CONTINGENCIES continued Borrowings and other credit facilities

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 110

44. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued a. Foreign exchange risk continued The following table presents the Company and subsidiaries’ financial assets and financial liabilities exposure to foreign currency risk: March 31, 2014 December 31, 2013 U.S. dollar Japanese yen U.S. dollar Japanese yen in billions in billions in billions in billions Financial assets 0.49 0.00 0.48 0.00 Financial liabilities 0.51 9.08 0.48 8.47 Net exposure 0.02

9.08 0.00

8.47 Sensitivity analysis A strengthening of the U.S.dollar and Japanese yen, as indicated below, against the rupiah at March 31, 2014 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company and subsidiaries considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant. Equityloss March 31, 2014 U.S. dollar 1 strengthening 3 Japanese yen 5 strengthening 51 A weakening of the U.S.dollar and Japanese yen against the rupiah at March 31, 2014 would have had an equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant. b. Market price risk The Company and subsidiaries are exposed to changes in debt and equity market prices related to available-for-sale investments carried at fair value. Gains and losses arising from changes in the fair value of available-for-sale investments are recognized in equity. The performance of the Company andsubsidiaries’ available-for-sale investments is monitored periodically, together with a regular assessment of their relevance to the Company and subsidiaries’ long-term strategic plans. As of March 31, 2014, management considered the price risk for the Company’s available-for- sale investments to be immaterial in terms of the possible impact on profit or loss and total equity from a reasonably possible change in fair value. c. Interest rate risk Interest rate fluctuation is monitored to minimize any negative impact to financial position. Borrowings at variable interest rates expose the Company and subsidiaries to interest rate risk Notes 17, 18, 19, 20 and 21. To measure market risk pertaining to fluctuations in interest rates, the Company and subsidiaries primarily use interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate.