Internal Liquidity Sources To fulfill our obligations, we rely primarily on our internal

In addition, PT Graha Sarana Duta “TelkomProperty” dan Telin also have material commitment for capital expenditure, facade Unitized System Telkom Landmark Tower project, Development of Infomedia’s building project , Operational Supporting System, Base Sub Station project, Value Added System, System Rollout, Radio Access Network dan Core System Rollout project. For more detailed discussion regarding our material commitments for capital expenditures, see Note 41 to our Consolidated Financial Statements.

B. Source of Funds We have historically funded our capital expenditures

primarily with cash generated from operations. In 2014, we expect that our capital expenditure to revenue ratio will be approximately in the range of 25-30. We expect that of the total increase in amount of capital expenditure in 2014 over 2013, the most significant proportions will be allocated broadband services with a portion of the increase allocated to our subsidiaries. We expect to fund the above commitments with our internal and external source of funds. We expect to fund the above commitments with our internal and external sources of funds. See explanation on “Capital Expenditures”.

C. Denomination of Currency As of December 31, 2014, details of material commitment

for capital investment by currency are as follows: Currencies Amounts in Foreign Currencies in millions Equivalent in Rupiah in billions Rupiah 9.837 US Dollar 512 6.349 Euro 0.35 5 SGD 0.40 4 16,195

D. Planned Actions to Mitigate Foreign Exchange Risks

We are exposed to foreign exchange risk on sales, purchases and borrowings transactions that are denominated in foreign currencies, primarily in US Dollars and Japanese Yen. Nevertheless, our exposure to foreign exchange rates risk is not material. Management provides written policy for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk exposures for the time range of 3 up to 12 months. Increasing risks of foreign currency exchange rates on our obligations 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. For detail discussion on material commitments for capital investment, exchange rate and interest rate see Notes 41 and 44 to our Consolidated Financial Statements. MATERIAL INFORMATIONS OF INVESTMENT, ExPANSION, DIVESTMENT, ACQUISITION AND DEBTCAPITAL RESTRUCTURE In 2014, we did some activities related to investments, divestments, acquisitions and debtcapital restructuring. The activities are as follows:

A. Investment -

On August 29, 2014, Telkom Metra entered into a shareholders agreement with Telstra Holding Singapore Pte. Ltd. to establish a joint venture known as PT TeltraNet Application Solutions Teltranet. Telkom Metra acquired ownership of 51 or US4,29 million of the total issued share capital US8,43 million, but Telkom Metra was not have control in determining the financial and operating policies of Teltranet. Teltranet engaged in services and communication systems. 136 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S

B. Expansion - On January 16, 2014, we establish 100 ownership

subsidiary under the name PT Infrastruktur Telekomunikasi Indonesia Telkom Infra was accepted and approved by the Ministry of Law and Human Rights of the Republic of Indonesia “MoLHR” in its Letter No. AHU-03196.AH.01.01.2014 dated January 23, 2014 with. Telkom Infra is engaged in the construction, services and telecommunications trade. - On August 27, 2014, based on notarial deed Zulkifli Harahap, SH 21 dated August 27, 2014, was accepted and approved by the MoLHR in its Letter No AHU- 22722. 40.10.2014 dated September 1, 2014, Telkom Property formed a 99.99 ownership subsidiary called PT Nusantara Sukses Sarana NSS. NSS focused on the building and hotel management services and other services. - On August 27, 2014, based on notarial deed Zulkifli Harahap, SH 22 dated August 27, 2014, was accepted and approved by the MoLHR in its Letter No AHU- 22723. 40.10.2014 dated September 1, 2014, Telkom Property formed a 99.99 ownership subsidiary called PT Nusantara Sukses Realti NSR. NSR focused on services and trade. - On August 27, 2014, based on notarial deed Zulkifli Harahap, SH, No. 23 dated August 27, 2014, was accepted and approved by the MoLHR in its Letter No AHU-22724. 40.10.2014 dated September 1, 2014, Telkom Property formed a 99.99 ownership subsidiary called PT Nusantara Sukses Investasi NSI. NSI focused on services and trade. - On September 11, 2014, based on notarial deed Jimmy TANAL, SH, MH, No. 118 dated September 11, 2014, PINS buy 25 of outstanding shares of PT Tiphone Mobile Indonesia, Tbk Tiphone with an acquisition cost of Rp1.395 billion. Tiphone establish on June 25, 2008 with the name Tiphone Mobile Indonesia Tbk, with the main activities of running a business in the field of telecommunications equipment trade in the form of the following mobile phone spare parts, accessories, pulses as well as repair services and the provision of content through its subsidiaries.

C. Divestation

In 2014, we have no divestation transacation.

D. Acquisition - On September 25, 2014, Telkom Australia Telin through

acquisitions over 75 share of Australia Pty Ltd Contact Centres. CCA with an acquisition cost of AU 10,843,000 or equivalent to Rp116 billion. CCA is a private company based in Surry Hills, Sydney and founded in 2002. The company provides solutions Business Process Outsourching BPO, engaged in the contact center services for fundraising not for profit organization and commercial business, a comprehensive and integrated with other services for end-to-end solution that is complete.

E. DebtCapital Restructure

In 2014, we have no debtcapital restructure. MATERIAL INFORMATION OF CONFLICT OF INTEREST ANDOR AFFILIATED TRANSACTION In 2014, we have no conflict of interest or affiliated transaction. MATERIAL INFORMATION AND FACTS AFTER ACCOUNTANT REPORTING DATE We are not aware of any subsequent events occurred after the accountant’s report date until the issuance date of this Annual Report. CHANGE IN ACCOUNTING POLICIES The consolidated financial statements of the Group has been prepared in accordance with Financial Accounting Standards Standar Akuntansi Keuangan or “SAK” including Indonesian Financial Accounting Standards Pernyataan Standar Akuntansi Keuangan or “PSAK” and Interpretation of Financial Accounting Standards Interpretasi Standar Akuntansi Keuangan or “ISAK” in Indonesia published by Financial Accounting Standard Board of Indonesian Institute of Accountants and Regulation No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency “Bapepam-LK” regarding the Presentation and Disclosures of Financial Statements of Issuers or Public Companies, enclosed in the decision letter KEP- 347BL2012. Changes to the statements of financial accounting standards PSAKs and interpretations of statements of financial accounting standards Interpretasi Standar Akuntansi Keuangan or “ISAKs” 137 2014 Annual Report PT Telkom Indonesia Tbk Persero