SHORT-TERM BANK LOANS FS TLKM Q3 2014engl

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 64

20. BONDS AND NOTES

September 30, 2014 December 31, 2013 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Bonds and notes Currency in millions equivalent in millions equivalent Bonds Series A Rp - 1,005 - 1,005 Series B Rp - 1,995 - 1,995 Promissory Notes PT ZTE Indonesia “ZTE” US 7 82 11 136 PT Huawei US 6 77 18 213 Total 3,159 3,349 Current maturities Note 18a 1,130 276 Long-term portion Note 18b 2,029 3,073 a. Bonds Interest Interest Listed Issuance Maturity payment rate Bonds Principal Issuer on date date period per annum Series A 1,005 The Company IDX June 25, 2010 July 6, 2015 Quarterly 9.60 Series B 1,995 The Company IDX June 25, 2010 July 6, 2020 Quarterly 10.20 Total 3,000 The bonds are secured by all of the Company’s assets, movable or non-movable, either existing or in the future Note 11c.x. The underwriters of the bonds are Bahana, PT Danareksa Sekuritas and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk. The Company received the proceeds from the issuance of bonds on July 6, 2010. The funds received from the public offering of bonds net of issuance costs, are to be used for increasing capital expenditure which consisted of: wave broadband bandwidth, softswitching, datacom, information technology and others, infrastructure backbone, metro network, regional metro junction, internet protocol, and satellite system and optimizing legacy and supporting facilities fixed wireline and wireless. As of September 30, 2014, the rating of the bonds issued by PT Pemeringkat Efek Indonesia Pefindo is idAAA stable outlook. Based on the indenture trusts agreement, the Company is required to comply with all covenants or restrictions, including maintaining financial ratios as follows: 1. Debt to equity ratio should not exceed 2:1. 2. EBITDA to finance costs ratio should not be less than 5:1. 3. Debt service coverage is 125. As of September 30, 2014, the Company has complied with the above mentioned ratios. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 65

20. BONDS AND NOTES continued

b. Promissory Notes Interest Interest Issuance Payment payment rate Supplier Currency Principal date schedule period per annum PT Huawei US 0.3 June 19, 2009 Semi-annually semi – annually 6 month LIBOR+1.5 0.2 April 30, 2013 October 12, 2014 - June 23, 2016 PT ZTE US 0.1 August 20, 2009 a Semi-annually Semi-annually 6 month LIBOR+1.5 Indonesia December 28, 2014 - “ZTE” June 15, 2016 Based on Agreement of Frame Supply and Deferred Payment Arrangement between the Company and ZTE and PT Huawei, the promissory notes issued by the Company to ZTE and PT Huawei are vendor financing facilities with no collateral covering 85 of Hand-over Report “Berita Acara Serah Terima” projects with ZTE and PT Huawei. a based on the addendum No.1 on August 15, 2011

21. BANK LOANS

September 30, 2014 December 31, 2013 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency in millions equivalent in millions equivalent BRI Rp 3,873 - 3,035 Syndication of banks Rp 2,350 - 2,426 BNI Rp 2,721 - 1,305 Bank Mandiri Rp 1,750 - 722 ABN Amro Bank N.V. Stockholm “AAB Stockholm” and SCB US 43 524 55 673 BCA Rp 394 - 858 Japan Bank for International Cooperation “JBIC” US 40 490 18 219 Bank CIMB Niaga Rp 524 - 365 Bank Bukopin Rp 30 - 31 US 1 8 1 12 Others Rp - 1 Total 12,664 9,647 Unamortized debt issuance cost 82 56 12,582 9,591 Current maturities Note 18a 3,5745 3,956 Long-term portion Note 18b 9,007 5,635 Refer to Note 37 for details of related party transactions.