LONG-TERM BORROWINGS continued FS English Q2 2016 FINAL

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 57

16. LONG-TERM BORROWINGS continued

a. Bonds and notes continued i. Bonds continued The Company received the proceeds from the issuance of bonds on June 23, 2015. The funds received from the public offering of bonds net of issuance costs, were used to finance capital expenditures which consisted of wave broadband, backbone, metro network, regional metro junction, information technology application, support, and merger and acquisition some domestic and international entities. Based on the indenture trusts agreement, the Company is required to comply with all covenants or restrictions, including maintaining financial ratios as follows: 1. Debt to equity ratio should not exceed 2:1. 2. EBITDA to finance costs ratio should not be less than 4:1. 3. Debt service coverage is at least 125. As of June 30, 2016, the Company has complied with the above-mentioned ratios. ii. MTN GSD Interest Interest Issuance Maturity payment rate Notes Currency Principal date date period per annum Series A Rp 220 November 14, 2014 November 14, 2019 Semi-annually 11 Series B Rp 120 March 6, 2015 March 6, 2020 Semi-annually 11 Total 340 Based on Agreement of Issuance and Appointment of Monitoring and Insurance Agents of Medium Term Notes PT Graha Sarana Duta Year 2014 dated November 13, 2014 as covered by notarial deed No. 30 of Arry Supratno, S.H., GSD will issue MTN with the principle amount up to Rp500 billion in series. PT Mandiri Sekuritas act as the Arranger, Bank Mandiri as the Monitoring and Insurance Agent, and PT Kustodian Sentral Efek Indonesia “KSEI” as the Custodian. The funds obtained from MTN are used for investment projects. Trade receivables, inventories, land and building related with investment development funded by MTN that has owned or will be owned by GSD have been pledged as collateral for MTN Notes 5, 6 and 9 Under to the agreement, GSD is required to comply with all covenants or restriction including maintaining financial ratios as follows : 1. Debt to equity ratio should not exceed 6.5:1. 2. EBITDA to interest ratio should not be less than 1.2:1. 3. Minimum current ratio is 120. 4. Maximum leverage ratio is 450. As of June 30, 2016, GSD has complied with the above-mentioned ratios. 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 58

16. LONG-TERM BORROWINGS continued