Borrowings and other credit facilities continued Others

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 114

41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued

v USO continued For nine months period ended September 30, 2014 and 2013, the Company and Telkomsel recognized the following amounts: 2014 2013 Revenues Construction 49 Operation of telecommunication service centre 139 476 Profits Construction 2 Operation of telecommunication service centre 74 214 As of September 30, 2014, the Company’s and Telkomsel’s trade receivables from the USO programs which are measured at amortized cost using the effective interest rate method amount to Rp865 billion Notes 6 and 12. vi Trademark License Agreement On June 23, 2014, TII signed an agreement with Mobile Telecommunication Company Zain Saudi Arabia for the telecommunications product and service trademark license agreement over a 5-year term has elapsed from the effective date

42. CONTINGENCIES

In the ordinary course of business, the Company and subsidiaries have been named as defendants in various legal actions in relation with land disputes, monopolistic practice and unfair business competition and SMS cartel practices. Based on managements estimate of the probable outcomes of these matters, the Company and subsidiaries have recognized provision for losses amounting to Rp47 billion as of September 30, 2014. a. The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan Usaha” or “KPPU” for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel penalty in the amounts of Rp18 billion and Rp25 billion, respectively. Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively. Due to the filing of case by operators in various courts, the KPPU subsequently requested the Supreme Court SC to consolidate the cases into the Central Jakarta District Court. Based on the SC’s decision letter dated April 12, 2011, the SC appointed the Central Jakarta District Court to investigate and resolve the case. As of the issuance date of the consolidated financial statements, there has not been any notification on the case from the court. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 115

42. CONTINGENCIES continued

b. The Company is a defendant in a case filed in Makassar District Court by Andi Jindar Pakki and his affiliates over a landproperty on Jl. A.P. Pettarani. On May 8, 2013, the court pronounced its verdict and ordered the Company to pay fair compensation or to vacate and surrender the disputed land to the plaintiffs. On May 20, 2013 the Company filed an appeal to the Makassar High Court, objecting to the District Court’s ruling. In December 2013, the Makassar High Court pronounced its verdict that is favorable to the plaintiffs and the Company filed an appeal to the Supreme Court. As of the issuance date of the consolidated financial statements, no decision has been reached on the appeal.

43. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Assets and liabilities denominated in foreign currencies are as follows: September 30, 2014 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Assets Cash and cash equivalents 392.55 7.37 17.44 5,001 Other current financial assets 14.52 - 0.04 177 Trade receivables Related parties 2.03 - - 25 Third parties 66.71 - 1.57 833 Other receivables 3.66 - 0.37 46 Advances and other non-current assets 4.01 - 0.01 50 Total assets 483.48 7.37 19.43 6,132 Liabilities Trade payables Related parties 0.23 - 0.09 4 Third parties 332.86 17.89 2.07 4,092 Other payables 6.09 - 2.01 100 Accrued expenses 52.81 91.76 0.28 658 Short term bank loan 100 - - 1,221 Advances from customers and suppliers 7.17 - 0.08 88 Current maturities of long-term liabilities 40.49 767.90 - 579 Promissory notes 13.05 - - 159 Long-term liabilities - net of current maturities 75.89 7,295.03 - 1,738 Total liabilities 628.59 8,172.58 4.53 8,639 Liabilities - net 145.11 8,165.21 14.90 2,507 December 31, 2013 Rupiah U.S. dollar Japanese yen Others equivalent in millions in millions in millions in billions Assets Cash and cash equivalents 394.30 1.23 11.42 4,940 Other current financial assets 10.78 - - 131 Trade receivables Related parties 2.44 - - 30 Third parties 66.27 - 0.17 808 Other receivables 0.68 - 0.13 10 Advances and other non-current assets 5.76 - - 70 Total assets 480.23 1.23 11.72 5,989 Assets and liabilities denominated in other foreign currencies are presented as U.S. dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.