Management Report on Internal Control over Financial Reporting

250 PT Telkom Indonesia Persero Tbk executed by the Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of inancial reporting and the preparation of Consolidated Financial Statements for external purposes in accordance with International Financial reporting Standards as issued by the International Accounting Standards Board, and includes those policies and procedures that 1 pertain to the maintenance of records that, in reasonable detail, accurately and fairly relect the transactions and dispositions of the assets of the Company, 2 provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated inancial statements in accordance with International Financial reporting Standards as issued by the International Accounting Standards Board, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Company’s management and Board of Directors, and 3 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material efect on the Consolidated Financial Statements. Because of its inherent limitations, internal control over inancial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of efectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The management has assessed the efectiveness of the company’s internal control over inancial reporting as of December 31, 2015. In making this assessment the management used the criteria set forth in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission “COSO”. Based on this assessment, management concluded that as of December 31, 2015, our internal control over inancial reporting was efective.

2. Attestation Report of the Registered Public Accounting Firm

The efectiveness of our internal control over inancial reporting as of December 31, 2015 has been audited by KAP Purwantono, Sungkoro Surja previously Purwantono, Suherman Surja, an independent registered public accounting irm, as stated in their report which appears on the Consolidated Financial Statements.

2. Changes in Internal Control over Financial Reporting

There have been no signiicant changes in our Company’s internal control over inancial reporting during the most recently completed iscal year that would materially afect or are reasonably likely to materially afect, our Company’s internal control over inancial reporting. We are committed to continual improvements in internal control processes, and will continue to review and monitor the control over inancial reporting and its procedures in order to ensure compliance with the requirements of Sarbanes-Oxley Act and related regulations as stipulated by COSO. We will also continue to assign signiicant company resources from time to time to improve its internal control over inancial reporting. INTERNAL AUDIT UNIT STRUCTURE AND POSITION OF THE INTERNAL AUDIT UNIT As set forth in the applicable capital market regulations, IA is a unit that is independent of other work units and is directly responsible to the President Director. 251 PT Telkom Indonesia Persero Tbk Below is a chart of the organizational structure of the Telkom Internal Audit. president Director sVp Internal Auditor Harry Suseno Hadisoebroto Vp Infrastructure Operations Audit Dani Ramdani Vp Enterprise Management Audit Heru Muara Sidik Vp support subsidiary Audit Budhi Santoso Chief Expert strategic Advisor Audit Board of Commissioner The aforementioned Vision and Mission of the IA is applied in the form of IA activities that are organized in a systematic and measured manner, and in accordance with the applicable standards ranging from preparation, implementation and monitoring of the follow-up results. To this end, during the audit preparation phase, risk- based audit methodology is the main guideline which emphasizes that determining the proper audit unit auditable is based on the level of risk; the higher the risk, the higher the need for auditing. The risk level of the audit object auditor is based on the risks that have been mapped and determined by the Company as well as the professional assessment by the IA itself. Duties And Responsibilities The risk-based audit paradigm, in carrying out its duties and responsibilities, have used the IA Audit Management System AMS, which is an application system for documenting the implementation of risk- based audits online. Increasing the role of IA is done by improving quality assurance for the company’s operations through audit and non-audit activities. Audits are conducted to ensure that business risks that may occur can be addressed through efective internal controls. If deiciencies are found in the control of a business process andor the risk of spiraling out of control, then a substantive test is conducted, namely a further testing of the audit object in order to explore root causes. Moreover, as a consequence of listing of shares on the Indonesian Stock Exchange BEI and the New york Stock Exchange NySE, IA periodically carries out tests and audits of the efectiveness and adequacy of internal INTERNAL AUDIT CHARTER Telkom IA unit has been equipped with the Internal Audit Charter as a formal company document, which contains a description of the vision, mission, structure, status, tasks, responsibilities and authority of the IA, including requirements for IA auditor personnel. The drafting of the Internal Audit Charter is guided by international standards for the practice of the internal auditing profession issued by the Institute of Internal Auditors “IIA”, and has been approved by the President Director and the Audit Committee of the Board of Directors based on decision No.Tel. 09PW 000UTACOP-C00000002015 regarding the Internal Audit Charter. VISION, MISSION, TASKS AND RESPONSIBILITIES OF INTERNAL AUDIT Vision As a “Smart Partner” for Management, Business Unitwork Unit and subsidiaries in order to achieve the Company’s objectives as well as a driving force for the whole range of the Company and its subsidiaries in order to create a culture of discipline in implementing all provisions of the applicable legislationpolicyregulationsprocedures business processes. Mission 1. Provide services and internal audit consulting in a professional, objective and independent manner for Management, Business Unitwork Unit, and subsidiaries. 2. Provide assurance on the suitability of inancial reporting. 3. Actively guarding the implementation of internal control, providing support in raising GCG implementation, and evaluating the implementation of risk management.