TRADE RECEIVABLES continued FS 30 Sep 11 Tlkm english

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 47

7. INVENTORIES December 31, September 30,

2010 2011 Modules 292,924 305,261 Components 158,479 203,104 SIM cards, RUIM cards, set top box and prepaid voucher blanks 147,419 123,478 Total 598,822 631,843 Allowance for obsolescence Modules 76,264 86,103 Components 6,937 7,017 SIM cards, RUIM cards, set top box and prepaid voucher blanks 85 97 Total 83,286 93,217 Net 515,536 538,626 Movements in the allowance for obsolescence are as follows: December 31, September 30, 2010 2011 Beginning balance 72,174 83,286 Additions Note 36 15,345 13,639 Inventories write-off 4,233 3,708 Ending balance 83,286 93,217 Components and modules represent telephone terminals, cables, transmission installation spare parts and other spare parts. Management believes that the allowance is adequate to cover losses from decline in inventory value due to obsolescence. Certain inventories of the Company’s subsidiaries have been pledged as collateral for lending agreements Notes 18 and 22. As of December 31, 2010 and September 30, 2011, modules and components held by the Company have been insured against fire, theft and other specific risks with the total sum insured as of December 31, 2010 and September 30, 2011 is amounting to Rp.128,367 million and Rp.218,237 million, respectively Note 44d.vii. Modules and components held by a certain subsidiary have been insured against all industrial risks and loss risk during delivery with the total sum insured as of December 31, 2010 and September 30, 2011 amounting to Rp.15,406 million and Rp.6,650 million, respectively. Management believes that the insurance coverage is adequate to cover potential losses of the insured inventories. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 48

8. ADVANCES AND PREPAID EXPENSES December 31, September 30,

2010 2011 Rental 741,200 841,985 Frequency license Notes 48c.i and 48c.iii 2,393,639 695,883 Salaries 141,712 487,687 Advances 66,127 165,491 Insurance 1,513 124,489 Telephone directory issuance costs 29,558 36,877 Others 67,282 145,470 Total 3,441,031 2,497,882 Refer to Note 44 for details of related party transactions. 9. OTHER CURRENT ASSETS Other current assets as of December 31, 2010 and September 30, 2011, consists of: December 31, September 30, 2010 2011 Asets held for sale - 1,013,188 Restricted time deposits Metra BNI 593 593 Bank Mandiri 235 235 BRI 347 - TII Bank Mandiri - 264 Total 1,175 1,014,280 Asets held for sale represents equipment to be sold to Nokia Siemens Network Oy and PT Huawei Tech Investment with a total agreed price of US117.6 million Notes 11d.viii and 48a. The amount will be used as a part of settlement for purchase of equipment from those companies. The restricted time deposits represent time deposits of the Company’s and certain subsidiaries’ pledged as collateral for bank guarantees to the respective banks. Refer to Note 44 for details of related party transactions.