Retirement benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued aa. Impairment of non-financial assets

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 33

3. CASH AND CASH EQUIVALENTS continued

September 30, 2016 December 31, 2015 Balance Balance Currency Original currency in millions Rupiah equivalent Original currency in millions Rupiah equivalent Time deposits continued Third parties PT Bank Pembangunan Daerah Jawa Barat dan Banten “BJB” Rp - 2,712 - 1,884 US 10 130 10 138 Bank Permata Rp - 1,846 - 1,692 US 9 117 - - PT Bank UOB Indonesia “UOB” Rp - 1,250 - 300 PT Bank Mega Tbk “Bank Mega” Rp - 864 - 1,265 US 4 49 70 960 PT Bank OCBC NISP Tbk “OCBC NISP” Rp - 700 - 950 PT Bank CIMB Niaga Tbk “Bank CIMB Niaga” Rp - 579 - 1,605 PT Bank Tabungan Pensiunan Nasional Tbk “BTPN” Rp - 359 - 146 PT Bank Bukopin Tbk “Bank Bukopin” Rp - 358 - 1,173 US - - 55 759 PT Bank Muamalat Indonesia, Tbk Bank Muamalat Rp - 269 - 142 US 5 65 - - PT Bank Maybank Indonesia “Bank Maybank” Rp - 154 - 25 SCB Rp - - - 550 Others each below Rp75 billion Rp - 18 - 212 US - 26 - - Sub-total 9,496 11,801 Total time deposits 24,915 24,252 Grand Total 28,852 28,117 Interest rates per annum on time deposits are as follows: September 30, 2016 December 31, 2015 Rupiah 2.75-10.00 3.75-10.50 Foreign currencies 0.10-2.25 0.10-3.00 The related parties in which the Group places its funds are state-owned banks. The Group placed the majority of its cash and cash equivalents in these banks because they have the most extensive branch networks in Indonesia and are considered to be financially sound banks, as they are owned by the State. Refer to Note 32 for details of related party transactions. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 34

4. OTHER CURRENT FINANCIAL ASSETS

The breakdown of other current financial assets is as follows: September 30, 2016 December 31, 2015 Balance Balance Currency Original currency in millions Rupiah equivalent Original currency in millions Rupiah equivalent Time deposits Related parties Bank Mandiri US - - 20 278 Third parties SCB US - - 1 11 UOB US 1 13 - - Total time deposits 13 289 Available-for-sale financial assets Related parties State-owned enterprises US 4 54 4 59 Government US 2 27 2 29 Sub-total 81 88 Third parties Rp - 1,088 - 72 Total available-for-sale financial assets 1,169 160 Escrow accounts Rp - 2,121 - 2,121 US - - 3 41 Others Rp - 97 - 192 US 2 22 1 AUD 1 7 1 14 Total 3,429 2,818 The majority of escrow accounts represent Telkomsel’s account in BNI, in relation to the Conditional Business Transfer Agreement “CBTA” between Telkomsel and the Company Note 35c.ii. The time deposits have maturities of more than three months but not more than one year, with interest rates as follows: September 30, 2016 December 31, 2015 Foreign currencies 0,83-1,11 0.85-0.88 Refer to Note 32 for details of related party transactions.