LOAN TO OTHER FOSTER SOEDISTRIBUTING PARTNERS LOAN TO OTHER FOSTER SOEDISTRIBUTING PARTNERS continued LOAN TO FOSTER PARTNERS continued e.

1 The original financial statements included herein are in Indonesian language. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK PUSAT PENGELOLAAN PROGRAM KEMITRAAN DAN PROGRAM BINA LINGKUNGAN COMMUNITY DEVELOPMENT CENTER NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 and Year then Ended Expressed in Rupiah Table of Contents

4. CASH AND CASH EQUIVALENT

December 31, 2014 2015 Partnership Program Cash in Bank: PT Bank Mandiri Persero Tbk 45.607.574.684 7.002.145.427 PT Bank Negara Indonesia Persero Tbk 12.060.256.011 5.252.077.147 57.667.830.695 12.254.222.574 Deposit: PT Bank Mandiri Persero Tbk 15.000.000.000 - PT Bank Rakyat Indonesia Persero Tbk 15.000.000.000 - 30.000.000.000 - Total Cash and Cash Equivalent Partnership Program 87.667.830.695 12.254.222.574 December 31, 2015 2014 Community Development Program Cash in Bank: PT Bank Mandiri Persero Tbk 107,257,334,628 21,107,186,145 PT Bank Negara Indonesia Persero Tbk 887,773 696,214,240 107,258,222,401 21,803,400,385 Deposit: PT Bank Danamon Tbk - 35,000,000,000 PT Bank Tabungan Negara Persero Tbk - 20,000,000,000 - 55,000,000,000 Total Cash and Cash Equivalent of Community Development 107,258,222,401 76,803,400,385 Total Cash and Cash Equivalent 119,512,444,975 164,471,231,080

5. LOAN TO OTHER FOSTER SOEDISTRIBUTING PARTNERS

December 31, 2015 2014 PT Sang Hyang Seri Persero 9,637,740,363 9,687,740,363 Bank UMKM Jatim 4,999,999,996 10,600,000,000 Baitul Maal wat Tamwil Hidayah 1,806,768,715 1,806,768,715 16,444,509,074 22,094,509,078 Allowance for impairment of loan Individual assessment 11,444,509,078 11,494,509,078 Collective assessment - 113,420,000 11,444,509,078 11,607,929,078 Total 4,999,999,996 10,486,580,000 Movement the allowance for impairment of loan are as follows: December 31, 2015 2014 Beginning balance 11,607,929,078 9,903,074,425 Additions - Net Notes 6e - - Disposals - Net Notes 6e 163,420,000 1,704,854,653 11,444,509,078 11,607,929,078 Management believes that, the balance of allowance for impairment of loan is adequate to cover losses from uncollectible loan. 1 The original financial statements included herein are in Indonesian language. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK PUSAT PENGELOLAAN PROGRAM KEMITRAAN DAN PROGRAM BINA LINGKUNGAN COMMUNITY DEVELOPMENT CENTER NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 and Year then Ended Expressed in Rupiah Table of Contents

5. LOAN TO OTHER FOSTER SOEDISTRIBUTING PARTNERS continued

PT Sang Hyang Seri Persero On March 27, 2012, CDC signed a contract number 332HK840CDC-A10500002012 with PT Sang Hyang Seri Persero 1 The original financial statements included herein are in Indonesian language. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK PUSAT PENGELOLAAN PROGRAM KEMITRAAN DAN PROGRAM BINA LINGKUNGAN COMMUNITY DEVELOPMENT CENTER NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 and Year then Ended Expressed in Rupiah Table of Contents

6. LOAN TO FOSTER PARTNERS continued b. Loan to Foster Partners Classified by Sector

December 31, 2015 2014 Loan to Foster Partners Trading 304,331,486,357 260,536,906,022 Industry 99,370,872,724 93,167,857,336 Service 98,645,546,666 94,585,494,743 Farming 23,910,726,099 21,275,133,231 Fishing 17,828,682,810 15,848,898,783 Agriculture 11,237,819,444 9,404,501,501 Plantation 9,962,750,485 8,309,374,775 Others 3,116,659,181 3,434,470,338 Total 568,404,543,766 506,562,636,729 Allowance for Impairment of Loan 109,770,010,235 93,864,820,863 Total Loan to Foster Partners - Net 458,634,533,531 412,697,815,866 Management believes that the balance of allowance for impairment of loan is adequate to cover losses from the uncollectible loan.

c. Loan Administration Service Income

Since 2008, the percentage of administration service income of loan for partnership program was based on the Decree on article 12 2 of The Regulation of SOE Ministries No: PER-05MBU2007 dated April 17, 2007, which is 6 per annum from the principal of the loan. Based on Decree on article 11 2 of The Regulation of SOE Ministries No: PER-09MBU072015 dated July 3, 2015, administration service income is 6 per annum from the beginning balance.

d. Allowance for Impairment of Loan to Foster Partners

Movement of allowance for impairment of loan is as follow: December 31, 2015 2014 Beginning balance 93,864,820,863 69,770,078,111 Additional - Net 20,805,023,199 28,923,380,143 Reclassification as troubled loan 4,899,833,827 4,828,637,391 109,770,010,235 93,864,820,863 1 The original financial statements included herein are in Indonesian language. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK PUSAT PENGELOLAAN PROGRAM KEMITRAAN DAN PROGRAM BINA LINGKUNGAN COMMUNITY DEVELOPMENT CENTER NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 and Year then Ended Expressed in Rupiah Table of Contents

6. LOAN TO FOSTER PARTNERS continued e.

Allocation of Allowance for Impairment of Loan December 31, 2015 Loan Quality Loan Aging from maturity date Loan Balance Allowance Accumulated Allowance 2015 Expense Recovery Allowance 2015 Other Foster SOE Distributing Partners Individual assessment Loss 270 days 11,444,509,078 100 11,444,509,078 50,000,000 Current 30 days 4,999,999,996 0.00 __ 113,420,000 Sub total 16,444,509,074 11,444,509,078 163,420,000 Foster Partners Collective assessment Current 30 days 416,369,708,952 0.87 3,624,415,611 574,797,294 Substandard 30 days 1 The original financial statements included herein are in Indonesian language. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK PUSAT PENGELOLAAN PROGRAM KEMITRAAN DAN PROGRAM BINA LINGKUNGAN COMMUNITY DEVELOPMENT CENTER NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 and Year then Ended Expressed in Rupiah Table of Contents

8. TROUBLED LOAN