Consequences of a PIAP In the event that the Company is classiied as a PIAP

159 PT Telkom Indonesia Persero Tbk reserve from the payment of dividends, or from the result of sales or the payment of ADS or common stock in the U.S. territory or by a U.S. buyer or broker to a shareholder, except for exempted recipients, in the event that such shareholder fails to provide the correct tax identiication number or is unable to fulill the exceptions to the requirements concerning income tax reserves. The size of the income tax reserve has been 25 in the years leading to 2014. Income tax reserves are not additional taxes, and are eligible to be credited to Federal U.S. income tax liabilities of U.S. Shareholders, or, in the event that it exceeds hisherits liabilities, the tax would be returned by the Internal Revenue Service “IRS” if a tax return claim has been submitted to the IRS.

C. Tax Incentives

In December 2015, The Company used the economic policy package V in the form of tax incentives with a special tax rate for revaluation of assets as stated in the Ministry of Finance Regulation No.191PMK.010.2015 jo PMK No. 233PMK.032015. In accordance with the regulation, The company should reassess the ixed assets in fair value which appraised by the Public Appraiser Service Oice or other appraisals which lincensed by the Government before December 31, 2016. The Company paid the inal Income Tax amounted to Rp750 billion and iled a letter No.C.Tel.282KU000COP-I0000002015 dated December 29, 2015 regarding to application of Revaluation of Assets in the purpose of taxation in 2015. It was submitted on December 30, 2015. As of the date of approval and authorization for the issuance of the consolidated inancial statements, the assesing of revaluation of assets is still in process. Materiality Limitation Materiality in our Consolidated Financial Statement was based on According to BAPEPAMLK decision letter No. KEP-347BL2012 about Presentation and Disclosure of Financial Statements Public Company dated June 25, 2012, with appendix Regulation No. VIII.G.7:about Presentation of Financial Statements of the Company or Public Company where items is 5 of the total assets for asset items, 5 of the total liability for the liabilities items, 5 of the total equity for equity accounts, 10 of revenue for items of comprehensive income, and 10 of the proit from continuing operations before taxes for the efect of an event or transaction. Material Contract In 2015 and 2014, we did not enter into any new material contracts nor did we amend any existing material contracts, other than contracts entered into or amended in the ordinary course of business as disclosed at Note 39 of our Consolidated Financial Statement. Material Informations Of Investment, Expansion, Divestment, Acquisition And DebtCapital Restructure In 2015, we did some activities related to investments, divestments, acquisitions and debtcapital restructuring. The activities are as follows:

a. Investment

1. Metra On November 30, 2015, Metra acquired 13,850 shares of

TelkoMedika equal to 75 ownership with acquisition cost amounting to Rp69.5 billion. TelkoMedika engaged in health services, procurement services and medicine services, including the establishment of pharmacies, hospital, raw treatment, clinic, or other health care support.

2. Telin On May 19, 2015, Pachub Acquisition Co. On

Telekomunikasi Indonesia International USA has 100 direct ownership.On May 29, 2015, Telkom USA and Pachub Acquisition Co entered into an agreement and business combination plan with AP Teleguam Holdings, Inc. As of the date of approval and authorization for the issuance of the consolidated inancial statements, the business combination is still in process.

b. Expansion

In 2015, we have no expansion transaction.

c. Divestation

In 2015, we have no divestation transaction.

d. Acquisition

In 2015, Based on notarial deed No.09 dated December 18, 2015 of Utiek Rochmuljati Abdurachman, SH., MLI,