SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued z. Provision

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 36

4. OTHER CURRENT FINANCIAL ASSETS

The breakdown of other current financial assets is as follows: 2016 2015 Balance Balance Currency Original currency in millions Rupiah equivalent Original currency in millions Rupiah equivalent Time deposits Related parties BNI Rp - 63 - - Bank Mandiri US - - 20 278 Third parties UOB US 1 13 - - SCB US - - 1 11 Total time deposits 76 289 Available-for-sale financial assets Related parties PT Bahana TCW Investment Mangement ”Bahana TCW” Rp - 559 - 55 PT Mandiri Manajemen Investasi Rp - 500 - - State-owned enterprises US 4 55 4 59 Government US 2 27 2 29 Sub-total 1,141 143 Third parties Rp - 17 - 17 Total available-for-sale financial assets 1,158 160 Escrow accounts Rp - 112 - 2,121 US 2 22 3 41 Others Rp - 98 - 192 US - - 1 AUD 5 1 14 Total 1,471 2,818 The time deposits have maturities of more than three months but not more than one year, with interest rates as follows: 2016 2015 Rupiah 5.75-6.00 - Foreign currencies 0.58-1.64 0.85-0.88 Refer to Note 31 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, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 37

5. TRADE RECEIVABLES

Trade receivables arise from services provided to both retail and non-retail customers, with details as follows: a. By debtor i Related parties 2016 2015 Indonusa 431 342 PT Indosat Tbk “Indosat” 370 361 State-owned enterprises 151 270 Others 348 378 Total 1,300 1,351 Provision for impairment of receivables 406 247 Net 894 1,104 ii Third parties 2016 2015 Individual and business subscribers 7,801 8,020 Overseas international carriers 1,252 1,194 Total 9,053 9,214 Provision for impairment of receivables 2,584 2,801 Net 6,469 6,413 b. By age i Related parties 2016 2015 Up to 3 months 690 772 3 to 6 months 39 61 More than 6 months 571 518 Total 1,300 1,351 Provision for impairment of receivables 406 247 Net 894 1,104 ii Third parties 2016 2015 Up to 3 months 5,566 5,816 3 to 6 months 658 522 More than 6 months 2,829 2,876 Total 9,053 9,214 Provision for impairment of receivables 2,584 2,801 Net 6,469 6,413 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 38

5. TRADE RECEIVABLES continued

b. By age continued iii Aging of total trade receivables 2016 2015 Gross Provision for impairment of receivables Gross Provision for impairment of receivables Not past due 4,535 177 4,353 266 Past due up to 3 months 1,721 401 2,235 202 Past due more than 3 to 6 months 697 495 583 216 Past due more than 6 months 3,400 1,917 3,394 2,364 Total 10,353 2,990 10,565 3,048 The Group has made provision for impairment of trade receivables based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit history. The Group does not apply a distinction between related party and third party receivables in assessing amounts past due. As of December 31, 2016 and 2015, the carrying amounts of trade receivables of the Group considered past due but not impaired amounted to Rp3,005 billion and Rp3,430 billion, respectively. Management believes that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are due from customers with good credit history and are expected to be recoverable. c. By currency i Related parties 2016 2015 Rupiah 1,300 1,328 U.S. dollar 23 Others Total 1,300 1,351 Provision for impairment of receivables 406 247 Net 894 1,104 ii Third parties 2016 2015 Rupiah 7,565 7,761 U.S. dollar 1,437 1,436 Australian dollar 40 14 Others 11 3 Total 9,053 9,214 Provision for impairment of receivables 2,584 2,801 Net 6,469 6,413