Key management personnel remuneration

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 102

33. OPERATING SEGMENT continued

The revenue information above is based on the location of the customers. 2016 2015 Non-current operating assets Indonesia 108,070 1 05,361 Foreign countries 3,774 1,395 Total 111,844 106,756 Non-current operating assets for this purpose consist of property and equipment and intangible assets.

34. TELECOMMUNICATIONS SERVICE TARIFFS

Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network andor services are determined by providers based on the tariff type, structure and with respect to the price cap formula set by the Government.

a. Fixed line telephone tariffs

The Government has issued a new adjustment tariff formula which is stipulated in the Decree No. 15PERM.KOMINFO42008 dated April 30, 2008 of the Ministry of Communication and Information “MoCI” concerning “Mechanism to Determine Tariff of Basic Telephony Servi ces Connected through Fixed Line Network”. Under the Decree, tariff structure for basic telephony services connected through fixed line network consists of the following:  Activation fee  Monthly subscription charges  Usage charges  Additional facilities fee.

b. Mobile cellular telephone tariffs

On April 7, 2008, the MoCI issued Decree No. 09PERM.KOMINFO042008 regarding “Mechanism to Determine Tariff of Telecommunication Services Connected through Mobile Cellular Network” which provides guidelines to det ermine cellular tariffs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous Decree No. 12PERM.KOMINFO022006. Under MoCI Decree No. 09PERM.KOMINFO042008 dated April 7, 2008, the cellular tariffs of operating telecommunication services connected through mobile cellular network consist of the following:  Basic telephony services tariff  Roaming tariff, andor  Multimedia services tariff, with the following traffic structure:  Activation fee  Monthly subscription charges  Usage charges  Additional facilities fee. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 103

34. TELECOMMUNICATIONS SERVICE TARIFFS continued c. Interconnection tariffs

The Indonesian Telecommunication Regulatory Body “ITRB”, in its letter No. 262BRTIXII2011 dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication provider operators. Based on letter No.118KOMINFODJPPIPI.02.04012014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to implement new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the Company and Telkomsel are required to submit the Reference Interconnection Offer “RIO” proposal to ITRB to be evaluated. Subsequently, ITRB in its letters No. 60BRTIIII2014 dated March 10, 2014 and No. 125BRTIIV2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to the SMS interconnection tariff to Rp24 per SMS.

d. Network lease tariffs

Through MoCI Decree No. 03PERM.KOMINFO12007 dated January 26, 2007 concerning “Network Lease”, the Government regulated the form, type, tariff structure, and tariff formula for services of network lease. Pursuant to the MoCI Decree, the Director General of Post and Telecommunication issued its Letter No. 115 Year 2008 dated March 24, 2008 which stated “The Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with the Company’s proposal.

e. Tariff for other services

The tariffs for satellite lease, telephony services, and other multimedia are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services.

35. SIGNIFICANT COMMITMENTS AND AGREEMENTS a. Capital expenditures

As of June 30, 2016, capital expenditures committed under the contractual arrangements, principally relating to procurement and installation of data, internet and information technology, cellular, switching equipment, transmission equipment and cable network are as follows: Amounts in foreign currencies Equivalent Currencies in millions in Rupiah Rupiah - 8,137 U.S. dollar 560 7,388 Euro 1.23 18 Total 15,543