Others SIGNIFICANT COMMITMENTS AND AGREEMENTS continued a. Capital expenditures continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 105

34. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued c. Others continued

iii Future minimum lease payments under operating lease continued Future minimum lease paymentsreceivables under non-cancelable operating lease agreements as of June 30, 2017 are as follows : Total Less than 1 year 1-5 years More than 5 years As lessee 31,586 4,111 13,476 13,999 As lessor 2,240 893 1,196 151 The future minimum lease paymentsreceivables include payments from non-lease elements in the arrangement. In connection with the restructuring of its fixed wireless business Note 33c.ii, the Company is undertaking a negotiation to early terminate its operating lease arrangements, and has recorded provisions for early termination amounting to Rp202 billion and Rp666 billion which are presented as “Other Expense” in 2016 and 2015, respectively. As of June 30, 2017, outstanding provisions for early termination has been fully paid. The total of minimum lease payment as mentioned above includes lease agreements with telecommunication tower provider services used for the flexi fixed wireless business. iv USO The MoCI issued Regulation No. 17 year 2016 dated September 26, 2016 which replaced Decree No. 45 year 2012 and other previous regulations regarding policies underlying the USO program. The regulation requires telecommunications operators in Indonesia to contribute 1.25 of their gross revenues with due consideration for bad debts and interconnection charges for USO development. The change in the regulation stipulates, among other things, the exclusion and technical requirements of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged. Based on MoCI Decree No. 32PERM.KOMINFO102008 dated October 10, 2008 as amended by Decree No. 03PERM.KOMINFO22010 dated February 1, 2010 which replaced MoCI Decree No. 11PERM.KOMINFO042007 dated April 13, 2007 and MoCI Decree No. 38PERM.KOMINFO92007 dated September 20, 2007, it is stipulated that, among others, in providing telecommunication access and services in rural areas USO Program, the provider is determined through a selection process by Balai Telekomunikasi dan Informatika Pedesaan “BTIP” which was established based on MoCI Decree No. 35PERM.KOMINFO112006 dated November 30, 2006. Subsequently, based on Decree No. 18PERM.KOMINFO112010 dated November 19, 2010 of MoCI, BTIP was changed to Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika “BPPPTI”. a. The Company On March 12, 2010, the Company was selected in a tender by the Government through BTIP to provide internet access service centers for USO sub-districts for a total amount of Rp322 billion, covering Nanggroe Aceh Darussalam, North Sumatra, North Sulawesi, Gorontalo, Central Sulawesi, West Sulawesi, South Sulawesi and South East Sulawesi.