PROPERTY AND EQUIPMENT Disposal of Indonusa

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 52 c. Others continued iii In 2012, Telkomsel decided to replace certain equipment units with net carrying amount of Rp1,037 billion, as part of a modernization program. Accordingly, Telkomsel changed the estimated useful lives of such equipment. In 2014, the effect of additional depreciation expense amounted to Rp54 billion. The impact of the change in the estimated useful lives of the equipment for the year ended June 30, 2014 is to decrease the profit before income tax by Rp54 billion. iv In 2012, the useful lives of Telkomsel’s towers were changed from 10 years to 20 years to reflect their current economic lives. The impact is a reduction of depreciation expense for the six months period ended June 30, 2014 is Rp290 billion. The impact of the change in the estimated useful lives of the towers in future periods is to increase the profit before income tax as follows: Years Amount 2014 6 months 275 2015 469 2016 301 2017 92 v Exchange of property and equipment • In 2011, the Company and PT Industri Telekomunikasi Indonesia “INTI” signed Purchase Orders of Procurement and Installation Agreement for the Modernization of the Copper Cable Network through Optimization of Asset Copper Cable Network with Trade InTrade Off with total procurement value amounting to Rp1,499 billion up to December 31, 2013. In 2013, the Company derecognized the copper cable network asset with net carrying value of Rp1.6 billion, respectively, and recorded the fiber optic network asset from the exchange transaction of Rp203 billion. • In 2014 and 2013, certain equipment units of Telkomsel with net carrying amount of Rp32 million and Rp173 million were exchanged with equipment from NSN Oy and PT Huawei. As of June 30, 2014, Telkomsel’s equipment with net carrying amount of Rp31 billion and Rp131 billion are going to be exchanged with equipment from NSN Oy and PT Huawei; therefore,Telkomsel’s equipment units were reclassified as assets held for sale Note 9. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 53

11. PROPERTY AND EQUIPMENT continued