TAXATION continued TAXATION continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 78 e. Tax assessment continued ii Telkomsel In May and June 2012, Telkomsel received the refund of penalty of 2010 Income Tax Article 25 underpayment amounting to Rp15.7 billion based on the Tax Court’s verdict. On July 17, 2012, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On September 14, 2012, Telkomsel filed a contra-appeal to the SC. As of the date of approval and authorization for issuance of these consolidated financial statements, the judicial review is still in process. In August 2012, the Tax Authorities accepted Telkomsel’s objection and refunded the whole claim for 2008 underpayment of VAT amounting to Rp232 billion including penalty of Rp81.9 billion. On March 12, 2012, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid corporate income tax and underpaid VAT amounting to Rp597.4 billion and Rp302.7 billion including penalty of Rp73.3 billion, respectively. Telkomsel accepted the assessment on the overpayment of corporate income tax and Rp12.1 billion of the underpayment of the VAT including penalty of Rp6.3 billion. The accepted portion was charged to the 2012 consolidated statement of comprehensive income. On April 5, 2012, Telkomsel received a refund for the overpayment of corporate income tax for fiscal year 2010 amounting to Rp294.7 billion, net of underpayment of VAT. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the underpayment of VAT of Rp290.6 billion including penalty of Rp67 billion and recorded it as a claim for tax refund. On May 1, 2013, the Tax Authorities rejected Telkomsel’s objection. Subsequently, on July 29, 2013, Telkomsel filed an appeal to the Tax Court. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process. In December 2013, the Tax Court accepted Telkomsel’s appeal on 2006 VAT and withholding taxes totaling Rp116 billion. The amount which was previously presented as part of claims for tax refund is reclassified to advances and other non-current assets. On January 22, 2014, Telkomsel received appeal from Tax Court related to tax claim for Import VAT. Based on the decision, Tax Court accepted the tax claim of Telkomsel partially. As of the date of the release of this consolidated financial statement, Telkomsel has planned to disburse the portion that was received from the claim amounted to Rp8.5 billion. f. Deferred tax assets and liabilities The details of the Company and subsidiaries deferred tax assets and liabilities are as follows: Charged credited to the consolidated December 31, comprehensive June 30, 2013 income 2014 The Company Deferred tax assets: Provision for impairment of receivables 446 63 509 Net periodic pension and other post-retirement benefits costs 213 24 237 Employee benefit provisions 143 123 20 Deferred connection fee 70 1 69 Accrued expenses and provision for inventory obsolescence 27 3 24 Total deferred tax assets 899 40 859

31. TAXATION continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 79 f. Deferred tax assets and liabilities continued Charged credited to the consolidated statements of December 31, comprehensive June 30, 2013 income 2014 Deferred tax liabilities: Finance leases 9 1 8 Land rights, intangible assets, and others 11 3 8 Valuation of long-term investment 70 - 70 Difference between accounting and tax bases of property and equipment 1,543 22 1,521 Total deferred tax liabilities 1,615 24 1,591 Deferred tax liabilities of the Company - net 716 16 691 Telkomsel Deferred tax assets: Employee benefit provisions 254 17 271 Provision for impairment of receivables 122 1 123 Recognition of interest based on agreement 4 4 Total deferred tax assets 376 14 390 Deferred tax liabilities: Recognition of interest under USO arrangements Intangible assets 62 - 62 Finance leases 121 65 186 Difference between accounting and tax bases of property and equipment 2,268 182 2,086 Total deferred tax liabilities 2,451 117 2,334 Deferred tax liabilities of Telkomsel - net 2,075 131 1,944 Deferred tax liabilities of other subsidiaries - net 213 38 251 Deferred tax liabilities - net 3,004 77 2,927 Deferred tax assets - net 82 3 79 Charged credited to the consolidated Acquisition statements of divestment December 31, comprehensive of December 31, 2012 income subsidiaries 2013 The Company Deferred tax assets: Provision for impairment of receivables 276 170 - 446 Net periodic pension and other post-retirement benefits costs 129 84 - 213 Employee benefit provisions 173 30 - 143 Deferred connection fee 54 16 - 70 Accrued expenses and provision for inventory obsolescence 22 5 - 27 Provision for early retirement expense 140 140 - - Total deferred tax assets 794 105 - 899 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 80

31. TAXATION continued