ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 111

44. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued b. Market price risk The Company and subsidiaries are exposed to changes in debt and equity market prices related to available-for-sale investments carried at fair value. Gains and losses arising from changes in the fair value of available-for-sale investments are recognized in equity. The performance of the Company and subsidiaries available-for-sale investments are monitored periodically, together with a regular assesment of their relevance to the Company and subsidiaries long-term strategic plans. As of June 30, 2013, management considered the price risk for its available-for-sale investments to be immaterial in terms of the possible impact on profit or loss and total equity from a reasonably possible change in fair value. c. Interest rate risk Interest rate fluctuation is monitored to minimize any negative impact to financial position. Borrowings at variable interest rates expose the Company and subsidiaries to interest rate risk Notes 16, 17, 18, 19 and 20. To measure market risk pertaining to fluctuations in interest rates, the Company and subsidiaries primarily use interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate. At reporting date, the interest rate profile of the Company and subsidiaries interest-bearing borrowings was as follows: Juni 30, December 31, 2013 2012 Fixed rate borrowings 12,070 7,025 Variable rate borrowings 7,797 12,250 Sensitivity analysis for variable rate borrowings At June 30, 2013, a change of 25 basis points in interest rates of variable rate borrowings would have increased decreased equity and profit or loss by Rp30 billion, respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. d. Credit risk The following table presents the maximum exposure to credit risk of the Company and subsidiaries financial assets: Juni 30, December 31, 2013 2012 Cash and cash equivalents 11,551 13,118 Other current financial assets 696 4,338 Trade and other receivables, net 7,139 5,409 Long-term investments 21 21 Advances and other non-current assets 455 614 Total 19,862 23,500 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 112

44. FINANCIAL RISK MANAGEMENT continued

1. Financial risk management continued d. Credit risk continued The Company and subsidiaries are exposed to credit risk primarily from trade receivables and other receivables. The credit risk is managed by continuous monitoring of outstanding balances and collection of trade and other receivables. Trade and other receivables do not include any major concentration of credit risk by customer. Each of the top three customers account for less than 1 of the trade receivables as at June 30, 2013. Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Company and subsidiaries have provided sufficient provision for impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses. e. Liquidity risk Liquidity risk arises in situations where the Company and subsidiaries have difficulties in fulfilling financial liabilities when they become due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents in order to meet the Company and subsidiaries financial obligations. The Company and subsidiaries continuously perform an analysis to monitor financial position ratios, among other things, liquidity ratios, debt equity ratios against debt covenant requirements. The following is the maturity profile of the Company and subsidiaries financial liabilities: Carrying Contractual 2017 and amount cash flows 2013 2014 2015 2016 thereafter June 30, 2013 Trade and other payables 8,472 8,472 8,472 - - - - Accrued expenses 5,622 5,622 5,622 - - - - Loans and other borrowings Bank loans 11,058 12,128 4,071 2,913 2,600 1,091 1,453 Obligations under finance leases 3,306 5,474 1,078 496 827 568 2,505 Two-step loans 1,799 2,212 270 133 260 253 1,296 Bonds and notes 3,447 5,064 644 225 1,282 203 2,710 Total 33,704 38,972 20,157 3,767 4,969 2,115 7,964 Carrying Contractual 2017 and amount cash flows 2013 2014 2015 2016 thereafter December 31, 2012 Trade and other payables 7,456 7,456 7,456 - - - - Accrued expenses 6,163 6,163 6,163 - - - - Loans and other borrowings Bank loans 11,295 12,585 5,118 3,869 2,518 602 478 Obligations under finance leases 2,324 3,172 652 548 398 354 1,220 Two-step loans 1,987 2,462 283 277 270 263 1,369 Bonds and notes 3,669 5,462 757 505 1,287 203 2,710 Total 32,894 37,300 20,429 5,199 4,473 1,422 5,777 The difference of carrying amount and contractual cash flows is interest value.