Obligation under the Labor Law provisions

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 94 32. RELATED PARTY TRANSACTIONS a. Nature of relationships and accountstransactions with related parties Details of the nature of relationships and accountstransactions with significant related parties are as follows: Nature of Related parties relationships parties Nature of accountstransactions The Government Majority stockholder Internet and data revenue, other Ministry of Finance telecommunication service revenue, finance income, finance costs, investment in financial instruments State-owned enterprises Entity under common control Internet and data revenue, other telecommunication services revenue, operating expenses, purchase of property and equipment, construction and installation services, insurance expenses, finance income, finance costs, investment in financial instruments, insurance for property and equipment, insurance for employees, electricity expenses and cost of SIM cards Indosat Entity under common control Interconnection revenue, network lease revenue, satellite transponder usage revenue, interconnection expenses, telecommunication facilities usage expenses, operating and maintenance expenses, usage of data communication network system expenses PT Aplikanusa Lintasarta Entity under common control Interconnection revenue, network revenue, “Lintasarta” leased lines expenses, and usage of communication network system expenses Indosat Mega Media Entity under common control Network revenues PT Perusahaan Listrik Entity under common control Electricity expenses, finance costs, Negara “PLN” investment in financial instrument. PT Pertamina Persero Entity under common control Internet and data revenue, “Pertamina” other telecommunication service revenue PT Kereta Api Entity under common control Internet and data revenue, Indonesia “KAI” other telecommunication service revenue PT Pegadaian Entity under common control Internet and data revenue, other telecommunication service revenue PT Garuda Indonesia Entity under common control Internet and data revenue, other telecommunication service revenue PT Indonesia Comnet Entity under common control Internet and data revenue, Plus “ICON Plus” other telecommunication service revenue, interconnection revenue Badan Penyelenggara Entity under common control Internet and data revenue, Jaminan Sosial “BPJS” other telecommunication service revenue PT Asuransi Jasa Indonesia Entity under common control Satellite insurance expense, vehicle insurance “Jasindo” expense PT Adhi Karya Tbk Entity under common control Purchase of materials and construction “ Adhi Karya ” services PT Waskita Karya Tbk Entity under common control Purchase of materials and construction “ Waskita ” services INTI Entity under common control Purchase of property and equipment LEN Entity under common control Purchase of property and equipment State-owned banks Entity under common control Finance income and finance costs BNI Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 95 32. RELATED PARTY TRANSACTIONS continued a. Nature of relationships and accountstransactions with related parties continued Details of the nature of relationships and accountstransactions with significant related parties are as follows continued: Nature of Related parties relationships parties Nature of accountstransactions Bank Mandiri Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs BRI Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs BTN Entity under common control Internet and data revenue, other telecommunication service revenue, finance income and finance costs PT Bank Syariah Mandiri Entity under common control Internet and data revenue, “BSM” other telecommunication service revenue, and finance costs PT Bank BRI Syariah Entity under common control Internet and data revenue, “BRI Syariah” other telecommunication service revenue, and finance costs Bahana Entity under common control Available-for-sale financial assets, bonds and notes CSM Associated company Satelite transponder usage revenue, network revenue and transmission lease expenses PT Poin Multi Media Nusantara Associated company Purchases of handset “POIN” Yakes Entity under significant influence Medical expense Koperasi Pegawai Telkom Entity under significant Purchase of property and equipment “Kopegtel” influence development and instalation, lease of building Expenses, lease of vehicles, purchase of cars, and purchase of materials and construction service, maintenance and cleaning service expenses, and sahring profit of PBH PT Sandhy Putra Makmur Entity under significant Leases of buildings, leases of vehicles, “SPM” influence purchase of materials and construction services, maintenance and cleaning service expenses Koperasi Pegawai Telkomsel Entity under significant Internet and data revenue, other “Kisel influence telecommunication service revenue, leases of vehicles, printing and distribution of customer bills expenses, collection fee, and other services fee, distribution of SIM cards and pulse reload voucher, purchase of property and equipment PT Graha Informatika Entity under significant Interconnection revenue, installation expense, Nusantara “Gratika” influence maintenance expense, and purchase of property and equipment PT Pembangunan Telekomunikasi Entity under significant Purchase of property and equipment Indonesia “Bangtelindo” influence Directors and commissioners Key management personnel Honorarium and facilities On September 18, 2014, PINs acquire 25 ownership of Tiphone Note 8. POIN is a subsidiary of Tiphone Total balance of accounts receivable and accounts payable at the end of the year free of interest and its completion would occur in the form of cash. There are no guarantees provided or received for any accounts receivable and payable with related parties. In 2015, the Group recorded an impairment of receivables from related parties amounted to Rp280 billion. This assessment is conducted every year to assess the present status of existing receivables and historical collection of accounts receivable ago.