477 ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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 110

37. FINANCIAL RISK MANAGEMENT continued

1. Fair value of financial assets and financial liabilities continued b. Fair Value continued Fair value measurement at reporting date using December 31, 2016 Carrying value Fair Value Quoted prices in active markets for identical assets or liabilities level 1 Significant other observable inputs level 2 Significant unobservable inputs level 3 Financial assets measured at fair value Available-for-sale investment 1,158 1,158 1,058 100 - Total 1,158 1,158 1,058 100 - Financial liabilities for which fair values are disclosed Interest-bearing loans and other borrowings Two-step loans 1,292 1,312 - - 1,312 Bonds and notes 9,323 9,684 9,342 - 342 Long-term bank loans 15,566 15,404 - - 15,404 Obligation under finance lease 4,010 4,010 - - 4,010 Other borrowings 697 689 - - 689 Total 30,888 31,099 9,342 - 21,757 Available-for-sale financial assets primarily consist of mutual funds, and corporate and government bonds. Mutual funds actively traded in an established market are stated at fair value using quoted market price and classified within level 1. Corporate and government bonds are stated at fair value by reference to prices of similar securities at the reporting date. As they are not actively traded in an established market, these securities are classified as level 2. Financial asset at fair value through profit or loss represents the Put Option on the 20 remaining ownership in Indonusa which was received as part of the divestment considerations. As the put option is subject to restrictions on redemption such as transfer restrictions and initial lock-up periods and observable activity for the investment is limited, this investment is therefore classified within level 3 of the fair value hierarchy. Reconciliations of the beginning and ending balances for items measured at fair value using significant unobservable inputs level 3 as of June 30, 2017 and 2016 are as follows: 2017 2016 Beginning balance - 172 Unrealized loss recognized in the consolidated statements of profit or loss and other comprehensive income - 172 Ending balance - - 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 111

37. FINANCIAL RISK MANAGEMENT continued