SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 111

42. CONTINGENCIES continued

Due to the filing of case by operators in various courts, the KPPU subsequently requested the Supreme Court SC to consolidate the cases into the Central Jakarta District Court. Based on the SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court to investigate and resolve the case. As of the issuance date of the consolidated financial statements, there has not been any notification on the case from the court. b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and his affiliates over a land property on Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its verdict and ordered the Company to pay fair compensation or to vacate and surrender the disputed land to the plaintiffs. On May 20, 2013 the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that is favorable to the plaintiffs and the Company filed an appeal to the Supreme Court. As of the issuance date of the consolidated financial statements, no decision has been reached on the appeal.

43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Assets and liabilities denominated in foreign currencies are as follows: 2013 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Assets Cash and cash equivalents 394.30 1.23 11.42 4,940 Other current financial assets 10.78 - - 131 Trade receivables Related parties 2.44 - - 30 Third parties 66.27 - 0.17 808 Other receivables 0.68 - 0.13 10 Advances and other non-current assets 5.76 - - 70 Total assets 480.23 1.23 11.72 5,989 Liabilities Trade payables Related parties 1.40 - - 17 Third parties 275.35 - 4.33 3,409 Other payables 7.62 - 0.09 94 Accrued expenses 51.41 18.63 0.01 629 Short-term bank loan - - - - Advances from customers and suppliers 1.60 - 0.01 20 Current maturities of long-term liabilities 34.85 767.90 - 514 Promissory notes 28.67 - - 349 Long-term liabilities - net of current maturities 78.82 7,678.98 - 1,850 Total liabilities 479.72 8,465.51 4.44 6,882 Liabilities - net 0.51 8,464.28 7.28 893 2012 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Assets Cash and cash equivalents 412.69 1.33 6.38 4,042 Other current financial assets 7.17 - - 69 Trade receivables Related parties 9.03 - - 87 Third parties 74.89 - 0.44 727 Other receivables 1.20 - 0.06 12 Advances and other non-current assets 9.89 - - 95 Total assets 514.87 1.33 6.88 5,032 Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 112

43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued

2012 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Liabilities Trade payables Related parties 1.49 - - 14 Third parties 320.34 - 2.41 3,120 Other payables 0.92 - 0.13 10 Accrued expenses 75.07 32.87 3.00 759 Short-term bank loans 0.42 - - 4 Advances from customers and suppliers 0.80 - 0.20 10 Current maturities of long-term liabilities 30.75 767.90 - 383 Promissory notes 68.62 - - 661 Long-term liabilities - net of current maturities 112.84 8,446.87 - 2,035 Total liabilities 611.25 9,247.64 5.74 6,996 Liabilities - net 96.38 9,246.31 1.14 1,964 Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period. The Company and subsidiaries’ activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates, and interest rates. If the Company and subsidiaries report monetary assets and liabilities in foreign currencies as of December 31, 2013 using the exchange rates on February 28, 2014, the unrealized foreign exchange gain will increase by Rp13 billion.

44. FINANCIAL RISK MANAGEMENT

1. Financial risk management The Company and subsidiaries activities expose them to a variety of financial risks such as market risks including foreign exchange risk and interest rate risk, credit risk and liquidity risk. Overall, the Company and subsidiaries’ financial risk management program is intended to minimize losses on the financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of interest rates. Management has a written policy for foreign currency risk management mainly on time deposit placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months. Financial risk management is carried out by the Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial risks. a. Foreign exchange risk The Company and subsidiaries are exposed to foreign exchange risk on sales, purchases and borrowings that are denominated in foreign currencies. The foreign currency denominated transactions are primarily in U.S. dollar and Japanese yen. The Company and subsidiaries’ exposures to other foreign exchange rates are not material. Increasing risks of foreign currency exchange rates on the obligations of the Company and subsidiaries are expected to be offset by the effects of the exchange rates on time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities.