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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 53

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c. Others continued vi Exchange of property and equipment continued In 2012, certain equipment units of Telkomsel with net carrying amount of Rp1,686 billion were exchanged with equipment from NSN Oy and PT Huawei, where Rp791 billion relates to asset held for sale that was recognized in 2011. The cost of the acquired equipment is measured at the aggregate of the carrying amount of the equipment given up and the amount of cash paid. vii The Company and subsidiaries own several pieces of land rights located throughout Indonesia with Building Use Rights “Hak Guna Bangunan” or “HGB” for a period of 2 - 45 years which will expire between 2014 and 2052. Management believes that there will be no issue in obtaining the extension of the land rights when they expire. viii As of December 31, 2013, the Company and subsidiaries’ property and equipment except land rights, with net carrying amount of Rp72,000 billion were insured against fire, theft, earthquake and other specified risks, with a maximum loss claim of Rp4,449 billion, US52.51 million, EURO0.63 million, SGD16.55 million and HKD8.44 million, and on a first loss basis of Rp6,815 billion including business recovery of Rp324 billion with the Automatic Reinstatement of Loss Clause. In addition, Telkom-1 and Telkom-2 were insured separately for US3.41 million and US28.55 million, respectively. Management believes that the insurance coverage is adequate to cover potential losses from the insured risks. ix As of December 31, 2013, the percentage of completion of property under construction was around 32.69 of the total contract value, with estimated dates of completion between January 2014 and December 2015. The balance of property under construction mainly consists of buildings, transmission installation and equipment, cable network and power supply. Management believes that there is no impediment to the completion of the construction in progress. x All assets owned by the Company have been pledged as collateral for bonds Note 20a. Certain property and equipment of the Company’s subsidiaries with gross carrying value amounting to Rp6,214 billion have been pledged as collateral under lending agreements Notes 17 and 21. xi In 2012, the Company and Telkomsel derecognized certain assets under USO arrangements Note 41c.v, with cost and net carrying amount of Rp259 billion and Rp137 billion, respectively. The net carrying amount of the assets was charged to the 2012 consolidated statement of comprehensive income. xii As of December 31, 2013, the cost of fully depreciated property and equipment of the Company and subsidiaries that are still used in operations amounted to Rp40,791 billion. The Company and subsidiaries are currently performing modernization of network assets to replace the fully depreciated property and equipment. xiii As of December 31, 2013, the total fair values of land rights and buildings of the Company and subsidiaries, which are determined based on the sale value of the tax object “Nilai Jual Objek Pajak” or “NJOP” of the related land rights and buildings, amounted to Rp15,307 billion. 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 54

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