ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued FINANCIAL RISK MANAGEMENT

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 119

44. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued e. Liquidity risk continued The following is the maturity profile of the Company and subsidiaries’ financial liabilities: Carrying Contractual 2014 2015 2016 2017 2018 and amount cash flows thereafter September 30, 2014 Trade and other payables 12,468 12,468 12,468 - - - - Accrued expenses 6,598 6,598 6,598 - - - - Loans and other borrowings Bank loans 15,209 18,106 7,140 1,769 2,944 2,947 3,306 Obligations under finance leases 4,779 6,527 993 240 895 862 3,537 Bonds and notes 3,159 4,409 1,410 61 228 203 2,507 Two-step loans 1,743 2,114 291 106 281 270 1,166 Total 43,956 50,222 28,900 2,176 4,348 4,282 10,516 Carrying Contractual 2018 and amount cash flows 2014 2015 2016 2017 thereafter December 31, 2013 Trade and other payables 11,988 11,988 11,988 - - - - Accrued expenses 5,264 5,264 5,264 - - - - Loans and other borrowings Bank loans 10,023 11,618 5,028 3,264 1,248 980 1,098 Obligations under finance leases 4,969 6,904 1,070 885 847 813 3,289 Two-step loans 1,915 2,308 292 285 278 271 1,182 Bonds and notes 3,349 4,817 582 1,311 215 203 2,506 Total 37,508 42,899 24,224 5,745 2,588 2,267 8,075 The difference between the carrying amount and the contractual cash flows is interest value. 2. Fair value of financial assets and financial liabilities a. Fair value measurement Fair value is the amount for which an asset could be exchanged, or liability settled, between in an arm’s length transaction. The Company and subsidiaries determined the fair value measurement for disclosure purposes of each class of financial assets and financial liabilities based on the following methods and assumptions: i The fair values of short-term financial assets and financial liabilities with maturities of one year or less cash and cash equivalents, trade receivables, other receivables, other current assets, trade payables, other payables, dividend payable, accrued expenses, advances from customers and suppliers and short-term bank loans are considered to approximate their carrying amounts as the impact of discounting is not significant . 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 120

44. FINANCIAL RISK MANAGEMENT continued