FINANCIAL RISK MANAGEMENT FINANCIAL RISK MANAGEMENT continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

36. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued

2015 U.S. dollar in millions Japanese yen in millions Others in millions Rupiah equivalent in billions Assets Cash and cash equivalents 494.19 11.37 10.34 6,957 Other current financial assets 30.37 - 1.02 433 Trade receivables Related parties 1.69 - - 23 Third parties 104.19 - 1.18 1,453 Other receivables 0.40 - 0.10 7 Advances and other non-current assets 3.88 - - 54 Total assets 634.72 11.37 12.64 8,927 Liabilities Trade payables Related parties 0.42 - - 6 Third parties 202.04 10.73 2.39 2,819 Other payables 22.26 - 1.65 330 Accrued expenses 34.45 25.45 0.18 481 Advances from customers and suppliers 0.48 - - 7 Current maturities of long-term liabilities 12.04 767.90 - 254 Promissory notes 1.99 - - 28 Long-term liabilities - net of current maturities 187.48 6,143.18 - 3,290 Total liabilities 461.16 6,947.26 4.22 7,215 Assets liabilities - net 173.56 6,935.89 8.42 1,712 Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period. The Group’s activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates, and interest rates. If the Group reports monetary assets and liabilities in foreign currencies as of December 31, 2016 using the exchange rates onMarch 2, 2017, the unrealized foreign exchange lossamounted to Rp22 billion.

37. FINANCIAL RISK MANAGEMENT

1. Fair value of financial assets and financial liabilities a. Classification i. Financial asset 2016 2015 Fair value of financial assetthrough profit or loss Derivative asset – put option - 172 Loans and receivables Cash and cash equivalents 29,767 28,117 Trade receivables and other receivables, net 7,900 7,872 Other current financial assets 313 2,486 Other non-current assets 210 379 Available-for-sale financial assets Available-for-sale investment 1,158 160 Total financial asset 39,348 39,186 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

37. FINANCIAL RISK MANAGEMENT continued

1. Fair value of financial assets and financial liabilities continued a. Classification continued ii. Financial liabilites 2016 2015 Financial liabilities measuredat amortized cost Trade payables and other payables 13,690 14,284 Accrued expenses 11,283 8,247 Loans and other borrowings Short-term bank loans 911 602 Two-step loans 1,292 1,520 Bonds and notes 9,323 9,548 Long-term bank loans 15,566 18,362 Obligation under finance lease 4,010 4,580 Other borrowings 697 - Total financial liabilities 56,772 57,143 b. Fair Value Fair value measurement at reporting date using 2016 Carrying value Fair Value Quoted prices in active markets for identical assets or liabilities level 1 Significant other observable inputs level 2 Significant unobservable inputs level 3 Financial assets measured at fair value Available-for-saleinvestment 1,158 1,158 1,058 100 - Total 1,158 1,158 1,058 100 - Financial liabilities for which fair value are disclosed Interest-bearing loans and other borrowings Two-step loans 1,292 1,312 - - 1,312 Bonds and notes 9,323 9,684 9,342 - 342 Long-term bank loans 15,566 15,404 - - 15,404 Obligation under finance lease 4,010 4,010 - - 4,010 Other borrowings 697 689 - - 689 Total 30,888 31,099 9,342 - 21,757 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

37. FINANCIAL RISK MANAGEMENT continued