OTHER CURRENT FINANCIAL ASSETS TRADE RECEIVABLES

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 42

5. TRADE RECEIVABLES continued

d. Movements in the provision for impairment of receivables continued Receivables written off represent to third party trade receivables written off. Management believes that the provision for impairment of receivables is adequate to cover losses on uncollectible trade receivables. Certain trade receivables of the Company s subsidiaries amounting to Rp1,672 billion have been pledged as collateral for lending agreements Notes 16 and 20. Refer to Note 37 for details of related party transactions.

6. INVENTORIES

June 30, December 31, 2013 2012 Modules 318 316 Components 252 183 SIM cards, RUIM cards, set top box and blank prepaid vouchers 155 134 Others each below Rp50 billion 50 94 Total 775 727 Provision for obsolescence Modules 101 96 Components 39 51 SIM cards, RUIM cards, set top box and blank prepaid vouchers 1 1 Total 141 148 Net 634 579 Movements in the provision for obsolescence are as follows: June 30, December 31, 2013 2012 Beginning balance 148 106 Provision recognized during the year Note 29 8 67 Inventories written-off 15 25 Ending balance 141 148 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 43

6. INVENTORIES continued

The inventories recognized as expense and included in operations, maintenance, and telecommunication services expenses Note 28 for the years ended June 30, 2013 and December 31, 2012 amounted to Rp424 billion and Rp633 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company s subsidiaries amounting to Rp49 billion have been pledged as collateral for lending agreements Notes 16 and 20. As of June 30, 2013 and December 31, 2012, modules and components held by the Company and subsidiaries have been insured against fire, theft, and other specific risks with total sum insured amounting to Rp299 billion and Rp275 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses from the above risks.

7. ADVANCES AND PREPAID EXPENSES

June 30, December 31, 2013 2012 Frequency license Notes 41c.i and 41c.ii 1,411 2,563 Prepaid rental 756 666 Salaries 491 165 Advances 219 120 Deffered expense 30 45 Others each below Rp50 billion 184 162 Total 3,091 3,721 Refer to Note 37 for details of related party transactions.

8. ASSET HELD FOR SALE

This account represents the carrying amount of Telkomsel s equipment to be exchanged with equipment of Nokia Siemens Network Oy NSN Oy and PT Huawei Tech Investment PT Huawei . The equipment will be used as part of the settlement for the exchanges of equipment from these companies. In 2013, Telkomsel s equipment with net carrying amount of Rp131 billion is reclassified to asset held for sale. Asset held for sale is presented under personal segment Note 38.