TRADE RECEIVABLES continued INVENTORIES March 31, 2017

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 39

7. ADVANCES AND PREPAID EXPENSES March 31, 2017

December 31, 2016 Frequency license Notes 34c.i and 34c.ii 2,195 3,056 Prepaid rental 1,899 1,234 Advances 434 394 Salaries 358 229 Advance to employee 72 32 Others 710 301 Total 5,668 5,246 Refer to Note 31 for details of related party transactions.

8. LONG-TERM INVESTMENTS

March 31, 2017 Percentage of ownership Beginning balance Additions Deductions Share of net profit loss of associated company Dividend Share of other comprehensive income of associated company Ending balance Long-term investments in associated companies: Tiphone a 24.43 1,488 - 20 - - 1.508 Indonusa b 20.00 221 - - - - 221 Teltranet c 51.00 38 - 3 - - 35 PT Integrasi Logistik Cipta Solusi “ILCS” e 49.00 42 - - - 42 Telin Malaysia f 49.00 - - - CSM g 25.00 - - - - - - Sub-total 1,789 - 17 - - 1.806 Other long-term investments 58 1 - - - 59 Total Long-term investments 1,847 1 17 - - 1.865 Summarized financial information of the Group’s investments accounted under the equity method for 2017: Tiphone Indonusa Teltranet ILCS Telin Malaysia CSM Statements of financial position Current assets 7.709 170 66 141 24 161 Non-current assets 743 444 90 20 14 761 Current liabilities 1.248 532 84 74 66 594 Non-current liabilities 3.762 405 3 1 - 1.206 Equity deficit 3.442 323 69 86 28 878 Statements of profit or loss and other comprehensive income Revenues 27.310 605 30 18 23 131 Cost of revenues and operating expenses 26.445 583 37 17 29 221 Other income expenses including finance costs - net 231 17 - - - 88 Profit loss before tax 634 5 7 1 6 178 Income tax benefit expense 166 33 2 - - Profit loss for the year 468 28 5 1 6 178 Other comprehensive income loss 5 7 - - - - Total comprehensive income loss for the year 463 21 5 1 6 178 Using financial information as of December 31, 2016 and for the period then ended. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 40

8. LONG-TERM INVESTMENTS continued

2016 Percentage of ownership Beginning balance Additions Deductions Share of net profit loss of associated company Dividend Share of other comprehensive income of associated company Ending balance Long-term investments in associated companies: Tiphone a 24.43 1,404 - 108 23 1 1,488 Indonusa b 20.00 221 - - - - 221 Teltranet c 51.00 71 - 33 - - 38 Melon d 51.00 50 67 17 - - - ILCS e 49.00 40 - 2 - - 42 Telin Malaysia f 49.00 6 - 6 - - - CSM g 25.00 - - - - - - Sub-total 1,792 67 88 23 1 1,789 Other long-term investments 15 43 - - - 58 Total Long-term investments 1,807 24 88 23 1 1,847 Summarized financial information of the Group’s investments accounted under the equity method for 2016: Tiphone Indonusa Teltranet ILCS Telin Malaysia CSM Statements of financial position Current assets 7,709 170 66 131 9 161 Non-current assets 743 444 88 29 10 761 Current liabilities 1,248 532 78 73 35 594 Non-current liabilities 3,762 405 2 1 6 1,206 Equity deficit 3,442 323 74 86 22 878 Statements of profit or loss and other comprehensive income Revenues 27,310 605 66 116 8 131 Cost of revenues and operating expenses 26,445 583 149 112 43 221 Other income expenses including finance costs - net 231 17 3 - 88 Profit loss before tax 634 5 86 4 35 178 Income tax benefit expense 166 33 21 - - Profit loss for the year 468 28 65 4 35 178 Other comprehensive income loss 5 7 - - Total comprehensive income loss for the year 463 21 65 4 35 178 a Tiphone was established on June 25, 2008 as PT Tiphone Mobile Indonesia Tbk. Tiphone is engaged in the telecommunication equipment business, such as for celullar phone including spare parts, accessories, pulse reload vouchers, repair service and content provider through its subsidiaries. On September 18, 2014, the Company through PINS acquired 25 ownership in Tiphone for Rp1,395 billion. As of December 31, 2016, the share percentage of ownership was diluted to 24,43 due to warrant exercise by the other shareholder. As of March 31, 2017 and December 31, 2016, the fair value of the investment amounted to RP1,693 billion and Rp1,500 billion, respectively. The fair value was calculated by multiplying the number of shares by the published price quotation as of March 31, 2017 and December 31, 2016 amounting to Rp965 and Rp855 per share, respectively. Reconciliation of financial information to the carrying amount of long-term investment in Tiphone as of December 31, 2016 is as follows: 2016 Assets 8.599 Liabilities 5,157 Net assets 3,442 Group’s proportionate share of net assets 24.43 in 2016 841 Goodwill 647 Carrying amount of long-term investment 1,488