TRADE RECEIVABLES continued FS Telkom 30 Juni 2015 English

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 49

7. INVENTORIES June 30,

December 31, 2015 2014 Components 310 279 SIM cards, RUIM cards, set top boxes, and blank prepaid vouchers 150 105 Others 163 133 Total 623 517 Provision for obsolescence Components 13 15 SIM cards, RUIM cards, set top boxes, and blank prepaid vouchers 27 28 Others Total 40 43 Net 583 474 Movements in the provision for obsolescence are as follows: June 30, December 31, 2015 2014 Beginning balance 43 22 Provision recognized during the year 1 39 Inventory write off 4 18 Ending balance 40 43 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses as of June 30, 2015 and December 31, 2014 amounted to Rp984 billion and Rp1,031 billion, respectively Note 27. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2015 and for the Six Months Period Then Ended Unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 50

8. ADVANCES AND PREPAID EXPENSES June 30,

December 31, 2015 2014 Frequency license Notes 39c.i and 39c.ii 1,744 2,699 Prepaid rental 993 983 Advances 758 410 Salaries 645 218 Others each below Rp75 billion 803 423 Total 4,943 4,733 Refer to Note 36 for details of related party transactions.

9. LONG-TERM INVESTMENTS

June 30, 2015 Share of net loss Percentage profit of of Beginning Addition associated Translation Ending ownership balance Deduction company adjustment balance Long-term investments in associated companies : Tiphone a 25 1,392 - 12 - 1,404 Indonusa b 20 221 - - - 221 Teltranet c 51 52 - 8 - 44 PT Melon Indonesia