ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued FINANCIAL RISK MANAGEMENT

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011 Figures in tables are presented in billions of Rupiah, unless otherwise stated 115

44. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued d. Credit risk The following table presents the maximum exposure to credit risk of the Company and subsidiaries’ financial assets: 2012 2011 Cash and cash equivalents 13,118 9,634 Other current financial assets 4,338 373 Trade and other receivables, net 5,409 5,250 Long-term investments 21 21 Advances and other non-current assets 614 218 Total 23,500 15,496 The Company and subsidiaries are exposed to credit risk primarily from trade receivables and other receivables. The credit risk is managed by continuous monitoring of outstanding balances and collection of trade and other receivables. Trade and other receivables do not include any major concentration of credit risk by customer. Each of the top three customers account for less than 1 of the trade receivables as at December 31, 2012. Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Company and subsidiaries have provided sufficient provision for impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses. e. Liquidity risk Liquidity risk arises in situations where the Company and subsidiaries have difficulties in fulfilling financial liabilities when they become due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents in order to meet the Company and subsidiaries’ financial obligations. The Company and subsidiaries continuously perform an analysis to monitor financial position ratios, among other things, liquidity ratios, debt equity ratios against debt covenant requirements. The following is the maturity profile of the Company and subsidiaries’ financial liabilities: Carrying Contractual 2017 and amount cash flows 2013 2014 2015 2016 thereafter December 31, 2012 Trade and other payables 7,456 7,456 7,456 - - - - Accrued expenses 6,163 6,163 6,163 - - - - Loans and other borrowings Bank loans 11,295 12,585 5,118 3,869 2,518 602 478 Obligations under finance leases 2,324 3,172 652 548 398 354 1,220 Two-step loans 1,987 2,462 283 277 270 263 1,369 Bonds and notes 3,669 5,462 757 505 1,287 203 2,710 Total 32,894 37,300 20,429 5,199 4,473 1,422 5,777 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011 Figures in tables are presented in billions of Rupiah, unless otherwise stated 116

44. FINANCIAL RISK MANAGEMENT continued