Retirement benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued aa. Impairment of non-financial assets

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 34

3. CASH AND CASH EQUIVALENTS continued

June 30, 2016 December 31, 2015 Balance Balance Original Original currency Rupiah currency Rupiah Currency in millions equivalent in millions equivalent Time deposits continued Third parties PT Bank Pembangunan Daerah Jaw a Barat dan Banten “BJB” Rp - 1,337 - 1,884 US 19 257 10 138 PT Bank OCBC NISP Tbk “OCBC NISP” Rp - 1,018 - 950 PT Bank Bukopin Tbk “Bank Bukopin” Rp - 424 - 1,173 US - - 55 759 PT Bank Meg a Tbk “Bank Mega” Rp - 662 - 1,265 US 37 491 70 960 Bank Permata Rp - 1,094 - 1,692 SCB Rp - - - 550 PT Bank UOB Indonesia “UOB” Rp - 100 - 300 Bank Muamalat Rp - 51 - 142 US 15 198 - - PT Bank CIMB Niaga Tbk “Bank CIMB Niaga” Rp - 550 - 1,605 PT Bank Tabungan Pensiunan Nasional Tbk “BTPN” Rp - 284 - 146 PT Bank Danamon Tbk Indonesia “Bank Danamon” Rp - - 71 PT Bank Panin Tbk “Bank Panin ” Rp - - - 91 PT Bank Maybank Indonesia “Bank Maybank” Rp - 125 25 Others each below Rp75 billion Rp 62 - 50 - Sub-total 6,653 11,801 Total time deposits 18,427 24,252 Grand Total 21,431 28,117 Interest rates per annum on time deposits are as follows: June 30, December 31, 2016 2015 Rupiah 4.00-10.00 3.75-10.50 Foreign currencies 0.10-2.00 0.10-3.00 The related parties in which the Group places its funds are state-owned banks. The Group placed the majority of its cash and cash equivalents in these banks because they have the most extensive branch networks in Indonesia and are considered to be financially sound banks, as they are owned by the State. Refer to Note 32 for details of related party transactions. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 35

4. OTHER CURRENT FINANCIAL ASSETS

The breakdown of other current financial assets is as follows: June 30, 2016 December 31, 2015 Balance Balance Original Original currency Rupiah currency Rupiah Currency in millions equivalent in millions equivalent Time deposits Related parties Bank Mandiri US 18 239 20 278 Third parties SCB US 2 24 1 11 Total time deposits 263 289 Available-for-sale financial assets Related parties State-owned enterprises US 4 56 4 59 Government US 2 27 2 29 Sub-total 83 88 Third parties Rp - 78 - 72 Total available-for-sale financial assets 161 160 Escrow accounts Rp - 2,121 - 2,121 US - - 3 41 Others Rp - 185 - 192 US 1 1 AUD 1 10 1 14 Total 2,741 2,818 The majority of escrow accounts represent Telkomsel’s account in BNI, in relation to the Conditional Business Transfer Agreement between Telkomsel and the Company Note 35c.ii. The time deposits have maturities of more than three months but not more than one year, with interest rates as follows: June 30, December 31, 2016 2015 Foreign currencies 0.83-1.11 0.85-0.88 Refer to Note 32 for details of related party transactions.