3,626 2013 General Meeting of Shareholders “GMS”

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 110

41. SIGNIFICANT COMMITMENTS AND AGREEMENTS continued

c. Others continued v USO continued For the years ended December 31, 2013 and 2012, the Company and Telkomsel recognized the following amounts: 2013 2012 Revenues Construction 67 245 Operation of telecommunication service centre 508 353 Profits Construction 11 6 Operation of telecommunication service centre 150 83 As of December 31, 2013, the Company’s and Telkomsel’s trade receivables from the USO programs which are measured at amortized cost using the effective interest rate method amount to Rp654 billion Notes 6 and 12.

42. CONTINGENCIES

In the ordinary course of business, the Company and subsidiaries have been named as defendants in various legal actions in relation with land disputes, monopolistic practice and unfair business competition and SMS cartel practices. Based on managements estimate of the probable outcomes of these matters, the Company and subsidiaries have recognized provision for losses amounting to Rp49 billion as of December 31, 2013. a. The Company, Telkomsel and seven other local operators are being investigated by The Commission for the Supervision of Business Competition “Komisi Pengawasan Persaingan Usaha” or “KPPU” for allegations of SMS cartel practices. As a result of the investigations on June 17, 2008, KPPU found that the Company, Telkomsel and certain other local operators had violated Law No. 5 year 1999 article 5 and charged the Company and Telkomsel penalty in the amounts of Rp18 billion and Rp25 billion, respectively. Management believes that there are no such cartel practices that led to a breach of prevailing regulations. Accordingly, the Company and Telkomsel filed an appeal with the Bandung District Court and South Jakarta District Court on July 14, 2008 and July 11, 2008, respectively.