Income Tax Expense Income tax expense decreased by Rp993 billion, or

B. External Liquidity Sources Our primary external sources of liquidity are short and

long-term bank loans, two-step loans, bonds and notes payable. In 2014 we used external liquidity bank loans of Rp6,626 billion and other borrowings of Rp3,580 billion.

C. Outstanding Liquidity Sources We had undrawn loan facilities which include the following

sources of unused liquidity: - CIMB Niaga loan facility in the amount of Rp820 billion; - BNI loan facility in the amount of Rp234 billion; - BRI loan facility in the amount of Rp6 billion; - Danamon Bank loan facility in the amount of Rp20 billion; - Bank Ekonomi Raharja loan facility in the amount of Rp70 billion; - Syndicated loan facility of BNI, BRI and Bank Mandiri in the amount of Rp103 million. WORKING CAPITAL Net working capital, calculated as the difference between current assets and current liabilities, amounted to Rp4,638 billion as of December 31, 2013 and Rp1,976 billion US160 million as of December 31, 2014. The decrease in net working capital was primarily due to: - A decrease of Rp4,075 billion in other current financial assets; - A decrease of Rp48 billion in asset held for sale; - A decrease of Rp35 billion in inventories – net of provision for obsolescene; and - A decrease of Rp12 billion in other receivable - net of provision for impairment of receivable. This was partially offset by: - An increase of Rp1,378 billion in short-term bank loan; - An increase of Rp806 billion in current marturities of long-term liabilities; - An increase of Rp473 billion in unearned income; and - An increase of Rp286 billion in trade payable – third parties. We believe that our working capital is sufficient for our present requirements. We expect that our working capital will continue to be addressed by various funding sources, including cash from operating activities and bank loans. SOLVENCY Our solvency or our ability to meet our short-term and long-term obligations highly influenced by our source of liquidity. Refer to explanation on “Liquidity”. A. Current Liabilities Our ability to pay our current liabilities is indicated by the ratios on the table below: Ratios 2014 2013 2012 Current ratio 106.2 116.3 116.0 Quick ratio 104.7 114.5 113.6 Cash ratio 64.4 75.8 74.4 B. Non-Current Liabilities Our ability to pay our debt is indicated by the ratios on the table below Ratios 2014 2013 2012 Debt to equity ratio 34.6 33.5 37.4 Debt to EBITDA 50.4 46.4 48.0 Times interest earned ratio 25.6 times 29.0 times 19.5 times For detail discussion about our debt, see Notes 17-21 to our Consolidated Financial Statements. 133 2014 Annual Report PT Telkom Indonesia Tbk Persero