Others SIGNIFICANT COMMITMENTS AND AGREEMENTS continued b. Borrowings and other credit facilities

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 104

35. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued

ii Radio Frequency Usage continued On July 6, 2015, Telkomsel received Decision Letter No.644 Year 2015 dated June 30, 2015, of the MoCI, which replaced Decision Letter No.42 Year 2014 dated January 29, 2014, the MoCI granted Telkomsel the rights to provide: i Mobile telecommunication services with radio frequency bandwidth in the 800 MHz, 900 MHz and 1800 MHz bands; ii Mobile telecommunication services IMT-2000 with radio frequency bandwidth in the 2.1 GHz bands 3G; and iii Basic telecommunication services. iii Future minimum lease payments under operating lease The Group entered into non-cancelable lease agreements with both third and related parties. The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 2016 and 2025. Periods maybe extended based on the agreement by both parties. Future minimum lease payments under the operating lease agreements as of September 30, 2016 are as follows: Total Less than 1 year 1-5years More than 5 years As lessor 2,670 1,030 1,637 3 As lessee 17,948 3,438 10,985 3,525 In connection with the restructuring of its fixed wireless business unit Note 35c.ii, the Company undertakes a negotiation to early terminate its operating lease agreements, and has recorded provisions for early termination amounted Rp666 billion which is presented as “Other expense”. The future minimum lease payments above includes lease agreements with telecommunication tower providers, which were used for its fixed wireless business unit. iv USO The MoCI issued Regulation No. 15PERM.KOMINFO92005 dated September 30, 2005, which sets forth the basic policies underlying the USO program and requires telecommunications operators in Indonesia to contribute 0.75 of their gross revenues with due consideration for bad debts and interconnection charges for USO development. Based on the Government’s Decree No. 72009 dated January 16, 2009 and Decree No.05PERM.KOMINFO22007 dated February 28, 2007, the contribution was changed to 1.25 of gross revenues, net of bad debts andor interconnection charges andor connection charges. Subsequently, in December 2012, Decree No. 05PERM.KOMINFO22007 was replaced by Decree No. 45 year 2012 of the MoCi which was effective from January 22, 2013. The latest Decree stipulates, among other things, the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged, and changed the payment period which was previously on a quarterly basis to become quarterly or semi- annually. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 105

35. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued