Tariff for other services Capital expenditures

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 102

34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued

The above balance includes the following significant agreements: ii Telkomsel Contracting parties Initial date of agreement Significant provisions of the agreement Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, NSN Oy and Nokia Siemens Network GmbH Co. KG April 17, 2008 The combined 2G and 3G CS Core Network Rollout Agreement Telkomsel, PT Ericsson Indonesia and PT Nokia Siemens Networks April 17, 2008 Technical Service Agreement TSA for combined 2G and 3G CS Core Network Telkomsel, PT Ericsson Indonesia, Ericsson AB, PT Nokia Siemens Networks, NSN Oy, Huawei International Pte. Ltd., PT Huawei and PT ZTE Indonesia March and June 2009 2G BSS and 3G UTRAN Rollout agreement for the provision of 2G GSM BSS and 3G UMTS Radio Access Network Telkomsel, PT Dimension Data Indonesia and PT Huawei February 3, 2010 Maintenance and Procurement of Equipment and Related Service Agreement for Next Generation Convergence Core Transport Rollout and Technical Support Telkomsel, Amdocs Software Solutions Limited Liability Company and PT Application Solutions February 8, 2010 Online Charging System “OCS” and Service Control Points “SCP” System Solution Development agreement Telkomsel and PT Application Solutions February 8, 2010 Technical Support Agreement to provide technical support services for the OCS and SCP Telkomsel, Amdocs Software Solutions Limited Liability Company and PT Application Solutions July 5, 2011 Development and Rollout agreement for Customer Relationship Management and Contact Center Solutions Telkomsel and PT Huawei March 25, 2013 Technical Support Agreement for the procurement of Gateway GPRS Support Node “GGSN” Service Complex Telkomsel and Wipro Limited, Wipro Singapore Pte. Ltd. and PT WT Indonesia April 23, 2013 Development and procurement of OSDSS Solution agreement Telkomsel and PT Ericsson Indonesia October 22, 2013 Procurement of GGSN Service Complex Rollout agreement Telkomsel and PT Dimension Data Indonesia May 25, 2016 Maintenance and Procurement of Equipment and Related Service Agreement for Next Generation Convergence RAN Transport Rollout

b. Borrowings and other credit facilities

i As of June 30, 2017, the Company has bank guarantee facilities for tender bond, performance bond, maintenance bond, deposit guarantee and advance payment bond for various projects of the Company, as follows: Facility utilized Lenders Total facility Maturity Currency Original currency in millions Rupiah equivalent BRI 350 March 14, 2018 Rp - 41 US BNI 500 March 31, 2018 Rp - 107 US 1 Bank Mandiri 300 December 23, 2017 Rp - 98 US Total 1,150 247 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 103 34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities continued ii Telkomsel has US3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities expire on July 31, 2017. Under these facilities, as of December 31, 2016, Telkomsel has issued a bank guarantee of Rp20 billion equivalent to US1.5 million for a 3G performance bond Note 34c.i. The bank guarantee is valid until March 24, 2016. As of the date of approval and authorization for issuance of these consolidated financial statements, the bank guarantee has not been extended. Telkomsel has a Rp500 billion bank guarantee facility with BRI. The facility will expire on September 25, 2017. Under this facility, as of June 30, 2017, Telkomsel has issued a bank guarantee of Rp472 billion equivalent to US35 million as payment for commitment guarantee for annual right of usage fee valid until March 31, 2018 and Rp20 billion equivalent to US1.5 million for a 3G performance guarantee valid until April 1, 2018. Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 2018. Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire on December 11, 2017. Telkomsel uses this facility to replace the time deposit required as guaranty for the USO program amounting to Rp52 billion Note 34c.iv. On January 18, 2017, pursu ant to the expiry of the 2015’s overdraft agreement, the Company and Deutsche Bank agreed to extend the agreement for total facilities up to Rp 750 billion which valid until December 31, 2017. The Company used this facility for overdraft and bank guarantees. iii TII has a US15 million bank guarantee from Bank Mandiri. The facility will expire on December 18, 2017. The outstanding bank guarantee facility as of June 30, 2017 amounting to US10 million equivalent to Rp134 billion.

c. Others

i 3G license With reference to the Decision Letters No. 07PERM.KOMINFO22006, No. 268KEPM.KOMINFO92009 and No. 191 year 2013 of the MoCI Note 2i, Telkomsel is required, among other things, to: 1. Pay an annual BHP fee which is calculated based on a certain formula over the license term 10 years as set forth in the Decision Letters. The BHP is payable upon receipt of the notification letter “Surat Pemberitahuan Pembayaran” from the DGPI. The BHP fee is payable annually up to the expiry date of the license. 2. Provide roaming access for the existing other 3G operators.

3. Contribute to USO development.

4. Construct a 3G network which covers at least 14 provinces by the sixth year of holding the 3G license. 5. Issue a performance bond each year amounting to Rp20 billion or 5 of the annual fee to be paid for the subsequent year, whichever is higher.