CAPITAL STOCK FS English YE 2016 Audited PT Telekomunikasi Indonesia Tbk

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 66

23. PERSONNEL EXPENSES

The breakdown of personnel expenses is as follows: 2016 2015 Salaries and related benefits 7,122 5,684 Vacation pay, incentives and other benefits 4,219 4,575 Pension benefit cost Note 29 1,068 432 Early retirement program 628 683 Long Service Awards “LSA” expense Note 30 237 152 Net periodic post-employment health care benefit cost Note 29 163 216 Other employee benefit cost Note 29 82 53 Other post-employment benefit cost Note 29 48 47 Others 45 32 Total 13,612 11,874 Refer to Note 31 for details of related party transactions.

24. OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES

The breakdown of operation, maintenance and telecommunication service expenses is as follows: 2016 2015 Operation and maintenance 17,047 15,129 Radio frequency usage charges Notes 34c.i and 34c.ii 3,687 3,626 Concession fees and USO charges 2,217 2,230 Leased lines and CPE 2,578 1,913 Cost of IT services 1,563 882 Cost of handset sold Note 6 1,481 1,493 Electricity, gas and water 960 1,014 Cost of SIM cards and vouchers Note 6 624 444 Vehicles rental and supporting facilities 367 296 Tower leases 322 646 Insurance 256 312 Others 161 131 Total 31,263 28,116 Refer to Note 31 for details of related party transactions.

25. GENERAL AND ADMINISTRATIVE EXPENSES

The breakdown of general and administrative expenses is as follows: 2016 2015 General expenses 1,626 1,032 Provision for impairment of receivables Note 5d 743 1,010 Professional fees 594 424 Travelling 436 347 Training, education and recruitment 399 393 Meeting 207 163 Collection expenses 152 368 Social contribution 134 116 Others 319 351 Total 4,610 4,204 Refer to Note 31 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, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 67

26. TAXATION

a. Claims for tax refund 2016 2015 The Company Value Added T ax “VAT” Note 26e.i 335 298 Corporate income tax 473 479 Subsidiaries Corporate income tax 66 290 VAT 1,146 12 Income tax Article 23 - Withholding tax on services - Total claims for tax refund 2,020 1,079 Current portion 592 66 Non-current portion 1,428 1,013 b. Prepaid taxes 2016 2015 The Company Income tax Article 19 - Revaluation of fixed assets Note 26f 538 750 VAT 1,075 350 Subsidiaries Corporate income tax 62 16 VAT 1,639 1,596 Income tax Article 23 - Withholding tax on services 52 20 Total prepaid taxes 3,366 2,732 Current portion 2,138 2,672 Non-current portion 1,228 60 c. Taxes payable 2016 2015 The Company Income taxes Article 4 2 - Final tax 29 37 Article 21 - Individual income tax 141 51 Article 22 - Withholding tax on goods delivery and imports 2 2 Article 23 - Withholding tax on services 42 23 Article 25 - Installment of corporate income tax - 17 Article 26 - Withholding tax on non-resident income 136 2 VAT VAT - Tax collector 297 396 647 528