0.10 FINANCIAL RISK MANAGEMENT continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 113

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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, between knowledgeable, willing parties in an arms-length transaction. The Company and 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. iii The fair values of long-term financial liabilities are estimated by discounting the future contractual cash flows of each liability at rates offered to the Company and subsidiaries for similar liabilities of comparable maturities by the bankers of the Company and subsidiaries, except for bonds which are based on market prices. The fair value estimates are inherently judgmental and involve various limitations, including: a. Fair values presented do not take into consideration the effect of future currency fluctuations. b. Estimated fair values are not necessarily indicative of the amounts that the Company and subsidiaries would record upon disposaltermination of the financial assets and liabilities. b. Classification and fair value The following table presents the carrying value and estimated fair values of the Company and subsidiaries financial assets and liabilities based on their classifications: June 30, 2013 Other Total Loans and Available for financial carrying Fair Trading receivables sale liabilities amount value Cash and cash equivalents - 11,551 - - 11,551 11,551 Other current financial assets - 383 313 - 695 695 Trade and other receivables, net - 7,139 - - 7,139 7,139 Long-term investments - - 21 - 21 21 Advances and other non-current assets - 455 - - 455 455 Total financial assets - 19,528 334 - 23,447 19,862 Trade and other payables - - - 8,472 8,472 8,472 Accrued expenses - - - 5,622 5,622 5,622 Loans and other borrowings Short-term bank loans - - - 257 257 257 Obligations under finance leases - - - 3,306 3,306 3,306 Two-step loans - - - 1,798 1,798 1,832 Bonds and notes - - - 3,447 3,447 3,588 Long-term bank loans - - - 11,057 11,057 11,018 Total financial liabilities - - - 33,959 33,959 34,095 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 114

44. FINANCIAL RISK MANAGEMENT continued