INVENTORIES Disposal of Indonusa continued

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 61

20. BONDS AND NOTES continued

a. Bonds continued The bonds are secured by all of the Company’s assets, movable or non-movable, either existing or in the future Note 11c.x. The underwriters of the bonds are Bahana, PT Danareksa Sekuritas and PT Mandiri Sekuritas and the trustee is PT CIMB Niaga Tbk. The Company received the proceeds from the issuance of bonds on July 6, 2010. The funds received from the public offering of bonds net of issuance costs, are to be used for increasing capital expenditure which consisted of: wave broadband bandwidth, softswitching, datacom, information technology and others, infrastructure backbone, metro network, regional metro junction, internet protocol, and satellite system and optimizing legacy and supporting facilities fixed wireline and wireless. As of December 31, 2013, the rating of the bonds issued by PT Pemeringkat Efek Indonesia Pefindo is idAAA stable outlook. Based on the indenture trusts agreement, the Company is required to comply with all covenants or restrictions, including maintaining financial ratios as follows: 1. Debt to equity ratio should not exceed 2:1. 2. EBITDA to finance costs ratio should not be less than 5:1. 3. Debt service coverage is 125. As of December 31, 2013, the Company has complied with the above mentioned ratios. b. Promissory Notes Interest Interest Issuance Payment payment rate Supplier Currency Principal date schedule period per annum PT Huawei US 0.3 June 19, 2009 Semi-annually Semi-annually 6 month LIBOR+2.5 January 11, 2014 - June 23, 2016 PT ZTE US 0.1 August 20, 2009 Semi-annually Semi-annually 6 month LIBOR+1.5 Indonesia February 11, 2014 - 6 month LIBOR+2.5 “ZTE” June 15, 2016 Based on Agreement of Frame Supply and Deferred Payment Arrangement between the Company and ZTE and PT Huawei, the promissory notes issued by the Company to ZTE and PT Huawei are vendor financing facilities with no collateral covering 85 of Hand-over Report “Berita Acara Serah Terima” projects with ZTE and PT Huawei. 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 62

21. BANK LOANS

2013 2012 Outstanding Outstanding Original Original currency Rupiah currency Rupiah Lenders Currency in millions equivalent in millions equivalent BRI Rp - 3,035 - 4,011 Syndication of banks Rp - 2,426 - 1,950 BNI Rp - 1,305 - 1,201 BCA Rp - 858 - 1,564 Bank Mandiri Rp - 722 - 1,417 ABN Amro Bank N.V. Stockholm “AAB Stockholm” and Standard Chartered Bank US 55 673 68 659 Bank CIMB Niaga Rp - 365 - 174 Japan Bank for International Cooperation “JBIC” US 18 219 30 289 Bank Bukopin Rp - 31 - - US 1 12 - - Bank Ekonomi Rp - - - 41 US - - 3 Others each below Rp10 billion Rp - 1 - - Total 9,647 11,309 Unamortized debt issuance cost 56 51 9,591 11,258 Current maturities Note 18a 3,956 4,475 Long-term portion Note 18b 5,635 6,783 Refer to Note 37 for details of related party transactions. Other significant information relating to bank loans as of December 31, 2013 is as follows: Total facility Current Interest Interest in period Payment payment rate Borrower Currency billions payment schedule period per annum Security Syndication of banks July 29, 2008 a The Company Rp 2,400 600 Semi-annually Quarterly 3 months None BNI, BRI and 2010-2013 JIBOR+1.20 BJB June 16, 2009 a The Company Rp 2,700 675 Semi-annually Quarterly 3 months None BNI and BRI 2011-2014 JIBOR+2.45 December 19, 2012 Dayamitra Rp 2,500 - Semi annually Quarterly 3 months Property BNI, BRI and 2014-2020 JIBOR+3.00 and Bank Mandiri k equipment Note 11 and trade receivables Note 6 BCA July 9, 2009 bc Telkomsel Rp 4,000 666 Semi-annually Quarterly 3 months None and July 5, 2010 bc 2009-2016 JIBOR+1.00 December 16, 2010 a TII Rp 200 40 Semi-annually Quarterly 3 months None 2011-2015 JIBOR+1.25 Bank Mandiri July 9, 2009 bc Telkomsel Rp 5,000 695 Semi-annually Quarterly 3 months None and July 5, 2010 bc 2009-2016 JIBOR+1.00 BRI October 13, 2010 a The Company Rp 3,000 1,000 Semi-annually Quarterly 3 months None 2013-2015 JIBOR+1.25 July 20, 2011 a Dayamitra Rp 1,000 160 Semi-annually Quarterly 3 months Property 2011-2017 JIBOR+1.40 and equipment Note 11