ADVANCES AND PREPAID EXPENSES June 30, 2017 LONG-TERM INVESTMENTS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 42

8. LONG-TERM INVESTMENTS continued

b Indonusa had been a subsidiary of the Company until 2013 when the Company disposed 80 of its interest in Indonusa. On May 14, 2014, based on the Circular Resolution of the Stockholders of Indonusa as covered by notarial deed No. 57 dated April 23, 2014 of FX Budi Santoso Isbandi, S.H., which was approved by the MoLHR in its Letter No. AHU- 02078.40.20.2014 dated April 29, 2014, Indonusa’s stockholders approved an increase in its issued and fully paid capital by Rp80 billion. The Company waived its right to own the new shares issued and transferred it to Metra and, as a result, Metra’s ownership in Indonusa increased to 4.33. c Investment in Teltranet is accounted for under the equity method, which covered by an agreement between Metra and Telstra Holding Singapore Pte. Ltd. dated August 29, 2014. Teltranet is engaged in communication system services. Metra does not have control as it does not determine the financial and operating policies of Teltranet. d Melon previously was an associated company. In 2016, the Group purchased 49 state in Melon through Metranet this Melon became a consolidated subsidiary Note 1d e ILCS is engaged in providing E-trade logistic services and other related services. f Telin Malaysia is engaged in telecommunication services in Malaysia. The unrecognized share of losses of Telin Malaysia for the year ended June 30, 2017 is Rp8 billion. g CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. The unrecognized share of losses of CSM for the year ended December 31, 2016 is Rp219 billion.

9. PROPERTY AND EQUIPMENT

January 1, 2017 Additions Deductions Reclassifications Translations June 30, 2017 At cost: Directly acquired assets Land rights 1,417 12 - - 1,429 Buildings 7,837 8 - 309 8,154 Leasehold improvements 1,116 16 21 42 1,153 Switching equipment 20,490 163 864 414 20,203 Telegraph, telex and data communication equipment 1,586 - - 3 1,583 Transmission installation and equipment 121,552 701 1,084 6,680 127,849 Satellite, earth station and equipment 8,445 40 - 3,340 11,825 Cable network 44,791 2,148 167 83 46,689 Power supply 15,022 26 170 669 15,547 Data processing equipment 12,515 35 164 573 12,959 Other telecommunications peripherals 700 96 - - 796 Office equipment 1,453 79 29 91 1,412 Vehicles 387 48 3 6 438 Other equipment 100 - - 1 99 Property under construction 4,550 9,479 76 8,859 5,094 Assets under finance lease Transmission installation and equipment 5,354 182 - 20 5,516 Data processing equipment 84 - 52 - 32 Vehicles 135 16 - 1 150 Office equipment 76 - - - 76 CPE assets 22 - - - 22 Power supply 215 - - - 215 RSA assets 252 - - - 252 Total 248,099 13,049 2,630 2,975 261,493 January 1, 2017 Additions Deductions Reclassifications Translations June 30, 2017 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 2,435 158 - 5 2,588 Leasehold improvements 692 71 19 - 744 Switching equipment 16,650 699 862 5 16,482 Telegraph, telex and data communication equipment 333 179 - - 512 Transmission installation and equipment 62,302 5,108 993 30 66,387 Satellite, earth station and equipment 7,098 255 - 1 7,352 Cable network 20,301 829 166 121 20,843 Power supply 10,164 613 113 4 10,660 Data processing equipment 9,468 625 152 - 9,941 Other telecommunications peripherals 461 48 - - 509 Office equipment 846 88 21 3 910 Vehicles 168 31 2 2 195 Other equipment 99 - - - 99 Assets unde finance lease Transmission installation and equipment 2,054 289 - - 2,343 Data processing equipment 44 15 - - 59 Vehicles 32 14 - - 46 Office equipment 94 18 41 - 71 CPE assets 19 1 - - 20 Power supply 98 11 - - 109 RSA assets 243 6 - - 249 Total 133,601 9,058 2,369 171 140,119 Net Book Value 114,498 121,374 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 43

9. PROPERTY AND EQUIPMENT continued

January 1, 2016 Acquisition Additions Deductions Reclassifications Translations December 31, 2016 At cost: Directly acquired assets Land rights 1,270 89 59 1 - 1,417 Buildings 6,033 10 311 3 1,486 7,837 Leasehold improvements 1,036 - 13 37 104 1,116 Switching equipment 19,823 - 218 160 609 20,490 Telegraph, telex and data communication equipment 876 - 751 41 - 1,586 Transmission installation and equipment 119,047 - 2,603 11,319 11,221 121,552 Satellite, earth station and equipment 8,146 - 80 - 219 8,445 Cable network 37,887 - 6,746 302 460 44,791 Power supply 13,822 - 161 77 1,116 15,022 Data processing equipment 11,351 12 318 82 916 12,515 Other telecommunications peripherals 632 - 73 - 5 700 Office equipment 1,062 5 139 12 259 1,453 Vehicles 475 - 60 147 1 387 Other equipment 99 - 1 - - 100 Property under construction 4,580 - 17,169 - 17,199 4,550 Assets under finance lease Transmission installation and equipment 5,940 - 229 815 - 5,354 Data processing equipment 63 - 77 56 - 84 Vehicles 94 - 63 22 - 135 Office equipment 73 - 3 - - 76 CPE assets 22 - - - - 22 Power supply 90 - 125 - - 215 RSA assets 252 - - - - 252 Total 232,673 116 29,199 13,074 815 248,099 January 1, 2016 Acquisition Additions Deductions Reclassifications Translations December 31, 2016 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 2,141 - 290 2 6 2,435 Leasehold improvements 623 - 106 37 - 692 Switching equipment 15,223 - 1,588 160 1 16,650 Telegraph, telex and data communication equipment 4 - 329 - - 333 Transmission installation and equipment 63,063 - 9,957 10,686 32 62,302 Satellite, earth station and equipment 6,706 - 415 - 23 7,098 Cable network 19,524 - 1,534 302 455 20,301 Power supply 9,114 - 1,145 70 25 10,164 Data processing equipment 8,503 - 1,067 62 40 9,468 Other telecommunications peripherals 385 - 77 - 1 461 Office equipment 713 - 141 11 3 846 Vehicles 166 - 69 66 1 168 Other equipment 99 - - - - 99 Assets unde finance lease Transmission installation and equipment 2,327 - 542 815 - 2,054 Data processing equipment 53 - 47 56 - 44 Vehicles 13 - 19 - - 32 Office equipment 51 - 43 - - 94 CPE assets 17 - 2 - - 19 Power supply 18 - 80 - - 98 RSA assets 230 - 13 - - 243 Total 128,973 - 17,464 12,267 569 133,601 Net Book Value 103,700 114,498