LONG SERVICE AWARDS “LSA”

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 95 32. RELATED PARTY TRANSACTIONS continued a. Nature of relationships and accountstransactions with related parties continued Details of the nature of relationships and accountstransactions with significant related parties are as follows continued: Nature of Related parties relationships parties Nature of accountstransactions Bank Mandiri Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs BRI Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs BTN Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs PT Bank Syariah Mandiri Entity under common control Internet and data revenue, “BSM” other telecommunication service revenue, and finance costs PT Bank BRI Syariah Entity under common control Internet and data revenue, “BRI Syariah” other telecommunication service revenue, and finance costs Bahana Entity under common control Available-for-sale financial assets, bonds and notes CSM Associated company Satelite transponder usage revenue, network revenue and transmission lease expenses PT Poin Multi Media Nusantara Associated company Purchases of handset “POIN” Yakes Entity under significant influence Medical expense Koperasi Pegawai Telkom Entity under significant Purchase of property and equipment “Kopegtel” influence development and instalation, lease of building Expenses, lease of vehicles, purchase of cars, and purchase of materials and construction service, maintenance and cleaning service expenses, and sahring profit of PBH PT Sandhy Putra Makmur Entity under significant Leases of buildings, leases of vehicles, “SPM” influence purchase of materials and construction services, maintenance and cleaning service expenses Koperasi Pegawai Telkomsel Entity under significant Internet and data revenue, other “Kisel influence telecommunication service revenue, leases of vehicles, printing and distribution of customer bills expenses, collection fee, and other services fee, distribution of SIM cards and pulse reload voucher, purchase of property and equipment PT Graha Informatika Entity under significant Interconnection revenue, installation expense, Nusantara “Gratika” influence maintenance expense, and purchase of property and equipment PT Pembangunan Telekomunikasi Entity under significant Purchase of property and equipment Indonesia “Bangtelindo” influence Directors and commissioners Key management personnel Honorarium and facilities On September 18, 2014, PINs acquire 25 ownership of Tiphone Note 8. POIN is a subsidiary of Tiphone Total balance of accounts receivable and accounts payable at the end of the year free of interest and its completion would occur in the form of cash. There are no guarantees provided or received for any accounts receivable and payable with related parties. In 2015, the Group recorded an impairment of receivables from related parties amounted to Rp280 billion. This assessment is conducted every year to assess the present status of existing receivables and historical collection of accounts receivable ago. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 96

32. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties

The following are significant transactions with related parties: 2016 2015 of of Amount total revenues Amount total revenues REVENUES Majority Stockholder Government 87 0.15 121 0.25 Entities under common control Indosat 579 1.03 480 0.98 BRI 113 0.20 89 0.18 Bank Mandiri 90 0.16 77 0.16 BNI 82 0.15 62 0.13 Lintasarta 52 0.09 43 0.09 PT Garuda Indonesia 49 0.09 38 0.08 KAI 42 0.07 59 0.12 BTN 43 0.08 18 0.04 Pertamina 47 0.08 61 0.12 PT Pegadaian 34 0.06 33 0.07 ICON Plus 28 0.05 - - BSM 16 0.03 14 0.03 PLN 11 0.02 25 0.05 BRI Syariah 3 0.01 3 0.01 Sub-total 1,276 2.27 1,123 2.31 Entities under significant influence Kisel 2,380 4.22 1,683 3.45 Gratika 238 0.42 192 0.39 Sub-total 2,618 4.64 1,875 3.84 Associated companies Indonusa 59 0.10 30 0.06 CSM 17 0.03 19 0.04 Sub-total 76 0.13 49 0.10 Others 180 0.22 245 0.50 Total 4,150

7.26 3.292

6.75 2016

2015 of of Amount total expenses Amount total expenses EXPENSES Entities under common control Indosat 465 1.28 739 2.17 PLN 310 0.85 375 1.10 Jasindo 112 0.31 148 0.44 BPJS 27 0.07 - - PT Pos Indonesia 11 0.03 45 0.13 SJU 6 0.02 5 0.01 PT Inti 5 0.01 3 0.01 Sub-total 936 2.57 1,315 3.86 Entities under significant influence Kisel 604 1.66 395 1.16 Kopegtel 271 0.74 197 0.58 Yakes 82 0.23 42 0.12 SPM - - 4 0.01 Sub-total 957 2.63 638 1.87 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 97

32. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued

The following are significant transactions with related parties: 2016 2015 of of Amount total expenses Amount total expenses Associated companies Indonusa 76 0.21 - - CSM - - 9 0.03 Sub-total 76 0.21 9 0.03 Others 14 0.04 6 0.02 Total 1,983

5.45 1,968

5.78 2016

2015 of total of total Amount finance income Amount finance income FINANCE INCOME Entity under common control State-owned banks 476 53.72 399 66.50 Others 2 0.23 - - Total 478

53.95 399

66.50 2016

2015 of total of total Amount finance costs Amount finance costs FINANCE COSTS Majority stockholder Government 35 2.69 39 3.88 Entity under common control State-owned banks 550 42.28 636 63.35 Total 585

44.97 675

67.23 2016

2015 of total of total Amount purchases Amount purchases PURCHASES OF PROPERTY AND EQUIPMENTS Note 9 Entity under common control INTI 83 0.60 45 0.38 LEN - - 19 0.16 Sub-total 83 0.60 64 0.54 Entities under significant influence Bangtelindo 69 0.50 - - Kopegtel 41 0.30 31 0.26 SPM 34 0.25 - - Gratika - - 33 0.28 Kisel 31 0.23 - - Sub-total 175 1.28 64 0.54 Others - - 20 0.17 Total 258

1.88 148

1.25 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 98

32. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued