Foreign Exchange Controls Indonesia operates a liberal foreign exchange system

LEGAL MATTERS In the ordinary course of business, we continuously pay attention to compliance aspects with capital markets regulations, as well as regulations that are relevant to the scope of our business. Nevertheless, there are certain differences in the interpretation and implications in operations and our business and subsidiaries, especially on legal issues relating to land disputes, monopolistic practices and unfair business competition and SMS cartel practices. With regard to the legal proceedings described below, we do not believe that subsequent investigations or court decisions regarding those cases will have a significant financial impact on us or our subsidiariesBased on management’s estimate on the probable outcomes of these cases, we have made provisions of Rp25 billion at December 31, 2014. The following described ceretain current significant legal proceedings involving us, our Board of Commissioners, Board of Directors and subsidiaries. Legal Matters Faced by the Board of Commissioners and Board of Directors In 2014, there were no legal issues faced by the Members of the Board of Commissioners and Board of Directors. Legal Proceedings that involve Members of Board of Commissioners and Board of Directors Year Name of Case Status Case brief Summary Number of Suits Impact of Company 2014 Nil Nil Nil Nil Nil 2013 Nil Nil Nil Nil Nil 2012 Nil Nil Nil Nil Nil Legal Matters Faced By the Company Out of the legal issues faced by Company and subsidiaries in 2014, there were two2 cases and one 1 case has final judgement in-kracht van gewijsde. Details are as below: Telkom Legal Issues Status 2012 2013 2014 Criminal Law Civil Law Criminal Law Civil Law Criminal Law Civil Law In Progress - 1 1 4 - 2 Final Judgement in-kracht van gewijsde - - - - 1 - Sub Total - 1 1 4 1 2 Total 1 5 3 260 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S As a form of disclosure of information, a summary of thelegal problems faced by the Company in 2014, are as follow: Principal lawsuit Type of Court Suit Status Financial Impact We are the defendant with KPPU as plaintiff in the case of allegation of violation of Article 5 of Law No.5 of 1999 on Prohibition of Monopolistic and Unfair Business Competition Practices. The Commission for the Supervision of Business Competition KPPU The Company is currently waiting for a call from the Central Jakarta District Court in relation to the commencement of the merged trial. Rp18 billion Telkom, the Provincial Government of South Sulawesi, the Regional Government of Gowa Regency, the National Land Agency collectively as Defendants with Andi Jindar Pakki et al. as Plaintiff in the land right dispute at Telkom Makassar’s land General Court Judicial Review to the Supreme Court Rp57.6 billion Legal Matters Faced By Subsidiary There was only one legal issues faced by the subsidiaries in 2014. Lawsuit Type of Court Suit Status Financial Impact Telkomsel and certain other operators were were investigated by KPPU in relation to the allegation of SMS cartel practices by the said Operators. KPPU has issued a decision which sentenced Telkomsel to pay a fine of Rp25 billion, for which Telkomsel has appealed to the District Court. Commission for the Supervision of Business Competition “KPPU” Telkomsel is currently waiting for the notification from the Central Jakarta District Court regarding the start of the Joint Proceedings at the court. Rp25 million 261 2014 Annual Report PT Telkom Indonesia Tbk Persero