TRADE RECEIVABLES Telekomunikasi Indonesia Eng 31 Des 2013

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 46

7. INVENTORIES continued

Movements in the provision for obsolescence are as follows: 2013 2012 Beginning balance 148 106 Divestment 1 - Provision reversal recognized during the year 29 67 Reclassification 96 - Inventories written-off - 25 Ending balance 22 148 The inventories recognized as expense and included in operations, maintenance, and telecommunication service expenses Note 28 for the years ended December 31, 2013 and 2012 amounted to Rp752 billion and Rp633 billion, respectively. Management believes that the provision is adequate to cover losses from declines in inventory value due to obsolescence. Certain inventories of the Company’s subsidiaries amounting to Rp53 billion have been pledged as collateral under lending agreements Notes 17 and 21. As of December 31, 2013 and 2012, modules and components held by the Company and subsidiaries have been insured against fire, theft, and other specific risks with book value amounting to Rp280 billion and Rp272 billion, respectively. Modules are recorded as part of property and equipment. Total sum insured as of December 31, 2013 and 2012 amounted to Rp261 billion and Rp275 billion, respectively. Management believes that the insurance coverage is adequate to cover potential losses of certain inventories which happens to the Company and subsidiaries. 8. ADVANCES AND PREPAID EXPENSES 2013 2012 Frequency license Notes 41c.i and 41c.ii 2,330 2,563 Prepaid rental 744 666 Advances 297 120 Salaries 209 165 Deferred expense 124 45 Insurance 84 18 Others each below Rp50 billion 149 144 Total 3,937 3,721 Refer to Note 37 for details of related party transactions. 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 47

9. ASSET HELD FOR SALE

This account represents the carrying amount of Telkomsel’s equipment to be exchanged with equipment of Nokia Siemens Network Oy “NSN Oy” and PT Huawei Tech Investment “PT Huawei”. The equipment will be used as part of the settlement for the exchanges of equipment from these companies. In 2013, Telkomsel’s equipment with net carrying amount of Rp105 billion is reclassified to asset held for sale Note 11c.vi. Asset held for sale is presented under personal segment Note 38.

10. LONG-TERM INVESTMENTS

2013 Share of net loss Percentage profit of of Beginning Addition associated Translation Ending ownership balance Deduction company Dividend adjustment balance Long-term investments in associated companies: Indonusa a 20.00 - 182 7 - - 189 PT Melon Indonesia “Melon” b 51.00 42 - 3 - - 39 ILCS c 49.00 48 - 11 - - 37 Telin Malaysia d 49.00 - 20 6 - 4 18 CSM e 25.00 20 - 20 - - - PSN f 22.38 - - - - - - Patrakom g 40.00 46 46 2 2 - - Scicom h 29.71 98 88 2 3 9 - Sub-total 254 68 29 5 5 283 Other long-term investments 21 - - - - 21 Total long-term investments 275 68 29 5 5 304 2013 Assets Liabilities Revenue Loss Long-term investments in associated companies: Indonusa a 655 669 363 124 Melon b 90 22 73 6 ILCS c 88 13 4 22 Telin Malaysia d 37 1 11 CSM e 1,273 1,387 306 181 PSN f 817 2,148 462 55 Total 2,960 4,240 1,208 399