Revenues Total revenues increased by Rp5,824 billion, or 7.5,

or 13.2, due to the increase of our operating revenue and also due to the decrease in cash payment for our expense of Rp.6,211 billion, or 18.5. This was partially offset by an increase of Rp1,809 billion, or 32.4, in payment for income tax and cash payment to employees of Rp1,721 billion, or 21.1.

2. Cash Flows from Investing Activities Net cash flows used in investing activities in 2013 was

Rp22,702 billion US1,865 million compared to Rp11,311 billion in 2012. This increase was primarily due to an increase of Rp11,423 billion in acquisition of property and equipment. This was partially offset by a decrease of Rp1,720 billion, or 42.9, in placement in time deposit and an increase of cash received in divestment of subsidiary and associate company Rp926 billion.

3. Cash Flows from Financing Activities Net cash flows used in financing activities totaled Rp13,327

billion US1,095 million in 2013 compared to Rp13,314 billion in 2012. This increase by Rp13 billion, or 0.1, was primarily due to a increase of Rp2,368 billion in proceed from sale of treasury stock and a decrease of Rp1,744 billion, in payments for treasury stock. This was partially offset by an increase of Rp1,227 billion, or 17.2, in cash dividends paid to our stockholders and Rp1,083, or 30, to non-controlling stockholders subsidiaries due to the increase of our operating profit and a decrease of Rp1,271 billion obtain from additional bank loan. Obligation and Commitment

A. Contractual Obligation

The following table sets forth information on certain of our material contractual obligations as of December 31, 2014. Contractual Obligations By Payment Due Dates Total Less than 1 year 7 1-3 years 7 3-5 years 7 More than 5 years 7 Rp billion Rp billion Rp billion Rp billion Rp billion Long-Term Debts 15 16,853 5,328 5,035 3,059 3,431 Capital Lease Obligations 2 4,789 571 1,175 1,163 1,880 Operating Leases 3 29,373 3,847 6,791 6,426 12,309 Interest on Long-term Debts and Capital Lease Obligations 6 6,097 1,718 2,323 1,337 719 Unconditional Purchase Obligations 4 16,195 16,195 - - - Total 73,307 27,659 15,324 11,985 18,339 1 See Notes 18-21 to our Consolidated Financial Statements. 2 Related to the leases of the slot of the tower, property and equipment under RSA, transmission installation and equipment, data processing equipment, office equipment, vehicles and CPE assets. 3 Related primarily to leases of leased line, telecommunication equipment and land and building. 4 Capital expenditures committed under contractual arrangements. 5 Excludes the related contractually committed interest obligations. 6 See “Risk Management - Risk Factors –We are exposed to interest rate risk”. 7 Less than 1 year = 2015, 1-3 years = 2016-2017, 3-5 years = 2018-2019, more than 5 years=2020 thereafter. 131 2014 Annual Report PT Telkom Indonesia Tbk Persero See Note 41 to our Consolidated Financial Statements for further details on our contractual commitments. In addition to the above contractual obligations, as of December 31, 2014, we had long-term liabilities for pension plan and post-retirement health care benefits and contributed Rp226 billion to plan. See Notes 36 to our Consolidated Financial Statements..

B. Indebtedness

Consolidated total indebtedness consisting of short-term and long-term loans and other borrowings as of December 31, 2014, 2013 and 2012 were as follows: As of December 31, 2014 2013 2012 Rp billion US million Rp billion Rp billion Indonesian Rupiah 20,013 1,615 17,543 16,192 US Dollar 1 2,643 213 1,734 2,053 Japanese Yen 2 796 64 979 1,031 Total 23,452 1,892 20,256 19,276 1 The amounts as of December 31, 2012, 2013 and 2014 translated into Rupiah at Rp9,645, Rp12,180 and Rp12,390 = US1, respectively, being the Reuters sell rates for US Dollar at each of those dates. 2 The amounts as of December 31, 2012, 2013 and 2014 translated into Rupiah at Rp111.8, Rp115.9 and Rp103.6 = Yen 1, respectively, being the Reuters sell rates for Yen at each of those dates. Of our total indebtedness, as of December 31, 2014, Rp7,709 billion Rp6,210 billion, Rp4,222 billion and Rp5,311 billion were scheduled for repayment in 2015, 2016 to 2017, 2018 to 2019 and thereafter, respectively. For further information on our Company’s indebtedness, see Notes 17-21 to our Consolidated Financial Statements.

C. Material Contract

In 2014 and 2013, we did not enter into any new material contracts nor did we amend any existing material contracts, other than contracts entered into or amended in the ordinary course of business. LIQUIDITY Liquidity Sources The main source of our corporate liquidity is cash provided by operating activities and long-term debt through the capital markets as well as long-term and short-term loans through bank facilities. We divide our liquidity sources into internal and external liquidity.

A. Internal Liquidity Sources To fulfill our obligations, we rely primarily on our internal

liquidity. As of December 31, 2014, we had Rp17,672 billion in cash and cash equivalents available, which increased by Rp2,976 billion compared to Rp14,696 billion in 2013. In 2014, the increase of cash flow provided by operating activities primarily arise from cash receipts from customers of Rp84,748 billion. We made net repayments of current indebtedness for borrowed money of Rp5,843 billion in 2012, Rp6,239 billion in 2013 and Rp7,724 billion in 2014. Cash outflows in 2014 reflected payments for short-term loans and other borrowings of Rp2,247 billion and long-term loans and other borrowings of Rp4,538 billion. Our internal liquidity strength reflected in our current ratio, which we calculate as current assets divided by current liabilities, maintain over 100. In 2014 our curent ratio was to 106.2 compared to 116.3 in 2013. 132 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