INVENTORIES September 30, December 31, FS TLKM Q3 2014engl

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 51

10. LONG-TERM INVESTMENTS continued

December 31, 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 December 31, 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 a Indonusa had been the Company’s subsidiary until 2013 when the Company disposed 80 of its interest in Indonusa Notes 1d and 3. b Melon is engaged in providing Digital Content Exchange Hub services “DCEH”. As a result of the existence of substantive participating rights held by the other venturer over the significant financial and operating policies of Melon, Metra does not have control over Melon. c ILCS is engaged in providing E-trade logistic services and other related services. d Telin Malaysia is engaged in telecommunication services in Malaysia. e CSM is engaged in providing Very Small Aperture Terminal “VSAT”, network application services and consulting services on telecommunications technology and related facilities. f PSN is engaged in providing satellite transponder leasing and satellite-based communication services in the Asia-Pacific Region. The Company’s share in losses of PSN has exceeded the carrying amount of its investment since 2001; accordingly, the investment value has been reduced to Rp nil. The unrecognized share of losses of PSN for nine months period ended September 30, 2014 and 2013 are Rp300 billion and Rp920 billion, respectively. g Patrakom has been engaged in providing satellite communication system services, related services and facilities to companies in the petroleum industry. Starting in 2013, Patrakom has been consolidated Notes 1d and 3. h Scicom is engaged in providing call center services in Malaysia. On September 19, 2013, the Company sold its investment in Scicom MSC Berhad-Malaysia Scicom, with the proceeds of disposal and the carrying amount of the investment on the date of disposal amounting to Rp153 billion and Rp88 billion, respectively, resulting in a gain of Rp65 billion. i Tiphone was established on June 25, 2008 as Tiphone Mobile Indonesia Tbk. It is enganged in services trade device telecommunication in the form of cellular phone telephone including spare parts, accessories, pulse, and services repairs and content providers through its subsidiaries Note 1d. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 52

11. PROPERTY AND EQUIPMENT

January 1, Reclassifications September 30, 2014 Additions Deductions translations 2014 At cost: Directly acquired assets Land rights 1,098 528 17 - 1,609 Buildings 4,224 84 16 182 4,474 Leasehold improvements 812 32 38 93 899 Switching equipment 18,705 221 455 578 19,049 Telegraph, telex and data communication equipment 6 - - - 6 Transmission installation and equipment 95,853 1,570 427 8,846 105,842 Satellite, earth station and equipment 7,456 113 38 543 8,074 Cable network 28,987 3,052 192 157 32,004 Power supply 11,755 90 41 799 12,603 Data processing equipment 9,230 342 52 394 9,914 Other telecommunications peripherals 500 140 - - 640 Office equipment 770 74 1 15 858 Vehicles 332 17 2 24 371 Other equipment 104 - - - 104 Property under construction 1,971 12,358 - 11,532 2,797 Assets under finance lease Transmission installation and equipment 5,683 314 296 43 5,658 Data processing equipment 123 - 18 1 106 Office equipment 7 57 2 5 57 Vehicles 26 - - 26 - CPE assets 22 - - - 22 RSA assets 459 - - 207 252 Total 188,123 18,992 1,595 181 205,339 January 1, Reclassifications September 30, 2014 Additions Impairment Deductions translations 2014 Accumulated depreciation and impairment losses: Directly acquired assets Buildings 1,840 113 - 16 55 1,992 Leasehold improvements 649 53 - 38 8 672 Switching equipment 12,903 1,166 - 455 27 13,641 Telegraph, telex and datacommunication equipment 3 - - - - 3 Transmission installation and equipment 46,665 6,496 97 370 146 52,742 Satellite, earth station and equipment 5,190 441 77 38 256 5,926 Cable network 17,758 801 16 191 74 18,458 Power supply 6,794 922 - 30 22 7,708 Data processing equipment 6,823 675 - 52 59 7,505 Other telecommunications peripherals 267 39 - - - 306 Office equipment 564 77 - 1 15 655 Vehicles 68 37 - 2 2 105 Other equipment 100 2 - - - 102 Assets under finance lease Transmission installation and equipment 1,345 468 - 296 54 1,463 Data processing equipment 83 17 - 18 - 82 Office equipment 2 - - 1 1 - Vehicles 1 - - - 1 - CPE asets 13 2 - - - 15 RSA assets 294 30 - - 139 185 Total 101,362 11,339 190 1,508 177 111,560 Net Book Value 86,761 93,779