LONG SERVICE AWARDS “LSA”

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 91 32. RELATED PARTY TRANSACTIONS continued a. Nature of relationships and accountstransactions with related parties continued Details of the nature of relationships and accountstransactions with significant related parties are as follows continued: Related parties Nature of relationships parties Nature of accountstransactions PT Bank Syariah Mandiri “BSM” Entity under common control Internet and data revenue, other telecommunication service revenue, and finance costs PT Bank BRI Syariah “BRI Syariah” Entity under common control Internet and data revenue, other telecommunication service revenue, and finance costs Bahana Entity under common control Available-for-sale financial assets, bonds and notes CSM Associated company Satelite transponder usage revenue, network revenue and transmission lease expenses PT Poin Multi Media Nusantara“POIN” Associated company Purchases of handset Yakes Entity under significant influence Medical expense Koperasi Pegawai Telkom“Kopegtel” Entity under significant influence Purchase of property and equipment development and instalation, lease of building Expenses, lease of vehicles, purchase of cars, and purchase of materials and construction service, maintenance and cleaning serviceexpenses, and sahring profit of PBH PT Sandhy Putra Makmur “SPM” Entity under significant influence Leases of buildings, leases of vehicles, purchase of materials and construction services, maintenance and cleaning service expenses Koperasi Pegawai Telkomsel “Kisel Entity under significant influence Internet and data revenue, other telecommunication service revenue, leases of vehicles, printing and distribution of customer bills expenses, collection fee, and other services fee, distribution of SIM cards and pulse reload voucher, purchase of property and equipment PT Graha Informatika Nusantara “Gratika” Entity under significant influence Interconnection revenue, installation expense, maintenance expense, and purchase of property and equipment PT Pembangunan Telekomunikasi Indonesia “Bangtelindo” Entity under significant influence Purchase of property and equipment Directors and commissioners Key management personnel Honorarium and facilities On September 18, 2014, PINs acquire 25 ownership of Tiphone Note 8. POIN is a subsidiary of Tiphone Total balance of accounts receivable and accounts payable at the end of the year free of interest and its completion would occur in the form of cash. There are no guarantees provided or received for any accounts receivable and payable with related parties. In 2015, the Group recorded an impairment of receivables from related parties amounted to Rp280 billion. This assessment is conducted every year to assess the present status of existing receivables and historical collection of accounts receivable ago. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 92

32. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties

The following are significant transactions with related parties: 2016 2015 Amount of total revenues Amount of total revenues REVENUES Majority Stockholder Government 80 0.09 203 0.27 Entities under common control Indosat 920 1.07 724 0.96 BRI 153 0.18 142 0.19 Bank Mandiri 134 0.16 137 0.18 BNI 105 0.12 90 0.12 Pegadaian 90 0.10 49 0.06 Garuda 81 0.09 59 0.08 Lintasarta 72 0.08 65 0.09 Pertamina 69 0.08 87 0.11 KAI 63 0.07 83 0.11 BTN 56 0.06 33 0.04 ICON Plus 45 0.05 30 0.04 Sub-total 1,788 2.06 1,499 1.98 Entities under significant influence Kisel 3,447 4.00 2,628 3.47 Gratika 338 0.39 298 0.39 Sub-total 3,785 4.39 2,926 3.86 Associated companies Indonusa 81 0.09 43 0.06 CSM 24 0.03 28 0.04 Others 327 0.38 311 0.41 Total 6,085

7.06 5,010

6.61 2016

2015 Amount of total expenses Amount of total expenses EXPENSES Entities under common control Indosat 616 1.12 665 1.27 PLN 485 0.88 566 1.08 Jasindo 189 0.34 209 0.40 Sub-total 1,290 2.34 1,440 2.75 Entities under significant influence Kisel 8,343 15.12 574 1.10 Kopegtel 369 0.67 306 0.59 Yakes 1 0.00 111 0.21 Sub-total 8,713 15.79 991 1.90 Other 290 0.53 90 0.05 Total 10,293

18.66 2,521

4.70 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 93

32. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued

The following are significant transactions with related parties: 2016 2015 Amount of total finance income Amount of total finance income FINANCE INCOME Entity under common control State-owned banks 687 54.22 617 62.96 Others 1 0.08 - - Total 688

54.30 617

62.96 2016 2015 Amount of total finance costs Amount of total finance costs FINANCE COSTS Majority stockholder Government 51 2.59 59 3.56 Entity under common control State-owned banks 637 32.32 836 50.42 Total 688

34.91 895

53.98 2016 2015 Amount of total purchases Amount of total purchases PURCHASES OF PROPERTY AND EQUIPMENTS Note 9 Entity under common control INTI 179 0.90 173 1.02 LEN 13 0.07 24 0.14 Sub-total 192 0.97 197 1.16 Entities under significant influence Kopegtel 118 0.59 52 0.31 Kisel 73 0.37 - 0.00 Bangtelindo 58 0.29 - 0.00 SPM 41 0.21 36 0.21 Gratika 14 0.07 33 0.19 Sub-total 304 1.53 121 0.71 Others 11 0.06 - 0.00 Total 507

2.56 318

1.87 Presented below are balances of accounts with related parties: September 30, 2016 December 31, 2015 Amount of total assets Amount of total assets

a. Cash and cash equivalents Note 3

18,010 10.15 15,028 9.04

b. Other current financial assets Note 4

2,202 1.24 2,500 1.50

c. Trade receivables - net Note 5 1,458

0.82 1,104

0.66 d. Advances and prepaid

expenses Note 7 50

0.03 15

0.01 e. Advances and other non-

current assets Note 10 308

0.17 6

0.00 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 94

32. RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued