Mobile cellular telephone tariffs

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 103

34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities

i As of December 31, 2016, the Company has bank guarantee facilities for tender bond, performance bond, maintenance bond, deposit guarantee and advance payment bond for various projects of the Company, as follows: Facility utilized Lenders Total facility Maturity Currency Original currency in millions Rupiah equivalent BRI 350 March 14, 2018 Rp - 31 US 1 BNI 250 March 31, 2017 Rp - 137 US 1 Bank Mandiri 300 December 23, 2017 Rp - 76 US 1 Total 900 247 ii Telkomsel has US3 million bond and bank guarantee and standby letter of credit facilities with SCB, Jakarta. The facilities expire on July 31, 2017. Under these facilities, as of December 31, 2016, Telkomsel has issued a bank guarantee of Rp20 billion equivalent to US1.5 million for a 3G performance bond Note 34c.i. The bank guarantee is valid until March 24, 2016. As of the date of approval and authorization for the issuance of the consolidated financial statements, the bank guarantee is not extended. Telkomsel has a Rp500 billion bank guarantee facility with BRI. The facility will expire on September 25, 2017. Under this facility, as of December 31, 2016, Telkomsel has issued a bank guarantee of Rp443 billion equivalent to US33 million as payment commitment guarantee for annual right of usage fee valid until March 31, 2017 and Rp20 billion equivalent to US1.5 million for a 3G performance guarantee that valid until May 31, 2017. As of the date of approval and authorization for the extension of the facility is still in process. Telkomsel has a Rp150 billion bank guarantee facility with BCA. The facility will expire on April 15, 2017. Telkomsel has also a Rp100 billion bank guarantee facility with BNI. The facility will expire on December 11, 2017. Telkomsel uses this facility to replace the time deposit required as guaranty for the USO program amounting to Rp52 billion Note 34c.iv. iii TII has a US15 million bank guarantee from Bank Mandiri. The facility will expire on December 18, 2017. The outstanding bank guarantee facility as of December 31, 2016 amounting to US10 million.

c. Others

i 3G license With reference to the Decision Letters No. 07PERM.KOMINFO22006, No. 268KEPM.KOMINFO92009 and No. 191 year 2013 of the MoCI Note 2i, Telkomsel is required, among other things, to: 1. Pay an annual BHP fee which is calculated based on a certain formula over the license term 10 years as set forth in the Decision Letters. The BHP is payable upon receipt of the notification letter “Surat Pemberitahuan Pembayaran” from the DGPI. The BHP fee is payable annually up to the expiry date of the license. 2. Provide roaming access for the existing other 3G operators. 3. Contribute to USO development.