OTHER CURRENT FINANCIAL ASSETS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 49

6. TRADE RECEIVABLES continued

c. By currency continued ii Third parties 2014 2015 As restated Rupiah 7,761 7,730 U.S. dollar 1,436 1,053 Australian dollar 14 31 Others 3 4 Total 9,214 8,818 Provision for impairment of receivables 2,801 2,694 Net 6,413 6,124 d. Movements in the provision for impairment of receivables 2015 2014 Beginning balance 3,096 2,872 Provision recognized during the year Note 28 1,010 784 Receivables written off 1,058 560 Ending balance 3,048 3,096 The receivables written off relate to both related-party and third-party trade receivables. Management believes that the provision for impairment of trade receivables is adequate to cover losses on uncollectible trade receivables. As of December 31, 2015, certain trade receivables of the subsidiaries amounting to Rp4,290 billion have been pledged as collateral under lending agreements Notes 16, 19 and 20. Refer to Note 36 for details of related party transactions. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 50

7. INVENTORIES 2015

2014 Components 342 279 SIM cards, set top boxes, and blank prepaid vouchers 131 105 Others 96 133 Total 569 517 Provision for obsolescence Components 14 15 SIM cards, set top boxes and blank prepaid vouchers 27 28 Others Total 41 43 Net 528 474 Movements in the provision for obsolescence are as follows: 2015 2014 Beginning balance 43 22 Provision recognized during the year 2 39 Inventory write off 4 18 Ending balance 41 43 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses as of December 31, 2015 and 2014 amounted to Rp1,937 billion and Rp1,031 billion, respectively Note 27. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company