 53 - 47 56 - 44 Vehicles 13 - 19 - - 32 Office equipment 51 - 43 - - 94 CPE assets 17 - 2 - - 19 Power supply 18 - 80 - - 98 RSA assets 230 - 13 - - 243 Total 128,973 - 17,464 12,267 569 133,601 Net Book Value 103,700 114,498