Report of the KEMPR in 2014

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3. Report of the KEMPR in 2014

Throughout 2014, KEMPR has conducted surveillance and monitoring the implementation of the current CSS, the implementation of RKAP in 2014, the implementation of the capital expenditure capex in RKAP 2014, the analysis of investments in subsidiaries and the implementation of enterprise risk management. In addition, KEMPR has also conducted an evaluation of the proposed CSS 2015-2019, the proposed RKAP 2015, as well as other tasks assigned by the Board of Commissioners. Activities of Planning Committee and Risk Evaluation and Monitoring in 2014: 1 Corporate Strategic Scenario CSS KEMPR has monitored the implementation of RJPP CSS for the period from 2014 to 2018, especially that relates to the current year and conduct evaluation of the proposed CSS for the period from 2015 to 2019 which became the basis for the development of Corporate Annual Message CAM in 2015 and RKAP in 2015. In accordance updates of RKAP strategy RJPP periodic, then the CSS period from 2015 to 2019 is an update to the CSS period from 2014 to 2018. 2 Annual Business Budget Plan In carrying RKAP 2014, the Board of Commissioners has instructed the Board of Directors to seek timely implementation of capital expenditure, particularly in supporting the achievement of the Companys revenues. As for the RKAP 2015, the Board of Commissioners has also provided strategic directions, including: a. Synchronization of potential retail consumer demand of Telkom and its subsidiaries that cover the same service segment; b. The need for concrete steps to encourage the growth of earnings; c. Implementation of integration in the establishment, monitoring and coaching subsidiaries; d. Increased capacity of subsidiaries to explore external market in order to achieve the proportion of revenue from external market which is higher than the achievement in 2014. KEMPR focus in monitoring the implementation of RKAP in 2014 which includes monitoring the realization of RKAP in 2014 both in the achievement of revenue, expenses, and profits, as well as capital expenditures. In order to obtain more optimal monitoring results, KEMPR had performed several field visits to monitor the progress of the implementation of capital expenditure and progress towards CBP. KEMPR has conducted field visits in 2014 to the regional unit in Central Java and Yogyakarta, Sulawesi, and Surabaya. In addition, KEMPR has also conducted field visits to project sea cables Manado Sulawesi Papua Cable System SMPCS segment-Ambon-Makassar Jayapura, optical deployment by Telkom access in several locations like Aceh, Manado and the construction of hotels by Telkom Property in Makassar. - 176 - Table of Content 3 Enterprise Risk Management Enterprise Risk Management KEMPR is tasked to monitor the implementation of ERM in 2014, which include the handling of risks that have a significant impact on the RKAP 2014. For the first half of 2014, there were some significant issues of risk, ie the risk of the cellular business, fixed broadband, Wi-Fi, and outsourcing. As for the second half of 2014, KEMPR noted some risks that KEMPR namely, the risk impact of changes in technology and regulation, increased levels of competence in mobile and fixed broadband business, as well as the risks of mergers, acquisitions and partnerships. KEMPR specifically monitor efforts to mitigate the risks that can be classified as significant risk. 4 Measures of Directors that require approval from the Board of Commissioners In 2014, KEMPR has reviewed the following actions by the Board of Directors members which require the approval of the Board of Commissioners: a. Permits release of the capital expenditure for the first and second quarter of 2014; b. Additional capital investment in Telkom Metra for funding the joint venture JV Network Application Service, which is a collaboration Telkom Metra and Telstra; c. Transfer of treasury stock, the result of the share buyback II; d. Approval of the corporate strategic scenario 2015-2019 period; e. Additional investment in Telkom Indonesia International Telin for some strategic projects; In carrying out their duties during 2014 PREMC generate various reports and studies evaluation. Details are: CSS RKAP Capex RiskLegal Certain Measure Output 2 12 4 4 17 Jakarta, March 26, 2015 Signature Hadiyanto Chairman of KEMPR - 177 - Table of Content WORK MEETING OF COMMITTEES UNDER THE BOARD OF COMMISSIONERS 1. Work Meeting of the Nomination and Remuneration Committee During 2014, the Nomination and Remuneration Committee has held 50 meeting, including 32 circulation of minutes for approval Name Meeting Number Attendance Number Attendance Percentage Jusman Syafii Djamal 46 46 100 Johnny Swandi Sjam 50 50 100 Virano Gazi Nasution 50 44 88 Parikesit Suprapto 50 49 98 Hadiyanto 50 45 90 Gatot Trihargo 1 16 16 100 Imam Apriyanto Putro 34 27 79 Hendri Saparini2 4 4 100 Dolfie Othaniel Fredric Palit2 4 4 100 Ario Guntoro 50 50 100 1 As of April 4, 2014 2 Starting from Desember 19, 2014

2. Work Meetings of the Audit Committee