CASH AND CASH EQUIVALENTS 2014

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 47

6. TRADE RECEIVABLES continued

c. By currency continued ii Third parties 2014 2013 Rupiah 7,475 6,699 U.S. dollar 903 806 Australian dollar 31 - Euro 3 1 Hong Kong dollar 1 1 Total 8,413 7,507 Provision for impairment of receivables 2,694 2,381 Net 5,719 5,126 d. Movements in the provision for impairment of receivables 2014 2013 Beginning balance 2,872 2,047 Provision recognized during the year Note 29 784 1,589 Receivables written-off 560 622 Acquisition - 1 Divestment Note 3 - 158 Reclassification - 15 Ending balance 3,096 2,872 The receivables written off are related-party and third-party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover losses on uncollectible trade receivables. As of December 31, 2014, certain trade receivables of the subsidiaries amounting to Rp2,571 billion have been pledged as collateral under lending agreements Notes 17, 20 and 21. Refer to Note 37 for details of related party transactions. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 48

7. INVENTORIES 2014

2013 Components 279 272 SIM cards, RUIM cards, set top boxes, and blank prepaid vouchers 105 102 Others 133 157 Total 517 531 Provision for obsolescence Components 15 21 SIM cards, RUIM cards, set top boxes, and blank prepaid vouchers 28 1 Others - Total 43 22 Net 474 509 Movements in the provision for obsolescence are as follows: 2014 2013 Beginning balance 22 148 Provision reversal recognized during the year 39 29 Inventory write off 18 - Reclassification - 96 Divestment Note 3 - 1 Ending balance 43 22 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 as of December 31, 2014 and 2013 amounted to Rp1,031 billion and Rp752 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp57 billion have been pledged as collateral under lending agreements Notes 17 and 21. As of December 31, 2014 and 2013, modules and components held by the Group has been insured against fire, theft, and other specific risks with book value amounting to Rp237 billion and Rp280 billion, respectively. Modules are recorded as part of property and equipment. Total sum insured as of December 31, 2014 and 2013 amounted to Rp266 billion and Rp261 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Group.