Digital Life refers to digital content services such Digital Home refers to a development of home media

Marketing Strategy We implement a “paradox marketing” framework in managing our marketing as illustrated in following diagram: In our implementation of the “paradox marketing” framework as illustrated above, the “more for less” concept is based on the value preposition of the products and services we offer to customers, with the aim that customers can acquire more relevant benefits at a lower price compare to our competitors, with mass customization that is in line with customers’ requirements for our product and services. In the consumer segment, for example, and particularly in the Home segment, our Indihome service has been developed as one of our innovations for customers. IndiHome is an integrated TIMES service that incorporates internet broadband access, telephony, IPTV under the USeeTV brand and home automation services. We have implemented a comprehensive marketing strategy to bolster our brand and to boost sales as well, including through marketing communication activities and product and service distribution channel development. Our Plasa Telkom outlet is one of our principal distribution channels for our products and services, in addition to other service distribution networks. 118 2014 Annual Report PT Telkom Indonesia Tbk Persero FINANCIAL AND PERF ORMANCE HIGHLIGHT MANA GEMENT REPOR T PREF A GENERAL INF ORMA TION OF TELK OM INDONE SIA MANA GEMENT’S DISCUSSION AND ANAL Y SIS CORPORA TE GO VERNANCE SOCIAL AND ENVIRONMENT AL RE SPONSIBILITY APPENDICE S FINANCIAL OVERVIEW FINANCIAL POSITION OVERVIEW As of December 31, 2014 2013 2012 Rp billion US million Rp billion Rp billion Consolidated Statements of Financial Position Total Current Assets 33,762 2,726 33,075 27,973 Total Non-Current Assets 107,133 8,650 94,876 83,396 Total Assets 140,895 11,376 127,951 111,369 Total Current Liabilities 31,786 2,566 28,437 24,107 Total Non-Current Liabilities 22,984 1,856 22,090 20,284 Total Liabilities 54,770 4,422 50,527 44,391 Total equity attributable to owners of the parent company 67,807 5,475 60,542 51,541 As re-stated, see Note 48 to the Consolidated Financial Statements 2012 Year ended December 31, 2014 compared to year ended December 31, 2013

1. Assets a. Current Assets

As of December 31, 2014, our current assets were Rp33,762 billion US2,726 million compare to Rp33,075 billion as of December 31, 2013. The increase in current assets was mainly due to an increase in our cash and cash equivalents by Rp2,976 billion, or 20.3, and Rp796 billion, or 20.2 in our advances and prepaid expenses. This increase was partially offset by a decrease in our other current financial assets of Rp4,075 billion, or 59.3. b. Non Current Assets As of December 31, 2014, our non current assets were Rp107,133 billion US8,650 million compare to Rp94,876 billion as of December 31, 2013. This increase was due to: - An increase in property, plant and equipment-net accumulated depreciation by Rp8,048 billion, or 9.3, - An increase in our advanced and other non-current asset of Rp1,684 billion, or 35.1, and - An increase in long term investment-net of Rp1,463 billion or 481.3.

2. Liabilities dan Equity a. Current Liabilities

Current liabilities were Rp31,786 billion US2,566 million as of December 31, 2014 and Rp28,437 billion as of December 31, 2013. This increase was primarily due to: - An increase of Rp1,378 billion, or 319.0 , in short-term bank loans; - An increase of Rp806 billion, or 15.8, in current maturities of long-term liabilities, and - An increase of Rp678 billion, or 39.9, in tax payable. 119 2014 Annual Report PT Telkom Indonesia Tbk Persero