BUSINESS COMBINATIONS Impairment of non-financial assets

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 54

11. PROPERTY AND EQUIPMENT continued

c. Others continued xiv The Company and Telkomsel entered into several agreements with PT Profesional Telekomunikasi Indonesia, PT Tower Bersama Infrastructure Tbk, PT Solusindo Kreasi Pratama, PT Prima Media Selaras, PT Naragita Dinamika Komunika and other tower providers to lease spaces in telecommunication towers slot and sites of the towers for a period of 10 years. The Company and Telkomsel may extend the lease period based on the agreement by both parties. In addition, the Company and subsidiaries also have lease commitments for property and equipment under RSA, transmission installation and equipment, data processing equipment, office equipment, vehicles and CPE assets with the option to purchase certain leased assets at the end of the lease terms. Future minimum lease payments for assets under finance lease are as follows: Year 2013 2012 2013 - 652 2014 1,070 548 2015 885 398 2016 847 354 2017 813 334 2018 754 279 Thereafter 2,535 607 Total minimum lease payments 6,904 3,172 Interest 1,935 848 Net present value of minimum lease payments 4,969 2,324 Current maturities Note 18a 648 510 Long-term portion Note 18b 4,321 1,814 12. ADVANCES AND OTHER NON-CURRENT ASSETS Advances and other non-current assets as of December 31, 2013 and 2012 consist of: 2013 2012 Advances for purchase of property and equipment 1,550 775 Prepaid rental - net of current portion Note 8 1,403 1,367 Frequency license - net of current portion Note 8 619 279 Long-term trade receivables - net of current portion Note 6 558 294 Deferred charges 529 471 Claim for tax refund - net of current portion Note 31 499 - Security deposits 73 103 Restricted cash 54 217 Assets not used in operations - net Others 9 4 Total 5,294 3,510 Prepaid rental covers rent of leased line and telecommunication equipment and land and building under lease agreements of the Company and subsidiaries with rental periods ranging from 1 to 33 years. Long-term trade receivables are measured at amortized cost using the effective interest rate method payable in installments over 4 years, and arose from providing telecommunication access and services in rural areas USO Note 41c.v.