TRADE RECEIVABLES continued FS Telkom Q1 2011

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 45

7. INVENTORIES December 31, March 31,

2010 2011 Modules 292,924 297,433 Components 158,479 199,647 SIM cards, RUIM cards, set top box and prepaid voucher blanks 147,419 143,787 Total 598,822 640,867 Allowance for obsolescence Modules 76,264 80,693 Components 6,937 6,952 SIM cards, RUIM cards, set top box and prepaid voucher blanks 85 85 Total 83,286 87,730 Net 515,536 553,137 Movements in the allowance for obsolescence are as follows: December 31, March 31, 2010 2011 Beginning balance 72,174 83,286 Additions Note 36 15,345 4,444 Inventories write-off 4,233 - Ending balance 83,286 87,730 Components and modules represent telephone terminals, cables, transmission installation spare parts and other spare parts. Management believes that the allowance is adequate to cover losses from decline in inventory value due to obsolescence. Certain inventories of the Company’s subsidiaries have been pledged as collateral for lending agreements Notes 18 and 22. As of December 31, 2010 and March 31, 2011, modules and components held by the Company have been insured against fire, theft and other specific risks with the total sum insured as of December 31, 2010 and March 31, 2011 is amounting to Rp.128,367 million and Rp.218,237 million, respectively Note 44d.vii. Modules and components held by a certain subsidiary have been insured against all industrial risks and loss risk during delivery with the total sum insured as of December 31, 2010 and March 31, 2011 amounting to Rp.15,406 million, respectively. Management believes that the insurance coverage is adequate to cover potential losses of the insured inventories. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 46

8. ADVANCES AND PREPAID EXPENSES December 31, March 31,

2010 2011 Frequency license Notes 48c.i and 48c.iii 2,393,639 1,843,729 Rental 741,200 786,883 Salaries 141,712 429,546 Advances 66,127 92,070 Insurance 1,513 46,405 Telephone directory issuance costs 29,558 42,788 Others 67,282 56,746 Total 3,441,031 3,298,167 Refer to Note 44 for details of related party transactions. 9. OTHER CURRENT ASSETS Other current assets as of December 31, 2010 and March 31, 2011 consists of restricted time deposits as follows: December 31, March 31, 2010 2011 Metra BNI 593 593 Bank Mandiri 235 235 BRI 347 347 Total 1,175 1,175 The restricted time deposits represent time deposits of the Company’s and certain subsidiaries’ pledged as collateral for bank guarantees to the respective banks. Refer to Note 44 for details of related party transactions.