TRADE RECEIVABLES FS English YE 2016 Audited PT Telekomunikasi Indonesia Tbk

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 41

8. LONG-TERM INVESTMENTS continued

2015 Percentage of ownership Beginning balance Additions Deductions Share of net loss profit of associated company Dividend Share of other comprehensive income of associated company Ending balance Long-term investments in associated companies: Tiphone a 24.65 1,392 - 32 18 2 1,404 Indonusa b 20.00 221 - - - - 221 Teltranet c 51.00 52 43 24 - - 71 Melon d 51.00 43 - 7 - - 50 ILCS e 49.00 38 - 2 - - 40 Telin Malaysia f 49.00 6 19 19 - 6 CSM g 25.00 - - - - - - Sub-total 1,752 62 2 18 2 1,792 Other long-term investments 15 - - - - 15 Total long-term investments 1,767 62 2 18 2 1,807 Summarized financial information of the Group’s investments accounted under the equity method for 2015: Tiphone Indonusa Teltranet Melon ILCS Telin Malaysia CSM Statements of financial position Current assets 6,539 501 117 131 105 18 185 Non-current assets 1,261 333 58 27 32 10 1,221 Current liabilities 1,657 535 35 57 54 17 731 Non-current liabilities 3,073 568 1 2 1 - 1,535 Equity deficit 3,070 269 139 99 82 11 860 Statements of profit or loss and other comprehensive income Revenues 22,060 599 201 111 6 164 Operating expenses 21,295 559 72 184 108 40 364 Other income expenses including finance costs - net 265 82 9 2 3 74 Profit loss before tax 500 42 63 19 3 37 274 Income tax expense 130 - 16 5 - - Profit loss for the year 370 42 47 14 3 37 274 Other comprehensive income loss 7 - - - - Total comprehensive income for the year 363 42 47 14 3 37 274 a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers, repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion. As of December 31, 2016 and 2015, the fair value of investment amounting to Rp1,500 billion and Rp1,351 billion, respectively. The fair value was calculated by multiplying number of shares by the published price quotation as of December 31, 2016 and 2015 amounting to Rp855 and Rp770 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2016 and 2015 is as follows: 2016 2015 Assets 8.452 7,800 Liabilities 5.010 4,730 Net assets 3,442 3,070 Group’s proportionate share of net assets 24.43 in 2016 and 24.65 in 2015 841 757 Goodwill 647 647 Carrying amount of long-term investment 1,488 1,404 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 42

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 has 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 Melon previously was an associate. In 2016, the Company purchased Melon 52 stake through Metranet, thus becoming 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. 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 dan 2015 amounting to Rp219 billion and Rp215 billion, respectively.

9. PROPERTY AND EQUIPMENT

January 1, 2016 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 January 1, 2016 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