Contractual Obligation Cash Flows from Financing Activities Net cash flows used in financing activities totaled Rp13,327

Of our Rp24,661 billion capital expenditure in 2014, Telkom, as parent company, incurred capital expenditures of Rp8,099 billion US654 million, Telkomsel incurred capital expenditures of Rp13,002 billion US1,050 million and our other subsidiaries incurred capital expenditures of Rp3,560 billion US287 million as follows: Table of realization of our capital expenditure Years Ended December 31, 2014 2013 2012 Rp billion Rp billion Rp billion Telkom parent company 8,099 5,313 4,040 Subsidiaries Telkomsel 13,002 15,662 10,656 Others 3,560 3,923 2,576 Subtotal for subsidiaries 16,562 19,585 13,232 Total for Telkom Group 24,661 24,898 17,272 The realization of the future capital expenditures may differ from the amounts indicated above due to various factors, including but not limited to the Indonesian and global economy environments, the RupiahUS Dollar or other applicable foreign exchange rates, the availability of supply or vendor or other financing on terms acceptable to us, and also any technical or other problems in the implementation. MATERIALITY LIMITATIONS Materiality in our Consolidated Financial Statement was based on BAPEPAMLK decision letter No. KEP-347 BL2012 about Presentation and Disclosure of Financial Statements Public Company dated June 25, 2012, with appendix Regulation No. VIII.G.7 about Presentation of Financial Statements of the Company or Public Company where 5 of the total assets for asset accounts, 5 of the total liability for the liabilities accounts, 5 of the total equity for equity accounts, 10 of revenue for items of comprehensive income, and 10 of the profit from continuing operations before taxes for the effect of an event or transaction. MATERIAL COMMITMENT FOR CAPITAL INVESTMENT

A. Purpose of the Commitment As of December 31, 2014, we had material commitments

for capital expenditures under certain contractual arrangements of Rp16,195 billion, principally relating to procurement and installation of the broadband network, transmission equipment and cable system. These include for cooper wire access modernization through Trade InTrade Off method project, Luwuk- Tutuyan Cabel System project, Outside Plant Fiber To The Home OSP FTTH project, Sulawesi Maluku Papua Cable System SMPCS project, expansion and Maintenance Support MS Service for Metro Ethernet Platform ALU project, expansion of DWDN platform ALU project, WIFI CISCO project, IP Radio Equipment for Backhaul Node-B project, Cabel System for Broadband Network Division 2014 project, Telkom-3 Subtitution T3S Satelite System project. Our subsidiary, Telkomsel, has material commitment for capital expenditures related , among others, the combined 2G and 3G CS Core Network Rollout project, 2G BSS and 3G UTRAN Rollout agreement for the provision of 2G GSM BSS and 3G UMTS Radio Access Network project, Next Generation Convergence “NGC” IP RAN Rollout and Technical Support project, Maintenance and procurement of equipment and related service agreement for NGC Core Transport Rollout and Technical Support project, Online Charging System “OCS” and Service Control Points “SCP” System Solution Development project, OCS dan CSP technical support project, Customer Relationship Management dan Contact Center Solutions project, CS Core System Rollout dan CS Core System Technical Support project, OSDSS Solution project, GGSN service complex rollout project, Gateway GPRS Support Node Service Complex technical support project. 135 2014 Annual Report PT Telkom Indonesia Tbk Persero In addition, PT Graha Sarana Duta “TelkomProperty” dan Telin also have material commitment for capital expenditure, facade Unitized System Telkom Landmark Tower project, Development of Infomedia’s building project , Operational Supporting System, Base Sub Station project, Value Added System, System Rollout, Radio Access Network dan Core System Rollout project. For more detailed discussion regarding our material commitments for capital expenditures, see Note 41 to our Consolidated Financial Statements.

B. Source of Funds We have historically funded our capital expenditures

primarily with cash generated from operations. In 2014, we expect that our capital expenditure to revenue ratio will be approximately in the range of 25-30. We expect that of the total increase in amount of capital expenditure in 2014 over 2013, the most significant proportions will be allocated broadband services with a portion of the increase allocated to our subsidiaries. We expect to fund the above commitments with our internal and external source of funds. We expect to fund the above commitments with our internal and external sources of funds. See explanation on “Capital Expenditures”.

C. Denomination of Currency As of December 31, 2014, details of material commitment

for capital investment by currency are as follows: Currencies Amounts in Foreign Currencies in millions Equivalent in Rupiah in billions Rupiah 9.837 US Dollar 512 6.349 Euro 0.35 5 SGD 0.40 4 16,195

D. Planned Actions to Mitigate Foreign Exchange Risks

We are exposed to foreign exchange risk on sales, purchases and borrowings transactions that are denominated in foreign currencies, primarily in US Dollars and Japanese Yen. Nevertheless, our exposure to foreign exchange rates risk is not material. Management provides written policy for foreign currency risk management mainly through time deposits placements and hedging to cover foreign currency risk exposures for the time range of 3 up to 12 months. Increasing risks of foreign currency exchange rates on our obligations are expected to be offset by time deposits and receivables in foreign currencies that are equal to at least 25 of the outstanding current liabilities. For detail discussion on material commitments for capital investment, exchange rate and interest rate see Notes 41 and 44 to our Consolidated Financial Statements. MATERIAL INFORMATIONS OF INVESTMENT, ExPANSION, DIVESTMENT, ACQUISITION AND DEBTCAPITAL RESTRUCTURE In 2014, we did some activities related to investments, divestments, acquisitions and debtcapital restructuring. The activities are as follows:

A. Investment -

On August 29, 2014, Telkom Metra entered into a shareholders agreement with Telstra Holding Singapore Pte. Ltd. to establish a joint venture known as PT TeltraNet Application Solutions Teltranet. Telkom Metra acquired ownership of 51 or US4,29 million of the total issued share capital US8,43 million, but Telkom Metra was not have control in determining the financial and operating policies of Teltranet. Teltranet engaged in services and communication systems. 136 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