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

B. Expansion - On January 16, 2014, we establish 100 ownership

subsidiary under the name PT Infrastruktur Telekomunikasi Indonesia Telkom Infra was accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia “MoLHR” in its Letter No. AHU-03196.AH.01.01.2014 dated January 23, 2014 with. Telkom Infra is engaged in the construction, services and telecommunications trade. - On August 27, 2014, based on notarial deed Zulkifli Harahap, SH 21 dated August 27, 2014, was accepted and approved by the MoLHR in its Letter No AHU- 22722. 40.10.2014 dated September 1, 2014, Telkom Property formed a 99.99 ownership subsidiary called PT Nusantara Sukses Sarana NSS. NSS focused on the building and hotel management services and other services. - On August 27, 2014, based on notarial deed Zulkifli Harahap, SH 22 dated August 27, 2014, was accepted and approved by the MoLHR in its Letter No AHU- 22723. 40.10.2014 dated September 1, 2014, Telkom Property formed a 99.99 ownership subsidiary called PT Nusantara Sukses Realti NSR. NSR focused on services and trade. - On August 27, 2014, based on notarial deed Zulkifli Harahap, SH, No. 23 dated August 27, 2014, was accepted and approved by the MoLHR in its Letter No AHU-22724. 40.10.2014 dated September 1, 2014, Telkom Property formed a 99.99 ownership subsidiary called PT Nusantara Sukses Investasi NSI. NSI focused on services and trade. - On September 11, 2014, based on notarial deed Jimmy TANAL, SH, MH, No. 118 dated September 11, 2014, PINS buy 25 of outstanding shares of PT Tiphone Mobile Indonesia, Tbk Tiphone with an acquisition cost of Rp1.395 billion. Tiphone establish on June 25, 2008 with the name Tiphone Mobile Indonesia Tbk, with the main activities of running a business in the field of telecommunications equipment trade in the form of the following mobile phone spare parts, accessories, pulses as well as repair services and the provision of content through its subsidiaries.

C. Divestation

In 2014, we have no divestation transacation.

D. Acquisition - On September 25, 2014, Telkom Australia Telin through

acquisitions over 75 share of Australia Pty Ltd Contact Centres. CCA with an acquisition cost of AU 10,843,000 or equivalent to Rp116 billion. CCA is a private company based in Surry Hills, Sydney and founded in 2002. The company provides solutions Business Process Outsourching BPO, engaged in the contact center services for fundraising not for profit organization and commercial business, a comprehensive and integrated with other services for end-to-end solution that is complete.

E. DebtCapital Restructure

In 2014, we have no debtcapital restructure. MATERIAL INFORMATION OF CONFLICT OF INTEREST ANDOR AFFILIATED TRANSACTION In 2014, we have no conflict of interest or affiliated transaction. MATERIAL INFORMATION AND FACTS AFTER ACCOUNTANT REPORTING DATE We are not aware of any subsequent events occurred after the accountant’s report date until the issuance date of this Annual Report. CHANGE IN ACCOUNTING POLICIES The consolidated financial statements of the Group has been prepared in accordance with Financial Accounting Standards Standar Akuntansi Keuangan or “SAK” including Indonesian Financial Accounting Standards Pernyataan Standar Akuntansi Keuangan or “PSAK” and Interpretation of Financial Accounting Standards Interpretasi Standar Akuntansi Keuangan or “ISAK” in Indonesia published by Financial Accounting Standard Board of Indonesian Institute of Accountants and Regulation No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency “Bapepam-LK” regarding the Presentation and Disclosures of Financial Statements of Issuers or Public Companies, enclosed in the decision letter KEP- 347BL2012. Changes to the statements of financial accounting standards PSAKs and interpretations of statements of financial accounting standards Interpretasi Standar Akuntansi Keuangan or “ISAKs” 137 2014 Annual Report PT Telkom Indonesia Tbk Persero On January 1, 2014, the Group adopted new and revised PSAKs, which were effective in 2014. Changes to the Group’s accounting policies have been made as required in accordance with the transitional provisions in the respective standards and interpretations. The adoption of these newrevised standards and interpretations had no material effect to the consolidated financial statements: ISAK 27, “Transfer of Assets from Customers” ISAK 28, “Extinguishing Financial Liabilities with Equity Instruments” Several PSAKs and ISAKs have been issued by the Indonesian Financial Accounting Standards Board DSAK that are considered relevant to the financial reporting of the Group but are effective only for financial statements covering the periods beginning on or after either January 1, 2015. Effective beginning on or after January 1, 2015 PSAK 1 2013, “Presentation of Financial Statements”, adopted from International Accounting Standards IAS 1. These amendments are expected to only impact the presentation of the consolidated financial statements and not expected to impact the Group’s consolidated financial position and performance. PSAK 4 2013, “Separate Financial Statements”, adopted from IAS 4. The amendments are not expected to impact the Group’s consolidated financial position and performance. PSAK 15 2013, “Investments in Associates and Joint Ventures”, adopted from IAS 28. The amendments are not expected to impact the Group’s consolidated financial position and performance. PSAK 24 2013, “Employee Benefits”, adopted from IAS 19. The amendments are expected to impact the Group’s consolidated financial position and performance mainly for the changes in: past service costs is no longer deferred and recognized over the vesting period; actuarial gains or losses are recognized immediately; interest cost and expected return on plan assets are replaced with net interest cost which is calculated by applying the discount rate to the net defined benefit liability or asset at the beginning of period. PSAK 46 2014, “Income Tax”, adopted from IAS 12. The amendments are not expected to impact the Group’s consolidated financial position and performance. PSAK 48 2014, “Asset Impairment”, adopted from IAS 36. The amendments are not expected to impact the Group’s consolidated financial position and performance. PSAK 50 2014, “Financial Instrument: Presentation”, adopted from IAS 32. The amendments are expected to only impact the presentation of the consolidated financial statements and not expected to impact the Group’s consolidated financial position and performance. PSAK 55 2014, “Financial Instrument: Measurement and Recognition”, adopted from IAS 39. The amendments are not expected to impact the Group’s consolidated financial position and performance. PSAK 60 2014, “Financial Instrument: Disclosure” adopted from International Financial Reporting Standards IFRS 7”. The amendments are expected to impact the disclosure of consolidated financial statements and not expected to impact the Group’s consolidated financial position and performance. PSAK 65, “Consolidated Financial Statements”, adopted from IFRS 10. The amendments are not expected to impact the Group’s consolidated financial position and performance. 138 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S PSAK 66, “Joint Arrangements”, adopted from IFRS 11. The standards are not expected to impact the Group’s consolidated financial position and performance. PSAK 67, “Disclosure of Interest in Other Entities”, adopted from IFRS 12. The standards are not expected to impact the Group’s consolidated financial position and performance. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN IFAS AND IFRS

a. Employee benefits Under PSAK, the actuarial gains or losses are recognized

as income or expense when the net cumulative unrecognized actuarial gains or losses at the end of the previous reporting period exceed 10 of the present value of the defined benefit obligation. These gains or losses are recognized on a straight-line basis over the expected average remaining service years of the employees. The change in the defined benefit obligation due to plan changes affecting vested benefits is recognized immediately in profit or loss, while the effect of plan changes affecting unvested benefits is amortized over future periods to the date the amended benefits vest. Interest income on plan assets is determined based on their long-term rate of expected return. PSAK does not specify which administration costs to include as part of the return on plan assets. Under IFRS, remeasurements consist of actuarial gains or losses, including the difference between the actual return on plan assets net of taxes and administration costs with return implied by the discount rate, and changes in the asset ceiling are recognized directly to other comprehensive income. The entire change in the defined benefit obligation due to plan changes is to be recognized immediately through profit or loss. Net interest on the net defined benefit liability or asset comprises interest cost on the defined benefit obligation and interest income on plan assets that are measured using the discount rate at the beginning of the year. Only administration costs directly related to the management of plan assets are included as part of the return on plan assets.

b. Land rights Under PSAK, land rights are recorded as part of property

and equipment and are not amortized, unless there is indication that the extension or renewal of land rights is not expected to be or will not be received. Costs incurred to process the extension or renewal of land legal rights are recognized as intangible assets and amortized over the shorter of the term of the land rights or the economic life of the land. Under IFRS, land rights are accounted for as finance lease and presented as part of property and equipment. Land rights are amortized over the lease term.

c. Related party transactions Under Bapepam - LK OJK Regulation No. VIII.G.7

regarding the Presentation and Disclosures of Financial Statements of Issuers or Public Companies, a government- related entity is an entity that is controlled, jointly controlled or significantly influenced by a government. Government in this context is the Ministry of Finance or the Local Government, as the shareholder of the entity. PSAK 68, “Fair Value Measurement”, adopted from IFRS 13. The standards are not expected to impact the Group’s consolidated financial position and performance. ISAK 26 2014, “Revaluation of Embedded Derivatives”, adopted from IFRIC 9. The interpretations are not expected to impact the Group’s consolidated financial position and performance. 139 2014 Annual Report PT Telkom Indonesia Tbk Persero