CONTINGENCIES continued FS TLKM 9M 241013 English1

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 112

44. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued Financial risk management is carried out by the Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance identifies, evaluates and hedges financial risks. a. Foreign exchange risk The Company and subsidiaries are exposed to foreign exchange risk on sales, purchases and borrowings that are denominated in foreign currencies. The foreign currency denominated transactions are primarily in U.S. Dollars and Japanese Yen. The Company and subsidiaries exposure to other foreign exchange rates are not material. Increasing risks of foreign currency exchange rates on the obligations of the Company and subsidiaries are expected to be offset by time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities. The following table presents the Company and subsidiaries’ financial assets and financial liabilities exposure to foreign currency risk: September 30, 2013 December 31, 2012 U.S. Dollars Japanese Yen U.S. Dollars Japanese Yen in billions in billions in billions in billions Financial assets 0.46 0.51 0.00 Financial liabilities 0.59 8.93 0.61 9.25 Net exposure 0.13

8.93 0.10

9.25 Sensitivity analysis A strengthening of the U.S. Dollars and Japanese Yen, as indicated below, against the Rupiah at September 30, 2013 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company and subsidiaries considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant. Equityprofit loss September 30, 2013 14 U.S. Dollars 1 strengthening 45 Japanese Yen 5 strengthening A weakening of the U.S. Dollars and Japanese Yen against the Rupiah at September 30, 2013 would have had an equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.