INVENTORIES June 30, Disposal of Indonusa

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 48

10. LONG-TERM INVESTMENTS continued

December 31, 2013 Share of net loss Percentage profit of of Beginning Addition associated Translation Ending ownership balance deduction company Dividend adjustment balance Long-term investments in associated companies: Indonusa a 20.00 - 182 7 - - 189 PT Melon Indonesia “Melon” b 51.00 42 - 3 - - 39 ILCS c 49.00 48 - 11 - - 37 Telin Malaysia d 49.00 - 20 6 - 4 18 CSM e 25.00 20 - 20 - - - PSN f 22.38 - - - - - - Patrakom g 40.00 46 46 2 2 - - Scicom h 29.71 98 88 2 3 9 - Sub-total 254 68 29 5 5 283 Other long-term investments 21 - - - - 21 Total long-term investments 275 68 29 5 5 304 December 31, 2013 Assets Liabilities Revenue Loss Long-term investments in associated companies: Indonusa a 655 669 363 124 Melon b 90 22 73 6 ILCS c 88 13 4 22 Telin Malaysia d 37 1 11 CSM e 1,273 1,387 306 181 PSN f 817 2,148 462 55 Total 2,960 4,240 1,208 399 a Indonusa had been the Company’s subsidiary until 2013 when the Company disposed 80 of its interest in Indonusa Notes 1d and 3. b Melon is engaged in providing Digital Content Exchange Hub services “DCEH”. As a result of the existence of substantive participating rights held by the other venturer over the significant financial and operating policies of Melon, Metra does not have control over Melon. c ILCS is engaged in providing E-trade logistic services and other related services. d Telin Malaysia is engaged in telecommunication services in Malaysia. e CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. f PSN is engaged in providing satellite transponder leasing and satellite-based communication services in the Asia-Pacific Region. The Company’s share in losses of PSN has exceeded the carrying amount of its investment since 2001; accordingly, the investment value has been reduced to Rp nil. The unrecognized share of losses of PSN for six months period ended June 30, 2014 and 2013 are Rp300 billion and Rp920 billion, respectively. g Patrakom has been engaged in providing satellite communication system services, related services and facilities to companies in the petroleum industry. Starting in 2013, Patrakom has been consolidated Notes 1d and 3. h Scicom is engaged in providing call center services in Malaysia. On September 19, 2013, the Company sold its investment in Scicom MSC Berhad-Malaysia Scicom, with the proceeds of disposal and the carrying amount of the investment on the date of disposal amounting to Rp153 billion and Rp88 billion, respectively, resulting in a gain of Rp65 billion. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 49

11. PROPERTY AND EQUIPMENT

January 1, Reclassifications June 30, 2014 Additions Deductions translations 2014 At cost: Directly acquired assets Land rights 1,098 16 - - 1,114 Buildings 4,224 20 16 127 4,355 Leasehold improvements 812 17 29 64 864 Switching equipment 18,705 119 42 416 19,198 Telegraph, telex and data communication equipment 6 - - - 6 Transmission installation and equipment 95,853 1,103 35 6,262 103,083 Satellite, earth station and equipment 7,456 61 - 484 8,001 Cable network 28,987 1,459 - 17 30,463 Power supply 11,755 53 26 407 12,189 Data processing equipment 9,230 210 46 297 9,691 Other telecommunications peripherals 500 123 - - 623 Office equipment 770 32 - 16 818 Vehicles 332 - 1 31 362 Other equipment 104 - - - 104 Property under construction 1,971 8,379 - 8,305 2,045 Assets under finance lease Transmission installation and equipment 5,683 222 9 - 5,896 Data processing equipment 123 - - 1 124 Office equipment 7 52 - 5 54 Vehicles 26 - - 26 - CPE assets 22 - - - 22 RSA assets 459 - - - 459 Total 188,123 11,866 304 214 199,471 January 1, Reclassifications June 30, 2014 Additions Impairment Deductions translations 2014 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 1,840 100 - 16 55 1,979 Leasehold improvements 649 34 - 29 8 662 Switching equipment 12,903 789 - 42 3 13,653 Telegraph, telex and datacommunication equipment 3 - - - - 3 Transmission installation and equipment 46,665 4,420 99 88 96 51,000 Satellite, earth station and equipment 5,190 290 75 - 197 5,752 Cable network 17,758 519 16 - 11 18,282 Power supply 6,794 615 - 20 19 7,408 Data processing equipment 6,823 425 - 46 57 7,259 Other telecommunications peripherals 267 25 - - - 292 Office equipment 564 47 - - 8 619 Vehicles 68 25 - 1 2 94 Other equipment 100 2 - - 3 105 Assets under finance lease Transmission installation and equipment 1,345 320 - 9 - 1,656 Data processing equipment 83 12 - - 1 - Office equipment 2 - - - - 2 Vehicles 1 - - - 1 - CPE asets 13 1 - - - 14 RSA assets 294 20 - - 1 315 Total 101,362 7,644 190 251 244 109,189 Net Book Value 86,761 90,282