INTANGIBLE ASSETS continued FS TLKM Q3 2014engl

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 62

17. SHORT-TERM BANK LOANS continued

The credit facilities obtained by the Company’s subsidiaries are used for working capital purposes. a based on the latest amendment on October 10, 2012 b Payment rescheduling on November 14,2014 c Payment rescheduling on October 23,2014

18. CURRENT MATURITIES OF LONG-TERM LIABILITIES

a. Current maturities September 30, December 31, Notes 2014 2013 Bank loans 21 3,575 3,956 Obligations under finance leases 11 588 648 Two-step loans 19 1,130 213 Bonds and notes 20 211 276 Total 5,504 5,093 Refer to Note 37 for details of related party transactions. b. Long-term portion Scheduled principal payments as of September 30, 2014 are as follows: Year Notes Total 2015 2016 2017 2018 Thereafter Bank loans 21 9,007 1,792 2,242 1,868 1,721 1,384 Obligations under finance leases 11 4,191 144 562 585 566 2,334 Bonds and notes 20 2,029 10 23 1 1,995 Two-step loans 19 1,532 77 215 216 193 831 Total 16,759 2,023 3,042 2,670 2,480 6,544

19. TWO-STEP LOANS

Two-step loans are unsecured loans obtained by the Government which are then re-loaned to the Company. The loans entered into up to July 1994 were recorded and payable in rupiah based on the exchange rate at the date of drawdown. Loans entered into after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 63

19. TWO-STEP LOANS continued

September 30, 2014 December 31, 2013 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency in millions equivalent in millions equivalent Overseas banks Yen 8,063 897 8,447 979 US 31 375 35 429 Rp - 471 - 507 Total 1,743 1,915 Current maturities Note 18a 211 213 Long-term portion Note 18b 1,532 1,702 Interest Interest Payment payment rate Lenders Currency schedule period per annum Overseas banks US Semi-annually Semi-annually 4.00 Rp Semi-annually Semi-annually 8.07 Yen Semi-annually Semi-annually 3.10 The loans are intended for the development of telecommunications infrastructure and supporting telecommunication equipment. The loans are payable in semi-annual installments and are due on various dates through 2024. Since 2008, the Company has used all facilities under the two-step loans program and the drawdown period for the two-step loans has expired. The Company is required to maintain financial ratios as follows: a. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans originating from the Asian Development Bank “ADB”. b. Internal financing earnings before depreciation and finance costs should exceed 20 compared to annual average capital expenditures for loans originating from the ADB. As of December 31, 2014, the Company complied with the above-mentioned ratios. Refer to Note 37 for details of related party transactions.