OPERATING SEGMENT continued FS English 2017final

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 100

33. TELECOMMUNICATIONS SERVICE TARIFFS continued

c. Interconnection tariffs The Indonesian Telecommunication Regulatory Body “ITRB”, in its letter No. 262BRTIXII2011 dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication provider operators. Based on letter No.118KOMINFODJPPIPI.02.04012014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to implement new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the Company and Telkomsel are required to submit the Reference Interconnection Offer “RIO” proposal to ITRB to be evaluated. Subsequently, ITRB in its letters No. 60BRTIIII2014 dated March 10, 2014 and No. 125BRTIIV2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to the SMS interconnection tariff to Rp24 per SMS.

d. Network lease tariffs

Through MoCI Decree No. 03PERM.KOMINFO12007 dated January 26, 2007 concerning “Network Lease”, the Government regulated the form, type, tariff structure, and tariff formula for services of network lease. Pursuant to the MoCI Decree, the Director General of Post and Telecommunication issued its Letter No. 115 Year 2008 dated March 24, 2008 which stated “The Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider”, in conformity with the Company’s proposal.

e. Tariff for other services

The tariffs for satellite lease, telephony services, and other multimedia are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services. 34. SIGNIFICANT COMMITMENTS AND AGREEMENTS

a. Capital expenditures

As of June 30, 2017, capital expenditures committed under the contractual arrangements, principally relating to procurement and installation of data, internet and information technology, cellular, transmission equipment and cable network are as follows: Currencies Amounts in foreign currencies in millions Equivalent in Rupiah Rupiah - 8,670 U.S. dollar 240 3,201 Euro 0.16 2 Total 11,873 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 101

34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued

The above balance includes the following significant agreements: i The Company Contracting parties Initial date of agreement Significant provisions of the agreement The Company and PT Cisco Technologies Indonesia November 14, 2013 Procurement and installation agreement of WIFI CISCO The Company and PT Industri Telekomunikasi Indonesia May 5, 2014 Procurement and installation agreement of Outside Plant Optik OSP-FO Akses The Company and PT Huawei Tech Investment October 23, 2014 Procurement and installation of Access Point Indonesia WIFI Platform Huawei The Company and PT ZTE Indonesia August 28, 2015 Procurement and installation agreement of MSAN modernization for acceleration of the disposal of copper wire - Platform ZTE The Company and PT Datacomm Diangraha November 20, 2015 Procurement and installation agreement of Metro Ethernet Platform ALU The Company and PT Sisindokom Lintasbuana November 23, 2015 Procurement and installation agreement of Ekspan PE- VPN Cisco The Company and PT Multireka Prima Utama Desember 15, 2015 Procurement and installation agreement of Radio IP Long Haul Ceragon The Company and PT Sarana Global Indonesia December 31, 2015 Procurement and installation agreement of Sistem Komunikasi Kabel Laut “SKKL” Sibolga-Nias, Batam- Tanjung Balai Karimun, Larantuka-Kabalahi-Atambua The Company and Space SystemLoral, LLC February 29, 2016 Procurement of Telkom 4 Satellite System The Company and PT Mastersystem Infotama October 24, 2016 Procurement of Expand IP Backbone 2016 The Company and Space Exploration Technologies Corp November 3, 2016 Launch services agreement of Telkom 4 Satellite System The Company and PT Huawei Tech Investment October 10, 2016 Procurement and installation agreement of XGPON Platform Huawe The Company and PT Lintas Teknologi Indonesia November 17, 2016 Procurement and installation agreement of DWDM Platform ALCATEL The Company and PT Huawei Tech Investment November 25, 2016 Procurement and installation agreement of DWDM Platform Huawei The Company and PT ZTE Indonesia December 15, 2016 Procurement agreement for STB Platform ZTE The Company and PT ZTE Indonesia December 15, 2016 Procurement agreement for ONT Retail Platform ZTE The Company, PT Sigma Cipta Caraka, PT Graha Sarana Duta and PT Huawei Tech Investment December 29, 2016 Agreement establishing IOC-N