CASH AND CASH EQUIVALENTS continued OTHER CURRENT FINANCIAL ASSETS 2013

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 45

6. TRADE RECEIVABLES continued

c. By currency continued ii Third parties 2013 2012 Rupiah 6,699 5,770 U.S. dollar 806 722 Euro 1 3 Hong Kong dollar 1 2 Total 7,507 6,497 Provision for impairment of receivables 2,381 1,975 Net 5,126 4,522 d. Movements in the provision for impairment of receivables 2013 2012 Beginning balance 2,047 1,732 Provision recognized during the year Note 29 1,589 848 Receivables written-off 622 533 Acquisition 1 - Disposal Note 3 158 - Reclassification 15 - Ending balance 2,872 2,047 The receivables written off are 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. Certain trade receivables of the subsidiaries amounting to Rp1,700 billion have been pledged as collateral under lending agreements Notes 17 and 21. Refer to Note 37 for details of related party transactions. 7. INVENTORIES 2013 2012 Components 272 183 SIM cards, RUIM cards, set top box, and blank prepaid vouchers 102 134 Others 157 410 Total 531 727 Provision for obsolescence Components 21 51 SIM cards, RUIM cards, set top box, and blank prepaid vouchers 1 1 Modules - 96 Total 22 148 Net 509 579 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 46

7. INVENTORIES continued

Movements in the provision for obsolescence are as follows: 2013 2012 Beginning balance 148 106 Divestment 1 - Provision reversal recognized during the year 29 67 Reclassification 96 - Inventories written-off - 25 Ending balance 22 148 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 for the years ended December 31, 2013 and 2012 amounted to Rp752 billion and Rp633 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp53 billion have been pledged as collateral under lending agreements Notes 17 and 21. As of December 31, 2013 and 2012, modules and components held by the Company and subsidiaries have been insured against fire, theft, and other specific risks with book value amounting to Rp280 billion and Rp272 billion, respectively. Modules are recorded as part of property and equipment. Total sum insured as of December 31, 2013 and 2012 amounted to Rp261 billion and Rp275 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Company and subsidiaries. 8. ADVANCES AND PREPAID EXPENSES 2013 2012 Frequency license Notes 41c.i and 41c.ii 2,330 2,563 Prepaid rental 744 666 Advances 297 120 Salaries 209 165 Deferred expense 124 45 Insurance 84 18 Others each below Rp50 billion 149 144 Total 3,937 3,721 Refer to Note 37 for details of related party transactions.