TREASURY STOCK continued OTHER EQUITY June 30, 2017

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 65

23. PERSONNEL EXPENSES

The breakdown of personnel expenses is as follows: 2017 2016 Salaries and related benefits 3,891 3,628 Vacation pay, incentives and other benefits 1,641 1,542 Pension benefit cost Note 29 687 619 Early retirement program - 200 Net periodic post-employment health care benefit cost Note 29 151 91 Other employee benefit cost Note 29 31 23 Long Service Awards “LSA” expense Note 30 60 53 Other post-employment benefit cost Note 29 21 24 Others 233 225 Total 6,715 6,405 Refer to Note 31 for details of related party transactions.

24. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES

The breakdown of operation, maintenance and telecommunication service expenses is as follows: 2017 2016 Operation and maintenance 10,257 8,771 Radio frequency usage charges Notes 34c.i and 34c.ii 2,029 1,939 Cost of IT services 1,289 780 Leased lines and CPE 1,270 1,519 Concession fees and USO charges 1,103 1,100 Cost of handset sold Note 6 732 735 Cost of SIM cards and vouchers Note 6 536 280 Electricity, gas and water 403 463 Project Management 210 90 Tower leases 209 202 Vehicles rental and supporting facilities 140 136 Insurance 82 120 Others 148 39 Total 18,408 16,174 Refer to Note 31 for details of related party transactions.

25. GENERAL AND ADMINISTRATIVE EXPENSES

The breakdown of general and administrative expenses is as follows: 2017 2016 General expenses 795 740 Provision for impairment of receivables Note 5d 325 149 Training, education and recruitment 241 190 Travelling 224 185 Professional fees 199 290 Meeting 115 93 Social contribution 102 60 Collection expenses 67 91 Others 135 140 Total 2,203 1,938 Refer to Note 31 for details of related party transactions. 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 66

26. TAXATION

a. Claims for tax refund June 30, 2017 December 31, 2016 The Company Value Added Tax “VAT” Note 26e.i 1,428 335 Corporate income tax 578 473 Subsidiaries Corporate income tax 329 66 VAT 234 1,146 Total claims for tax refund 2,569 2,020 Current portion 267 592 Non-current portion 2,302 1,428 b. Prepaid taxes June 30, 2017 December 31, 2016 The Company Income tax Article 19 - Revaluation of fixed assets Note 26f 538 538 VAT 91 1,075 Subsidiaries Corporate income tax 103 62 VAT 2,743 1,639 Income tax Article 22 - Withholding tax on goods delivery and imports 3 - Article 23 - Withholding tax on services 153 52 Total prepaid taxes 3,631 3,366 Current portion 3,248 2,138 Non-current portion 383 1,228 c. Taxes payable June 30, 2017 December 31, 2016 The Company Income taxes Article 4 2 - Final tax 23 29 Article 21 - Individual income tax 225 141 Article 22 - Withholding tax on goods delivery and imports 2 2 Article 23 - Withholding tax on services 21 42 Article 25 - Installment of corporate income tax 1 - Article 26 - Withholding tax on non-resident income 7 136 VAT VAT as Tax Collector 234 297 513 647