CASH AND CASH EQUIVALENTS continued OTHER CURRENT FINANCIAL ASSETS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 50

7. INVENTORIES 2015

2014 Components 342 279 SIM cards, set top boxes, and blank prepaid vouchers 131 105 Others 96 133 Total 569 517 Provision for obsolescence Components 14 15 SIM cards, set top boxes and blank prepaid vouchers 27 28 Others Total 41 43 Net 528 474 Movements in the provision for obsolescence are as follows: 2015 2014 Beginning balance 43 22 Provision recognized during the year 2 39 Inventory write off 4 18 Ending balance 41 43 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses as of December 31, 2015 and 2014 amounted to Rp1,937 billion and Rp1,031 billion, respectively Note 27. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 51

8. ADVANCES AND PREPAID EXPENSES 2015

2014 Frequency license Notes 39c.i and 39c.ii 2,935 2,699 Prepaid rental 1,055 983 Advances 729 410 Salaries 347 218 Others each below Rp75 billion 773 423 Total 5,839 4,733 Refer to Note 36 for details of related party transactions.

9. LONG-TERM INVESTMENTS

2015 Share of Share of other net loss comprehensive Percentage profit of income of of Beginning Additions associated associated Ending ownership balance Deductions com pany Dividend com pany balance Long-term investments in associated companies: Tiphone a 24.65 1,392 - 32 18 2 1,404 Indonusa b 20.00 221 - - - - 221 Teltranet c 51.00 52 43 24 - - 71 PT Melon Indonesia PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 52

9. LONG-TERM INVESTMENTS continued

Summarized financial information of the Group