FINANCIAL RISK MANAGEMENT continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 106

43. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued e. Liquidity risk Liquidity risk arises in situations where the Company and its subsidiaries have difficulties in fulfilling financial liabilities when they become due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents in order to fullfil the Company and its subsidiaries’ financial liabilities. The Company and its subsidiaries continuously perform an analysis to monitor financial position ratios, among other things, liquidity ratios, debt equity ratios against debt covenant requirements. The following is the maturity analysis of the Company and its subsidiaries financial liabilities: Carrying Contractual 2016 and amount cash flows 2012 2013 2014 2015 thereafter June 30, 2012 Trade and other payables 8,139 8,139 8,139 - - - - Accrued expenses 4,618 4,618 4,618 - - - - Loan and other borrowing Bank loans 11,679 12,319 3,564 3,311 3,591 1,267 586 Obligations under finance leases 475 587 241 166 81 43 56 Two-step loans 2,174 2,708 332 144 282 275 1,675 Bonds and notes 3,856 5,771 791 351 450 1,265 2,914 Total 30,941 34,142 17,685 3,972 4,404 2,850 5,231

2. Fair value of financial assets and financial liabilities

a. Fair value measurement Fair value is the amount for which an asset could be exchanged, or liability settled, in an arms-length transaction. The Company and its subsidiaries determined the fair value measurement for disclosure purposes of each class of financial assets and financial liabilities based on the following methods and assumptions: i The fair values of short-term financial assets and financial liabilities with maturities of one year or less cash and cash equivalents, trade receivables, other receivables, other current assets, trade payables, other payables, dividend payables, accrued expenses, advance from customers and suppliers, and short term bank loans are considered to approximate their carrying amounts as the impact of discounting is not significant ii Available-for-sale financial assets are primarily comprised of shares, mutual funds and Corporate and Government bonds. Shares and mutual funds actively traded in an established market are stated at fair value using quoted market price or if unquoted, determined using a valuation technique. Corporate and Government bonds are stated at fair value by reference to prices of similar securities at the reporting date. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 107

43. FINANCIAL RISK MANAGEMENT continued