PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13 a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2023

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk

(Exact name of Registrant as specified in its charter)

Telecommunications Indonesia

(A state-owned public limited liability Company)

(Translation of registrant’s name into English)

Jl. Japati No. 1 Bandung 40133, Indonesia

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F þ Form 40- F 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  No þ

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.

	Telekomunikasi Indonesia Tbk
October 31, 2023	Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk ----------------------------------------------------- By: /s/ Edwin Julianus Sebayang ---------------------------------------------------- Edwin Julianus Sebayang VP Investor Relation

Perusahaan Perseroan (Persero)

PT Telekomunikasi Indonesia Tbk. and its subsidiaries

Consolidated financial statements

as of September 30, 2023 and for the nine months period then ended (unaudited)

PERUSAHAAN PER SEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2023 AND FOR THE NINE MONTHS PERIOD THEN ENDED

(UNAUDITED)

TABLE OF CONTENTS

	Page


Statement of the Board of Directors

Consolidated Statement of Financial Position	1

Consolidated Statement of Profit or Loss and Other Comprehensive Income	2

Consolidated Statement of Changes in Equity	3-4

Consolidated Statement of Cash Flows	5

Notes to the Consolidated Financial Statements	6-113

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

Statement of the B oard of Directors

regarding the Board of Director’s Responsibility for

Consolidated Financial Statements as of September 30, 2023

and for nine months period ended (unaudited)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk and its Subsidiaries

On behalf of the Board of Directors, we undersigned:

1.	Name	:	Ririek Adriansyah
	Business Address	:	Jl. Japati No.1 Bandung 40133
	Address	:	Jl. Karang Tengah Raya Pertanian I/99 RT 05 RW 04
			Kelurahan Lebak Bulus, Kecamatan Cilandak, Jakarta Selatan
	Phone	:	(022) 452 7101
	Position	:	President Director
		:
2.	Name	:	Heri Supriadi
	Business Address	:	Jl. Japati No.1 Bandung 40133
	Address	:	Jl. Rancamayar No. 18 RT 001 RW 008 Kelurahan Gumuruh Kecamatan Batununggal, Bandung
	Phone	:	(022) 452 7201/ 021 520 9824
	Position	:	Director of Finance and Risk Management

hereby state as follows:

1.	We are responsible for the preparation and presentation of the consolidated financial statement of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (the “ Company ”) and its subsidiaries as of September 30, 2023 and for nine months period ended;

2.	The Company and its subsidiaries’ consolidated financial statement as of September 30, 2023 and for nine months period ended have been prepared and presented in accordance with Indonesian Financial Accounting Standards;

3.	All information has been fully and correctly disclosed in the Company and its subsidiaries’ consolidated financial statement;

4.	The Company and its subsidiaries’ consolidated financial statement do not contain false material information or facts, nor do they omit any material information or facts;

5.	We are responsible for the Company and its subsidiaries’ internal control system.

This statement is considered to be true and correct.

Jakarta, October 31, 2023

/s/ Ririek Adriansyah Ririek Adriansyah President Director /s/ Heri Supriadi Heri Supriadi Director of Finance and Risk Management

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of September 30, 2023 (unaudited) and December 31, 2022 (audited)

( Amounts in the tables expressed in billions of Indonesian R upiah, unless otherwise stated)

	Notes	September 30, 2023	December 31, 2022
ASSETS

CURRENT ASSETS
Cash and cash equivalents - net	3,32,37	25,905	31,947
Other current financial assets - net	4,32,37	1,773	1,349
Trade receivables - net allowance for expected
credit losses
Related parties	5,32,37	1,682	1,620
Third parties	5,37	8,213	7,014
Contract assets - net	6,32,37	2,457	2,457
Other receivables - net	37	576	245
Inventories - net	7	1,475	1,144
Assets held for sale	11b	6	6
Contract cost	9	734	671
Prepaid taxes	27a	2,784	1,464
Claim for tax refund	27b	1	380
Other current assets	8,32	5,122	6,760
Total Current Assets		50,728	55,057

NON-CURRENT ASSETS
Contract assets - net	6,32,37	14	34
Long-term investments	10,37	8,714	8,653
Contract cost	9	1,519	1,741
Property and equipment	11,32,35a	176,438	173,329
Right-of-use assets	12	21,508	20,336
Intangible assets	14	8,023	8,302
Deferred tax assets - net	27f	4,396	4,117
Other non-current assets	13,27,32,37	4,872	3,623
Total Non-current Assets		225,484	220,135
TOTAL ASSETS		276,212	275,192

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Trade payables
Related parties	15,32,37	472	431
Third parties	15,37	12,973	18,026
Contract liabilities	17a,32	6,520	6,295
Other payables	37	477	463
Taxes payable	27c	4,803	5,372
Accrued expenses	16,32,37	13,044	15,445
Customer deposits	32	2,944	2,382
Short-term bank loans	18a,32,37	11,796	8,191
Current maturities of long-term
loans and other borrowings	18b,32,37	11,977	8,858
Current maturities of lease liabilities	12,37	5,689	4,925
Total Current Liabilities		70,695	70,388

NON-CURRENT LIABILITIES
Deferred tax liabilities - net	27f	1,051	1,023
Contract liabilities	17b,32	2,532	1,561
Long service award provisions	31	1,158	1,031
Pension benefits and other post-employment
benefits obligations	30	11,463	10,272
Long-term loans and other borrowings	19,32,37	26,345	27,331
Lease liabilities	12,37	13,192	13,736
Other liabilities		283	588
Total Non-current Liabilites		56,024	55,542
TOTAL LIABILITIES		126,719	125,930

EQUITY
Capital stock	21	4,953	4,953
Additional paid-in capital		2,711	2,711
Other equity	22	9,664	9,697
Retained earnings
Appropriated	29	15,337	15,337
Unappropriated		98,028	96,560
Net equity attributable to:
Owners of the parent company		130,693	129,258
Non-controlling interest	20	18,800	20,004
TOTAL EQUITY		149,493	149,262
TOTAL LIABILITIES AND EQUITY		276,212	275,192

The accompanying notes form an integral part of these consolidated financial statements.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)

( Amounts in the tables expressed in billions of Indonesian R upiah, unless otherwise stated)

	Notes	2023	2022
REVENUES	23,32	111,238	108,874

COST AND EXPENSES
Operation, maintenance, and telecommunication
service expenses	25,32	(28,864)	(27,167)
Depreciation and amortization expenses	11,12,14	(24,081)	(25,018)
Personnel expenses	24	(11,678)	(11,155)
General and administrative expenses	26,32	(4,520)	(4,449)
Interconnection expenses	32	(4,525)	(3,865)
Marketing expenses	32	(2,588)	(2,779)
Unrealized loss on changes in fair value of investments	10	(182)	(3,084)
Other income - net		223	48
(Loss) gain on foreign exchange - net		(41)	168

OPERATING PROFIT		34,982	31,573

Finance income	32	758	627
Finance cost	32	(3,462)	(3,009)
Share of profit of long-term investment in associates	10	4	6

PROFIT BEFORE INCOME TAX		32,282	29,197

INCOME TAX (EXPENSE) BENEFIT	27d
Current		(6,897)	(7,278)
Deferred		4	897
		(6,893)	(6,381)

PROFIT FOR THE PERIOD		25,389	22,816

OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) to be reclassified to profit
or loss in subsequent periods:
Foreign currency translation	22	(33)	201
Share of other comprehensive income of
long-term investment in associates	10b	-	1
Other comprehensive income (loss) not to be reclassified to profit
or loss in subsequent periods:
Defined benefit actuarial loss - net	30	(1,429)	(1)
Other comprehensive income (loss) - net		(1,462)	201

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		23,927	23,017

Profit for the period attributable to:
Owners of the parent company		19,499	16,581
Non-controlling interests	20	5,890	6,235
		25,389	22,816
Total comprehensive income for the period attributable to:
Owners of the parent company		18,037	16,782
Non-controlling interests		5,890	6,235
		23,927	23,017
BASIC EARNINGS PER SHARE
(in full amount)	28
Net income per share		196.84	167.38
Net income per ADS (100 Series B shares per ADS)		19,683.59	16,737.97

The accompanying notes form an integral part of these consolidated financial statements.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

—	—	Attributable to owners of the parent company —			Retained earnings			—	—
Description	Notes	Capital stock	Additional paid-in capital	Other equity	Appropriated	Unappropriated	Net	Non-controlling interests	Total equity
Balance, January 1, 2023		4,953	2,711	9,697	15,337	96,560	129,258	20,004	149,262
Capital contribution from non-controlling interest
of subsidiary	1e	-	-	-	-	-	-	2,713	2,713
Changes in non-controlling interest		-	-	-	-	-	-	13	13
Cash dividend	29	-	-	-	-	(16,602)	(16,602)	(9,802)	(26,404)
Repurchase of non-controlling interest shares	1e	-	-	-	-	-	-	(18)	(18)
Profit for the period	20	-	-	-	-	19,499	19,499	5,890	25,389
Other comprehensive income - net		-	-	(33)	-	(1,429)	(1,462)	-	(1,462)
Balance, September 30, 2023		4,953	2,711	9,664	15,337	98,028	130,693	18,800	149,493

The accompanying notes form an integral part of these consolidated financial statements.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

—	—	Attributable to owners of the parent company —			Retained earnings			—	—
Description	Notes	Capital stock	Additional paid-in capital	Other equity	Appropriated	Unappropriated	Net	Non-controlling interests	Total equity
Balance, January 1, 2022		4,953	2,711	9,395	15,337	89,250	121,646	23,753	145,399
Capital contribution from non-controlling interest
of subsidiary		-	-	-	-	-	-	45	45
Changes in non-controlling interest		-	-	-	-	-	-	12	12
Cash dividends	29	-	-	-	-	(14,856)	(14,856)	(7,537)	(22,393)
Treasury stock	1e	-	-	-	-	-	-	(681)	(681)
Profit for the period	20	-	-	-	-	16,581	16,581	6,235	22,816
Other comprehensive income - net		-	-	201	-	-	201	-	201
Balance, September 30, 2022		4,953	2,711	9,596	15,337	90,975	123,572	21,827	145,399

The accompanying notes form an integral part of these consolidated financial statements.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF C ASH FLOWS

For the Nine Months Period Ended September 30, 2023 and 2022 (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

	Notes	2023	2022
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers and other operators		111, 475	107,580
Cash receipts from finance income		755	622
Cash receipts from tax refund		100	2,530
Cash payments for expenses		(41, 740 )	(34,063)
Cash payments to employees		(12,877)	(11,457)
Cash payments for corporate and final income taxes		(8,001)	(6,893)
Cash payments for finance costs		(3,548)	(3,066)
Cash payments for short-term and low-value lease assets - net	12	(2,234)	(2,371)
Cash payments for value added taxes - net		(1,112)	(1,941)
Cash receipts payments for others - net		(41)	(75)

Net cash provided by operating activities		4 2 , 777	50,866

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from insurance claims	11	160	267
Proceeds from sale of property and equipment	11	83	391
Dividend received from associated company	10	14	10
Purchase of property and equipment	11,39	(22,7 33 )	(23,252)
Acquisition of tower by subsidiary	1e	(1,6 84 )	-
Purchase of intangible assets	14,39	(1,588)	(1,762)
Placement in other current financial assets		(427)	(207)
Addition of long-term investment in financial instrument	10	(315)	(1,190)
Decrease (i ncrease ) in advances and other assets	13	228	(1,018)

Net cash used in investing activities		(26, 262 )	(26,761)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans and other borrowings	18,19	32,196	31,564
Proceeds from issuance of new shares of subsidiaries	1e	2,71 3	45
Repayments of loans and other borrowings	18,19	(26,448)	(34,487)
Cash dividend paid to the Company's stockholders	21	(16,602)	(14,856)
Cash dividend paid to non-controlling interests of subsidiaries	20	(9,802)	(7,537)
Repayments of principal portion of lease liabilities		(4,556)	(5,764)
Placement in shares buyback from non-controlling interest
by subsidiary	1e	(18)	-

Net cash used in financing activities		(22, 517 )	(31,035)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(6,00 2 )	(6,930)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS		(3 9 )	277

ALLOWANCE FOR EXPECTED CREDIT LOSSES		(1)	(1)

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	3	31,947	38,311

CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	3	25,905	31,657

The accompanying notes form an integral part of these consolidated financial statements.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL

a. Establishment and general information

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. (the “Company”) was originally part of “Post en Telegraafdienst” , which was established and operated commercially in 1884 under the framework of Decree No. 7 dated March 27, 1884 of the Governor General of the Dutch Indies which was published in State Gazette No. 52 dated April 3, 1884.

In 1991, the status of the Company was changed into a state-owned limited liability corporation (“Persero”) based on Government Regulation No. 25/1991. The ultimate parent of the Company is the Government of the Republic of Indonesia (the “Government”) (Note 21).

The Company was established based on Notarial Deed No. 128 dated September 24, 1991 of Imas Fatimah, S.H. The deed of establishment was approved by the Ministry of Justice of the Republic of Indonesia in its Decision Letter No. C2-6870.HT.01.01.Th.1991 dated November 19, 1991 and was published in State Gazette No. 5 dated January 17, 1992, Supplement No. 210. The Company's Articles of Association have been amended several times, the latest amendments made is in relation with adjustments of the Company’s business activities in the Articles of Association with the Standard Classification of Indonesian Business Fields in 2020.

Amendments to the Articles of Association as stated in the Notary Deed of Ashoya Ratam, S.H., M.Kn. No. 37 dated June 22, 2022, the amendment has been received and approved by the Minister of Law and Human Rights of the Republic of Indonesia (“MoLHR”) based on letter No. AHU-0044650.AH.01.02. Year of 2022 dated June 29, 2022, concerning Acceptance of Notification Approval of Amendment to the Articles of Association of the Limited Liability Company (Persero) PT Telekomunikasi Indonesia Tbk.

In accordance with Article 3 of the Company’s Articles of Association, the scope of its activities is to provide telecommunication network and telecommunication and information services, and to optimize the Company’s resources to provide high quality and competitive goods and/or services to gain/pursue profit in order to increase the value of the Company by applying the Limited Liability Company principle. In regard to achieving its objectives, the Company is involved in the following activities:

i. Main business:

(a) Planning , building, providing, developing, operating, marketing or selling or leasing, and maintaining telecommunications and information networks in a broad sense in accordance with prevailing laws and regulations.

(b) Planning, developing, providing, marketing or selling , and improving telecommunications and information services in a broad sense in accordance with prevailing laws and regulation s.

(c) Investing , including in the form of equity capital in other companies in line with and to achieve the purposes and objectives of the Company .

ii. Supporting business :

(a) Providing payment transactions and money transferring services through telecommunications and information network .

(b) Performing other activities and undertakings in connection with the optimization of the Company's resources, among which including the utilization of the Company's property and equipment and movable assets, information systems, education and training, and repairs and maintenance facilities.

(c) Collaborating with other parties in order to optimize the information, communication or technology resources owned by other parties as services provider in the information, communication and technology industry, as to achieve the purposes and objectives of the Company.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

a. Establishment and general information (continued)

The Company is domiciled and headquartered in Bandung, West Java, located at Jalan Japati No. 1, Bandung

The Company was granted several networks and/or services provision licenses by the Government which are valid for an unlimited period of time as long as the Company complies with prevailing laws and regulations and fulfills the obligation stated in those licenses. For every license issued by the Ministry of Communication and Information (“MoCI”), an evaluation is performed annually and an overall evaluation is performed every five years. The Company is obliged to submit reports of networks and/or services annually to the Indonesian Directorate General of Post and Informatics (“DGPI”), replacing the previously known as Indonesian Directorate General of Post and Telecommunications (“DGPT”).

The reports comprising of several information, such as network development progress, service quality standard achievement, number of customers, license payment, and universal service contribution. Meanwhile, for internet telephone services for public purpose, internet interconnection service, and internet a ccess service, additional information is required, such as operational performance, customer segmentation, traffic, and gross revenue.

Details of these licenses are as follows:

License	License No.	Type of service	Grant date/ latest renewal date
License to operate internet telephone services for public purpose	127/KEP/DJPPI/ KOMINFO/3/2016	Internet telephone services for public purpose	March 30, 2016
License to operate internet service provider	2176/KEP/M.KOMINFO/ 12/2016	Internet service provider	December 30, 2016
License to operate content service provider	1040/KEP/M.KOMINFO/ 16/2017	Content service provider	May 16, 2017
License for the implementation of internet interconnection services	1004/KEP/M.KOMINFO/ 2018	Inter net inter connection services	December 26, 2018
License to operate data communication system services	046/KEP/M.KOMINFO/ 02/2020	Data communication system services	August 3, 2020
License to operate IPTV service provider	022/KEP/M.KOMINFO/ 02/2021	Multimedia IPTV service provider	February 25 , 2021
License of electronics money issuer and money transfer	Bank Indonesia License 23/587/DKSP/Srt/B	Electronics money and money transfer service	July 1, 2021
License to operate fixed network long distance direct line	073/KEP/M.KOMINFO/ 02/2021	Fixed network long distance direct line	August 23, 2021
License to operate fixed international network	082/KEP/M.KOMINFO/ 02/2021	Fixed international network	October 8, 2021
License to operate fixed closed network	094/KEP/M.KOMINFO/ 02/2021	Fixed closed network	December 9, 2021
License to operate circuit switched-based local fixed line network	095/KEP/M.KOMINFO/ 02/2021	Circuit switched-based and packet switched-based local fixed line network	December 9, 2021

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate Secretary , Internal Audit, and Employees

i. Boards of Commissioners and Directors

B ased on resolutions made at Annual General Meeting (“AGM”) of Stockholders of the Company as covered by Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 35 dated June 23, 2023 and No. 34, dated June 18, 2021 , t he composition of the Company’s Boards of Commissioners and Directors were as follows:

	September 30, 2023	31 Desember 2022
President Commissioner /	Bambang Permadi	Bambang Permadi
Independent Commissioner	Soemantri Brojonegoro	Soemantri Brojonegoro
Independent Commissioner	Wawan Iriawan	Wawan Iriawan
Independent Commissioner	Bono Daru Adji	Bono Daru Adji
Independent Commissioner	Abdi Negara Nurdin	Abdi Negara Nurdin
Commissioner	Arya Mahendra Sinulingga	Arya Mahendra Sinulingga
Commissioner	Marcelino Rumambo Pandin	Marcelino Rumambo Pandin
Commissioner	Ismail	Ismail
Commissioner	Rizal Mallarangeng	Rizal Mallarangeng
Commissioner	Isa Rachmatarwata	Isa Rachmatarwata
Commissioner	Silmy Karim	-
President Director	Ririek Adriansyah	Ririek Adriansyah
Director of Enterprise & Business Service	F.M. Venusiana R.	F.M. Venusiana R.
Director of Digital Business	Muhamad Fajrin Rasyid	Muhamad Fajrin Rasyid
Director of Human Capital Management	Afriwandi	Afriwandi
Director of Finance and
Risk Management	Heri Supriadi	Heri Supriadi
Director of Network & IT Solution	Herlan Wijanarko	Herlan Wijanarko
Director of Strategic Portfolio	Budi Setyawan Wijiaya	Budi Setyawan Wijiaya
Director of Wholesale &
International Services	Bogi Witjaksono	Bogi Witjaksono
Director of Group Business Development	Honesti Basyir	-
Director of Consumer Service	-	F . M . Venusiana R .

ii. Audit Committee, Corporate Secretary , and Internal Audit

The composition of the Company’s Audit Committee , Corporate Secretary, and Internal Audit were as follows:

	September 30, 2023	December 31, 2022
Chairman	Bono Daru Adji	Bono Daru Adji
Member	Bambang Permadi	Bambang Permadi
	Soemantri Brojonegoro	Soemantri Brojonegoro
Member	Wawan Iriawan	Wawan Iriawan
Member	Abdi Negara Nurdin	Abdi Negara Nurdin
Member	Emmanuel Bambang Suyitno	Emmanuel Bambang Suyitno
Member	Edy Sihotang	Edy Sihotang
Corporate Secretary	Edwin Julianus Sebayang	R. Achmad Faisal
Internal Audit	Daru Mulyawan	Daru Mulyawan

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

b. Company’s Board of Commissioners, Board of Directors, Audit Committee, Corporate Secretary , Internal Audit, and Employees (continued)

iii. Employees

As of September 30 , 202 3 and December 31, 2022, the Company and its subsidiaries ( collectively referred to as “ the Group ”) had 20,697 employees and 20,951 employees, respectively.

c. Public offering of securities of the Company

The Company’s number of shares prior to its Initial Public Offering (“IPO”) totalled 8,400,000,000, consisting of 8,399,999,999 Series B shares and 1 Series A Dwiwarna share, and were wholly-owned by the Government. On November 14, 1995, 933,333,000 new Series B shares and 233,334,000 Series B shares owned by the Government were offered to the public through an IPO and listed on the Indonesia Stock Exchange (“IDX”) and 700,000,000 Series B shares owned by the Government were offered to the public and listed on the New York Stock Exchange (“NYSE”) and the London Stock Exchange (“LSE”) in the form of American Depositary Shares (“ADS”). There were 35,000,000 ADS and each ADS represented 20 Series B shares at that time.

In December 1996, the Government had a block sale of its 388,000,000 Series B shares, and in 1997, distributed 2,670,300 Series B shares as incentive to the Company’s stockholders who did not sell their shares within one year from the date of the IPO. In May 1999, the Government further sold 898,000,000 Series B shares.

To comply with Law No. 1/1995 on Limited Liability Companies, at the AGM of Stockholders ofthe Company on April 16, 1999, the Company’s stockholders resolved to increase the Company’s issued share capital by the distribution of 746,666,640 bonus shares through the capitalization of certain additional paid-in capital, which was made to the Company’s stockholders in August 1999. On August 16, 2007, Law No. 1/1995 on Limited Liability Companies was amended by the issuance of Law No. 40/2007 on Limited Liability Companies which became effective on the same date. Law No. 40/2007 has no effect on the public offering of shares of the Company. The Company has complied with Law No. 40/2007.

In December 2001, the Government had another block sale of 1,200,000,000 shares or 11.9% of the total outstanding Series B shares. In July 2002, the Government further sold a block of 312,000,000 shares or 3.1% of the total outstanding Series B shares.

At the AGM of Stockholders of the Company held on July 30, 2004, the minutes of which were covered by Notarial Deed No. 26 of A. Partomuan Pohan, S.H., LLM., the Company’s stockholders approved the Company’s 2-for-1 stock split for Series A Dwiwarna and Series B share. The Series A Dwiwarna share with par value of Rp500 per share was split into 1 Series A Dwiwarna share with par value of Rp250 per share and 1 Series B share with par value of Rp250 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna share and 39,999,999,999 Series B shares to 1 Series A Dwiwarna share and 79,999,999,999 Series B shares, and the issued capital stock from 1 Series A Dwiwarna share and 10,079,999,639 Series B shares to 1 Series A Dwiwarna share and 20,159,999,279 Series B shares. After the stock split, each ADS represented 40 Series B shares.

During the Extraordinary General Meeting (“EGM”) held on December 21, 2005 and the AGMs held on June 29, 2007, June 20, 2008, and May 19, 2011, the Company’s stockholders approved phase I, II, III, and IV plan, respectively, of the Company’s program to repurchase its issued Series B shares.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

c. Public offering of securities of the Company (continued)

During the period of December 21, 2005 to June 20, 2007, the Company had bought back 211,290,500 shares from the public (stock repurchase program phase I). O n July 30, 2013, the Company had sold all such shares.

At the AGM held on April 19, 2013 as covered by Notarial Deed No. 38 dated April 19, 2013 of Ashoya Ratam, S.H., M . Kn., the stockholders approved the changes to the Company’s plan on the treasury stock acquired under phase III . At the AGM held on April 19, 2013, the minutes of which were covered by Notarial Deed No. 38 of Ashoya Ratam, S.H . , M . Kn . , the stockholders approved the Company’s 5-for-1 stock split for Series A Dwiwarna and Series B shares. Series A Dwiwarna share with par value of Rp250 per share was split into 1 Series A Dwiwarna share with par value of Rp50 per share and 4 Series B shares with par value of Rp50 per share. The stock split resulted in an increase of the Company’s authorized capital stock from 1 Series A Dwiwarna and 79,999,999,999 Series B shares to 1 Series A Dwiwarna and 399,999,999,999 Series B shares. The issued capital stock increased from 1 Series A Dwiwarna and 20,159,999,279 Series B shares to 1 Series A Dwiwarna and 100,799,996,399 Series B shares. After the stock split, each ADS represented 200 Series B shares . Effective from October 26, 2016, the Company change the ratio of Depositary Receipt from 1 ADS representing 200 series B shares to become 1 ADS representing 100 series B shares (Note 21). Profit per ADS information have been retrospectively adjusted to reflect the changes in the ratio of ADS.

On May 16 and June 5, 2014, the C ompany deregistered from Tokyo Stock Exchange (“TSE”) and delisted from the LSE, respectively.

As of September 30, 202 3 , all of the Company’s Series B shares are listed on the IDX and 37,264,181 ADS shares are listed on the NYSE (Note 2 1 ).

On June 16, 2015, the Company issued Continuous Bonds I Telkom Phase I 2015, with a nominal amount of Rp2,200 billion for Series A with a seven-year period, Rp2,100 billion for Series B with a ten-year period, Rp1,200 billion for Series C with a fifteen-year period, and Rp1,500 billion for Series D with a thirty-year period, which respectively are listed on the IDX (Note 19 b).

On December 21, 201 5 , the Company sold the remaining shares of t reasury shares phase III.

On June 29, 2016, the Company sold the treasury shares phase IV.

At the AGM held on April 27, 2018 which were covered by Notarial Deed No. 54 of Ashoya Ratam, S.H., M.Kn., the stockholders approved for cancellation of 1,737,779,800 shares of treasury stock by reducing the Company’s capital stock.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

d. Subsidiaries

As of September 30, 2023 and December 31, 2022, the Company has consolidated the following directly and indirectly owned subsidiaries (Notes 2b and 2d) :

i. Direct subsidiaries:

					Total assets before
		Start year of	Percentage of ownership*		elimination
		operation	September 30,	December 31,	September 30,	December 31,
Subsidiary	Nature of business	commencement	2023	2022	2023	2022
PT Telekomunikasi	Mobile	1995	70	65	104,172	100,991
Selular	telecommunication
(“ Telkomsel ”)	networks
	and service

PT Dayamitra	Leasing of towers	1995	72	72	56,352	56,072
Telekomunikasi Tbk.	and other
(“ Mitratel ”)	telecommunication
	services

PT Multimedia	Network	1998	100	100	19,136	18,710
Nusantara	telecommunication
(“ Metra ”)	service and
	multimedia

PT Telekomunikasi	International	1995	100	100	14,376	13,949
Indonesia	telecommunication
International	and information
( “Telin” )	services

PT Sigma Cipta	Consultation service	1988	100	100	7,681	8,522
Caraka	of hardware
(“ Sigma ”)	computer software,
	and data center

PT Telkom Satelit	Telecommunication -	1996	100	100	7,448	6,470
Indonesia	provides satellite
(“ Telkomsat ”)	communication
	system and its
	related services
	and infrastructures

PT Graha Sarana Duta	Developer, trade,	1982	100	100	5,855	5,865
(" GSD ")	service, and
	transportation

PT Telkom Akses	Construction,	2013	100	100	4,568	5,308
(“ Telkom Akses ”)	service and trade
	in the field of
	telecommunication

PT Telkom Data	Data center	1996	100	100	3,512	3,202
Ekosistem
(“ TDE ”)

PT Metra-Net	Multimedia	2009	100	100	1,952	1,731
(“ Metra-Net ”)	portal service

PT Infrastruktur	Construction, service	2014	100	100	1,336	1,360
Telekomunikasi	and trading in
Indonesia	the field of
(“ Telkom Infra ”)	telecommunication

PT PINS Indonesia	Telecommunication	1995	100	100	813	797
(“ PINS ”)	construction and
	services

PT Napsindo	Telecommunication -	1999; ceased	60	60	5	5
Primatel	provides Network	operations on
Internasional	Access Point	January 13,
(“ Napsindo ”)	("NAP"), Voice	2006
	Over Data
	("VOD") and other

*Percentage of ownership amounting to 99.99% is presented with rounding of 100%.

All direct subsidiaries are domiciled in Indonesia.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

d. Subsidiaries ( continued )

ii. Indirect subsidiaries:

					Total assets before
		Start year of	Percentage of ownership*		elimination
		operation	September 30,	December 31,	September 30,	December 31,
Subsidiary	Nature of business	commencement	2023	2022	2023	2022
PT Metra Digital	Trading service	2013	100	100	9,085	9,019
Investama	related to
( “MDI” )	to information and
	technology,
	multimedia,
	entertainment,
	and investment

Telekomunikasi	Telecommunication	2008	100	100	3,690	3,678
Indonesia	and related
International Pte. Ltd.	services
(" Telin Singapore "),
domiciled in
Singapore

Telekomunikasi	Investment	2010	100	100	3,312	2,981
Indonesia	holding and
International Ltd.	telecommunication
(" Telin Hong Kong "),	services
domiciled in
Hong kong

PT Infomedia	Contact center	1984	100	100	2,304	2,268
Nusantara	and content
(“ Infomedia ”)	directory services

PT Telkom Landmark	Property development	2012	55	55	2,045	2,100
Tower	and management
(“ TLT ”)	services

PT Finnet Indonesia	Information	2006	60	60	1,817	1,248
(“ Finnet ”)	technology
	services

PT Persada Sokka	Leasing of towers	2008	100	100	1,672	1,401
Tama	and other
( "PST" )	telecommunication
	services

PT Nuon Digital	Digital content	2010	100	100	1,454	1,199
Indonesia	exchange hub
( “Nuon” )	services

Telekomunikasi	Telecommunication	2012	100	100	934	836
Indonesia	networks, mobile,
International (TL) S.A.	internet, and
(" Telkomcel "),	data services
domiciled in
Timor Leste

PT Telkomsel Mitra	Business	2019	100	100	909	945
Inovasi	management
( “TMI” )	consulting and
	investment
	services

PT Metra Digital	Telecommunication	2013	100	100	896	986
Media	information and
(“ MD Media ”)	other information
	services

PT Telkomsel	Provides service	2021	100	100	806	807
Ekosistem Digital	related to
( "TED" )	information and
	technology,
	multimedia,
	entertainment,
	and investment

*Percentage of ownership amounting to 99.99% is presented with rounding of 100%.

Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

d. Subsidiaries ( continued )

ii. Indirect subsidiaries (continued):

					Total assets before
		Start year of	Percentage of ownership*		elimination
		operation	September 30,	December 31,	September 30,	December 31,
Subsidiary	Nature of business	commencement	2023	2022	2023	2022
PT Administrasi	Health insurance	2002	100	100	735	632
Medika	administration
( “Ad Medika” )	services

PT Swadharma	Cash replenishment	2001	51	51	433	458
Sarana Informatika	services and
(“ SSI ”)	ATM maintenance

TS Global	Satellite services	1996	70	70	420	566
Network Sdn. Bhd.
( “TSGN” ),
domiciled in
Malaysia

PT Digital Aplikasi	Communication	2014	100	100	330	384
Solusi	system services
(" Digiserve ")

PT Nusantara Sukses	Service and trading	2014	100	100	301	301
Investasi
( “NSI” )

PT Graha Yasa	Tourism service	2012	51	51	285	285
Selaras
( ”GYS” )

PT Graha Telkomsigma	Management and	1999	100	100	220	190
(" GTS ")	consultation
	services

PT Nutech Integrasi	System integrator	2001	60	60	217	273
( “Nutech” )	service provider

Telekomunikasi	Telecommunication	2014	100	100	200	294
Indonesia	and information
International Inc.	services
(“ Telin USA ”),
domiciled in USA

PT Collega Inti	Trading and	2001	70	70	198	173
Pratama	services
(" CIP ")

PT Media Nusantara	Consultation	2012	55	55	176	116
Data Global	services
(" MNDG ")

Telekomunikasi	Telecommunication	2013	70	70	144	125
Indonesia Intl	and information
(Malaysia) Sdn. Bhd.	services
( ”Telin Malaysia” ),
domiciled in
Malaysia

PT Teknologi Data	Telecommunication	2013	100	100	112	7
Infrastruktur	service and
( “TDI” )	data center

Telekomunikasi	Telecommunication	2013	100	100	86	33
Indonesia	and information
International	services
(Australia) Pty. Ltd.
(“ Telin Australia ”),
domiciled in
Australia

PT Metra TV	Subscription	2013	100	100	46	34
(“ Metra TV ”)	broadcasting
	services

*Percentage of ownership amounting to 99.99% is presented with rounding of 100%

Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

d. Subsidiaries ( continued )

ii. Indirect subsidiaries (continued):


					Total assets before
		Start year of	Percentage of ownership*		elimination
		operation	September 30,	December 31,	September 30,	December 31,
Subsidiary	Nature of business	commencement	2023	2022	2023	2022
PT Bosnet Distribution	Trade and	2012	60	60	37	36
Indonesia	consultation
(“ BDI ”)	services

PT Pojok Celebes	Travel agent	2008	100	100	32	33
Mandiri	services
(" PCM ")

PT Metraplasa	Network and	2012	60	60	30	30
(“ Metraplasa ”)	e-commerce
	services

*Percentage of ownership amounting to 99.99% is presented with rounding of 100%

Other than those specifically stated, indirect subsidiaries are domiciled in Indonesia.

e. Other important informations

i. The Company

On June 27, 2023, the Company signed the Spin-off Decree of IndiHome Business to Telkomsel No. 140 that has been approved by AGMS based on Notarial Deed of Ashoya Ratam, S.H., M.Kn., No. 35 dated June 23, 2023 . The value of IndiHome Business Segment to be transferred is Rp58,250 billion. In parallel, Singapore Telecommunication Ltd. ("Singtel") also decided to participate in the capital injection by injecting a cash deposit to Telkomsel of IDR 2,713 billion. As a result of this, Telkom's effective ownership in Telkomsel increase to 69.9%, meanwhile Singtel’s stake in Telkomsel becomes 30.1%. The increase in Telkomsel’s Capitals has effective on July 1, 2023.

ii. Mitratel

On June 2, 2022, Mitratel announced to buyback its shares with a maximum amount of Rp1,000 billion. The buyback period of Mitratel's shares is for three months starting from June 2, 2022 to September 2, 2022. Mitratel has exercised buyback of 885,200,000 of its shares or equivalent to Rp681 billion. On March 6, 2023, Mitratel announced another share buyback of a maximum of Rp1,500 billion. The buyback period for Mitratel's shares starts on April 14, 2023. Mitratel has conducted a share buyback on June 7, 2023 to September 30, 2023 amounting to 26,800,000 shares or equivalent to Rp18 billion.

On February 15, 2023, based on the Telecommunication Tower Conditional Sale and Purchase Agreement (“CSPA”) between PT Indosat Tbk and Mitratel, Mitratel agreed to acquire 997 telecommunication towers belonging to PT Indosat Tbk for Rp1,648 billion. Mitratel and PT Indosat Tbk have also agreed to leaseback by PT Indosat Tbk for the slots in telecommunication towers which were transferred/acquired to Mitratel, in a total 983 sites for 10 years lease period. In addition, part of the agreement PT Indosat Tbk. have also agreed to deliver order for 3,500 collocations for next 3 years compensate Mitratel for amounted Rp473 billion as commitment and as of September 30, 2023 Mitratel has paid amounted Rp406 billion.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL ( continued )

e. Other important informations (continued)

iii. Sigma

Based on Notarial Deed No. 120 dated April 19, 2022, of Jimmy Tanal, S.H., M.Kn., the Company acquired Sigma shares from Metra, resulted in 56.39% ownership by the Company and diluting Metra’s ownership into 43.61%.

f. Completion and authorization for the issuance of the consolidated financial statements

The Company’s management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Indonesian Financial Accounting Standards, which have been completed and authorized for issuance by the Board of Directors of the Company on October 31 , 2023.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES

The Group consolidated financial statements have been prepared in accordance with Financial Accounting Standards ("Standar Akuntansi Keuangan” or “SAK") including Indonesian Statement of Financial Accounting Standards ("Pernyataan Standar Akuntansi Keuangan" or “PSAK”) and interpretation of Financial Accounting Standards ("Interpretasi Standar Akuntansi Keuangan" or “ISAK”) in Indonesia published by the Financial Accounting Standards Board of Institute of Indonesian Chartered Accountants and Regulation No. VIII.G.7 of the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) regarding the Presentation and Disclosure of Financial Statements of Issuers or Public Companies, enclosed in the decision letter KEP-347/BL/2012.

a. Basis of preparation of consolidated financial statements

The consolidated financial statements, except for the consolidated statements of cash flows, are prepared on the accrual basis. The measurement basis used is historical cost, except for certain accounts which are measured using the basis mentioned in the relevant notes herein.

The consolidated statements of cash flows are prepared using the direct method and present the changes in cash and cash equivalents from operating, investing, and financing activities.

The reporting currency used in the consolidated financial statements is the Indonesian Rupiah ( “ Rp ” ) which is also the functional currency of each entity in the group except for certain subsidiaries which have the functional currency of the United States Dollar, Australian Dollar and Malaysian Ringgit. Figures in the consolidated financial statements which still contain values but below Rp1 billion and US$ 1 million, are presented with zeros.

New accounting standards

On January 1, 2023, the Group adopted the new and revised statement of financial accounting standards and interpretations of financial accounting standards effective from that date. Adjustments to the Group's accounting policies have been made as required, in accordance with the transitional provisions of the respective standards and interpretations. The adoption of the new and revised standards and interpretations did not result in major changes to the Group's accounting policies and had no material effect on the amounts reported for the current or prior financial year:

i. Amendment PSAK 1: Presentation of Financial Statements

ii. Amendment PSAK 16: Fixed Assets

iii. Amendment PSAK 25: Accounting Policies, Changes in Accounting Estimates, and Errors

iv. Amendment to PSAK 46: Income Tax

Accounting standards issued but not yet effective

Effective January 1, 2024

i. Amendment PSAK 1: Presentation of Financial Statements

This amendment clarifies long-term liabilities with covenant and the classification of liabilities as short-term liabilities or long-term liabilities

ii. Amendment PSAK 73: Leases

This amendment regulates lease liabilities in sale and leaseback transactions.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

b. Principles of consolidation

The consolidated financial statements consist of the financial statements of the Company and the subsidiaries over which it has control. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has the power over the investee, exposure or rights, to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

i. The contractual arrangement with the other vote holders of the investee,

ii. Rights arising from other contractual arrangements, and

iii. The Group's voting rights and potential voting rights.

The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control over the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated s tatements of profit or loss and other comprehensive income from the date the Group gains financial control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

All intra-Group assets and liabilities, equity, revenue and expenses and cash flow relating to transactions within Group are fully eliminated on consolidation.

In case of loss of control over a subsidiary, the Group:

i. derecognizes the assets (including goodwill) and liabilities of the subsidiary at the carrying amounts on the date when it loses control;

ii. derecognizes the carrying amounts of any non-controlling interests of its former subsidiary on the date when it loses control;

iii. recognizes the fair value of the consideration received (if any) from the transaction, events, or condition that caused the loss of control;

iv. recognizes the fair value of any investment retained in the subsidiary at fair value on the date of loss of control; and

v. recognizes any surplus or deficit in profit or loss that is attributable to the Group.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

c. Transactions with related parties

The Group has transactions with related parties. The definition of related parties used is in accordance with the Bapepam-LK’s Regulation No. VIII.G.7 regarding the Presentations and Disclosures of Financial Statements of Issuers or Public Companies, enclosed in the decision letter No. KEP-347/BL/2012. The part y which is considered as a related party is a person or entity that is related to the entity that is preparing its financial statements.

Under the Regulation of Bapepam-LK No. VIII.G.7, a government-related entity is an entity that is controlled, jointly controlled or significantly influenced by the government. Government in this context is the Minister of Finance or the Local Government, as the shareholder of the entity.

Key management personnel are identified as the persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of t he Group. The related party status extends to the key management of the subsidiaries to the extent they direct the operations of subsidiaries with minimal involvement from the Company’s management.

d. Business combinations and goodwill

Business combination is accounted for using the acquisition method. The consideration transferred is measured at fair value, which is the aggregate of the fair value of the assets transferred, liabilities incurred or assumed, and the equity instruments issued in exchange for control of the acquiree. For each business combination, non-controlling interest is measured at fair value or at the proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Acquisition-related costs are expensed as incurred. The acquiree’s identifiable assets and liabilities are recognized at their fair values at the acquisition date.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed, and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.

When the determination of consideration from a business combination includes contingent consideration, it is measured at its fair value on acquisition date. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss when adjustments are recorded outside the measurement period. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments made against goodwill. Measurement-period adjustments are adjustments that arise from additional information obtained during the measurement period, which cannot exceed one year from the acquisition date, about facts and circumstances that existed at the acquisition date.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group shall report in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the Group shall retrospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period ends immediately after the Company receives the information about the facts and circumstances that existed at the acquisition date or learns that additional information cannot be obtained. However, the measurement period must not exceed one year from the date of acquisition.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

d. Business combinations and goodwill (continued)

In a business combination achieved in stages, the acquirer remeasures its previously held equity interest in the acquiree at its acquisition-date fair value and recogni z es the resulting gain or loss, if any, in profit or loss.

Based on PSAK 38 (Revised 2012), “Common Control Business Combination”, the transfer of assets, liabilities, shares or other ownership instruments among the companies under common control would not result in a gain or loss for the Company or individual entity in the same group. Since the restructuring transaction between entities under common control does not result in a change of the economic substance of the ownership of assets, liabilities, shares, or other instruments of ownership, which are exchanged, assets or liabilities transferred are recorded at book value using the pooling-of-interests method.

In applying the pooling-of-interests method, the components of the financial statements for the period during the restructuring occurred must be presented in such a manner as if the restructuring has occurred since the beginning of the earliest period presented. The excess of consideration paid or received over the carrying value of interest acquired, net of income tax, is directly recognized to equity and presented as “Additional Paid-in Capital” under the equity section of the consolidated statement of financial position.

At the initial application of PSAK 38 (Revised 2012), all balances of the Difference In Value of Restructuring Transactions of Entities under Common Control was reclassified to “Additional Paid-in Capital” in the consolidated statement of financial position.

e. Cash and cash equivalents

Cash and short-term deposits in the statement of financial position comprise cash in banks and on hand and short-term highly liquid deposits with a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management.

Time deposits with maturities of more than three months but not more than one year are presented as part of “O ther c urrent f inancial a ssets” in the consolidated statements of financial position (Note 2u).

f. Investments in associates

An associate is an entity over which the Group (as investor) has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but does not include control or joint control over those operating policies.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

f. Investments in associates (continued)

The Group’s investments in its associates are accounted for using the equity method.

Under the equity method, the investment in an associate is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the investor’s share of the net assets of the associate since the acquisition date. On acquisition of the investment, any difference between the cost of the investment and the entity's share of the net fair value of the investee's identifiable assets and liabilities is accounted for as follows:

i. Goodwill relating to an associate, or a joint venture is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment, and

ii. Any excess of the entity's share of the net fair value of the investee's identifiable assets and liabilities over the cost of the investment is included as income in the determination of the entity's share of the associate or joint venture's profit or loss in the period in which the investment is acquired.

The consolidated statements of profit or loss and other comprehensive income reflect the Group’s share of the results of operations of the associate. Any change in the other comprehensive income of the associate is presented as part of other comprehensive income. In addition, when there has been a change recognized directly in the equity of the associate, the Group recognizes its share of the change in the consolidated statements of changes in equity. Unrealized gain and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate.

The Group determines at each reporting date whether there is any objective evidence that the investments in associated companies are impaired. If there is, the Group calculates and recognizes the amount of impairment as the difference between the recoverable amount of the investments in the associates and their carrying value.

These assets are included in “Long-term investments” in the consolidated statements of financial position.

For the reporting purpose of investment in associates using the equity method, the assets and liabilities as of the statement of financial position date with functional currency other than Rupiah are translated into Indonesian rupiah using the rate of exchange prevailing at that date, while revenues and expenses are translated into Indonesian rupiah at the average rates of exchange for the year. The resulting translation adjustments are reported as part of “translation adjustment” in the equity section of the consolidated statements of financial position.

g. Trade and other receivables

Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost, less a loss allowance based on lifetime expected credit losses at each reporting date. The Group has made allowance for expected credit losses based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit history, adjusted for forward-looking factors specific from the customers and the economic environment. Receivables are written-off in the year in which they are determined to be uncollectible (Note 2u).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

h. Inventories

Inventories consist of components, which represent telephone terminals, cables, and other spare parts. Inventories also include Subscriber Identification Module ("SIM") cards, handsets, wireless broadband modems, and prepaid vouchers which are expensed upon sale.

Inventories are valued at the lower of cost and net realizable value. Net realizable value is determined by either estimating the selling price in the ordinary course of business, less estimated cost to sell or determining the prevailing replacement costs.

The costs of inventories consist of the purchase price, import duties, other taxes, transport, handling, and other costs directly attributable to their acquisition.

Cost is determined using the weighted average method.

The amounts of any write-down of inventories below cost to net realizable value and all losses of inventories are recognized as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, is recognized as a reduction in the amount of general and administrative expenses in the year in which the reversal occurs.

Provision for obsolescence is primarily based on the estimated forecast of future usage of these inventory items.

i. Prepaid expenses

Prepaid expenses are amortized over their future beneficial periods using the straight-line method.

j. Assets held for sale

Assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. Assets held for sale are stated at the lower of carrying amount and fair value less costs to sell.

Assets that meet the criteria to be classified as held for sale are reclassified from property and equipment or intangible assets and depreciation or amortization on such assets are ceased.

k. Intangible assets

Intangible assets are recognized if it is highly probable that the expected future economic benefits that are attributable to each asset will flow to the Group, and the cost of the asset can be reliably measured.

Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. Intangible assets are amortized over their estimated useful lives. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. When the carrying amount of an intangible asset exceeds its estimated recoverable amount, the asset is written down to its estimated recoverable amount.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

k. Intangible assets (continued)

Intangible assets except goodwill, are amortized using the straight-line method, based on the estimated useful lives of the intangible assets as follows:


	Years
Software	3-6
License	3-20
Other intangible assets	1-30

Intangible assets are derecognized on disposal, or when no further economic benefits are expected, either from further use or from disposal. The difference between the carrying amount and the net proceeds received from disposal is recognized in the consolidated s tatements of profit or loss and other comprehensive income.

l. Property and equipment

Property and equipment are stated at cost less accumulated depreciation, and impairment losses, if any.

The cost of an item of property and equipment includes: (a) purchase price, (b) any costs directly attributable to bringing the asset to its location and condition, and (c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

Property and equipment, except land rights, are depreciated using the straight-line method based on the estimated useful lives of the assets as follows:


	Years
Buildings	15-50
Leasehold improvements	2-15
Switching equipment	3-15
Telegraph, telex, and data communication equipment	5-15
Transmission installation and equipment	3- 4 0
Satellite, earth station, and equipment	3-20
Cable network	5-25
Power supply	3-20
Data processing equipment	3-20
Vehicles	4-8
Other telecommunication peripherals	5
Office equipment	2-5
Other equipment	2-5

Significant expenditures related to leasehold improvements are capitalized and depreciated over the lease term.

The depreciation method, useful life, and residual value of an asset are reviewed at least at each financial year-end and adjusted, if appropriate. Based on review the useful life of towers in Indonesia are changed from previous year in line with technological development and changes in the level of usage expectations. The residual value of an asset is the estimated amount that the Group would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset is already of the age and in the condition expected at the end of its useful life.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

l. Property and equipment (continued)

Property and equipment acquired in exchange for a non-monetary asset or for a combination of monetary and non-monetary assets are measured at fair value unless, (i) the exchange transaction lacks commercial substance; or (ii) the fair value of neither the asset received, nor the asset given up is measured reliably.

Major spare parts and standby equipment that are expected to be used for more than 12 months are recorded as part of property and equipment.

When assets are retired or otherwise disposed of, their cost and the related accumulated depreciation are derecognized from the consolidated statement of financial position and the resulting gains or losses on the disposal or sale of the property and equipment are recognized in the consolidated s tatements of profit or loss and other comprehensive income.

Certain computer hardware can not be used without the availability of certain computer software. In such circumstance, the computer software is recorded as part of the computer hardware. If the computer software is independent from its computer hardware, it is recorded as part of intangible assets.

The cost of maintenance and repairs are charged to the consolidated s tatements of profit or loss and other comprehensive income as incurred. Significant renewals and betterments are capitalized to the related property and equipment account.

Property under construction is stated at cost less impairment (if any), until the construction is completed, at which time it is reclassified to the property and equipment account to which it relates. During the construction period until the property is ready for its intended use or sale, borrowing costs, which include interest expense and foreign currency exchange differences incurred on loans obtained to finance the construction of the asset, as long as it meets the definition of a qualifying asset are, capitalized in proportion to the average amount of accumulated expenditures during the period. Capitalization of borrowing cost ceases when the construction is completed, and the asset is ready for its intended use or sale.

m. Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The lease term corresponds to the non-cancellable period of each contract, except in cases where the Group is reasonably certain of exercising renewal options contractually foreseen.

The Group has made use of the package of practical expedients available under PSAK 73, which among other things:

● the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;

● the accounting for operating leases with a remaining lease term of less than 12 months as short-term leases;

● the exclusion of initial direct costs for the measurement of the right-of-use assets (“ROU”) as short-term leases;

● the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease;

● not to separate non-lease components from lease components, and instead, account for both as a single lease component; and

● not to recognize a lease liability and a ROU asset for leases where the underlying assets are low-value assets (i.e. underlying assets with a maximum value of US$5,000 or Rp50 million when it is new).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2. SUMMARY OF ACCOUNTING POLICIES (continued)

m. Leases (continued)

The Group applies the definition of a lease and related guidance set out in PSAK 73 to all lease contracts.

i. The Group as lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments and ROU assets representing the right to use the underlying assets.

The Group recognizes ROU assets at the commencement date of the lease. ROU assets are measured at cost, less any accumulated amortization and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs incurred, restoration costs and lease payments made at or before the commencement date less any lease incentives received.

ROU assets are amortized on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

	Years
Land rights	1-33
Buildings	1-15
Transmission installation and equipment	3-25
Vehicles	4-8
Others	2-25

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The ROU assets are subject to impairment in accordance with PSAK 48 Impairment of Assets.

Lease liabilities

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments, or a change in the assessment of an option to purchase the underlying asset.

Short-term leases with a duration of less than 12 months and low-value assets leases, as well as those lease elements, partially or totally not complying with the principles of recognition defined by PSAK 73 will be treated similarly to operating leases. The Group will recognize those lease payments on a straight-line basis over the lease term in the consolidated statements of profit or loss and other comprehensive income.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2. SUMMARY OF ACCOUNTING POLICIES (continued)

m. Leases (continued)

ii. The Group as lessor

Under PSAK 73, a lessor continues to classify leases as either finance leases or operating leases and account for those two types of leases differently. Leases in which the Group transfers substantially all the risks and rewards incidental to ownership of an asset are classified as finance leases, otherwise it will be classified as operating leases. Lease classification is made at the inception date and is reassessed only if there is a lease modification.

At the commencement date, the Group recognizes assets held under a finance lease at an amount equal to the net investment in the lease and present it as finance lease receivable. The net investment in the lease includes fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and residual value guarantees provided to the lessor by the lessee. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the lessee and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.

As required by PSAK 7 1 , an allowance for expected credit loss has been recognized on the finance lease receivables and presented under “Other receivables”.

Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms and is included in revenue in the consolidated statement of profit or loss and other comprehensive income due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the underlying assets and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

If an arrangement contains lease and non-lease components, the Group applies PSAK 72 Revenue from Contracts with Customers to allocate the consideration in the contract. Revenue arising from operating lease is recorded as Revenue from lessor transactions (Note 2r).

n. Deferred charges - land rights

C osts incurred to process the initial legal land rights are recognized as part of the property and equipment and are not amortized . Costs incurred to process the extension or renewal of legal land rights are deferred and amortized using the straight-line method over the shorter of the legal term of the land rights or the economic life of the land.

o. Trade payables

Trade payables are obligations to pay for goods and/or services that have been acquired from suppliers in the ordinary course of business. Trade payables are classified as current liabilities if the payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2. SUMMARY OF ACCOUNTING POLICIES (continued)

p. Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost ; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the consolidated s tatements of profit or loss and other comprehensive income over the period of the borrowings using the effective interest method.

Fees paid on obtaining loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facilities will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facilities to which it relates.

q. Foreign currency translations

Transactions in foreign currencies are translated into Indonesian rupiah at the rates of exchange prevailing at transaction date. At the consolidated statements of financial position dates, monetary assets and liabilities denominated in foreign currencies are translated into Indonesian rupiah based on the buy and sell rates quoted by Reuters prevailing at the consolidated statements of financial position dates, as follows (in full amount):

—	September 30, 2023 — Buy	Sell	December 31, 2022 — Buy	Sell
United States Dollar (“US$”) 1	1 5 , 451	1 5 , 461	15, 567	15, 571
Australian Dollar (“AU$”) 1	10 , 013	10,021	10 , 583	10,589
Singapore Dollar (“SGD”) 1	11,339	11,350	11,614	11,622
New Taiwan Dollar (“TWD”) 1	480.60	481.45	508.15	508.47
Euro (“EUR”) 1	1 6 , 389	1 6 , 406	1 6, 623	1 6, 635
Japanese Yen ("JPY") 1	1 03.63	1 03.72	1 18 . 12	1 18 . 17
Malaysian Ringgit ("MYR") 1	3 ,291	3 ,296	3, 529	3, 539
Hong Kong Dollar (“HKD”) 1	1,973	1,975	1,996	1,997

The result of foreign exchange gains or losses, realized and unrealized, are credited or charged to the consolidated s tatements of profit or loss and other comprehensive income of the current year, except for foreign exchange differences incurred on borrowings during the construction of qualifying assets which are capitalized to the extent that the borrowings can be attributed to the construction of those qualifying assets (Note 2l).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2. SUMMARY OF ACCOUNTING POLICIES (continued)

r. Revenue and expense recognition

Revenue from contract with customers

PSAK 72 establishes a comprehensive framework to determine how, when, and how much revenue is to be recognized. The standard provides a single principles-based five-step model for the determination and recognition of revenue to be applied to all contracts with customers. The standard also provides specific guidance requiring certain types of costs to obtain and/or fulfil a contract to be capitalized and amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the capitalized cost relates.

Below is the summary of the Group’s revenue recognition accounting policy for each revenue stream:

i. Mobile

Revenue from mobile primarily comprises of revenue from cellular service which among others: telephone service, interconnection service, internet and data service and Short Messaging Services (“SMS”) service. Those services are offered on postpaid or prepaid basis.

For prepaid services, initial package sales (also known as SIM cards and initial charging vouchers) and top up vouchers are initially recognized as contract liabilities. The Group recognizes contract assets for the services from postpaid customers that have not been billed.

All mobile services revenues are recognized based on output method, either per actual usage or allowance unit used (if services sold in plan basis), because the customer simultaneously receives and consumes the benefits provided by the Group.

For services sold in bundled plan, total consideration is allocated to performance obligations based on stand-alone selling price for each of product and/or service. The Group estimates the stand-alone selling price using the price enacted if the services are sold on a stand-alone basis. Most bundled plans sold by the Group only include services which are generally satisfied over the same period of time. Therefore, the revenue recognition pattern is generally not impacted by the allocation.

The consideration that is received is allocated between the telecommunication services sold and the points issued, with the consideration allocated to points that are equal to its fair value. The fair value of points issued is deferred and recognized as revenue when the points are redeemed, expired, or when the program is terminated.

ii. Consumer

Revenue from consumer primarily comprises of revenue from fixed telephone and Indihome services. Revenues from fixed telephone service are derived from customer who subscribes to fixed telephone service only, while revenues from Indihome service are derived from customer who subscribes to internet services or to bundled package with combination of consumer service (i.e. telephone, internet and data, and paid TV). Those services are offered on a postpaid basis and billed in the following month. In 2021, the Group has applied a new term and condition that the contract with customer is an open-ended contract with minimum 12-month contract and substantive early termination penalty. The contract duration under PSAK 72 is 12-month contract and can be renewed in monthly contract basis afterward.

All consumer services are recognized using the output method based on the customer's actual usage or time elapsed basis as the customer simultaneously receives and consumes the benefits provided by the Group.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 . SUMMARY OF ACCOUNTING POLICIES (continued)

r. Revenue and expense recognition (continued)

Revenue from contract with customers (continued)

ii. Consumer (continued)

Customers may be required to pay an upfront fee at the commencement of the contract. The upfront fee is considered to be a material right because the customer is not required to pay an upfront fee when the customer renews the service beyond the original contract period. The Group values the renewal option in the amount of the consideration received from the upfront fee for the installation service. The Group defers the amount of renewal option as contract liabilities and recognizes it as revenue on a straight-line basis over the expected term of the customer relationships. The Group estimates the expected customer life based on the historical information and customer trends and updates the evaluation on an annual basis.

iii. Enterprise

Revenue from enterprise customers primarily comprises of revenue from providing telephone service, internet and data, information technologies, and other services (e.g. manage service, call center service, e-health, e-payment, and others). Some of the contracts with enterprise customers are bespoke in nature.

Revenues from enterprise customers are recognized overtime using output method based on actual usage or time elapsed if the provision of service does not depend on usage (i.e. minute of voice, kilobyte of data, etc.), except for sales of goods which are recognized at a point in time, because the customer simultaneously receives and consumes the benefits provided by the Group. Revenues for performance obligations that are satisfied at a point in time is recognized when control of goods is transferred to the customer, typically when the customer has physical possession of the goods.

Some of the arrangements in enterprise customers are offered as bundled arrangements. For bundled arrangements, the product and/or service in the contract is accounted for as a single performance obligation when it is separately identifiable from other promises in the contract and the customer can benefit from the product/service on its own. The total consideration is allocated to each distinct performance obligation that has been included in the contract, based on its stand-alone selling price. The stand-alone selling price is determined according to the observable prices at which individual product and/or service are sold separately, adjusted for market conditions and normal discounts as appropriate. Alternatively, when the observable prices are not available, the expected cost-plus margin approach is used to determine the stand-alone selling prices.

Certain contracts with enterprise customers may give rise to variable consideration as the contract price depends on a future event (e.g. usage based contract or revenue-share based contract). In estimating the variable consideration, the Group is required to use either the expected value method or the most likely amount method based on the method that better predicts the amount of consideration to which it will be entitled. The Group determines that the most expected value method is the appropriate method to use in estimating the variable consideration for a single contract with a large number of possible outcomes.

Before including any amount of variable consideration in the transaction price, the Group considers whether the amount of variable consideration is constrained. The Group determines that the estimates of variable consideration are not constrained based on its historical experience, business forecast, and the current economic conditions and only includes variable consideration to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 . SUMMARY OF ACCOUNTING POLICIES (continued)

r. Revenue and expense recognition (continued)

Revenue from contract with customers (continued)

iii. Enterprise (continued)

When another party is involved in providing products and/or services to a customer, the Group is the principal if it controls the specified products and/or services before those products and/or services are transferred to the customer. Revenues are recorded on the net amount that has been retained (the amount paid by the customer less the amount paid to the suppliers), when, in substance, the Group has acted as agent and earned commission from the suppliers of the products and/or services sold.

iv. Wholesale and International Business (“WIB”)

Revenue from WIB is mainly comprises of interconnections service for interconnection of other telecommunications carriers’ subscriber calls to the Group’s subscribers (incoming call) and calls between other telecommunications carriers subscribers through the Group’s network (transit) and network service with other telecommunications carriers. All of these services are recognized based on the output method using the basis of the actual recorded traffic for the month.

Contract assets

A contract asset is initially recognized for revenue earned from delivery of goods or services because the receipt of consideration is conditional on certain milestones or upon completion of the project. Upon completion of the milestones or the project, the amount recognized as contract assets is reclassified to trade receivables.

Contract assets are subject to impairment assessment.

Contract liabilities

A contract liability is recognized if a payment is received or a payment is due (whichever is earlier) from a customer before the Group transfers the related goods or services. Contract liabilities are recognized as revenue when the Group performs under the contract (i.e., transfers control of the related goods or services to the customer).

Incremental cost of obtaining/fulfilling contract with customers

The incremental costs of obtaining/fulfilling contracts with customers, which principally are comprised of sales commissions and contract fulfilment costs, are initially recognized on the consolidated statements of financial position as contract costs. These costs are subsequently amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services. Costs that do not qualify as costs of obtaining/fulfilling contract with customers are expensed as incurred or in accordance with other relevant standards.

At the end of each reporting year, the Group evaluates whether there is an indication that capitalized contract costs may be impaired. An impairment exists when the carrying amount of the contract costs exceeds the amount expected to be received in exchange for goods and services. When impairment exists, an impairment loss is recognized in profit or loss.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 . SUMMARY OF ACCOUNTING POLICIES (continued)

r. Revenue and expense recognition (continued)

Revenue from lessor transactions

Revenue from lessor transactions comprises of revenue from telecommunication tower operating leases and other rental. Rental income is recognized on a straight-line basis over the lease term and is included in revenue in the statement of profit or loss due to its operating nature.

Expenses

Expenses are recognized as they are incurred.

s. Employee benefits

i . Short-term employee benefits

All short-term employee benefits which consist of salaries and related benefits, vacation pay, incentives and other short-term benefits are recognized as expense on undiscounted basis when employees have rendered service to the Group.

i i . Post-employment benefit plans and other long-term employee benefits

Post-employment benefit plans consist of funded and unfunded defined benefit pension plans, defined contribution pension plan, other post-employment benefits, post-employment health care benefit plan, defined contribution health care benefit plan and obligations under the Labor Law.

Other long-term employee benefits consist of Long Service Awards (“LSA”), Long Service Leave (“LSL”), and pre-retirement benefits.

The cost of providing benefits under post-employment benefit plans and other long-term employee benefits calculation is performed by an independent actuary using the projected unit credit method.

The net obligations in respect of the defined pension benefit plans and post-retirement health care benefit plans are calculated at the present value of estimated future benefits that the employees have earned in return for their service in the current and prior periods less the fair value of plan assets. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of Government bonds that are denominated in the currencies in which the benefits will be paid and that have terms to maturity approximating the terms of the related retirement benefit obligation. Government bonds are used as there are no deep markets for high quality corporate bonds.

Plan assets are assets owned by defined benefit pension plan and post-retirement health care benefits plan as well as qualifying insurance policy. The assets are measured at fair value as of reporting dates. The fair value of qualifying insurance policy is deemed to be the present value of the related obligations (subject to any reduction required if the amounts receivable under the insurance policies are not recoverable in full).

Remeasurement, comprising of actuarial gain and losses, the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefit liability (asset)) and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability (asset)) are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

P ast service costs are recognized immediately in profit or loss on the earlier of:

(a) the date of plan amendement or curtailment ; and

(b) the date that the Group recognized restructuring-related costs.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

s. Employee benefits (continued)

i i . Post-employment benefit plans and other long-term employee benefits (continued)

Net interest is calculated by applying the discount rate to the net defined benefit liabilities or assets.

Gain s or losses on curtailment are recognized when there is a commitment to make a material reduction in the number of employees covered by a plan or when there is an amendment of defined benefit plan terms such as that a material element of future services to be provided by current employees will no longer qualify for benefits, or will qualify only for reduced benefits.

Gain s or losses on settlement are recognized when there is a transaction that eliminates all further legal or constructive obligation for part or all of the benefits provided under a defined benefit plan (other than the payment of benefit in accordance with the program and included in the actuarial assumptions).

For defined contribution plans, the regular contributions constitute net periodic costs for the period in which they are due and, as such, are included in “personnel expenses” as they become payable.

In April 2022, the Institute of Indonesia Chartered Accountants’ Accounting Standard Board issued a press release regarding attribution of benefits to periods of service in accordance with PSAK 24: Imbalan Kerja which was adopted from IAS 19 Employee Benefits. The press release conveyed the information that the fact pattern of the pension program based on the Labor Law currently enacted in Indonesia is similar to those responded and concluded in the IFRS Interpretation Committee (“IFRIC”) Agenda Decision Attributing Benefit to Periods of Service IAS 19. The Group has adopted the said press release and accordingly changed its accounting policy regarding attribution of benefits to periods of service previously applied.

In prior years, the Group attributed benefits under the defined benefit plan’s benefit formula to periods of service from the date when employees provide their services until their retirement age. The Group changed the policy for attributing benefits under the plan to the date when employee service first leads to benefits under the plan until the date when further employee service will lead to no material amount of further benefits under the plan.

iii . Share-based payments

The Company operates an equity-settled share-based compensation plan. The fair value of the employee’s services rendered which are compensated with the Company’s shares is recognized as an expense in the consolidated statements of profit or loss and other comprehensive income and credited to additional paid-in capital at the grant date.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

t. Taxes

Income tax

Current and deferred income taxes are recognized as income or an expense and included in the consolidated statements of profit or loss and other comprehensive income, except to the extent that the income tax arises from a transaction or event which is recognized directly in equity, in which case, the income tax is recognized directly in equity.

Current income tax assets and liabilities are measured at the amounts expected to be recovered or paid by using the tax rates and tax laws that have been enacted or substantively enacted at each reporting date. Management periodically evaluates positions taken in Annual Tax Returns (" Surat Pemberitahuan Tahunan "/" SPT Tahunan ") with respect to situations in which applicable tax regulation is subject to interpretation. Where appropriate, management establishes provisions based on the amounts expected to be paid to the Tax Authorities.

Tax assessment

Amendment to taxation obligation is recorded when an assessment letter (“ Surat Ketetapan Pajak ” or “SKP”) is received or, if appealed against, when the results of the appeal have been determined. The additional tax es and penalty imposed through an SKP are recognized as revenue or expense in the current year profit or loss , unless objection/appeal is taken . The additional tax es and penalty imposed through the SKP are deferred as long as they meet the asset recognition criteria.

Deferred tax

The Group recognizes deferred tax assets and liabilities for temporary differences between the financial and tax bases of assets and liabilities at each reporting date. The Group also recognizes deferred tax assets resulting from the recognition of future tax benefits, such as the benefit of tax losses carried forward to the extent their future realization is probable. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates and tax laws at each reporting date which are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is no longer probable that sufficient taxable profit will be available to compensate part or all of the benefits of deferred tax assets. Unrecognized deferred tax assets are re-assessed at each reporting date and recognized if it is probable that future taxable profits will be available for recovery. Tax deductions arising from the reversal of deferred tax assets are excluded from estimates of future taxable income.

Deferred tax transactions which are recognized outside profit or loss . Therefore, deferred taxes on these transactions are recognized either in other comprehensive income or recognized directly in equity.

Deferred tax assets and liabilities are offset in the consolidated statements of financial position, if and only if it has a legally enforceable right to set off current tax assets and liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same Tax Authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

t. Taxes (continued)

Value Added Tax (“VAT”)

Revenues, expenses and assets are recognized net of the VAT amount except:

i. VAT arising from the purchase of assets or services that cannot be credited by the Tax Office, which VAT is recognized as part of the acquisition cost of the asset or as part of the applied expenses; and

ii. Receivables and payables are presented including the amount of VAT.

Uncertainty over income tax

ISAK 34: Uncertainty Over Income Tax Treatments stated that the recognition and measurement of tax assets and liabilities that contain uncertainty over income tax are determined by considering whether to be treated separately or together, the assumptions used in the examination of tax treatments by the T ax A uthorit ies , consideration the probability that the T ax A uthorit ies will accept uncertain tax treatment and re - consideration or estimation if there is a change in facts and circumstances.

If the acceptance of the tax treatment by the Tax Authorities is probable, the measurement is in line with income tax fillings. If the acceptance of the tax treatment by the Tax Authorities is not probable, the Group measures its tax balances using the method that provides the better predict of resolution (i.e. most likely amount or expected value).

Final tax

Indonesian tax regulation s impose final tax on several types of transactions based on the gross value of the transaction. Therefore, final tax which is charged based on such transaction remains subject to tax even though the tax payer incurred a loss on the transaction.

Final tax on construction services and lease are presented as part of “Other income - net”.

u. Financial instruments

The Group classifies financial instruments into financial assets and financial liabilities. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity .

i. Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, and subsequently measured at amortized cost, fair value through OCI (“FVTOCI”), and fair value through profit or loss (“FVTPL”).

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component of for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at FVTPL, transactions costs. Trade receivables that do not contain a significant financing component or which the Group has applied the practical expedient are measured at the transaction price in determined under PSAK 72.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

u. Financial instruments (continued)

i. Financial assets (continued)

In order for a f inancial asset to be classified and measured at amortized cost or FVTOCI, it needs to give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the solely payments of principal and interest (“SPPI”) test and is performed at instrument level.

The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to buy or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

(a) Financial assets at amortized cost (debt instruments)

The Group measures financial assets at amortized cost if both of the following conditions are met:

● The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and

● The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized cost are subsequently measured using the effective interest rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost consist of cash and cash equivalents, other current financial assets, trade and other receivables, and other non-current assets.

(b) Financial assets at FVTOCI with recycling of cumulative gains and losses (debt instruments)

The Group measures debt instruments at FVTOCI if both of the following conditions are met:

● The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and

● The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For debt instruments at FVTOCI, interest income, foreign exchange revaluation, and impairment losses or reversals are recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss.

The Group has no debt instruments classified at FVTOCI with recycling of cumulative gains and losses as of September 30, 2023 and December 31, 202 2.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

u. Financial instruments (continued)

i. Financial assets (continued)

Subsequent measurement (continued)

(c) Financial assets designated at FVTOCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at FVTOCI when they meet the definition of equity under PSAK 71 and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at FVTOCI are not subject to impairment assessment. The Group’s financial assets at this category consists of long-term investment in financial instruments.

(d) Financial assets at FVTPL

Financial assets at FVTPL include financial assets held for trading, financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest (“SPPI”) are classified and measured at FVTPL, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at FVTOCI, as described above, debt instruments may be designated at FVTPL on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at FVTPL are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss. The Group’s financial assets at FVTPL consists of other long-term investment in financial instruments and other current financial assets.

Expected credit losses (“ECL”)

The Group recognizes an allowance for ECL for all debt instruments not held at FVTPL. ECL are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

u. Financial instruments (continued)

i. Financial assets (continued)

Expected credit losses (“ECL”) (continued)

ECL are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECL are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECL. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECL at each reporting date. The Group has established a provision model that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. Trade receivables are written-off when there is low possibility of recovering the contractual cash flow, after all collection efforts have been done and have been fully provided for allowance.

ii. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loan and borrowings and payables, net of directly attributable transaction costs.

The Group classifies its financial liabilities as: (i) financial liabilities at FVTPL or ( ii ) financial liabilities measured at amortized cost.

The Group’s financial liabilities include trade and other payables, accrued expenses, customer deposits, interest-bearing loans, and lease liabilities. Interest-bearing loans consist of short-term bank loans, two-step loans, bonds, long-term bank loans, and other borrowings.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

u. Financial instruments (continued)

ii. Financial liabilities (continued)

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

(a) Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the statement of profit or loss.

Financial liabilities designated upon initial recognition at FVTPL are designated at the initial date of recognition, and only if the criteria in PSAK 71 are satisfied. The Group has not designated any financial liability as at FVTPL.

(b) Financial liabilities measured at amortized cost

This is the category most relevant to the Group. After initial recognition, interest-bearing loans and other borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss. This category generally applies to interest-bearing loans and other borrowings. For more information, refer to Note 19 Long-Term Loans and Other Borrowings.

iii. Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the consolidated statement s of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle them on a net basis, or realize the assets and settle the liabilities simultaneously. The right of offset must not be contingent on a future event and must be legally enforceable in all of the following circumstances:

(a) the normal course of business;

(b) the event of default; and

iv. Derecognition of financial instruments

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or when the Group transfers substantially all the risks and rewards of ownership of the financial asset.

The Group derecognizes a financial liability when the obligation specified in the contract is discharged or cancelled or has expired.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

v. Treasury stock

Reacquired Company’s shares of stock are accounted for at their reacquisition cost and classified as “Treasury Stock” and presented as a deduction in equity. The cost of treasury stock sold/transferred is accounted for using the weighted average method. The portion of treasury stock transferred for employee stock ownership program is accounted for at its fair value at grant date. Any difference between the carrying amount and consideration from future re-sale of treasury stocks, is recognized as part of additional paid-in capital in the equity.

w. Dividends

Dividend for distribution to the stockholders is recognized as a liability in the consolidated financial statements in the year in which the dividend is approved by the stockholders. The interim dividend is recognized as a liability based on the Board of Directors’ decision supported by the approval from the Board of Commissioners.

x. Basic and diluted earnings per share and earnings per ADS

Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent company by the weighted average number of shares outstanding during the year. Income per ADS is computed by multiplying the basic earnings per share by 100, the number of shares represented by each ADS.

The Company does not have potentially dilutive financial instruments.

y. Segment information

The Group's segment information is presented based upon identified operating segments. An operating segment is a component of an entity:

i. that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity);

ii. whose operating results are regularly reviewed by the Group’s Chief Operating Decision Maker (“CODM”) i.e., the Directors, to make decisions about resources to be allocated to the segment and assess its performance; and

iii. for which discrete financial information is available .

z. Provisions

Provisions are recognized when the Group has present obligations (legal or constructive) arising from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and the amount can be measured reliably.

Provisions for onerous contracts are recognized when the contract becomes onerous for the lower of the cost of fulfilling the contract and any compensation or penalties arising from failure to fulfill the contract.

aa. Impairment of non-financial assets

A t the end of each reporting period, t he Group assesses whether there is an indication that an non-financial assets may be impaired. These assets include property and equipment, current assets, and other non-current assets, including intangible assets. If such indication exists, the recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the Cash-Generating Unit (“CGU”) to which the asset belongs (“the asset’s CGU”).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

aa. Impairment of non-financial assets (continued)

The recoverable amount of an asset (either individual asset or CGU) is the higher of the asset’s fair value less costs to sell and its value in use (“VIU”). Where the carrying amount of the asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs to sell, recent market transaction prices are taken into account, if available. If no such transactions can be identified, the Group uses an appropriate valuation model to determine the fair value of the asset. These calculations are corroborated by multiple valuations or other available fair value indicators.

Impairment losses of continuing operations are recognized in the consolidated statement s of profit or loss and other comprehensive income.

At the end of each reporting period, the Group assesses whether there is any indication that previously recognized impairment losses for an asset , other than goodwill , may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset , other than goodwill , is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited such that the carrying amount of the asset does not exceed its recoverable amount, nor exceeds the carrying amount that would have been determined, net of depreciation, had no impairment been recognized for the asset in prior periods. Reversal of an impairment loss is recognized in the consolidated statement of profit or loss and other comprehensive income.

Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment loss relating to goodwill can not be reversed in future periods.

ab. Current and non-current classifications

The Group presents assets and liabilities in the statement of financial position based on current and non-current classification. An asset is presented as current when it is:

i. expected to be realized or intended to be sold, or consumed in the normal operating cycle;

ii. held primarily for the purpose of trading; or

iii. expected to be realized within twelve months after the reporting period; or

iv. cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Assets which do not meet above criteria are classified as non-current assets.

A liability is presented as current when:

i. it is expected to be settled in the normal operating cycle;

ii. it is held primarily for the purpose of trading;

iii. it is due to be settled within twelve months after reporting period;

iv. there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The terms of liability that could, at the option of counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Liabilities which do not meet above criteria are classified as long-term liabilities.

Deffered tax assets and liabilities are classified as non-current assets and liabilities.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SUMMARY OF ACCOUNTING POLICIES (continued)

ac. Significant accounting judgements, estimates and assumptions

The preparation of the Group's consolidated financial statements requires management to make judgements, estimates, and assumptions that affect the reporting amounts of revenue, expenses, assets and liabilities, and the accompanying disclosures, and disclosures of contingent liabilities, at the end of the reporting period.

Uncertainty about these assumptions and estimates can produce results that require a material adjustment to the carrying amounts of assets and liabilities affected in the coming periods.

i. Judgements

The following judgements were made by management in applying the Group's accounting policies that have the most significant influence on the amounts recognized in the consolidated financial statements:

Income taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income could necessitate future adjustments to tax income and expense already recorded. Judgement is also involved in determining the provision for corporate income tax. There are certain transactions and computation for which the ultimate tax determination is uncertain during the ordinary course of business.

The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the year in which such determination is made.

ii. Estimates and assumptions

Estimates and assumption are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(a) Retirement benefits

The present value of the retirement benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate and return on investment (“ROI”). Any changes in these assumptions will impact the carrying amount of the retirement benefit obligations.

The Group determines the appropriate discount rate at the end of each reporting period. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the obligations. In determining the appropriate discount rate, the Group considers the interest rates of Government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related retirement benefit obligations.

If there is an improvement in the ratings of such Government bonds or a decrease in interest rates as a result of improving economic conditions, there could be a material impact on the discount rate used in determining the post-employment benefit obligations.

Other key assumptions for retirement benefit obligations are based in part on current market conditions. Additional information is disclosed in Notes 3 0 and 3 1.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 . SUMMARY OF ACCOUNTING POLICIES (continued)

ac. Significant accounting judgements, estimates and assumptions (continued)

ii. Estimates and assumptions (continued)

(b) Useful lives of property and equipment

The Group estimates the useful lives of its property and equipment based on expected asset utilization, considering strategic business plans, expected future technological developments and market behavior. The estimates of useful lives of property and equipment are based on the Group’s collective assessment of industry practice, internal technical evaluation, and experience with similar assets.

The Group reviews its estimates of useful lives at least each financial year-end and such estimates are updated if expectations differ from previous estimates due to changes in expectation of physical wear and tear, technical or commercial obsolescence, and legal or other limitations on the continuing use of the assets. The amounts of recorded expenses for any year will be affected by changes in these factors and circumstances. A change in the estimated useful lives of the property and equipment is a change in accounting estimates and is applied prospectively in profit or loss in the period of the change and future periods.

In 2021, the Company accelerated the useful lives of Multi-Service Access Node (“MSAN”) assets until 2022. In 2022, the Group changed the estimated useful lives of towers in Indonesia (Note 11).

The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Group has several lease contracts that include extension and termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

(d) Allowance for expected credit losses for financial assets

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established an allowance for expected credit losses methodology that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors, and the economic environment.

For term deposits and debt instruments at FVTOCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the deposits or debt instrument are considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 . SUMMARY OF ACCOUNTING POLICIES (continued)

ac. Significant accounting judgements, estimates and assumptions (continued)

ii. Estimates and assumptions (continued)

(d) Allowance for expected credit losses for financial assets (continued)

The Group assesses whether there is objective evidence that other receivables or other financial assets have been impaired at the end of each reporting period. Allowance for expected credit losses of receivables is calculated based on a review of the current status of existing receivables and historical collection experience. Such allowances are adjusted periodically to reflect the actual and anticipated experience. Details of the nature and carrying amounts of allowance for expected credit losses of receivables are disclosed in Note 5 .

The Group also closely monitors the changes in shared risk characteristics of certain account receivables by evaluating the customer segmentations portfolios which the respective customers might engage in business industries, or locate in areas, which have become affected, or are more prone to be affected, by the pandemic. The Group has reassessed the model used to calculate ECLs based on the latest reasonable and supportable data to better reflect the current change in circumstances. Methods and approaches will continue to be monitored and updated if additional reasonable and supportable data and information are available; including forward-looking information and other input in the future.

(e) Revenue

(i) Critical judgements in determining the performance obligation, timing of revenue recognition and revenue classification

The Group provides information technology services that are bespoke in nature. Bespoke products consist of various goods and/or services bundled together in order to provide integrated solution services to customers. In addition to the bespoke service, the Group also provides multiple standard products as bundling product in contract with customer. Significant judgement is required in determining the number and nature of performance obligations promised to customers in those contracts. The number and nature of performance obligations will determine the timing of revenue recognition for such contract.

The Group reviews the determination of performance obligations on a contract-by-contract basis. When a contract consisting of several goods and/or service is assessed to have one performance obligation, the Group applies a single method of measuring progress for the performance obligation based on the measurement method that best depicts the economics of the contract, which in most cases is over time.

The Group also presents the revenue classification using consistent approach. When a contract consisting of several goods and/or service is assessed to have one performance obligation, the Group presents that performance obligations in one financial statement line items which best represent the main service of the Group, which in most cases is the internet, data and information technology services.

(ii) Critical judgements in determining the stand-alone selling price

The Group provides wide array of products related to telecommunication and technology. To determine the stand-alone selling price for goods and/or services that do not have any readily available observable price, the Group uses the expected cost-plus margin approach. The Group determines the appropriate margin based on historical achievement.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 . SUMMARY OF ACCOUNTING POLICIES (continued)

ac. Significant accounting judgements, estimates and assumptions (continued)

ii. Estimates and assumptions (continued)

(f) Test for impairment of non-current assets and goodwill

The application of the acquisition method in a business combination requires the use of accounting estimates in allocating the purchase price to the fair market value of the assets and liabilities acquired, including intangible assets. Certain business acquisitions by the Group resulted goodwill, which is not amortized but is tested for impairment annually and every indication of impairment exists.

The calculation of future cash flows in determining the fair value of property and equipment and other non-current assets of the acquired entity at the acquisition date involves significant estimation. Although management believes that the assumptions used are appropriate, significant changes to those assumptions can materially affect the evaluation of recoverable amounts and may result in impairment according to PSAK 48: Impairment of Assets.

(g) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow (“DCF”) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments

(h) Acquisit i on

The Group evaluates each acquisition transaction to determine whether it will be treated as an asset acquisition or business combination. For transactions that are treated as an asset acquisition, the purchase price is allocated to the assets obtained, without the recognition of goodwill. For acquisitions that meet the business combination definition, the Group applies the accounting for business acquisiton method for assets acquired and liabilities assumed which are recorded at fair value at the acquisition date, and the results of operations are included with the Group's results from the date of each acquisition.

Any excess from the purchase price paid for the amount recognized for assets acquired and liabilities incurred is recorded as goodwill. The Group continues to evaluate acquisitions that are counted as a business combination for a period not exceeding one year after the applicable acquisition date of each transaction to determine whether additional adjustments are needed to allocate the purchase price paid for the assets acquired and liabilities assumed. The fair value of assets acquired and liabilities incurred are usually determined using either an estimated replacement cost or a discounted cash flow valuation method. When determining the fair value of tangible assets acquired, the Group estimates the cost of replacing assets with new assets by considering factors such as the age, condition, and economic useful lives of the assets. When determining the fair value of the intangible assets obtained, the Group estimates the applicable discount rate and the time and amount of future cash flows, including the rates and terms for the extension and reduction .

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 . CASH AND CASH EQUIVALENTS - NET


		September 30, 2023		December 31, 2022
		Balance		Balance
		Currency	Rupiah	Currency	Rupiah
	Currency	(in million)	equivalent	(in million)	equivalent
Cash on hand	Rp	-	47	-	11
Cash in banks
Related parties
PT Bank Mandiri (Persero) Tbk. (“Bank Mandiri”)	Rp	-	4,014	-	6,413
	US$	42	645	49	758
	EUR	2	36	2	34
	HKD	2	4	3	5
	JPY	6	1	6	1
	AU$	0	0	0	0
PT Bank Negara Indonesia (Persero) Tbk. (“BNI”)	Rp	-	3,035	-	4,298
	US$	2	29	7	111
	SGD	0	0	0	0
	EUR	0	0	0	0
PT Bank Tabungan Negara (Persero) Tbk. ("BTN")	Rp	-	2,929	-	2,713
PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”)	Rp	-	1,001	-	2,691
	US$	1	13	11	179
	TWD	0	0	-	-
Others (each below Rp100 billion)	Rp	-	47	-	230
	US$	-	-	0	0
Sub-total			11,754		17,433

Third parties
The Hongkong and Shanghai Banking Corporation Ltd. ("HSBC Hongkong")	US$	55	855	55	861
	HKD	26	51	5	10
PT Bank CIMB Niaga Tbk. (”Bank CIMB Niaga”)	Rp	-	860	-	1,379
	US$	1	8	0	5
PT Bank Central Asia Tbk. (“BCA”)	Rp	-	175	-	80
	US$	0	3	0	3
DBS Bank (Hong Kong) Ltd. ("DBS Hong Kong")	US$	20	308	-	-
	HKD	0	0	0	0
Standard Chartered Bank (“SCB”)	US$	8	120	16	245
	SGD	7	80	5	53
Bank Pembangunan Daerah Tbk. ("BPD")	Rp	-	129	-	75
Others (each below Rp100 billion)	Rp	-	174	-	662
	US$	14	213	17	267
	TWD	36	17	58	29
	MYR	3	8	5	17
	AU$	2	19	2	23
	MMK	352	3	386	3
	SGD	2	21	2	29
	EUR	0	0	0	0
Sub-total			3,044		3,741

Total of cash in banks			14,798		21,174
Time deposits
Related parties
BTN	Rp	-	1,330	-	1,655
	US$	1	14	-	-
BRI	Rp	-	1,058	-	845
	US$	16	240	21	319
PT Bank Syariah Indonesia Tbk. (“BSI”)	Rp	-	1,143	-	1,220
BNI	Rp	-	717	-	378
	US$	22	343	9	145
Bank Mandiri	Rp	-	233	-	844
	US$	11	174	31	489
Sub-total			5,252		5,895

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3. CASH AND CASH EQUIVALENTS - NET (continued)

		September 30, 2023		December 31, 2022
		Balance		Balance
		Currency	Rupiah	Currency	Rupiah
	Currency	(in million)	equivalent	(in million)	equivalent
Time deposits (continued)
Third parties
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk. (“BJB”)	Rp	-	1.129	-	1.423
BPD	Rp	-	1.125	-	25
PT Bank Maybank Indonesia Tbk. ("Maybank")	Rp	-	385	-	220
	US$	32	490	14	224
	MYR	-	-	2	6
PT Bank Mega Tbk. (“Bank Mega”)	Rp	-	809	-	1.986
	US$	5	78	12	181
Bank CIMB Niaga	Rp	-	704	-	122
	US$	2	31	11	168
PT Bank Danamon Indonesia Tbk. (“Bank Danamon”)	Rp	-	325	-	40
	US$	11	170	9	133
PT Bank Muamalat Indonesia Tbk.	Rp	-	200	-	295
	US$	2	26	-	-
	MYR	3	8	-	-
PT Bank Tabungan Pensiunan Nasional Syariah Tbk. ("BTPN Syariah")	Rp	-	105	-	-
Others (each below Rp100 billion)	Rp	-	116	-	45
	US$	7	108	-	-
Sub-total			5,809		4,868

Total of time deposits			11,061		10,763
Allowance for credit expectation losses			(1)		(1)
Total			25,905		31,947

Interest rates per annum on time deposits are as follows:


	September 30, 2023	December 31, 2022
Rupiah	1.95% - 6.50%	1.95% - 6.50%
Foreign currency	2.50% - 5.05%	0.25% - 4.05%

The Group placed the majority of its cash and cash equivalents in state-owned (related party) 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 .

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

OTHER CURRENT FINANCIAL ASSETS

		September 30, 2023		December 31, 202 2
		Balance		Balance
		Foreign		Foreign
		currency	Rupiah	currency	Rupiah
	Currency	( in millions )	equivalent	( in millions )	equivalent
Time deposit
Related parties
BRI	Rp	-	317	-	50
BNI	Rp	-	159	-	80
Bank Mandiri	Rp	-	140	-	10
	US$	5	78	5	79
BSI	Rp	-	178	-	100
Others (each below Rp100 billion)	Rp	-	60	-	-
Third parties
United Overseas Bank Limited Singapore
(“UOB Singapore”)	US$	13	187	12	182
Standard Chartered Bank (Singapore) Limited
(“SCB Singapore”)	US$	7	101	7	102
Others (each below Rp100 billion)	Rp	-	-	-	18
	US$	2	32	2	32
Total time deposits			1,252		653

Escrow accounts	Rp	-	214	-	383
	US$	1	11	2	30
Total escrow accounts			225		413

Mutual funds
Related parties
Others (each below Rp100 billion)	Rp	-	84	-	81
Third parties
PT Henan Putihrai Asset Management
(“HPAM”)	Rp	-	212	-	200
Total mutual funds			296		281

Others (each below Rp100 billion)	Rp	-	0	-	0
	US$	0	0	0	2
	MYR	0	0	0	0
Total others			0		2

Allowance for expected credit losses			(0)		(0)
Total			1,773		1,349

The t ime deposits have maturities of more than three months but not more than one year, with interest rates as follows:

	September 30, 2023		December 31, 2022
Rupiah	2.50% - 5.85%		2.50% - 5.00%
Foreign currency	1.95% - 5.85%		1.95% - 5.06%

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

TRADE RECEIVABLES - NET

Trade receivables arise from services provided to both retail and non-retail customers, with details as follows:

a. By debtor

(i) Related parties


	September 30, 2023	December 31, 2022
State-owned enterprises	2,006	1,985
PT Indonusa Telemedia ("Indonusa")	386	385
Indosat	310	175
Others (each below Rp100 billion)	183	156
Total	2,885	2,701
Allowance for expected credit losses	(1,203)	(1,081)
Net	1,682	1,620

(ii) Third parties


	September 30, 2023	December 31, 2022
Individual and business subscribers	13,660	12,517
Overseas international carriers	1,154	984
Total	14,814	13,501
Allowance for expected credit losses	(6,601)	(6,487)
Net	8,213	7,014

b. By age

(i) Related parties


	September 30, 2023	December 31, 2022
Up to 3 months	1,609	1,522
3 to 6 months	211	183
More than 6 months	1,065	996
Total	2,885	2,701
Allowance for expected credit losses	(1,203)	(1,081)
Net	1,682	1,620

(ii) Third parties


	September 30, 2023	December 31, 2022
Up to 3 months	8,279	7,116
3 to 6 months	1,115	481
More than 6 months	5,420	5,904
Total	14,814	13,501
Allowance for expected credit losses	(6,601)	(6,487)
Net	8,213	7,014

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

TRADE RECEIVABLES - NET ( continued )

b. By age ( continued )

(iii) Aging of total trade receivables


	September 30, 2023			December 31, 2022
		Allowance for	Expected		Allowance for	Expected
		expected	credit		expected	credit
	Gross	credit losses	loss rate	Gross	credit losses	loss rate
Not past due	6,452	709	11.0%	6,964	399	5.7%
Past due up to 3 months	3,436	733	21.3%	1,674	349	20.8%
Past due more than 3 to 6 months	1,326	447	33.7%	664	222	33.4%
Past due more than 6 months	6,485	5,915	91.2%	6,900	6,598	95.6%
Total	17,699	7,804		16,202	7,568

The Group has made allowance for expected credit losses based on the collective assessment of historical impairment rates and individual assessment of its customers’ credit history, adjusted for forward - looking factors specific from the customers and the economic environment. The Group does not apply a distinction between related party and third party receivables in assessing amounts past due. As of September 30, 2023 and December 31,2022 , the carrying amounts of trade receivables of the Group considered past due but not impaired amounted to Rp 4,152 billion and Rp 2,069 billion, respectively. Management believes that receivables past due but not impaired, along with trade receivables that are neither past due nor impaired, are due from customers with good credit history and are expected to be recoverable.

c. By currency

(i) Related parties


	September 30, 2023	December 31, 2022
Rupiah	2,880	2,694
U.S. Dollar	5	7
Total	2,885	2,701
Allowance for expected credit losses	(1,203)	(1,081)
Net	1,682	1,620

(ii) Third parties


	September 30, 2023	December 31, 2022
Rupiah	13,088	12,020
U.S. Dollar	1,539	1,352
Singapore Dollar	146	89
Others (each below Rp100 billion)	41	40
Total	14,814	13,501
Allowance for expected credit losses	(6,601)	(6,487)
Net	8,213	7,014

d. Movements in the allowance for expected credit losses


	September 30, 2023	December 31, 2022
Beginning balance	7,568	7,802
Allowance for expected credit losses	638	567
Receivables written off	(402)	(801)
Ending balance	7,804	7,568

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

TRADE RECEIVABLES - NET ( continued )

d. Movements in the allowance for expected credit losses (continued)

The receivables written-off relate to both related party and third party trade receivables.

Management believes that the allowance for expected credit losses of trade receivables is adequate to cove r losses on uncollectible trade receivables.

As of September 30, 2023 and December 31, 2022, certain trade receivables of the subsidiaries amounting to Rp947 billion and Rp1,129 billion, respectively, have been pledged as collateral under lending agreements (Notes 18a and 19c).

6 . CONTRACT ASSETS - NET


	September 30, 2023	December 31, 2022
Contract assets	2,638	2,610
Allowance for expected credit losses	(167)	(119)
Net	2.471	2,491
Current portion	(2.457)	(2,457)
Non-current portion	14	34

Management believes that the allowance for expected credit losses of contract assets is adequate to cover losses on uncollectible contract assets.

Refer to Note 32 for details of related party transactions.

7 . INVENTORIES - NET

Inventories, all recognize at net realizable value, consist of:


	September 30, 2023	December 31, 2022
SIM cards and prepaid vouchers	800	321
Components	482	588
Others (each below Rp100 billion)	253	294
Total	1,535	1,203
Provision for obsolescence	(60)	(59)
Net	1,475	1,144

Management believes the provision is adequate to cover losses from the decline in inventory value due to obsolescence.

The inventories recognized as expenses included in operations, maintenance and telecommunication service expenses in September 30, 202 3 and 20 22 amounted to Rp 553 billion and Rp539 billion, respectively (Note 25).

There were no inventories have been pledged as collateral under lending agreements as of September 30, 2023 and December 31, 2022, respectively.

As of September 30, 2023 and December 31 , 2022, modules (part of property and equipment) and components held by the Group with book value amounting to Rp 86 billion and Rp94 billion, respectively, ha ve been insured against fire, theft, and other specific risks . The total sum insured as of September 30, 2023 and December 31 , 2022 amounted to Rp94 and Rp111 billion, respectively.

Management believes the insurance coverage is adequate to cover potential losses of inventories arising from the insured risks .

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

8 . OTHER CURRENT ASSETS

The breakdown of other current assets are as follows:


	September 30, 2023	December 31, 2022
Prepaid frequency license fees - current portion (Note 3 5 c.i)	2,676	5,289
Advances	1,207	679
Prepaid salaries	402	218
Others (each below Rp 100 billion)	837	574
Total	5,122	6,760

9. CONTRACT COST

Movements of contract costs are as follows:


	September 30, 2023
	Cost to obtain	Cost to fulfill	Total
At January 1, 2023	1,554	858	2,412
Amortization during the year	(288)	(250)	(538)
Addition current year	335	44	379
At September 30, 2023	1,601	652	2,253
Current	(380)	(354)	(734)
Non-current	1,221	298	1,519


	December 31, 2022
	Cost to obtain	Cost to fulfill	Total
At January 1, 2022	1,532	732	2,264
Amortization during the year	(338)	(514)	(852)
Addition current year	360	640	1,000
At December 31, 2022	1,554	858	2,412
Current	(354)	(317)	(671)
Non-current	1,200	541	1,741

There is no provision for impairment of contract cost as of September 30, 2023 and December 31, 2022, respectively.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1 0 . LONG -TERM INVESTMENTS

The breakdown of long-term investments are as follows:


	September 30, 2023	December 31, 2022
Financial instruments
At fair value through profit or loss:
Equity	7,616	7,624
Convertible bonds	964	884
At fair value through other comprehensive income:
Equity	22	22
	8,602	8,530
Associates
PT Jalin Pembayaran Nusantara ("Jalin")	104	115
Others (each below Rp100 billion)	8	8
	112	123
Total long-term investments	8,714	8,653

a. Long-term investment in financial instruments

Investments in equity at fair value through profit or loss are long-term investments in the form of shares in various start-up companies engaged in information and technology. The Group does not have significant influence in these start-up companies.

Investments in equity at fair value through profit or loss include:

(i) Investment in PT GoTo Gojek Tokopedia Tbk. (“GOTO”) by Telkomsel. As of September 30, 2023, Telkomsel assessed the fair value of the investment in GOTO was Rp85 per share. The total unrealized loss from changes in fair value of Telkomsel’s investment in GOTO as of September 30, 2023, amounted to Rp142 billion and was presented as unrealized loss on changes in fair value of investments in the consolidated statement of profit or loss.

(ii) Investments by MDI in several start-up entities engaged in the information and technology sector. The additional investments during the period by MDI amounted to Rp213 billion.

Investments in convertible bonds at fair value through profit or loss represent long-term investments owned by Telkomsel and MDI in the form of convertible bonds in various start-up companies engaged in information and technology, which will be immediately converted into shares when they mature.

b. Long-term investment in associates

Investment in others which include investment in:

(i) Jalin was previously a subsidiary , o n June 19, 2019 , the Group sold of its 67 .00 % ownership, thus ownership in Jalin is 33.00%.

(ii) PT Fintek Karya Nusantara (“Finarya”) of 24.83%. Finarya was previously a subsidiary of Telkomsel. In 2019, there was an increase in issued and paid up capital made by various investors hence Finarya became associate entity of Telkomsel.

(iii) PT Omni Inovasi Indonesia Tbk. (“Omni Inovasi Indonesia”) (previously PT Tiphone Mobile Indonesia Tbk.) of 24.00%. Since 2019, management has recognized full impairment of investment in PT Omni Inovasi Indonesia Tbk.

The unrecognized share in losses in long-term investment in associates cumulatively as of September 30, 2023 and 2022 was amounting to Rp 3 49 billion and Rp415 billion, respectively.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1 1 . PROPERTY AND EQUIPMENT

The details of property and equipment are as follows:


	December 31, 2022	Additions	Deductions	Reclassifications/ Translations	September 30, 2023
At cost:
Directly acquired assets
Land rights	1,838	27	-	76	1,941
Buildings	18,947	231	(5)	443	19,616
Leasehold improvements	1,571	35	(16)	(2)	1,588
Switching equipment	20,083	314	(56)	650	20,991
Telegraph, telex, and data communication
equipment	1,583	-	-	-	1,583
Transmission installation and equipment	171,106	3,705	(1,895)	5,991	178,907
Satellite, earth station, and equipment	10,804	55	-	(20)	10,839
Cable network	74,695	3,418	(3)	1,213	79,323
Power supply	23,276	423	(270)	280	23,709
Data processing equipment	20,954	464	(333)	830	21,915
Other telecommunication peripherals	10,402	448	-	47	10,897
Office equipment	2,625	45	(30)	(92)	2,548
Vehicles	605	47	(36)	-	616
Other equipment	51	1	-	1	53
Property under construction	4,598	12,871	-	(10,458)	7,011
Total	363,138	22,084	(2,644)	(1,041)	381,537

Accumulated depreciation and
impairment losses:
Directly acquired assets
Buildings	6,228	473	-	(35)	6,666
Leasehold improvements	1,207	118	(16)	(30)	1,279
Switching equipment	14,100	1,500	(55)	145	15,690
Telegraph, telex, and data communication
equipment	1,582	-	-	-	1,582
Transmission installation and equipment	97,335	8,94 2	(1,707)	(11)	104,5 59
Satellite, earth station, and equipment	6,041	515	-	(32)	6,524
Cable network	22,510	2,381	(3)	348	25,236
Power supply	16,890	1,376	(261)	(524)	17,481
Data processing equipment	15,490	1,50 6	(332)	(260)	16,40 4
Other telecommunication peripherals	6,067	1,269	-	(24)	7,312
Office equipment	2,073	204	(24)	(194)	2,059
Vehicles	242	39	(21)	-	260
Other equipment	44	2	-	1	47
Total	189,809	18,325	(2,419)	(616)	205,099
Net book value	173,329				176,438

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1 1. PROPERTY AND EQUIPMENT ( continued )

The details of property and equipment are as follows (continued):

	December 31, 202 1	Additions	Deductions	Reclassifications/ Translations	December 31, 202 2
At cost:
Directly acquired assets
Land rights	1,821	10	-	7	1,838
Buildings	17,296	778	(1)	874	18,947
Leasehold improvements	1,477	80	(86)	100	1,571
Switching equipment	18,324	1,066	(130)	823	20,083
Telegraph, telex , and data communication
equipment	1,583	-	-	-	1,583
Transmission installation and equipment	165,621	4,494	(9,501)	10,492	171,106
Satellite, earth station , and equipment	10,528	155	(5)	126	10,804
Cable network	67,559	7,807	(9)	(662)	74,695
Power supply	22,035	433	(719)	1,527	23,276
Data processing equipment	19,258	877	(390)	1,209	20,954
Other telecommunication peripherals	9,121	1,261	-	20	10,402
Office equipment	2,352	157	(85)	201	2,625
Vehicles	537	100	(165)	133	605
Other equipment	47	2	(3)	5	51
Property under construction	2,950	16,936	-	(15,288)	4,598
Total	340,509	34,156	(11,094)	(433)	363,138

Accumulated depreciation and
impairment losses:
Directly acquired assets
Buildings	5,537	632	(1)	60	6,228
Leasehold improvements	1,163	130	(86)	-	1,207
Switching equipment	12,225	1,985	(127)	17	14,100
Telegraph, telex , and data communication
equipment	1,582	-	-	-	1,582
Transmission installation and equipment	94,532	12,087	(9,362)	78	97,335
Satellite, earth station , and equipment	5,199	830	(5)	17	6,041
Cable network	18,735	4,388	(9)	(604)	22,510
Power supply	15,874	1,699	(712)	29	16,890
Data processing equipment	14,130	1,806	(388)	(58)	15,490
Other telecommunication peripherals	4,330	1,717	-	20	6,067
Office equipment	1,866	261	(79)	25	2,073
Vehicles	270	38	(135)	69	242
Other equipment	40	3	(2)	3	44
Total	175,483	25,576	(10,906)	(344)	189,809
Net book value	165,026				173,329

a. Gain on sale of property and equipment


	2023	2022
Proceeds from sale of property and equipment	83	391
Net book value	(21)	(123)
Gain on disposal or sale of property and equipment	62	268

b. Others

(i) During 2022 , the CGUs that independently generate cash inflows are fixed wireline, cellular , and others. Management believes that there is no indication of impairment in the assets of such CGUs as of December 31, 2022 .

(ii) Interest capitalized to property under construction amounted to Rp95 billion and Rp37 billion for the nine months period ended September 30, 2023 and 2022, respectively. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization ranged from 2.50% to 8.20% and 5.49% to 6.30% for the nine months period ended September 30, 2023 and 2022, respectively.

(iii) No foreign exchange loss was capitalized as part of property under construction for the nine months period September 30, 2023 and the year ended December 31, 2022.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

1 1. PROPERTY AND EQUIPMENT ( continued )

b. Others (continued)

(iv) During the nine months period ended September 30, 2023 and 2022, the Group obtained proceeds from the insurance claim on lost and broken property and equipment, with a total value of Rp160 billion and Rp267 billion, respectively, and were recorded as part of “Other income - net” in the consolidated statements of profit or loss and other comprehensive income. During September 30, 2023 and 2022, the net carrying values of those assets of Rp148 billion and Rp244 billion, respectively, were charged to the consolidated statements of profit or loss and other comprehensive income.

(v) In 2022, the estimated useful lives of Group towers were changed from 30 to 40 years. The impact of reduction in the depreciation expense for the year ended December 31, 2022 and the estimate for the year ended 2023 amounted to Rp93 billion and Rp373 billion, respectively. Towers are presented as part of transmission installation and equipment.

(vi) As of September 30, 2023 and December 31, 2022, the equipment units of Telkomsel with the carrying amount of Rp6 billion, respectively, to be exchanged, and therefore the equipment units were reclassified as assets held for sale in the consolidated statement of financial position. As of September 30, 2023 and December 31, 2022, the equipment units of Telkomsel with the net carrying amount of RpNil and Rp909 billion, respectively, had been exchanged with equipment units of PT ZTE Indonesia. There is no provision for impairment of assets held for sale as of September 30, 2023 and December 31, 2022.

(vii) In 2021, the Company decided to discontinue the use of MSAN assets and accelerate the depreciation of the MSAN assets, which have been fully depreciated in 2022. The impact of accelerated depreciation of MSAN assets for the year ended December 31, 2022 amounted to Rp1,494 billion. MSAN assets are presented as part of cable network.

(viii) The Group owns several pieces of land located throughout Indonesia with Right to Build (“Hak Guna Bangunan” or “HGB”) for a period of 8 -50 years which will expire between 2023 and 2071 . Management believes that there will be no issue in obtaining the extension of the land rights when they expire.

(ix) As of September 30, 2023 and December 31, 2022, the Group’s property and equipment excluding land rights, with net carrying amount of Rp168,072 billion and Rp172,112 billion, respectively, were insured againts fire, theft, earthquake and other specified risks, including business interruption, under blanket policies totalling Rp33,040 billion and Rp36,319 billion, HK10 million, SG$373 million, and MYRNil and MYR54 million, respectively, and first loss basis amounted to Rp2,750 billion, respectively. Management believes that the insurance coverage is adequate to cover potential lossess from the insured risks.

(x) As of September 30, 2023 and December 31, 2022, the percentage of completion of property under construction was approximately 85.23% and 55.91% respectively, of the total contract value, with estimated dates of completion until December 2025 and August 2025, respectively. The balance of property under construction mainly consist of buildings, transmission installation and equipment, cable network, and power supply. Management believes that there is no impediment to the completion of the construction in progress.

(xi) As of September 30, 2023 and December 31, 2022, all assets owned by the Company have been pledged as collateral for bonds (Note 19 b ) while certain property and equipment of the Company’s subsidiaries with gross carrying value amounting to Rp18,306 billion and Rp18,370 billion, respectively, have been pledged as collateral under lending agreements (Notes 18a and 19c).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PROPERTY AND EQUIPMENT (continued)

b. Others (continued)

(xii) As of September, 2023 and December 31, 2022 , the cost of fully depreciated property and equipment of t he Group that are still used in operations amounted to Rp82,585 billio n and Rp67,979 billion, respectively. The Group is currently conducting modernization of network assets to replace the fully depreciated property and equipment.

(xiii) In 2022, the total fair values of land rights and buildings of the Group amounted to Rp49,014 billion.

RIGHT-OF-USE ASSETS

The carrying amounts of right-of-use assets recognized and the movement during the period:


	Land rights	Buildings	Transmission installation and equipment	Vehicles	Others	Total
As at January 1, 2022	4,002	729	13,120	410	208	18,469
Additions	1,169	121	8,205	488	23	10,006
Deductions and reclassifications	(217)	17	(2,399)	(197)	8	(2,788)
Depreciation expense	(867)	(204)	(4,067)	(178)	(35)	(5,351)
As at December 31, 2022	4,087	663	14,859	523	204	20,336
Additions	1,114	126	6,490	120	3	7,853
Deductions and reclassifications	(45)	(16)	(2,849)	(16)	(0)	(2,926)
Depreciation expense	(724)	(129)	(2,717)	(161)	(24)	(3,755)
As at September 30, 2023	4,432	64 4	15,7 8 3	466	183	21,508

The carrying amounts of the lease liabilities and the movements are as follows:

	September 30, 2023	December 31, 2022
As at January 1	18,661	16,387
Accretion of interest	703	931
Additions (Note 39a)	7,853	10,006
Deductions	(8,336)	(8,663)
Balance	18,881	18,661
Current maturities	(5,689)	(4,925)
Non-current	13,192	13,736

Maturity analysis of lease payments are as follows:

	September 30, 2023
Less than 1 year	6,363
1-5 years	8,447
More than 5 years	6,664
Total lease payments	21,474
Interest	(2,593)
Net present value of lease payments	18,881
Current maturities	(5,689)
Non-current	13,192

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

RIGHT-OF-USE ASSETS (continued)

The Group leases several assets including land rights, building, transmission installation and equipment, vehicles, and others which used in operations, which generally have lease term between 1 and 33 years.

The Group also has certain leases with lease terms of twelve months or less and low-value leases. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. There are no lease contracts with variable lease payments.

Detail of expenses related to leases for the nine months period ended September 30, 2023 and 2022 are as follows:

	2023	2022
Depreciation expense of right-of-use assets	3,755	4,055
Expense relating to short-term leases	2,202	2,327
Interest expense on lease liabilities	703	666
Expense relating to leases of low-value assets	32	44

OTHER NON-CURRENT ASSETS

The breakdown of other non-current assets is as follows:


	September 30, 2023	December 31, 2022
Prepaid frequency license fees -
net of current portion (Note 3 5 c.i)	2,085	1,291
Prepaid expenses	1,017	446
Claims for tax refund – net of current portion (Note 27b)	946	621
Advances	352	781
Security deposit	158	144
Others (each below Rp 100 billion)	314	340
Total	4,872	3,623

INTANGIBLE ASSETS

The details of intangible assets are as follows:


	Goodwill	Software	License	Other intangible assets	Total
Gross carrying amount:
Balance, January 1, 2023	1,492	19,779	620	1,491	23,382
Additions	-	1,691	26	4	1,721
Deductions	-	(546)	(130)	-	(676)
Reclassifications/translations	-	(16)	(9)	(3)	(28)
Balance, September 30, 2023	1,492	20,908	507	1,492	24,399
Accumulated amortization and impairment losses:
Balance, January 1, 2023	(402)	(13,616)	(152)	(910)	(15,080)
Amortization	-	(1,755)	(42)	(70)	(1,867)
Deductions	-	545	2	-	547
Reclassifications/translations	-	13	8	3	24
Balance, September 30, 2023	(402)	(14,813)	(184)	(977)	(16,376)
Net book value	1,090	6,095	323	515	8,023

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

INTANGIBLE ASSETS (continued)

The details of intangible assets are as follows:

	Goodwill	Software	License	Other intangible assets	Total
Gross carrying amount:
Balance, January 1, 202 2	1,492	17,458	174	1,512	20,636
Additions	-	2,527	440	49	3,016
Deductions	-	(175)	-	(70)	(245)
Reclassifications/translations	-	(31)	6	-	(25)
Balance, December 31, 202 2	1,492	19,779	620	1,491	23,382
Accumulated amortization and impairment losses:
Balance, January 1, 202 2	(402)	(11,714)	(125)	(889)	(13,130)
Amortization	-	(2,063)	(26)	(91)	(2,180)
Deductions	-	175	-	70	245
Reclassifications/translations	-	(14)	(1)	-	(15)
Balance, December 31, 202 2	(402)	(13,616)	(152)	(910)	(15,080)
Net book value	1,090	6,163	468	581	8,302

(i) Goodwill resulted from the acquisition of Sigma (2008), Admedika (2010), data center PT Bina Data Mandiri (“BDM”) (2012), Contact Centres Australia Pty. Ltd. (2014), MNDG (2015), Melon and PT Griya Silkindo Drajatmoerni (“GSDm”) (2016), TSGN and Nutech (2017), SSI, CIP, and Telin Malaysia (2018), PST (2019), and Digiserve (2021).

(ii) The remaining amortization periods of software for the periods ended September 30, 2023 and December 31, 2022 ranges from 1-6 years, respectively. The amortization is presented as part of “Depreciation and amortization expenses” in the consolidated statements of profit or loss and other comprehensive income.

(iii) As of September 30, 2023 and December 31, 2022, the cost of fully amortized intangible assets that are still used in operations amounted to Rp10,597 billion and Rp9,640 billion, respectively.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

TRADE PAYABLES


The breakdown of trade payables is as follows:

	September 30, 2023	December 31, 2022
Related parties
Purchases of equipments, materials, and services	217	262
Payables to other telecommunication providers	255	169
Sub-total	472	431

Third parties
Purchases of equipments, materials, and services	9,255	14,453
Payables to other telecommunication providers	2,672	2,231
Radio frequency usage charges, concession fees,
and Universal Service Obligation (“USO”) charges	1,046	1,342
Sub-total	12,973	18,026
Total	13,445	18,457

Trade payables by currency are as follows:

	September 30, 2023	December 31, 2022
Rupiah	11,332	16,727
U.S. Dollar	2,041	1,636
Others	72	94
Total	13,445	18,457

Terms and conditions of the above trade payables:

a. The Group’s trade payables are non-interest bearing and are normally settled on 1 year term.

b. Refer to Note 32 for details on related party transactions.

c. Refer to Note 37b.v for the Group’s liquidity risk management.

ACCRUED EXPENSES

The breakdown of accrued expenses is as follows:

	September 30, 2023	December 31, 2022
Operation, maintenance,
and telecommunication services	7,556	8,183
General, administrative, and marketing expenses	2,758	3,067
Salaries and benefits	2,513	4,014
Interest and bank charges	217	181
Total	13,044	15,445

Refer to Note 32 for details of related party transactions.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

CONTRACT LIABILITIES

a. Current portion


	September 30, 2023	December 31, 2022
Advances from customers for Mobile	3,810	3,577
Advances from customers for WIB	1,221	1,188
Advances from customers for Enterprise	1,103	1,126
Advances from customers for Consumer	240	233
Others (each other below Rp100 billion)	146	171
Total	6,520	6,295

b. Non-current portion


	September 30, 2023	December 31, 2022
Advances from customers for Mobile	910	-
Advances from customers for WIB	788	700
Advances from customers for Consumer	724	844
Advances from customers for Enterprise	110	17
Total	2,532	1,561

Refer to Note 32 for details of related party transactions.

SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND OTHER BORROWINGS

a. Short-term bank loans

— Lenders	Outstanding — September 30, 2023	December 31, 2022
Related parties
Bank Mandiri	3,714	3,483
BNI	1,107	979
Sub-total	4,821	4,462
Third parties
PT Bank HSBC Indonesia ("HSBC")	3,121	1,836
MUFG Bank ("MUFG")	2,009	1,349
Bank of China	1,000	-
PT Bank DBS Indonesia ("DBS")	476	475
UOB Indonesia	350	-
Others (each below Rp100 billion)	19	69
Sub-total	6,975	3,729
Total	11,796	8,191

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND OTHER BORROWINGS (continued)

a. Short-term bank loans (continued)

Other significant information relating to short-term bank loans as of September 30, 2023 is as follows:


	Borrower	Currency	Total facility (in billions)*	Maturity date	Interest rate	Interest rate per annum	Security**
Mandiri
2021 - 2022	Nutech, Mitratel	Rp	3,100	July 26, 2024 – September 27, 2024	Monthly	5 . 85% - 9 . 00%	Trade receivables and property and equipment
2020	Finnet	Rp	500	October 20, 2023	Monthly	1 month JIBOR + 1.30%	None
BNI
2014 - 2017	GSD, Sigma a	Rp	350	November 7, 2023 – January 9, 2024	Monthly	7.90% - 8.50%	Trade receivables and property and equipment
2017 - 2021	Metranet, Telkom Infra, Infomedia b	Rp	1,135	February 18, 2024 – June 6, 2024	Monthly	1 month JIBOR + 1.75% - 2.50%	Trade receivables
HSBC
2014 - 2020	the Company, Sigma c,f	Rp	1,400	November 17, 2023 – December 31, 2023	Monthly	5.00% - Under BLR 7.40%	Trade receivables
2018 - 2019	Sigma d , Metra, PINS, Metranet, Telkomsat e , GSD	Rp	2,553	December 31, 2023 – March 12, 2024	Monthly, Quarterly	1 month JIBOR + 0.35% 3 month JIBOR + 1.00%	None
MUFG Bank
2018	Telkomsel	Rp	1,750	October 31, 2023	Monthly	6.30%	None
2018 - 2019	Infomedia, Metra, GSD, Telkom Infra	Rp	1,430	October 31, 2023	Monthly	1 month JIBOR + 0.70%	None
Bank of China
2020	the Company	Rp	1,000	October 13, 2023	Quarterly	3 months JIBOR - 1.60%	None
DBS
201 6	Sigma	USD	0	July 31, 2024	Monthly	5.79% - 6.30%	Trade receivables
2018	Telkom Infra, Infomedia	Rp	475	November 1, 2023	Monthly	1 month JIBOR + 1.20%	None
UOB Indonesia
2016	Finnet	Rp	500	October 31, 2023	Monthly	1 month JIBOR + 1.75%	None

In original currency

** Refer to N ote 5 and N ote 11 for details of t rade receivables and p roperty and equipment pledged as collateral.

a Based on the latest amendment on July 28, 2022 and January 6, 2023.

b Based on the latest amendment on March 28, 2018 and July 6, 2018.

c Based on the latest amendment on July 16, 2018, November 17, 2021 and November 7, 2022.

d Based on the latest amendment on April 23, 2021.

e Based on the latest amendment on August 10, 2023.

f Unsettled loan will be automatically extended.

As stated in the agreements, the Group is required to comply with all covenants or restrictions such as limitation that the Company must have a majority shareholding of at least 51% of the subsidiaries and maintaining financial ratios . As of September 30, 2023 , the Group has complied with all covenants .

The credit facilities were obtained by the Group for working capital purposes.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

SHORT-TERM BANK LOANS AND CURRENT MATURITIES OF LONG-TERM LOANS AND OTHER BORROWINGS (continued)

b. Current maturities of long-term loans and other borrowings


	Notes	September 30, 2023	December 31, 2022
Two-step loans	19a	91	118
Bonds and notes	19b	548	-
Bank loans	19c	10,856	7,788
Other borrowings	19d	482	952
Total		11,977	8,858

LONG-TERM LOANS AND OTHER BORROWINGS



	Notes	September 30, 2023	December 31, 2022
Two-step loans	19a	41	91
Bonds and notes	19b	4,794	4,793
Bank loans	19c	21,510	22,085
Other borrowings	19d	-	362
Total		26,345	27,331

Scheduled principal payments as of September 30, 2023 are as follows:


	Year
	Notes	Total	2024	2025	2026	2027	Thereafter
Two-step loans	19a	41	41	-	-	-	-
Bonds and notes	19b	4,794	-	2,099	-	-	2,695
Bank loans	19c	21,510	1,512	6,223	5,167	3,229	5,379
Other borrowings	19d	-	-	-	-	-	-
Total		26,345	1,553	8,322	5,167	3,229	8,074

a. T wo-step loans

Two-step loans are unsecured loans obtained by the Government from overseas banks which are then re-loaned to the Company. Loans obtained up to July 1994 are payable in Rupiah based on the exchange rate at the date of drawdown. Loans obtained after July 1994 are payable in their original currencies and any resulting foreign exchange gain or loss is borne by the Company.


		September 30, 2023		December 31, 2022
		Outstanding		Outstanding
		Foreign currency	Rupiah	Foreign currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Overseas banks	Yen	1,152	119	1,536	181
	Rp	-	13	-	28
Total			132		209
Current maturities (Note 18b)			(91)		(118)
Long-term portion			41		91


Lenders	Currency	Principal payment schedule	Interest payment period	Interest rate per annum
Overseas banks	Yen	Semi-annually	Semi-annually	2.95%
	Rp	Semi-annually	Semi-annually	7.125%

The loans were intended for the development of telecommunications infrastructure and supporting telecommunications equipment. The loans will be settled semi-annually and due on various dates until 2024.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)

a. T wo-step loans (continued)

The Company had used all facilities under the two-step loans program since 2008 and the withdrawal period for the two-step loan has ended.

Under the loan covenants, the Company is required to maintain financial ratios as follows:

i. Projected net revenue to projected debt service ratio should exceed 1.2:1 for the two-step loans originating from Asian Development Bank (“ADB”).

ii. Internal financing (earnings before depreciation and finance costs) should exceed 20% compared to annual average capital expenditures for loans originating from the ADB.

As of September 30, 2023 , the Company has complied with the above-mentioned ratios.

b. Bonds and notes

— Bonds and notes	Outstanding — September 30, 2023	December 31, 2022
Bonds
2015
Series A	-	2,200
Series B	2,100	2,100
Series C	1,200	1,200
Series D	1,500	1,500
Medium Term Notes ("MTN")
MTN Mitratel 2023	550	-
Total	5,350	7,000
Unamortized debt issuance cost	(8)	(7)
Long-term portion	5,342	6,993
Current maturities (Note 18b)	(548)	(2,200)
Long-term portion	4,794	4,793

i. Bonds

2015


Bonds	Principal	Issuer	Listed on	Issuance date	Maturity date	Interest payment period	Interest rate per annum
Series A	2,200	The Company	IDX	June 23, 2015	June 23, 2022	Quarterly	9.93%
Series B	2,100	The Company	IDX	June 23, 2015	June 23, 2025	Quarterly	10.25%
Series C	1,200	The Company	IDX	June 23, 2015	June 23, 2030	Quarterly	10.60%
Series D	1,500	The Company	IDX	June 23, 2015	June 23, 2045	Quarterly	11.00%
Total	7,000

The bonds are not secured by specific security but by all of the Company’s assets, movable or non-movable, either existing or in the future (Note 11 b . x i ). The underwriters of the bonds are PT. Bahana TCW Management Investment (“Bahana TCW”), PT BRI Danareksa Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia, Tbk. and the trustee is Bank Permata . The Company received the proceeds from the issuance of bonds on Ju ne 23 , 201 5.

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 and support, and acquisition of some domestic and international entities.

As of September 30 , 2023 , the rating of the bonds issued by Pefindo is idAAA (Triple A).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)

b. Bonds and notes (continued)

i. Bonds (continued)

Based on the Indenture Trust s Agreement, the Company is required to comply with all covenants or restrictions, including maintaining financial ratios as follows:

(a) Debt to equity ratio should not exceed 2:1.

(b) EBITDA to interest ratio should not be less than 4 :1.

As of September 30, 2023 , the Company has complied with the above-mentioned ratios.

ii. Notes

On September 26, 2023, Mitratel issued MTN amounting to Rp500 billion which will be used to support the provision of funds for credit refinancing.

The term of MTN is 370 calendar days after the MTN issuance date with annual interest rate 6.20% which will be paid every 3 months (quarterly). The first MTN interest payment will be made on December 26, 2023, while the final MTN interest payment as well as the MTN principal value will be made on October 26, 2024.

Mitratel has engaged PT Bank Mandiri (Persero) Tbk. as trustee who will act as an intermediary between the company and MTN holders. The issuance of these Medium Term Notes was rated by PT Pemeringkat Efek Indonesia with idAAA rate.

c. Bank loans


		September 30, 2023		December 31, 2022
		Outstanding		Outstanding
		Foreign		Foreign
		currency	Rupiah	currency	Rupiah
Lenders	Currency	(in millions)	equivalent	(in millions)	equivalent
Related parties
BNI	Rp	-	4,455	-	5,472
Bank Mandiri	Rp	-	3,560	-	4,381
BRI	Rp	-	1,136	-	1,409
BSI	Rp	-	512	-	22
Sub-total			9,663		11,284
Third parties
BCA	Rp	-	10,948	-	9,757
Syndication of banks	Rp	-	2,500	-	680
	USD	10	160	17	265
Bank CIMB Niaga	Rp	-	2,128	-	2,221
	USD	4	60	4	61
DBS	Rp	-	1,500	-	1,500
Bank Permata	Rp	-	1,375	-	1,021
Bank of China	Rp	-	1,400	-	1,000
BJB	Rp	-	1,000	-	-
HSBC	Rp	-	625	-	750
MUFG Bank	Rp	-	500	-	500
Bank Danamon	Rp	-	364	-	455
PT Bank ANZ Indonesia ("Bank ANZ")	Rp	-	132	-	198
UOB Singapore	USD	4	62	13	205
Others (each below Rp100 billion)	Rp	-	20	-	60
	MYR	9	29	10	34
Sub-total			22,803		18,707
Total			32,466		29,991
Unamortized debt issuance cost			(100)		(118)
			32,366		29,873
Current maturities (Note 18b)			(10,856)		(7,788)
Long-term portion			21,510		22,085

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)

c. Bank loans (continued)

Other significant information relating to bank loans as o f September 30, 2023 is as follows:

	Borrower	Currency	Total facility (in billions)*	Current period payment (in billions)*	Principal paymentschedule	Interest payment period	Interest rate per annum	Security**
BNI
2018	GSD	Rp	182	5	2021 - 2024	Monthly	8.50%	Trade receivables
2013 - 2021	The Company, GSD, TLT, Sigma, Mitratel	Rp	9,625	1,010	2018 - 2033	Monthly, Quarterly	1 month JIBOR + 2.25%; 3 months JIBOR + 1.70% - 1.85%	Trade receivables and property and equipment
Bank Mandiri
2017 - 2023	The Company, GSD, Mitratel,PST	Rp	6,893	922	2019 - 2029	Quarterly	3 months JIBOR + 1.25% - 1.85%	None
BRI
2017 - 2019	The Company	Rp	2,500	227	2019 - 2026	Quarterly	3 months JIBOR + 1.70% - 1.85%	None
BSI
2018 - 2021	SSI, Telkomsel	Rp	1,055	509	2019 - 2024	Monthly	5.15% - 7.50%	None
BCA
2020 - 2022	The Company, Telkomsel	Rp	6,500	500	2022 - 2030	Monthly, Quarterly	6.05% - 6.75%	None
2020 - 2022	The Company, Mitratel, PST, GSD	Rp	13,986	1,371	2020 - 2030	Quarterly, Semi-annually	3 months JIBOR + 1.00% - 1.50%	Trade receivables and property and equipment
Syndication of banks
2022	Mitratel	Rp	2,500	2,000	2024 - 2030	Semi-annually	7.68%	None
2018	Telin	USD	0	0	2019 - 2025	Semi-annually	6 months SOFR + 1.55%	None
Bank CIMB
Niaga
2019 - 2022	PINS, Mitratel	Rp	2,300	53	2021 - 2029	Quarterly	3 months JIBOR + 1.30% - 1.425%	None
2021 - 2022	Telin	USD	0	-	2024 - 2030	Semi-annually	6 months SOFR + 1.82%	None
DBS
2021	Mitratel	Rp	3,500	-	2023 - 2028	Semi-annually	3 months JIBOR + 1.20%	Property and equipment
Bank Permata
2020 - 2022	Mitratel	Rp	2,000	146	2021 - 2029	Semi-annually	3 months JIBOR + 1.30%	Property and equipment

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)

c. Bank loans (continued)

Other significant information relating to bank loans as o f September 30, 2023 is as follows (continued):

	Borrower	Currency	Total facility (in billions)*	Current period payment (in billions)*	Principal payment schedule	Interest payment period	Interest rate per annum	Security**
Bank of China
2019	Telkomsel	Rp	1,400	2,000	2021 - 2023	Quarterly	5.01%	None
BJB
2023	Telkomsel	Rp	1,000	1,000	2023 - 2023	Monthly	5.90%	None
HSBC
2021	Mitratel	Rp	750	125	2023 - 2028	Semi-annually	3 months JIBOR + 1.50%	Property and equipment
MUFG Bank
2021	Mitratel	Rp	500	-	2022 - 2028	Quarterly	3 months JIBOR + 1.60%	None
Bank Danamon
2022	Mitratel	Rp	636	91	2022 - 2025	Quarterly	3 months JIBOR + 1.50%	None
ANZ
2015	GSD, PINS	Rp	440	66	2020 - 2025	Quarterly	3 months JIBOR + 1.20% - 1.40%	None
UOB Singapore
2018	Telin	USD	0	0	2019 - 2024	Semi-annually	6 months SOFR + 1.25%	None

In original currency

** Refer to Note 5 and Note 11 for details of trade receivables and property and equipment pledged as collateral.

As stated in the agreements, the Group is required to comply with all covenants or restrictions such as dividend distribution, obtaining new loans, and maintaining financial ratios. As of December 31, 2022, the Group obtained waiver from lenders for the non-fulfillment financial ratios in Metra, Sigma, GSD, and TLT. The waivers from HSBC, Bank DBS, BNI, and Bank Mandiri were received on December 19, 2022, December 22, 2022, December 23, 2022, December 29, 2022, and December 26, 2022. As of September 30 2023, the Group has complied with all covenants regarding these financial ratios, except for Sigma and GSD regarding the debt service coverage ratio which is still lower than required.

The credit facilities were obtained by the Group for working capital purposes and investment purposes .

d. Other borrowing s

— Lenders	Outstanding — September 30, 2023	December 31, 2022
PT Sarana Multi Infrastruktur (Persero)
("Sarana Multi Infrastruktur")	482	1,315
Unamortized debt issuance cost	0	(1)
Total	482	1,314
Current maturities (Note 18b)	(482)	(952)
Long-term portion	-	362

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

LONG-TERM BANK LOANS AND OTHER BORROWINGS (continued)

d. Other borrowing s (continued)

Other significant information relating to other borrowings as of September 30, 2023, is as follows:

	Borrower	Currency	Total facility (in billions)	Current period payment (in billions)	Principal payment schedule	Interest rate per annum	Security
Sarana Multi
Infrastruktur
November 14, 2018	The Company	Rp	1,000	110	Semi-annually (2019 - 2023)	3 months JIBOR + 1.75%	None
March 29, 2019*	The Company	Rp	2,836	700	Semi-annually (2020 - 2024)	3 months JIBOR + 1.75%	None
March 29, 2019*	Telkomsat	Rp	164	24	Semi-annually (2020 - 2024)	3 months JIBOR + 1.75%	None

Based on the latest amendment on June 15, 2020.

Under the agreement, the Company and Telkomsat are required to comply with all covenants or restrictions, including maintaining financial ratios as follows:

(a) Debt to equity ratio should not exceed 2:1

(b) Net debt to EBITDA ratio should not exceed 4:1

As of September 30, 2023 , the Company and Telkomsat have complied with the above-mentioned ratios.

20 . NON-CONTROLLING INTERESTS

The details of non-controlling interests are as follows:


	September 30, 2023	December 31, 2022
Non-controlling interests in net assets of subsidiaries:
Telkomsel	9,444	10,535
Mitratel	8,945	9,038
Others	411	431
Total	18,800	20,004

	2023	2022
Non-controlling interests in profit (loss)
in current period of subsidiaries:
Telkomsel	5,464	5,876
Mitratel	403	345
Others	23	14
Total	5,890	6,235

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

NON-CONTROLLING INTERESTS (continued)

Material partly-owned subsidiaries

The non-controlling interest which are considered material to the Company are the non-controlling interest in Telkomsel and Mitratel. On September 30, 2023 and December 31, 2022, the non-controlling interest in Telkomsel holds 30.10% and 35.00% and Mitratel holds 27.09% and 28.15%, respectively.

The summarized financial information of Telkomsel and Mitratel are provided below. This information is based on amounts before intercompany eliminations.

S ummarized statement s of financial position :


	Telkomsel		Mitratel
	September 30, 2023	December 31, 2022	September 30, 2023	December 31, 2022
Current assets	14,055	16,290	5,182	7,886
Non-current assets	90,117	84,701	51,171	48,185
Current liabilities	(39,306)	(32,241)	(10,698)	(10,200)
Non-current liabilities	(39,797)	(38,708)	(12,196)	(12,064)
Total equity	25,069	30,042	33,459	33,807
Attributable to:
Owners of the parent company	15,625	19,507	24,514	24,769
Non-controlling interests	9,444	10,535	8,945	9,038

Summarized statement s of profit or loss and other comprehensive income:


	Telkomsel		Mitratel
	2023	2022	2023	2022
Revenues	73,193	66,161	6,273	5,607
Operation expenses	(50.480)	(47,167)	(3,614)	(3,367)
Other expenses - net	(1,682)	1,991	(1,118)	(540)
Profit before income tax	21,031	20,985	1,541	1,700
Income tax expense - net	(4,656)	(4,195)	(110)	(473)
Profit for the period	16,375	16,790	1,431	1,227
Other comprehensive income (loss) - net	-	-	-	-
Total comprehensive income
for the period	16,375	16,790	1,431	1,227

Attributable to
non-controlling interests	5,464	5,876	403	345
Dividends paid to
non-controlling interests	9,267	7,218	484	272

Summarized statements of cash flows:


	Telkomsel		Mitratel
	2023	2022	2023	2022
Operating	31,573	32,300	3,350	2,458
Investing	(9,995)	(4,599)	(3,701)	(10,058)
Financing	(24,107)	(21,828)	(3,548)	(6,103)
Net increase (decrease) in cash and cash equivalent	(2,529)	5,873	(3,899)	(13,703)

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

21 . CAPITAL STOCK


	September 30, 2023
Description	Number of shares	Percentage of ownership	Total paid-in capital
Series A Dwiwarna share
Government	1	0	0
Series B shares
Government	51,602,353,559	52.09	2,580
The Bank of New York Mellon Corporation*	3,726,418,080	3.77	187
Directors (Note 1b):
Ririek Adriansyah	6,016,355	0	0
Bogi Witjaksono	4,130,400	0	0
Afriwandi	4,172,900	0	0
Heri Supriadi	4,170,400	0	0
FM Venusiana R	7,806,900	0	0
Herlan Wijanarko	4,172,900	0	0
Muhamad Fajrin Rasyid	4,130,400	0	0
Budi Setyawan Wijaya	4,585,400	0	0
Honesti Basyir	370,544	0	0
Commisioner (Note 1b):
Isa Rachmatarwata	1,968,000	0	0
Marcelino Rumambo Pandin	1,968,000	0	0
Ismail	1,968,000	0	0
Arya Mahendra Sinulingga	2,014,800	0	0
Rizal Mallarangeng	1,968,000	0	0
Public (individually less than 5%)	43,684,001,961	44.14	2,186
Total	99,062,216,600	100.00	4,953


	December 31, 2022
Description	Number of shares	Percentage of ownership	Total paid-in capital
Series A Dwiwarna share
Government	1	0	0
Series B shares
Government	51,602,353,559	52.09	2,580
The Bank of New York Mellon Corporation*	3,889,668,580	3.93	194
Directors (Note 1b):
Ririek Adriansyah	1,156,955	0	0
Budi Setyawan Wijaya	275,000	0	0
Afriwandi	42,500	0	0
Herlan Wijanarko	42,500	0	0
Heri Supriadi	40,000	0	0
Commisioner (Note 1b):
Arya Mahendra Sinulingga	87,500	0	0
Public (individually less than 5%)	43,568,550,005	43.98	2,179
Total	99,062,216,600	100.00	4,953

The Bank of New York Mellon Corporation serves as the Depositary of the registered ADS holders for the Company’s ADSs.

The Company issued only 1 Series A Dwiwarna share which is held by the Government and cannot be transferred to any party, and has a veto right in the General Meeting of Stockholders of the Company with respect to election and removal of the Boards of Commissioners and Directors, issuance of new shares, and amendments of the Company’s Articles of Association.

2 2. OTHER EQUITY

	September 30, 2023	December 31, 2022
Difference due to acquisition of non-controlling interests
in subsidiaries	8,358	8,358
Translation adjustment	877	910
Effect of change in equity of associated companies	386	386
Unrealized holding gain on available-for-sale securities	6	6
other equity components	37	37
Total	9,664	9, 697

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

REVENUES

The Group derives revenues in the following major product lines:



2023	Mobile	Consumer	Enterprise	WIB	Others	Consolidated revenue
Telephone revenues
Cellular	7,324	-	-	122	-	7,446
Fixed lines	-	332	447	87	-	866
Total telephone revenues	7,324	332	447	209	-	8,312
Interconnection revenues	219	-	-	6,408	-	6,627
Data, internet, and information
technology service revenues
Cellular data and internet	53,529	-	-	-	-	53,529
Internet, data communication, and
information technology services	-	76	5,624	1,651	-	7,351
SMS	2,484	-	19	-	-	2,503
Others	47	-	1,499	784	157	2,487
Total data, internet, and information
technology service revenues	56,060	76	7,142	2,435	157	65,870
Network revenues	3	-	847	937	-	1,787
Indihome revenues	-	19,309	2,476	-	-	21,785
Other services
Call center service	-	-	1,002	-	-	1,002
Manage service and terminal	-	-	597	11	-	608
E-health	-	-	554	-	-	554
E-payment	-	-	445	-	-	445
Others	182	24	1,077	241	636	2,160
Total other services	182	24	3,675	252	636	4,769
Total revenues from
contract with customer	63,788	19,741	14,587	10,241	793	109,150
Revenues from lessor transactions	-	-	-	2,088	-	2,088
Total revenues	63,788	19,741	14,587	12,329	793	111,238
Adjustments and eliminations	-	7	10	2	(501)
Total external revenues as reported in
note operating segment	63,788	19,748	14,597	12,331	292


2022	Mobile	Consumer	Enterprise	WIB	Others	Consolidated revenue
Telephone revenues
Cellular	9,112	-	-	16	-	9,128
Fixed lines	-	579	458	136	-	1,173
Total telephone revenues	9,112	579	458	152	-	10,301
Interconnection revenues	209	-	-	5,939	-	6,148
Data, internet, and information
technology service revenues
Cellular data and internet	50,831	-	-	-	-	50,831
Internet, data communication, and
information technology services	-	252	5,715	1,657	-	7,624
SMS	3,326	-	35	-	-	3,361
Others	1	-	1,236	634	145	2,016
Total data, internet, and information
technology service revenues	54,158	252	6,986	2,291	145	63,832
Network revenues	3	-	960	665	-	1,628
Indihome revenues	-	18,810	2,079	-	-	20,889
Other services
Call center service	-	-	891	26	-	917
Manage service and terminal	-	-	532	-	-	532
E-health	-	-	481	5	-	486
E-payment	4	-	347	-	-	351
Others	1	50	958	246	555	1,810
Total other services	5	50	3,209	277	555	4,096
Total revenues from
contract with customer	63,487	19,691	13,692	9,324	700	106,894
Revenues from lessor transactions	-	-	-	1,980	-	1,980
Total revenues	63,487	19,691	13,692	11,304	700	108,874
Adjustments and eliminations	-	(11)	6	(1)	(526)
Total external revenues as reported in
note operating segment	63,487	19,680	13,698	11,303	174

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

REVENUES (continued)

Management expects that most of the transaction price allocated to the unsatisfied contracts as of September 30 , 202 3 will be recognized as revenue during the next reporting periods. Unsatisfied performance obligations as of September 30 , 202 3, which management expect to be realised within one year is Rp 8,119 billion, and more than one year is Rp4,938 billion.

The Group entered into non-cancel l able lease agreements as a lessor . The lease agreements cover leased lines, telecommunication equipment, and land and building. These leases have terms of between 1 to 10 years. All leases include a clause to enable an upward revision of the rental charge on an annual basis according to the prevailing market conditions. These lessee s are also required to provide a residual value guaranted on the properties.

There is no revenue from major customers which exceeds 10% of total revenues for the nine months ended September 30 , 202 3 and 2022 .

Refer to Note 32 for details of related parties transactions.

PERSONNEL EXPENSES

The breakdown of personnel expenses is as follows:


	2023	2022
Salaries and related benefits	7,188	6,980
Vacation pay, incentives, and other benefits	2,884	2,562
Pension and other post-employment
benefits (Note 30)	1,356	1,331
LSA expense (Note 31)	218	255
Others	32	27
Total	11,678	11,155

Refer to Note 32 for details of related parties transactions.

OPERATION, MAINTENANCE, AND TELECOMMUNICATION SERVICE EXPENSES

The breakdown of operation, maintenance, and telecommunication service expenses is as follows:


	2023	2022
Operation and maintenance	17,152	16,215
Radio frequency usage charges (Note 35c.i)	5,536	4,835
Concession fees and USO charges (Note 15)	2,068	1,934
Leased lines and Customer Premise Equipment ("CPE")	2,009	2,111
Electricity, gas, and water	619	684
Cost of SIM cards, vouchers, and
sales of peripherals (Note 7)	553	539
Project management	351	335
Vehicles rental and supporting facilities	225	260
Insurance	194	133
Others (each below Rp100 billion)	157	121
Total	28,864	27,167

Refer to Note 32 for details of related parties transactions.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

GENERAL AND ADMINISTRATIVE EXPENSES

The breakdown of general and administrative expenses is as follows:


	2023	2022
General expenses	1,852	1,661
Allowance for expected credit losses	686	921
Professional fees	531	549
Traveling	329	284
Training, education, and recruitment	288	220
Meeting	222	196
Social contribution	164	156
Collection expenses	121	125
Others (each below Rp100 billion)	327	337
Total	4,520	4,449

Refer to Note 3 2 for details of related parties transactions.

2 7. TAXATION

a. Prepaid taxes


	September 30, 2023	December 31, 2022
The Company:
Income Tax
Article 22 - Witholding tax on goods delivery
and imports	-	1
Article 23 - Witholding tax on service delivery	-	97
Subsidiaries:
Income Tax
Corporate Income Tax	146	3
Article 4(2) - Final tax	1	24
Article 22 - Witholding tax on goods delivery
and imports	4	-
Article 23 - Witholding tax on service delivery	285	16
VAT	2,348	1,323
Total prepaid taxes	2,784	1,464
Current portion	(2,784)	(1,464)
Non-current portion (Note 13)	-	-

b. Claims for tax refund


	September 30, 2023	December 31, 2022
The Company
Corporate Income Tax	76	19
Article 21 - Individual income tax	1	3
VAT	163	155
Subsidiaries
Income Tax
Corporate income tax	444	578
Article 23 - Witholding tax on services delivery	-	8
VAT	263	238
Total claims for tax refund	947	1,001
Current portion	(1)	(380)
Non-current portion (Note 13)	946	621

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

c. Taxes payable


	September 30, 2023	December 31, 2022
The Company:
Income taxes
Article 4(2) - Final tax	25	50
Article 21 - Individual income tax	44	79
Article 22 - Withholding tax on goods delivery
and imports	3	7
Article 23 - Withholding tax on services	16	48
Article 25 - Installment of corporate income tax	143	190
Article 26 - Withholding tax on non-resident
income	-	5
Article 29 - Corporate income tax	-	575
VAT	385	244
VAT - Tax collector	137	286
	753	1,484
Subsidiaries:
Income taxes
Article 4(2) - Final tax	223	287
Article 21 - Individual income tax	121	206
Article 22 - Withholding tax on goods delivery
and imports	4	5
Article 23 - Withholding tax on services	74	68
Article 25 - Installment of corporate income tax	576	260
Article 26 - Withholding tax on non-resident
income	229	262
Article 29 - Corporate income tax	1,761	1,782
VAT	291	493
VAT - Tax collector	771	525
	4,050	3,888
Total taxes payable	4,803	5,372

d. The components of consolidated income tax expense (benefit) are as follows:


	2023	2022
Current
The Company	1,122	1,765
Subsidiaries	5,775	5,513
	6,897	7,278
Deferred
The Company	496	(170)
Subsidiaries	(500)	(727)
	(4)	(897)
Net income tax expense	6,893	6,381

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

d. The components of consolidated income tax expense (benefit) are as follows (continued) :

The reconciliation between the profit before income tax and the estimated taxable income of the Company for the nine months period ended September 30, 2023 and 2022 are as follows:


	2023	2022
Profit before income tax consolidation	32,282	29,197
Add back consolidation eliminations	18,019	23,425
Consolidated profit before income tax and eliminations	50,301	52,622
Less: profit before income tax of the subsidiaries	(29,156)	(30,644)
Profit before income tax attributable to the Company
before deduction of income subject to final tax	21,145	21,978
Less: income subject to final tax	(436)	(303)
Profit before income tax attributable to the Company
after deduction of income subject to final tax	20,709	21,675
Temporary differences:
Allowance for expected credit losses	(68)	394
Deferred installation fee	5	114
Leases	(7)	6
Provision for employee benefits	(365)	(813)
Land rights, intangible assets, and other	26	9
Net periodic pension and other post-employment
benefits costs	(1,110)	(36)
Difference between book value of accounting
and tax property equipment	(1,444)	571
Accrued expenses and provision for inventory
obsolescence	21	39
Contract cost	62	97
Net temporary differences	(2,880)	381
Permanent differences:
Net periodic post-retirement health care benefit costs	190	190
Donations	181	176
Employee benefits	19	158
Equity in net income of associates and subsidiaries	(12,724)	(13,635)
Others	174	200
Net permanent differences	(12,160)	(12,911)
Taxable income of the Company	5,669	9,145
Current corporate income tax expense	1,077	1,738
Final income tax expense	45	27
Total current income tax expense of the Company	1,122	1,765
Current income tax expense of the subsidiaries	5,775	5,513
Total current income tax expense	6,897	7,278

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

d. The components of income tax expense (benefit) are as follows (continued) :

The reconciliation between the income tax expense calculated by applying the applicable tax rate of 19% to the profit before income tax less income subject to final tax, and the net income tax expense as shown in the consolidated statements of profit or loss and other comprehensive income is as follows:


	2023	2022
Profit before income tax consolidation	32,282	29,197
Less consolidated income subject to final tax - net	(4,394)	(1,539)
	27,888	27,658

Income tax expense calculated at the Company’s
applicable statutory tax rate	5,299	5,255
Difference in applicable statutory tax rate for
subsidiaries	587	697
Non-deductible expenses	876	132
Final income tax expense	45	29
Deferred tax adjusment	(104)	-
Unrecognized deferred tax	4	-
Others	186	268
Net income tax expense	6,893	6,381

In October 2021, the Government issued Law No. 7/2021 concerning Harmonization of Tax Regulations (HPP Law). In Chapter III Article 3 of the HPP Law, amendments to the Income Tax Law have been regulated, including amendments to Article 17 paragraph (1) letter b which stipulates that the tax rate applied to Taxable Income for domestic corporate taxpayers and permanent establishments is 22%, which comes into force in the 2022 tax year, and for corporate taxpayers in the form of a limited liability company with a total number of paid-up shares is traded on a stock exchange in Indonesia of at least 40% and meeting certain requirements can receive 3% tax rate lower than the expected rate.

The Company has applied the tax rate of 19% for the nine months period ended September 30, 2023 and 2022. The subsidiaries applied the tax rate of 22% for the nine months period ended September 30, 2023 and 2022.

The company has submitted its Annual Corporate Income Tax Return for the 2022 fiscal year to the Tax Authority in accordance with the applicable tax regulations.

e. Tax assessment

(i) The Company

Income tax and VAT fiscal year 2015

On April 25, 2017, the Tax Authorities issued Tax Overpayment Assessment Letter (“SKPLB”) for corporate income tax amounting to Rp147 billion, and SKPKBs for underpayment of VAT amounting to Rp13 billion (including penalty of Rp4.1 billion), underpayment of VAT on tax collected amounting to Rp6 billion (including penalty of Rp1.5 billion), underpayment of self-assessed offshore VAT amounting to Rp55.3 billion (including penalty of Rp16.8 billion). The Company also received STP for VAT amounting to Rp34 billion, VAT on tax collected amounting to Rp7 billion, and self-assessed offshore VAT amounting to Rp8 billion.

The Company accepted tax audit decision amounting to Rp17 billion for corporate income tax, to transfer deductible temporary differences related to provision for incentives to fixed wireless

(Flexi) subscribers’ migration amounting to Rp42 billion from Annual Tax Return of corporate income tax fiscal year 2015 to Annual Tax Return of corporate income tax fiscal year 2016. The Company also accepted underpayment of VAT, underpayment of VAT on tax collected, and STP for VAT on tax collected amounting to Rp26 billion.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

e. Tax assessments (continued)

(i) The Company (continued)

Income tax and VAT fiscal year 2015 (continued)

The accepted portion was charged to the 2017 consolidated statements of profit or loss and other comprehensive income. On July 24, 2017, the Company filed Objection Letter to the Tax Authorities for corporate income tax amounting to Rp210.5 billion and self-assessed offshore VAT amounting to Rp55 .3 billion.

On May 3 and 22, 2018, the Tax Authorities issued decision letter on Company’s objections for SKPLB of self-assessed offshore VAT amounting to Rp54.6 billion, wherein Tax Authorities reduced the Company’s underpayment and granted all the Company’s objection. The Company agreed with the Tax Authorities decision regarding SKPLB of self-assessed offshore VAT amounting to Rp793 million and charged in the 2018 consolidated statements of profit or loss and other comprehensive income. On July 18, 2018, the Tax Authorities issued Decision Letter on Company’s objections for SKPLB of corporate income tax, wherein the Tax Authorities has granted the several Company’s objection and additional amount of overpayment which should be received amounting to Rp76 billion. On October 10, 2018, the Company filed an appeal.

On July 8, 2020, the Company received appeal decision from the Tax Court regarding corporate income tax dispute for fiscal year 2015. The Tax Court partially approved the appeal filed by the Company. On September 9, 2020, the Company received tax refund of additional overpayment of corporate income tax amounting to Rp90.9 billion.

On October 26, 2020, the Company received notification letter from Tax Court that Tax Authorities filed a judicial review of corporate income tax dispute for fiscal year 2015. On December 2, 2020, the Company filed a contra memorandum for judicial review as response of Tax Authorities judicial review.

The entire file of the Judicial Review Memorandum submitted by the Judicial Review Applicant (DGT) and the Judicial Review Counter Memorandum file sent by the Respondent (Telkom) have been forwarded by the Secretariat of the Tax Court to the Supreme Court on December 13, 2022, with a letter of introduction number PKMA-1594/XII/ PAN.Wk/2022.

On May 25 2023, the Supreme Court issued Decision number 1365/B/PK/Pjk/2023 which rejected the DGT's request for review. Thus, all tax obligations for 2015 have permanent legal force through the Issuance of the Supreme Court Decision and have passed the tax determination expiration period as stipulated in the tax law.

Income tax and VAT fiscal year 2018

On December 16, 2020, the Company received Tax Assessment Letter (“ SKP ”) and STP as result of 2018 tax audit. The DGT issued SKPLB of corporate income tax amounting to Rp101.5 billion, SKPLB of withholding tax article 21 amounting to Rp1.9 billion (include penalty Rp573.9 million), SKPLB of withholding tax article 23 amounting to Rp4 million (include penalty Rp1.2 million) and SKPLB of VAT for fiscal period January to August and October to December amounting to Rp85.3 billion).

Furthermore, the DGT issued SKPKB of VAT for fiscal period September amounting to Rp240.5 billion (include penalty Rp59.5 billion), SKPKB of VAT WAPU amounting to Rp15.17 billion (include penalty Rp4.6 billion) and STP of VAT WAPU amounting to Rp1.2 billion.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

e. Tax assessments (continued)

(i) The Company (continued)

Income tax and VAT fiscal year 2018 (continued)

The Company agreed to receive tax audit correction of corporate income tax amounting Rp1.1 billion, underpayment of withholding tax article 21 amounting to Rp1.9 billion, underpayment of withholding tax article 23 amounting to Rp4 million, VAT tax credit amounting to Rp4.8 billion, STP of VAT WAPU amounting Rp1.2 billion and underpayment of VAT WAPU amounting to Rp15.17 billion. These corrections that have been approved have been charged to the 2020 profit or loss income statement.

The Company did not agree with the correction from tax auditor who imposes VAT on the transaction of submitting the space segment component (asset in constructive) of the Satelit Merah Putih to Telkomsat. In March 2021, the Company has submitted a tax objection letter to the Tax Authority for the correction of the tax auditor. On March 4, 2022, the Company received notification letter from Tax Authority number KEP-00253/KEB/PJ/WPJ.19/2022 that approved the objection filed by the Company. On April 8, 2022, the Company has received a refund of Rp270.4 billion in accordance with the Decree. Thus, for all types of taxes in 2018 the Company has received all decisions that are final and have permanent legal force.

VAT fiscal year 2019

On May 12, 2022, the Company received a notice of field audit for overpayment of domestic VAT for period January to December 2019. On November 30, 2022, the Company received SKPKB and STP WAPU VAT for the period January to December 2019 amounting to Rp6.3 billion (including a fine of Rp3.1 billion) and domestic VAT SKPLB for January to December 2019 amounting to Rp 60.8 billion. The Company agrees to accept the auditor's tax correction and has charged fines and audit corrections to the 2022 income statement. Thus, for the 2019 VAT tax type, the Company has received a decision that is final and has permanent legal force.

On April 12, 2023, the Company received a Field Audit Notification Letter to test compliance with tax obligations on Corporate Income Tax and Withholding Income Tax for the 2019 Tax Year. As of the issuance date of these financial statements, the tax audit process is still ongoing.

VAT fiscal year 2020

On September 1, 2022, the Company received a notice of field audit for overpayment of domestic VAT for period May 2020. On March 10, 2023, the Company received SKPKB and STP VAT for May 2020 WAPU in the amount of Rp0,6 billion (including a fine of Rp0.3 billion), SKPN and STP VAT JKP from Outside the Customs Area in the amount of Rp0.1 billion, and SKPLB VAT In Country Period May 2020 valued at Rp0.3 billion. The Company agreed to accept the auditor's tax correction and has charged fines and correctional sanctions to the 2023 income statement.

On March 13, 2023, the Company received a Field Examination Notification Letter for Overpayment of SPT Period Domestic VAT for the period January to April, July, September and November to December 2020. On June 20, 2023, the Company received an Audit Notification Letter to test compliance with tax obligations on Corporate Income Tax, VAT and Withholding Income Tax for the 2020 Tax Year. As of the issuance date of these financial statements, the audit process for all types of taxes is still ongoing.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

e. Tax assessments (continued)

(i) The Company (continued)

Income tax and VAT fiscal year 2021

On June 20, 2023, the Company received an Audit Notification Letter to test compliance with tax obligations on Corporate Income Tax, VAT and Withholding Income Tax for the 2021 Tax Year. As of the issuance date of these financial statements, the audit process for all types of taxes is still ongoing.

(ii) Telkomsel

Income tax and VAT fiscal year 2014

In May 2019, Telkomsel received tax underpayment assessment letters for the 2014 CIT, VAT and WHT in tot al amount of Rp150.60 billion (including penalty of Rp54.6 billion). Telkomsel partially accepted the portion of Rp16.54 billion and charged it as expense in 2019 consolidated statement of profit or loss. Telkomsel also paid a portion of Rp99.06 billion out of the remaining underpayment and recorded it as claim for tax refund. In August 2019, Telkomsel filed an objection to the Tax Authorities for full amount of Rp134.06 billion.

In July 2020, Telkomsel received an objection decision letter which accepted Telkomsel’s objection of Rp27.22 billion and rejected the remaining Rp106.84 billion. Telkomsel received the tax refund of Rp27.22 billion in August 2020.

In September 2020, Telkomsel filed an appeal to the Tax Court for the 2014 CIT, WHT and VAT assessments amounting to Rp106.84 billion.

In April 2022, Telkomsel received the Tax Court’s Verdict for the 2014 underpayment of WHT and VAT, which partially accepted Telkomsel’s appeal amounting to Rp66.01 billion. Telkomsel received the refund in April, May and June 2022, and charged the rejected portion of Rp3.57 billion in the 2022 consolidated statement of profit or loss.

In August 2022, Telkomsel received notifications that the Tax Authorities had filed a judicial review to the Supreme Court (“SC”) for the 2014 VAT amounting to Rp8.23 billion. Telkomsel had since submitted its contra memorandums for the Judicial Review in September 2022.

In February and March 2023, the SC fully rejected the judicial review claimed by the Tax Authorities on tax periods of 2014 VAT amounting to Rp8.23 billion. Thus, these cases have been legally enforced (in-kracht) and no additional tax payables for fiscal year 2014.

As at the authorization date of these consolidated financial statements, the result of appeal for CIT have not yet been received.

Income tax and VAT fiscal year 2015

In August 2019, Telkomsel received the tax underpayment assessment letters for the 2015 CIT, VAT and WHT in total amount of Rp384.82 billion (including penalty of Rp54.6 billion). Telkomsel accepted the portion of Rp34.61 billion, which was paid and charged as expense in the 2019 consolidated statement of profit or loss. Telkomsel also paid the remaining amount of underpayment and recorded it as claim for tax refund. In September 2019, Telkomsel filed an objection to the Tax Authorities for Rp350.21 billion.

In July 2020, Telkomsel received an objection decision letter from Tax Authorities that rejected all Company’s objection.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

e. Tax assessments (continued)

(ii) Telkomsel (continued)

Income tax and VAT fiscal year 2015 (continued)

In September 2020, Telkomsel filed an appeal to the Tax Court for the 2015 CIT, WHT and VAT assessments amounting to Rp350.21 billion.

In April and May 2022, Telkomsel received the Tax Court’s Verdict for the 2015 underpayment of WHT and VAT which partially accepted the Telkomsel’s appeal amounting to Rp52.93 billion. Telkomsel received the refund in April and May 2022, and charged the rejected portion of Rp3.03 billion in the 2022 consolidated statement of profit or loss.

In August 2022, Telkomsel received notifications that the Tax Authorities had filed a judicial review to the SC for the 2015 VAT amounting to Rp23.70 billion. Telkomsel had since submitted its contra memorandums for the Judicial Review in September 2022.

During February to May 2023, Telkomsel received decision letters from SC, which fully rejected the Judicial Review claimed by the Tax Authorities for the tax periods of 2015 fiscal year VAT amounting to Rp23.70 billion. Telkomsel has received all final decisions, which are legally enforced (in-kracht) and thus, there are no additional tax payables for 2015 fiscal year VAT.

As at the authorization date of these consolidated financial statements, the results of appeal for CIT has not yet been received.

Income tax and VAT fiscal year 2018

In September 2022, Telkomsel received tax underpayment assessment letters for the 2018 CIT, VAT and WHT amounting to Rp159.76 billion (including penalty of Rp48.57 billion) in total. At the same time, Telkomsel also received tax assessment letters for 2018 VAT confirming tax overpayments in the amount of Rp40.05 billion.

On October 14, 2022, Telkomsel paid and accepted a portion of the CIT tax assessment of Rp164.79 million, and charged it as expense in the 2022 consolidated statement of profit or loss. Telkomsel also paid the remaining amount of tax assessment for CIT and VAT amounting to Rp57.03 billion, after netting-off with overpayment of Rp40.05 billion. Telkomsel recorded it as claim for tax refund in the consolidated statement of financial position.

On December 13, 2022, Telkomsel filed an objection to the Tax Authorities amounting to Rp119.54 billion for CIT, VAT and WHT. As at the authorization date of these consolidated financial statements, the results of objection have not yet been received.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

f . Deferred tax assets and liabilities

The details of the Group's deferred tax assets and liabilities are as follows :

—	Deferred tax asset and liabilities — in financial position		(Charged) credited to — profit or loss
	September 30, 2023	December 31, 2022	2023	2022
The Company
Allowance for expected credit losses	872	885	(13)	75
Net periodic pension and other
post-employment benefit costs	994	981	(211)	(7)
Difference between accounting and tax
bases of property and equipment	487	806	(224)	205
Provision for employee benefits	223	292	(69)	(154)
Deferred installation fee	20	203	1	22
Land rights, intangible assets and others	28	23	5	2
Accrued expenses and provision for
inventory obsolescence	89	85	4	7
Leases	(2)	(1)	(1)	1
Contract cost	14	(49)	12	19
Total deferred tax assets	2,725	3,225	(496)	170
Telkomsel
Provision for employee benefits	1,380	1,220	142	58
Allowance for expected credit losses	222	144	78	16
Leases	465	468	(3)	(54)
Contract liabilities	420	-	236	-
Fair value measurement of financial
instruments	(1)	(7)	6	549
Difference between accounting and tax bases of
property and equipment	(1,218)	(1,445)	132	147
License amortization	(154)	(146)	(8)	3
Contract cost	(52)	-	(1)	-
Other financial instruments	(138)	(119)	(19)	4
Deferred tax assets of Telkomsel - net	924	115	563	723
Deferred tax assets of the other subsidiaries - net	747	777	(30)	157
Deferred tax liabilities of the other subsidiaries - net	(1,051)	(1,023)	(33)	(153)
Deferred tax expense (income)			4	897
Total deferred tax assets - net	4,396	4,117
Total deferred tax liabilities - net	(1,051)	(1,023)

g . Administration

As of September 30 , 2023 and December 31, 2022 the aggregate amounts of temporary differences associated with investments in subsidiaries and associated companies, for which deferred tax liabilities have not been recognized were Rp75,284 billion and Rp23,915 billion, respectively.

Realization of the deferred tax assets is dependent upon the Group’s capability in generating future profitable operations. Although realization is not assured, the Group believes that it is probable that these deferred tax assets will be realized through reduction of future taxable income when temporary differences reverse. The amount of deferred tax assets is considered realizable, however it can be reduced if actual future taxable income is lower than estimate.

In October 2021, the Government also issued Law No.7/2021 on the Harmonization of Tax Regulations, which, among other things, regulates the rates of income tax and VAT. Starting January 1 2022, the Group applies the income tax rate on employee taxable income in accordance with paragraph (1) letter a of Article 17 Chapter III, and starting April 1 2022 the VAT rate changes to 11%. The company ensures the readiness of the surrounding billing system, administrative and legal aspects of transactions, and builds intensive coordination between units, concerned to prepare for the implementation of these rules.

In February 2022, the Government issued Government Regulation No. 9/2022 concerning the Second Amendment to Government Regulation No. 51/2008 concerning Income Tax on Income from Construction Services Business. The Company ensures administrative and legal aspects of transactions and builds solid coordination between related units to prepare for the application of the income tax rate rule for construction service businesses as stipulated in article 3 paragraph (1) of the regulation.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

2 7. TAXATION (continued)

g . Administration (continued)

In June 2023, the Government issued Minister of Finance Regulation No. 66/PMK.03/2023 concerning PPh Treatment of Reimbursement or Compensation in Relation to Work or Services Received or Obtained in Kind and/or Enjoyment. The company ensures administrative and legal aspects of transactions, and builds intensive coordination between related units to implement these rules.

2 8 . BASIC EARNINGS PER SHARE

Basic earnings per share is computed by dividing profit for the periode attributable to owners of the parent company amounting to Rp19,499 billion and Rp16,581 billion by the weighted average number of shares outstanding during the period totaling 99,062,216,600 shares for the nine months period ended September 30, 2023 and 2022, respectively. The weighted average number of shares takes into account the weighted average effect of changes in treasury stock transaction during the period .

Basic earnings per share amounting to Rp196.84 and Rp167.38 (in full amount) for the nine months period ended September 30, 2023 and 2022, respectively.

T he Company does not have potentially dilutive financial investments for the nine months period ended September 30, 2023 and 2022.

29 . CASH DIVIDENDS AND GENERAL RESERVE

Pursuant to the AGM of Stockholders of the Company as stated in Notarial Deed No. 29 dated May 27, 2022 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution of cash dividend for 2021 amounting to Rp14,856 billion (Rp149.97 per share). The Company paid cash dividend on June 30, 2022.

Pursuant to the AGM of Stockholders of the Company as stated in Notarial Deed No. 73 dated May 30, 2023 of Ashoya Ratam, S.H., M.Kn., the Company’s stockholders approved the distribution of cash dividend for 2022 amounting to Rp16,602 billion (Rp167.59 per share). The Company paid cash dividend on July 5, 2023.

Under the Limited Liability Company Law, the Company is required to establish a statutory reserve amounting to at least 20% of its issued and paid-up capital.

The balance of the appropriated retained earnings of the Company as of September 30, 2023 and December 31, 2022 amounting to Rp15,337 billion, respectively .

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

The details of pension and other post-employment benefit liabilities are as follows:


	Notes	September 30, 2023	December 31, 2022
Pension benefit and other post-employment
benefit obligations
Pension benefit
The Company - funded	30a.i.a
Defined pension benefit obligation	30a.i.a.i	4,321	4,234
Additional pension benefit obligation	30a.i.a.ii	47	44
The Company - unfunded	30a.i.b	503	522
Telkomsel	30a.ii	4,692	4,275
Projected pension benefit obligations		9,563	9,075
Net periodic post-employment health care
benefit	30b	584	-
Other post-employment benefit	30c	253	268
Long service employee benefit	30d	1	1
Obligation under the Labor Law	30e	1,062	928
Total		11,463	10,272

The details of net pension benefit expense recognized in the consolidated statements of profit or loss and other comprehensive income is as follows:


	Notes	2023	2022
Pension benefit cost
The Company - funded	30a.i.a
Defined pension benefit obligation	30a.i.a.i	487	520
Additional pension benefit obligation	30a.i.a.ii	2	0
The Company - unfunded	30a.i.b	41	44
Telkomsel	30a.ii	473	438
Total periodic pension benefit cost	25	1,003	1,002
Net periodic post-employment health care
benefit cost	24,30b	190	190
Other post-employment benefit cost	24,30c	16	19
Long service employee benefit cost	24,30d	1	1
Obligation under the Labor Law	24,30e	146	119
Total		1,356	1,331

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

30 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

The following table presents the changes in projected post-employment health care benefit provision, changes in post-employment health care benefit plan assets, funded status of the post-employment health care benefit plan , and net amount recogni z ed in the Company’s consolidated statement of financial position as of September 30, 2023 and December 31, 2022 :

	Funded				Post-employment
	Defined pension benefit obligation				health care benefit
	The Company		Telkomsel		The Company
					Projected
	Projected		Projected		post-employment	Post-employment
	pension	Pension	pension	Pension	health care	health care
	benefit	benefit	benefit	benefit	benefit	benefit
	obligations	plan assets	obligations	plan assets	obligation	plan assets	Total
Balance, January 1, 2023	23,136	(18,902)	5,128	(853)	12,878	(12,878)	8,509
Service costs	251	-	247	-	-	-	498
Interest costs (income)	1,188	(978)	226	-	684	(679)	441
Plan administration cost	(100)	100	-	-	-	181	181
Additional welfare benefits	50	-	-	-	-	-	50
Cost recognized in the consolidated
statement of profit or loss	1,389	(878)	473	-	684	(498)	1,170

Actuarial (gain) loss on:
Experience adjustments	114	-	-	-	(14)	-	100
Changes in demographic assumptions	-	-	-	-	-	-	-
Changes in financial assumptions	1,351	-	-	-	575	-	1,926
Return on plan assets
(excluding amount included in
net interest expense)	-	(202)	-	-	-	(81)	(283)
Interest income in asset ceiling	-	-	-	-	-	6	6
Changes in asset ceiling	-	-	-	-	-	(88)	(88)
Cost recognized in OCI	1,465	(202)	-	-	561	(163)	1,661

Employer’s contributions	-	(1,575)	-	-	-	-	(1,575)
Pension plan participants’ contributions	13	(13)	-	-	-	-	-
Benefits paid from plan assets	(1,473)	1,473	-	-	(437)	437	-
Benefits paid by employer	(50)	-	(117)	-	-	-	(167)
FMC's transfer program	(62)	-	231	(170)	-	-	(1)
Balance, September 30, 2023	24,418	(20,097)	5,715	(1,023)	13,686	(13,102)	9,597
Projected pension benefit
obligation at end of year	4,321		4,692		584		9,597

	Funded				Post-employment
	Defined pension benefit obligation				health care benefit
	The Company		Telkomsel		The Company
					Projected
	Projected		Projected		post-employment	Post-employment
	pension	Pension	pension	Pension	health care	health care
	benefit	benefit	benefit	benefit	benefit	benefit
	obligations	plan assets	obligations	plan assets	obligation	plan assets	Total
Balance, January 1, 2022	23,838	(18,947)	5,020	(832)	13,416	(12,778)	9,717
Service costs	178	-	326	-	-	-	504
Interest costs (income)	1,635	(1,347)	328	(58)	982	(933)	607
Plan administration cost	-	63	-	-	-	164	227
Additional welfare benefits	65	-	-	-	-	-	65
Cost recognized in the consolidated
statement of profit or loss	1,878	(1,284)	654	(58)	982	(769)	1,403

Actuarial (gain) loss on:
Experience adjustments	(737)	-	(1)	-	(730)	-	(1,468)
Changes in demographic assumptions	-	-	(1)	-	-	-	(1)
Changes in financial assumptions	(30)	-	(67)	-	(136)	-	(233)
Return on plan assets
(excluding amount included in
net interest expense)	-	300	(186)	37	-	(69)	82
Changes in asset ceiling	-	-	-	-	-	84	84
Cost recognized in OCI	(767)	300	(255)	37	(866)	15	(1,536)

Employer’s contributions	-	(719)	-	-	-	-	(719)
Pension plan participants’ contributions	19	(19)	-	-	-	-	-
Benefits paid from plan assets	(1,767)	1,767	(291)	-	-	-	(291)
Benefits paid by employer	(65)	-	-	-	(654)	654	(65)
Balance, December 31, 2022	23,136	(18,902)	5,128	(853)	12,878	(12,878)	8,509
Projected pension benefit
obligation at end of year	4,234		4,275		-		8,509

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

					The Company
	The Company				and its subsidiaries
			Other
		Additional	post-employment	Long service	Obligations
		pension benefit	benefit	employee	under
	Unfunded	obligations	obligations	benefit	the labor law	Total
Balance, January 1, 2023	522	44	268	1	928	1,763
Service costs	16	0	5	1	129	151
Interest costs	25	2	11	-	17	55
Cost recognized in the consolidated
statement of profit or loss	41	2	16	1	146	206

Actuarial (gain) loss recognized in OCI	(2)	3	6	-	7	14
Benefits paid by employer	(39)	(2)	(27)	(1)	(27)	(96)
FMC's transfer program	(19)	0	(10)	-	8	(21)
Balance, September 30, 2023	503	47	253	1	1,062	1,866

					The Company
	The Company				and its subsidiaries
			Other
		Additional	post-employment	Long service	Obligations
		pension benefit	benefit	employee	under
	Unfunded	obligations	obligations	benefit	the labor law	Total
Balance, January 1, 2022	613	-	300	4	926	1,843

Service costs	24	37	8	1	78	148
Interest costs	34	-	17	-	-	51
Cost recognized in the consolidated
statement of profit or loss	58	37	25	1	78	199

Actuarial gain recognized in OCI	(55)	7	(14)	-	(13)	(75)
Benefits paid by employer	(94)	-	(43)	(4)	(63)	(204)
Balance, December 31, 2022	522	44	268	1	928	1,763

The components of net periodic pension benefit cost for the nine months period ended September 30, 2023 and 2022 are as follows:


								The Company
	The Company						Telkomsel	and its subsidiaries
				Post-	Other
	Defined	Additional		employment	post-	Long	Defined
	penison	penison		health care	employment	service	penison	Obligations
	benefit	benefit		benefit	benefit	employee	benefit	under
2023	obligations	obligations	Unfunded	cost	obligations	benefit	obligations	the labor law	Total
Service costs	251	0	16	-	5	1	247	129	649
Interest costs	210	2	25	5	11	-	226	17	496
Interest costs in asset ceiling	-	-	-	4	-	-	-	-	4
Plan administration cost	-	-	-	181	-	-	-	-	181
Additional welfare benefits	50	-	-	-	-	-	-	-	50
Net periodic pension benefit cost	511	2	41	190	16	1	473	146	1,380
Amount charged to subsidiaries
under contractual agreements	(24)	-	-	-	-	-	-	-	(24)
Net periodic pension benefit
cost less charged
to subsidiaries	487	2	41	190	16	1	473	146	1,356

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

30 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

The components of net periodic pension benefit cost for the nine months period ended September 30, 2023 and 2022 are as follows (continued):


								The Company
	The Company						Telkomsel	and its subsidiaries
				Post-	Other
	Defined	Additional		employment	post-	Long	Defined
	penison	penison		health care	employment	service	penison	Obligations
	benefit	benefit		benefit	benefit	employee	benefit	under
2022	obligations	obligations	Unfunded	cost	obligations	benefit	obligations	the labor law	Total
Service costs	176	-	18	-	6	1	218	119	538
Interest costs	241	-	26	36	13	-	266	-	582
Plan administration cost	53	-	-	154	-	-	-	-	207
Additional welfare benefits	65	-	-	-	-	-	-	-	65
Interest income	-	-	-	-	-	-	(46)	-	(46)
Net periodic pension benefit cost	535	-	44	190	19	1	438	119	1,346
Amount charged to subsidiaries
under contractual agreements	(15)	-	-	-	-	-	-	-	(15)
Net periodic pension
benefit coss less
charged to subsidiaries	520	-	44	190	19	1	438	119	1,331

a. Pension benefit costs

i. The Company

(a) Funded pension plan

(i) Defined pension benefit obligation

The Company sponsors a defined benefit pension plan for employees with permanent status prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). Pension Fund Management in accordance with the Pension Fund and Investment Directives Regulations determined by the Founder is carried out by the Board of Management. The Board of Management is monitored by the Oversight Board consisting of representatives of the Company and participants.

The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The participating employees contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund. The Company made contributions to the pension fund amounted to Rp1,575 billion and Rp719 billion, for the nine months period ended September 30, 2023 and for the year ended December 31, 2022, respectively.

Risks exposed to defined benefit programs are risks such as asset volatility and changes in bond yields. The project liabilities are calculated using a discount rate that refers to the level of government bond yields, if the return on program assets is lower, it will result in a program deficit. A decrease in the yield of government bonds will increase the program liabilities, although this will be offset in part by an increase in the value of the program bonds held. The Company ensures that the investment position is set within the framework of asset-liability matching ("ALM") that has been formed to achieve long-term results that are in line with the liabilities in the defined benefit pension plan. Within the ALM framework, the Company's objective is to adjust its pension assets and liabilities by investing in a well diversified portfolio to produce an optimal rate of return, taking into account the level of risk. Investment in the program has been well diversified, so that one investment's poor performance will not have a material impact on all asset groups.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

30 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

a. Pension benefit costs (continued)

i. The Company (continued)

(a) Funded pension plan (continued)

(i) Defined pension benefit obligation (continued)

As of September 30, 2023 and December 31, 2022, plan assets consist of:

—	September 30, 2023 — Quoted in		December 31, 2022 — Quoted in
	active market	Unquoted	active market	Unquoted
Cash and cash equivalents	496	-	1,320	-
Equity instruments:
Financials	1,701	-	1,638	-
Consumer non-cyclicals	514	-	505	-
Basic material	295	-	271	-
Infrastructures	712	-	639	-
Energy	180	-	141	-
Technology	33	-	89	-
Industrials	373	-	315	-
Consumer cyclicals	105	-	115	-
Properties and real estate	113	-	98	-
Healthcare	195	-	208	-
Transportation and logistic	9	-	8	-
Equity-based mutual fund	381	-	410	-
Fixed income instruments:
Corporate bonds	-	2,570	-	3,117
Government bonds	10,193	-	7,884	-
Fixed income mutual funds	-	106	-	122
Midterm notes	-	99	-	100
Asset-backed securities	-	15	-	30
Sukuk	-	1,093	-	1,090
Non-public equity:
Direct placement	-	365	-	368
Property	-	184	-	187
Others	-	363	-	247
Total	15,300	4,795	13,641	5,261

Pension plan assets include Series B shares issued by the Company with fair values totalling to Rp414 billion and Rp 336 billion, representing 2.04% and 1.78 % of total plan assets as of September 30, 2023 and December 31, 2022, respectively, and bonds issued by the Company with fair value totalling to Rp348 billion and Rp 348 billion representing 1.71% and 1. 84 % of total plan assets as of September 30, 2023 and December 31, 2022, respectively.

The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp1,080 billion and Rp 984 billion for the nine months period ended September 30, 2023 and for the years ended December 31, 2022 , respectively. Based on the Company’s policy issued on January 14, 2014 regarding Dapen’s Funding Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency Ratio (“FSR”) is above 105 %. Based on Dapen’s financial statement as of September 30, 2023, Dapen’s FSR is below 105 %. Therefore, the Company will contribute to the defined benefit pension plan .

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

30 . PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

a. Pension benefit costs (continued)

i. The Company (continued)

(a) Funded pension plan (continued)

(i) Defined pension benefit obligation (continued)

Based on the Company Regulations issued on September 30, 2022, regarding the Pension Fund Regulations from the Telkom Pension Fund, the Company stipulates that retirees who quit other than because of Disciplinary Punishment, Early Retirement, and at their own request and receive Pension Benefits of less than Rp1 million per month are given increase in monthly Pension Benefits to Rp1 million. In 2023 and 2022, the Company provided employee welfare benefit to pensioners and pension beneficiaries who entered their retirement period before June 30, 2002 amounting to Rp50 billion and Rp65 billion,respectively.

The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of June 30, 2023 and December 31, 2022, with reports datedJuly 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022 are as follows:

	June 30, 2023	December 31, 2022
Discount rate	6.50%	7.25%
Rate of compensation increases	8.00%	8.00%
Indonesian mortality table	2019	2019

(ii) Additional pension benefit obligatio n

Based on the Company Regulations issued on September 30, 2022, regarding the Regulations on Pension Funds from Telkom Pension Funds, the Company organizes a Defined Contribution Other Benefit Program (“PMLIP”) in the form of Additional Benefits. PMLIP participants are entitled to receive Periodic Pension Benefits every month in accordance with the provisions in the Pension Fund Regulations. Additional Benefit Funds are sourced from Employer Additional Benefit contributions and provision for investment development proceeds if the FSR is achieved above 102% and the rate of Return On Investment (“ROI”) is above the actuarial interest rate for funding. The employer's additional benefit contribution for each PMLIP participant is set at Rp120 thousand for annual contribution period which is calculated proportionally according to the amount received.

The actuarial valuation for additional pension benefit plan was performed based on the measurement date as of June 30, 2023 and December 31, 2022, with reports dated July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022 are as follows:

			June 30, 2023		December 31, 2022
Discount rate			6.50%		7.25%
Indonesian mortality table			2019		2019

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

a. Pension benefit costs (continued)

i. The Company (continued)

(a) Funded pension plan (continued)

(ii) Additional pension benefit obligatio n (continued)

Additional pension benefit obligation have been set aside since 2018 according to the approval by the Oversight Board. As of September 30, 2023, no additional obligations have been set aside because the requirements for recognizing additional benefits as mentioned above have not been fulfilled.

(b) Unfunded pension plan

The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan for its employees. The defined contribution pension plan is provided to employees with permanent status hired on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund ( Dana Pensiun Lembaga Keuangan or “DPLK”). The Company’s contribution to DPLK is determined based on a certain percentage of the participants’ salaries and amounted to Rp38 billion and Rp 48 billion , for the nine months period ended September 30, 2023 and for the years ended December 31, 2022, respectively.

Since 2007, the Company has provided pension benefit based on uniformization for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. In 2010, the Company replaced the uniformization with Manfaat Pensiun Sekaligus (“MPS”). MPS is given to those employees reaching retirement age, upon death or upon becoming disabled starting from February 1, 2009.

The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years , known as pre-retirement benefits ( Masa Persiapan Pensiun or “MPP”). During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not limited to , regular salary, health care, annual leave, bonus , and other benefits. Since April 1, 2012, the employee is required to file a request for MPP and if the employee does not file the request, such employee is required to work until the retirement date.

The actuarial valuation for the defined benefit pension plan was performed, based on the measurement date as of June 30, 2023 and December 31, 2022, with reports dated July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022 are as follows:


	June 30, 2023	December 31, 2022
Discount rate	6.50%	7.00%-7.25%
Rate of compensation increases	6.10%-8.00%	6.10%-8.00%
Indonesian mortality table	2019	2019

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

a. Pension benefit costs ( continued )

ii. Telkomsel

Telkomsel provides a defined benefit pension plan to its employees. Under this plan, employees are entitled to pension benefits determined based on their latest basic salary or take-home pay (exclusive of functional allowances) and number of service years. The plan is managed by PT Asuransi Jiwasraya (Persero) (“Jiwasraya”), a state-owned life insurance company, through an annuity insurance contract. Until 2004, employees contributed 5% of their monthly salaries to the plan, while Telkomsel contributed the remaining part required under the plan. Beginning in 2005, Telkomsel has been taking the responsibility for the full amount of the contributions.

On April 23, 2021, Telkomsel and Jiwasraya agreed to terminate the insurance program contract (as mentioned above) and entered into restructuring agreement. The agreement replaced the benefit plan from annuities to lumpsum benefit. Based on this agreement, both parties agreed to determine the Cash Value (“CV”) at the termination date which divided into CV for active participant and passive participant amounting to Rp857 billion and Rp73 billion, respectively. There was a 5% cut from CV for active participant, hence the 95% of Rp857 billion (or equal to Rp814 billion) plus Rp73 billion will be the amount that subsequently taken over by IFG Life when the agreement with IFG Life become effective and accordingly, the restructuring agreement will be terminated. On December 31, 2022, the CV of active participant amounting to Rp853 billion.

On June 27, 2023, the Company and Telkomsel signed an agreement regarding Dapen to appoint Telkomsel as a Partner of the Company as the sole Founder, which resulted in rights and obligations to Telkomsel as governed in the Pension Fund Agreement effective from the transfer of business date.

Effective from the transfer of business date, Telkomsel sponsors a defined benefit pension plan for transferring employees hired prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Dapen. Dapen is managed in accordance with the Pension Fund and Investment Directives Regulations, which is determined by the Company as the Founder and is carried out by the Board of Management. The Board of Management is monitored by the Oversight Board, appointed by the Founder.

The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The participating employees contribute 18% of their basic salaries to the pension fund. Telkomsel has not made contributions to the pension fund yet for the period ended September 30, 2023.

The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2022 and 2021 with reports dated February 28, 2023 and March 24, 2022, respectively, by KKA Halim and Partner, an independent actuary in association with Milliman, and KKA Santhi Devi and Ardianto Handoyo, an independent actuary in association with W TW. The principal actuarial assumptions used by the independent actuary as of December 31 , 20 22 and 2021, are as follows:


	2022	2021
Discount rate	7.15%	7.00%
Rate of compensation increases	8.00%	8.00%
Indonesian mortality table	2019	2019

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

b. Post-employment health care benefit cost

The Company provides post- employment health care benefits to all of its employees hired before November 1, 1995 who have worked for the Company for 20 years or more when they retire , and to their eligible dependents . The requirement to work for 20 years does not apply to employees who retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995 are no longer entitled to this plan. The plan is managed by Yayasan Kesehatan Telkom (“Yakes Telkom”).

The defined contribution post-employment health care benefit plan is provided to employees with permanent status hired on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement . The Company did not make contributions to Yakes Telkom for the nine months period ended September 30, 2023 and for the years ended December 31, 2022.

As of September 30, 2023 and December 31, 2022 , plan assets consist s of:

—	September 30, 2023 — Quoted in		December 31, 2022 — Quoted in
	active market	Unquoted	active market	Unquoted
Cash and cash equivalents	476	-	1,085	-
Equity instruments:
Financials	1,468	-	1,368	-
Consumer non-cyclicals	408	-	114	-
Basic material	270	-	264	-
Infrastructures	629	-	598	-
Energy	151	-	221	-
Technology	42	-	63	-
Industrials	298	-	185	-
Consumer cyclicals	118	-	457	-
Properties and real estate	109	-	95	-
Healthcare	166	-	233	-
Transportation and logistic	7	-	3	-
Equity-based mutual funds	465	-	1,035	-
Fixed income instruments:
Government obligations	1,074	-	82	-
Fixed income mutual funds	7,036	-	6,761	-
Unlisted shares:
Private placement	-	385	-	398
Total	12,717	385	12,564	398

Yakes Telkom plan assets also include Series B shares issued by the Company with fair value totalling Rp315 billion and Rp 228 billion, representing 2.40 % and 1 . 76 % of total plan assets as of September 30, 2023 and December 31, 2022 , respectively. The expected return is determined based on market expectation for the returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp578 billion and Rp839 billion for the nine months perido ended September 30, 2023 and for the years ended December 31, 2022 , respectively .

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

b. Post-employment health care benefit cost (continued)

The actuarial valuation for the post-employment health care benefits plan was performed based on the measurement date as of June 30, 2023 and December 31, 2022, with reports dated July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022 are as follows:


	June 30, 2023	December 31, 2022
Discount rate	6.75%	7.25%
Health care costs trend rate assumed for next year	7.00%	7.00%
Ultimate health care costs trend rate	7.00%	7.00%
Year that the rate reaches the ultimate trend rate	2022	2022
Indonesian mortality table	2019	2019

c. Other post-employment benefits cost

The Company provides other post-employment benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of final housing allowance ( Biaya Fasilitas Perumahan Terakhir or “BFPT”) and home passage leave ( Biaya Perjalanan Pensiun dan Purnabhakti or “ BPP ” ) and death allowance ( Meninggal Dunia or “MD” allowance) is given to employees who have passed away with an amount of 12 times from the last salary.

The actuarial valuation for the other post-employment benefits plan was performed based on measurement date as of June 30, 2023 and December 31, 2022, with reports dated July 21, 2023 and March 18, 2023, respectively, by KKA I Gde Eka Sarmaja, FSAI. The principal actuarial assumptions used by the independent actuary for June 30, 2023 and December 31, 2022 are as follows:


	June 30, 2023	December 31, 2022
Discount rate	6.25%	6.75%
Indonesian mortality table	2019	2019

d. Long service employee benefits

The company provides long service employee benefits to employee hired before July 1, 2002 and have a service period of more than 30 years and retired after September 19, 2019. Total obligation recognized as of September 30, 2023 and December 31, 2022 amounted to Rp1 billion and Rp1 billion, respectively. The related long service employee benefits cost charged to expense amounted to Rp1 billion and R p 1 billion for the nine months period ended September 30, 2023 and 2022 , respectively.

d. Obligation under the Labor Law

Under Law No. 11 Year 2020, the Group is required to provide minimum pension benefits, if not covered yet by the sponsored pension plans, to its employees upon retirement. Total obligation recognized as of September 30, 2023 and December 31, 2022 amounted to Rp1,062 billion and Rp928 billion, respectively. The related pension employee benefits cost charged to expense amounted to Rp146 billion and Rp119 billion for the nine months period ended September 30, 2023 and 2022 , respectively.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

f. Maturity Profile of Defined Benefit Obligation (“DBO”)

The timing of benefits payments and weighted average duration of DBO for 202 3 and 2022 are as follow s :

—	Expected Benefits Payment — The Company
	Funded
	Defined	Additional			Post-employment	Other post-	Post-employment
	pension benefit	pension benefit			health care	employment	benefits
Time Period	obligation	obligation	Unfunded	Telkomsel	benefits	benefits	UUCK (Telkom)

September 30, 2023
Within next 10 years	19,787	38	605	5,111	7,865	272	65
Within 10-20 years	16,073	30	218	11,178	12,909	115	389
Within 20-30 years	9,937	17	392	7,827	11,806	72	458
Within 30-40 years	3,868	6	74	473	5,171	4	58
Within 40-50 years	768	1	-	-	866	-	-
Within 50-60 years	62	-	-	-	51	-	-
Within 60-70 years	1	-	-	-	5	-	-
Within 70-80 years	-	-	-	-	1	-	-

Weighted average
duration of DBO	8.71 years	8.71 years	5.56 years	9.45 years	12.58 years	4.57 years	11.52 years

December 31, 2022
Within next 10 years	21,232	40	705	5,111	8,092	324	59
Within 10-20 years	16,485	31	229	11,178	12,746	123	414
Within 20-30 years	10,414	18	430	7,827	12,019	83	497
Within 30-40 years	4,209	6	96	473	5,491	6	80
Within 40-50 years	882	1	-	-	970	-	-
Within 50-60 years	77	-	-	-	59	-	-
Within 60-70 years	2	-	-	-	6	-	-
Within 70-80 years	-	-	-	-	1	-	-

Weighted average
duration of DBO	8.48 years	8.48 years	5.52 years	9.45 years	12.40 years	4.62 years	11.69 years

g. Sensitivity Analysis

As of September 30, 2023 and December 31, 2022, 1% change in discount rate and rate of compensation would have effect on DBO, are as follows:

—	Discount Rate — 1% Increase	1% Decrease	Rate of Compensation — 1% Increase	1% Decrease
	Increase (decrease) in amounts		Increase (decrease) in amounts
Sensitivity
September 30, 2023
Funded:
Defined pension benefit obligation	(2,280)	2,719	239	(228)
Unfunded	(24)	26	26	(24)
Telkomsel	(472)	539	588	(524)
Post-employment health care benefits	(1,544)	1,864	1,847	(1,559)
Other post-employment benefits	(12)	13	3	(3)
Post-employment benefits UUCK (Telkom)	(9)	10	30	(26)

December 31, 2022
Funded:
Defined pension benefit obligation	(1,948)	2,291	268	255
Unfunded	(24)	27	29	(27)
Telkomsel	(430)	491	536	(477)
Post-employment health care benefits	(1,413)	1,703	1,629	1,380
Other post-employment benefits	(12)	13	-	-
Post-employment benefits UUCK (Telkom)	(8)	10	27	(24)

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (continued)

g. Sensitivity Analysis (continued)

The sensitivity analysis has been determined based on a method that extrapolates the impact on DBO as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The sensitivity results above determine the individual impact on the Plan’s DBO at the end of the year. In reality, the Plan is subject to multiple external experience items which may move the DBO in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time.

There are no changes in the methods and assumptions used in preparing the sensitivity analysis from the previous period .

31 . LONG SERVICE AWARDS (“LSA”) PROVISIONS

Telkomsel and Telkomsat provide certain cash awards or certain number of days leave benefits to their employees based on the employees’ length of service requirements, including LSA and Long Service Leaves (“LSL”) . LSA are either paid at the time the employees reach certain years of employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management, provided to employees who m ee t the requisite number of years of service and reach a certain minimum age.

The obligation with respect to these awards which was determined based on an actuarial valuation using the Projected Unit Credit method amounted to Rp1,158 billion and Rp 1,031 billion as of September 30, 2023 and December 31, 2022 , respectively . The related benefit costs charged to expense amounted Rp218 billion and Rp255 billion for the nine months period ended September 30, 2023 and 2022 , respectively (Note 2 4 ).

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

RELATED PARTIES TRANSACTIONS

a. Nature of relationships and accounts/transactions with related parties

Details of the nature of relationships and accounts/transactions with significant related parties are as follows:

Related parties	Nature of relationships parties	Nature of accounts /transactions
The Government Ministry of Finance	Majority stockholder	Internet and data service revenue s , other telecommunication service revenue s , finance costs , and investment in financial instruments
State-owned enterprises	Entity under common control	Internet and data service revenue s , other telecommunication services revenue s , operating expenses , and purchase of property and equipment s
Indosat	Entity under common control	Interconnection revenues, leased lines revenues, satellite transponder usage revenues, interconnection expenses, telecommunication facilities usage expenses, operating and maintenance expenses, and usage of data communication network system expenses
PT Pertamina (Persero) (“Pertamina”)	Entity under common control	Internet and data service revenue s, and other telecommunication service revenue s
State-owned banks	Entity under common control	Finance income and finance costs
BNI	Entity under common control	Internet and data service revenue s , o ther telecommunication service revenue s , finance income , and finance costs
BRI	Entity under common control	Internet and data service revenue s , o ther telecommunication service revenue s , finance income , and finance costs
Bank Mandiri	Entity under common control	Internet and data service revenue s , o ther telecommunication service revenue s , finance income , and finance costs
PT Perusahaan Listrik Negara (“PLN”)	Entity under common control	Internet and data service revenues, other telecommunication service revenues, and electricity expenses
PT Asuransi Jasa Indonesia (“Jasindo”)	Entity under common control	Fixed assets insurance expenses and personal insurance expenses
PT BNI Life Insurance (“BNI Life Insurance”)	Entity under common control	Medical expenses
Bahana TCW	Entity under common control	Mutual funds
Sarana Multi Infrastruktur	Entity under common control	Other borrowing and f inance costs
Omni Inovasi Indonesia	Associated company	Distribution of SIM cards and pulse reload voucher
Finarya	Associated company	Marketing expenses and d istribution of SIM cards and pulse reload voucher
PT Kereta Cepat Indonesia China (“KCIC)	Other related entities	O t her telecommunication service revenue n expenses
Padi UMKM	Other related entities	Operational and maintenance expenses, collection fee s, training expenses, internal security expenses, research and development expenses, printing expenses, meeting expenses, general and other administrative expenses, promotion expenses, advertising expenses, sales fees, customer education expenses , a nd marketing expenses
Directors	Key management personnel	Honorarium and facilities
Commissioners	Supervisory personnel	Honorarium and facilities

The outstanding balances of trade receivables and payables at year-end are unsecured and interest-free and the settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. As of September 30 , 202 3 and December 31 , 202 2 the Group recorded a increase (decrease) impairment loss from trade receivables of related party amounted to Rp122 billion and Rp(57) billion. Impairment assessment is undertaken each financial year by examining the current status of existing receivables and historical collection experience.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

RELATED PARTIES TRANSACTIONS (continued)

b. Significant transactions with related parties


	2023		2022
		% of total		% of total
	Amount	revenues	Amount	revenues
Revenues
Majority Stockholder
Ministry of Finance	79	0.07	62	0.06
Entities under common control
Indosat	1,675	1.51	856	0.79
Pertamina	592	0.53	581	0.53
BNI	402	0.36	389	0.36
BRI	167	0.15	133	0.12
Bank Mandiri	103	0.09	127	0.12
Others (each below Rp100 billion)	899	0.81	1,184	1.09
Sub-total	3,838	3.45	3,270	3.01
Other related entities	43	0.04	115	0.11
Associated companies	11	0.01	7	0.01
Total	3,971	3.57	3,454	3.19


	2023		2022
		% of total		% of total
	Amount	expenses	Amount	expenses
Expenses
Entities under common control
PLN	1,952	2.56	1,840	2.47
Indosat	410	0.54	407	0.55
Jasindo	148	0.19	242	0.33
BNI Life Insurance	104	0.14	-	-
Others (each below Rp100 billion)	125	0.16	110	0.15
Sub-total	2,739	3.59	2,599	3.50
Other related entities
Padi UMKM	421	0.55	441	0.59
Others (each below Rp100 billion)	56	0.07	127	0.17
Sub-total	477	0.62	568	0.76
Associated companies	92	0.12	118	0.16
Total	3,308	4.33	3,285	4.42


	2023		2022
		% of total		% of total
	Amount	finance income	Amount	finance income
Finance income
Entities under common control
State-owned banks	239	31.53	356	56.78
Total	239	31.53	356	56.78


	2023		2022
		% of total		% of total
	Amount	finance cost	Amount	finance cost
Finance cost
Majority stockholder
Ministry of Finance	4	0.12	8	0.27
Entities under common control
State-owned banks	866	25.01	713	23.70
Sarana Multi Infrastruktur	64	1.85	84	2.79
Total	934	26.98	805	26.76

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

RELATED PARTIES TRANSACTIONS (continued)

b. Significant transactions with related parties (continued)


	2023		2022
		% of total		% of total
	Amount	purchases	Amount	purchases
Purchase of property
and equipments
Entities under common control	33	0.15	75	0.35
Total	33	0.15	75	0.35


	2023		2022
		% of total		% of total
	Amount	revenues	Amount	revenue
Distribution of SIM
card and voucher
Associated companies
Omni Inovasi Indonesia	466	0.42	747	0.69
Finarya	122	0.11	-	-
Total	588	0.53	747	0.69

c. Balance of accounts with related parties


	September 30, 2023		December 31, 2022
		% of total		% of total
	Amount	assets	Amount	assets
Cash and cash equivalents
(Note 3)	17,006	6.16	23,328	8.48
Other current financial
asset (Note 4)	1,016	0.37	400	0.15
Trade receivables - net
(Note 5)	1,682	0.61	1,620	0.59

Contract assets
Majority stockholder
Government	14	0.01	24	0.01
Entities under common control	243	0.09	248	0.09
Associated companies	1	0.00	1	0.00
Other related entities	1	0.00	1	0.00
Total	259	0.10	274	0.10

Other current asset	36	0.01	98	0.04
Other non-current asset	7	0.00	15	0.01


	September 30, 2023		December 31, 2022
		% of total		% of total
	Amount	liabilities	Amount	liabilities
Trade payables (Note 15)
Majority stockholder
Ministry of Finance	1	0.00	0	0.00
Entities under common control
State-owned enterprises	171	0.13	197	0.16
Indosat	180	0.14	140	0.11
Others	55	0.04	37	0.03
Sub-total	406	0.31	374	0.30
Other related entities	65	0.05	57	0.05
Total	472	0.36	431	0.35

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

RELATED PARTIES TRANSACTIONS (continued)

c. Balance of accounts with related parties (continued)

—	September 30, 2023 —	% of total	December 31, 2022 —	% of total
	Amount	liabilities	Amount	liabilities
Accrued expenses
Majority stockholder
Government	2	0.00	1	0.00
Entities under common control
State-owned enterprises	47	0.04	57	0.05
State-owned banks	33	0.03	74	0.06
Others	0	0.00	2	0.00
Sub-total	80	0.07	133	0.11
Total	82	0.07	134	0.11

Contract liabilities
Majority stockholder
Government	16	0.01	34	0.03
Entities under common control
State-owned enterprises	183	0.14	170	0.13
Others	1	0.00	0	0.00
Sub-total	184	0.14	170	0.13
Associated companies	8	0.01	2	0.00
Other related entities
KCIC	1,203	0.95	-	-
Others	1	0.00	3	0.00
Sub-total	1,204	0.95	3	0.00
Total	1,412	1.11	209	0.16

Customer deposits	19	0.01	19	0.02
Short-term bank loans (Note 18)	4,821	3.80	4,462	3.54
Two-step loans (Note 19a)	132	0.10	209	0.17
Long-term bank loans (Note 19c)	9,663	7.63	11,284	8.96
Other borrowings (Note 19d)	482	0.38	1,314	1.04

d. Significant agreements with related parties

i. The Government

The Company obtained two-step loans from the Government (Note 19 a ).

ii. Indosat

The Company has an agreement with Indosat to provide international telecommunications services to the public.

The Company has also entered into an interconnection agreement between the Company’s fixed line network (Public Switched Telephone Network or “PSTN”) and Indosat’s Global System for Mobile (“ GSM ”) cellular telecommunications network in connection with the implementation of Indosat Multimedia Mobile services and the settlement of related interconnection rights and obligations.

The Company also has an agreement with Indosat for the interconnection of Indosat's GSM mobile cellular telecommunications network with the Company's PSTN, which enable each party’s customers to make domestic calls between Indosat’s GSM mobile network and the Company’s fixed line network , as well as allowing Indosat’s mobile customers to access the Company’s IDD service by dialing “007”.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

RELATED PARTIES TRANSACTIONS (continued)

d. Significant agreements with related parties (continued)

ii. Indosat (continued)

The Company has been handling customer billings and collections for Indosat. Indosat is gradually taking over the activities and performing its own direct billing and collection. The Company has received compensation from Indosat computed at 1% of the collections made by the Company starting from January 1, 1995, as well as the billing process expenses which are fixed at a certain amount per record. On December 11, 2008, the Company and Indosat agreed to implement IDD service charge tariff which already took into account the compensation for billing and collection. The agreement is valid and effective in the current year and can be applied until a new agreement becomes available.

On December 1 8, 2017, the Company and Indosat signed amendments to the interconnection agreements for the fixed line networks (local, long distance direct connection and international) and mobile network for the implementation of the cost-based tariff obligations under the MoCI Regulation No.8/Year 2006. These amendments took effect starting on January 1, 2018.

Telkomsel also entered into an agreement with Indosat for the provision of international telecommunications services to its GSM mobile cellular customers.

The Company provides leased lines to Indosat and its subsidiaries, namely PT Indosat Mega Media and PT Aplikanusa Lintasarta (“Lintasarta”). The leased lines can be used by these companies for telephone, telegraph, data, telex, facsimile, or other telecommunication services.

iii. Others

The Company entered into an agreement with Lintasarta for the use of satellite transponders or the Company's subscribed circuit telecommunication satellite frequency channels.

e. Remu neration of key management and supervisory personnel

Key management personnel consists of the Directors of the Company and supervisory personnel consists of Board of Commissioners.

The Company provides remuneration in the form of salaries/honorarium and facilities to support the governance and oversight duties of the Board of Commissioners and the leadership and management duties of the Directors. The total of such remuneration is as follow:


	2023		2022
		% of total		% of total
	Amount	expenses	Amount	expenses
Board of Directors	311	0.41%	288	0.39%
Board of Commissioners	131	0.17%	132	0.18%

The amounts disclosed in the table are the amounts recognized as an expense during the reporting periods.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 3 . OPERATING SEGMENTS

The Group has four primary reportable segments, namely mobile, consumer, enterprise, and WIB. The mobile segment provides mobile voice, SMS, value added services, and mobile broadband. The consumer segment provides Indihome services (bundled service of fixed wireline, pay TV, and internet) and other telecommunication services to home customers. The enterprise segment provides end-to-end solution to corporate and institutions. The WIB segment provides interconnection services, leased lines, satellite, Very Small Aperture Term inal (“VSAT”) , broadband access, information technology services, data, and internet services to other licensed operator companies and institutions. Other segment provides digital content products (music and games), big data, Business to Business (“B2B”) Commerce, and financial services to individual and corporate customers. There is no operating segments that have been aggregated to form the reportable segments.

Management monitors the operating results of the business units separately for the purpose of decision-making about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. However, the financing activities and income taxes are managed on a group basis and are not separately monitored and allocated to operating segments.

Segment revenues dan expenses include transactions between operating segments and are accounted at prices that management believes represent market prices.


	2023
							Adjustment
						Total	and	Total
	Mobile	Consumer	Enterprise	WIB	Others	segment	elimination	consolidated
Segment result
Revenues
External revenues	63,788	19,748	14,597	12,331	292	110,756	482	111,238
Inter-segment revenues	2,647	240	18,463	15,418	1,474	38,242	(38,242)	-
Total segment revenues	66,435	19,988	33,060	27,749	1,766	148,998	(37,760)	111,238

Segment results	21,692	6,495	921	6,788	(826)	35,070	(2,788)	32,282
Other information
Capital expenditures	(8,627)	(4,084)	(3,826)	(5,452)	(6)	(21,995)	(89)	(22,084)
Depreciation and amortization	(15,662)	(4,349)	(2,800)	(4,652)	(14)	(27,477)	3,396	(24,081)
Provision recognized in
current period	(246)	(364)	(69)	(26)	(4)	(709)	72	(637)


	2022
							Adjustment
						Total	and	Total
	Mobile	Consumer	Enterprise	WIB	Others	segmen	elimination	consolidated
Segment result
Revenues
External revenues	63.487	19.680	13.698	11.303	174	108.342	532	108.874
Inter-segment revenues	2.522	153	17.898	14.198	1.884	36.655	(36.655)	-
Total segment revenues	66.009	19.833	31.596	25.501	2.058	144.997	(36.123)	108.874

Segment results	22.425	6.063	397	6.635	(684)	34.836	(5.639)	29.197
Other information
Capital expenditures	(8.957)	(5.490)	(3.578)	(3.592)	(3)	(21.620)	(51)	(21.671)
Depreciation and amortization	(15.744)	(5.300)	(2.936)	(4.223)	(13)	(28.216)	3.198	(25.018)
Provision recognized in
current period	(109)	(320)	(578)	19	(2)	(990)	71	(919)

Adjustments and eliminations :

a. Revenue reconciliation


	2023	2022
Total segment revenues	148,998	144,997
Revenue from other non-operating segments	482	532
Inter-segment elimination	(38,242)	(36,655)
Consolidated revenues	111,238	108,874

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 3 . OPERATING SEGMENTS (continued)

b. Segment result reconciliation


	2023	2022
Total segment results	35,070	34,836
Loss from other non-operating segments	(1,481)	(1,384)
Adjustment and inter-segment elimination	1,393	(1,879)
Finance income	758	627
Finance cost	(3,462)	(3,009)
Share of loss of long-term investment in associates	4	6
Consolidated profit before income tax	32,282	29,197

c. Capital expenditure reconciliation


	2023	2022
Total segment capital expenditure	(21,995)	(21,620)
Capital expenditure from
other non-operating segments	(89)	(51)
Consolidated capital expenditure	(22,084)	(21,671)

d. Depreciation and amortization reconciliation


	2023	2022
Total segment depreciation and amortization	(27,477)	(28,216)
Depreciation and amortization from
other non-operating segments	(186)	(195)
Adjustment and inter-segment elimination	3,582	3,393
Consolidated depreciation and amortization	(24,081)	(25,018)

e. Provision recognized in current period


	2023	2022
Total segment provision	(709)	(990)
Provision recognized from other
non-operating segments	(23)	(13)
Adjustment and inter-segment elimination	95	84
Consolidated provision recognized
in current period	(637)	(919)

Geographic information:


	2023	2022
External revenues
Indonesia	105,375	103,152
Foreign countries	5,863	5,722
Total	111,238	108,874

The revenue information above is based on the location of the customers.

There is no revenue from major customer which exceeds 10% of total revenues for the period ended September 30, 2023 and 2022.


	September 30, 2023	December 31, 2022
Non-current operating assets
Indonesia	181,550	178,424
Foreign countries	2,911	3,207
Total	184,461	181,631

Non-current operating assets for this purpose consist of property and equipment and intangible assets.

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 4 . TELECOMMUNICATIONS SERVICE TARIFFS

Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network and/or services are determined by providers based on the tariff type, structure, and with respect to the price cap formula set by the Government.

a. Fixed line telephone tariffs

The Government has issued a new adjustment tariff formula which is stipulated in MoCI Regulation No. 5/2021 dated March 31, 2021 concerning “Telecommunication Operation”. This Decree replaced the previous Decree No. 15/PER/M.KOMINFO/4/2008 dated April 30, 2008.

Under the Decree, tariff structure for basic telephony services connected through fixed line network consists of the following:

i. Activation fee

ii. Monthly subscription charges

iii. Usage charges, and

iv. Additional facilities fee.

b. Mobile cellular telephone tariffs

On March 31, 2021, MoCI issued MoCI Regulation No. 5/2021, which provides guidelines to determine cellular tariffs with a formula consisting of network element cost and retail services activity cost.

Under MoCI Regulation No. 5/2021, cellular tariffs for the operation of telecommunication services connected through mobile cellular network consist of the following:

(i) Basic telephony services tariff

(ii) Roaming tariff, and/or

(iii) Multimedia services tariff

with the following traffic structure:

(i) Activation fee

(ii) Monthly subscription charges, and/or

(iii) Usage charges

c. Interconnection tariffs

The Indonesian Telecommunication Regulatory Body (“ITRB”), in its letter No. 262/BRTI/XII/2011 dated December 12, 2011, decided to change the basis for SMS interconnection tariff to cost basis with a maximum tariff of Rp23 per SMS effective from June 1, 2012, for all telecommunication provider operators.

Based on letter No.118/KOMINFO/DJPPI/PI.02.04/01/2014 dated January 30, 2014 of the Director General of Post and Informatics, the Director General of Post and Informatics decided to implement new interconnection tariff effective from February 1, 2014 until December 31, 2016, subject to evaluation on an annual basis. Pursuant to the Director General of Post and Informatics letter, the Company and Telkomsel are required to submit the Reference Interconnection Offer (“RIO”) proposal to ITRB to be evaluated.

Subsequently, ITRB in its letters No. 60/BRTI/III/2014 dated March 10, 2014 and No. 125/BRTI/IV/2014 dated April 24, 2014 approved Telkomsel and the Company’s revision of RIO regarding the interconnection tariff. Based on the letter, ITRB also approved the changes to the SMS interconnection tariff to Rp24 per SMS.

On January 18, 2017, ITRB in its letters No. 20/BRTI/DPI/I/2017 and No. 21/BRTI/DPI/I/2017, decided to use the interconnection tariff based on the Company and Telkomsel’s RIO in 2014 until the new interconnection tariff is set.

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 4 . TELECOMMUNICATIONS SERVICE TARIFFS (continued)

d. Network lease tariffs

In 2008, the Director General of Post and Telecommunication issued Decree No. 115 of 2008 which stated its agreement on Agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service, and Provision Procedure of Network Lease Service Owned by Dominant Network Lease Service Provider in conformity with the Company’s proposal . Through MoCI Regulation No. 5/2021, the Government regulated the form, type, tariff structure, and tariff formula for services of network lease.

e. Tariff for other services

The tariffs for satellite lease, telephony services, and other multimedia are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services.

3 5. SIGNIFICANT COMMITMENTS AND AGREEMENTS

a. Capital expenditures

As of September 30, 2023, capital expenditures committed under the contractual arrangements are Rp8,703 billion and US$233 million.

The above balance includes the following significant agreements:

Contracting parties	Date of agreement	Significant part of the agreement
Telkomsel and PT Phincon	September 12, 2019 – September 12, 2024	Development and Rollout Agreement ("DRA") and Technical Support Agreement ("TSA") Customer Relationship Management ("CRM") Solution System Integrator
Telkomsel, PT Ericsson Indonesia, PT Huawei Tech Investment, and PT ZTE Indonesia	February 1, 2021 – January 31, 2024	Procurement Agreement for Radio Ultimate Solution ("ROA") and TSA
The Company and PT Mastersystem Infotama	June 3, 2021 – September 27, 2023	Procurement and Installation Agreement of Expand IP Backbone Platform Cisco
Telkomsel, PT Sempurna Global Pratama, PT Lintas Teknologi Indonesia, and PT Ericsson Indonesia	September 1, 2021 – September 1, 2024	Procurement Agreement of Next Generation of Gateway GPRS Support Node ("GGSN") (Virtualized EPC)
Telkomsel, Amdocs Software Solutions Limited Liability Company, and PT Application Solutions	October 8, 2021 – October 8, 2024	Agreement Online Charging System (“OCS”) and Service Control Points (“SCP”) System Solution Development
Telkomsel and PT Application Solutions	October 8, 2021 – October 8, 2024	TSA for OCS and SCP
Telkomsat and Thales Alenia Space France ("TAS")	October 28, 2021 – October 27, 2037	Procurement and Installation Agreement of HTS 113BT Satellite System
Telkomsel and PT Ericsson Indonesia	February 13, 2022 – February 12, 2025	Procurement Agreement for CS Core Solution ROA and TSA
Telkomsel and PT Lintas Teknologi Indonesia	February 13, 2022 – February 12, 2025	Procurement Agreement for CS Core Solution ROA and TSA
Telkomsel and PT Huawei Tech Investment	March 24, 2022 – March 24, 2025	Procurement Agreement for GGSN
Telkomsat and Space Exploration Technologies Corporation ("SpaceX")	April 19, 2022 – June 30, 2025	Procurement Agreement for Launch Service of HTS 113BT Satellite
The Company and PT Sisindokom Lintas Buana	August 18, 2023 – February 13, 2024	Procurement and Installation Expand PE Router

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 5. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)

b. Borrowings and other credit facilities

(i) As of September 30, 2023 , the Company has bank guarantee facilities for tender bond s , performance bond s , maintenance bond s , deposit guarantee , and advance payment bond s for various projects of the Company, as follows:


Lenders	Total facility	Maturity	Currency	Facility utilized
BRI	500	March 14, 202 4	Rp	22
BNI	500	March 31, 202 4	Rp	89
Bank Mandiri	500	December 23, 202 3	Rp	117
Total	1,500			228

(ii) As of September 30, 2023, Telkomsel has bank guarantee facilities for various projects, as follows:


Lenders	Total facility	Maturity	Currency	Facility utilized
BRI	1,000	September 25 , 2023	Rp	620
BNI	2,100	December 11 , 202 3	Rp	1,435
Total	3,100			2,055

Bank guarantee facility with BRI and BNI are mainly for performance bond and surely bond of radio frequency (Note 35c.i).

(iii) T elin has a maximum credit limit of US$25 million or equal to Rp375 billion will expire on December 23, 20 23. As of September 30, 2023, There is no bank guarantee facility used.

c. Others

(i) Radio frequency usage

With reference to the Decision Letter No. 025/TEL.01.02/2022 Year 2022 dated January 28, 2022 of the MoCI, the MoCI granted Telkomsel the rights to provide mobile telecommunication services with radio frequency bandwidth in the 800 MHz, 900 MHz, 1,800 MHz, 2.1 GHz and 2.3 GHz; and basic telecommunication services.

With reference to Decision Letters No.509 Year 2016, No. 1896 year 2017, No. 806 Year 2019, No.620 Year 2020, No. 178 Year 2021, No. 479 Year 2022, No. 90 Year 2023,and No. 188 Year 2023 of the MoCI , Telkomsel is required, among other things, to:

Issue a surety bond each year amounting Rp1.03 trillion for spectrum 2.3 GHz.
Issue a surety bond each year amounting Rp360 billion for both spectrum 2.3 GHz Block A and C.
Issue a surety bond amounting Rp617.15 billion for spectrum 2.1 GHz.
Pay an annual right of usage (“BHP”) as set forth in the decision letters. The BHP is payable upon receipt of Surat Pemberitahuan Pembayaran (notification letter) from the DGPI. The BHP fee is payable annually up to the expiry period of the license.

The following are radio frequency band licenses owned by Telkomsel along with the BHP fees paid during current year:

Radio frequency for band 800 MHz, 900 MHz, and 1,800 MHz

Based on Decree No. 620 Year 2020 of the MoCI, concerning the extension of the determination of radio frequency bands 800 MHz, 900 MHz and 1,800 MHz, Telkomsel should pay annual frequency usage fees from 2020 to 2030.

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 5. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)

c. Others (continued)

(i) Radio frequency usage (continued)

Radio frequency for band up to 2.1 GHz

License No.	Description
Decree No. 90 Year 2023 of the MoCI amd. Decree No. 76 Year 2023 of the MoCI	On February 27, 2023, Telkomsel granted to utilize the annual radio frequency license for band 1,975 – 1,980 MHz paired with 2,165 – 2,170 MHz until March 18, 2033.
Decree No. 509 Year 2016 of the MoCI amd. Decree No. 76 Year 2023 of the MoCI	MoCI granted the extension of the radio frequency license for band 1,970 – 1,975 MHz paired with 2,160 – 2,165 MHz until March 28, 2026.
Decree No. 806 Year 2019 of the MoCI amd. Decree No. 76 Year 2023 of the MoCI	MoCI granted the extension of the radio frequency license for band 1,965 – 1,970 MHz paired with 2,155 – 2,160 MHz until September 30, 2029.
Decree No. 479 Year 2022 of the MoCI amd. Decree No. 76 Year 2023 of the MoCI	Telkomsel as the winner of auction and granted to utilize the radio frequency license for band 1,960 – 1,965 MHz paired with 2,150 – 2,155 MHz effective from January 11, 2023. Telkomsel paid the initial license fee amounting Rp1,21 trillion.

Radio frequency for band up to 2.3 GHz

License No.	Description
Decree No. 1896 Year 2017 of the MoCI	Telkomsel as the winner to utilize the radio frequency license for band 2,300 – 2,330 Mhz, Telkomsel paid the annual BHP IPFR amounting to Rp1,01 trillion until 2026.
Decree No. 178 Year 2021 of the MoCI	Telkomsel as the winner to utilize the radio frequency license for band 2,330 – 2,340 MHz paired with 2,340 – 2,350 MHz for Block A and Block C, respectively until 2030.
Decree No. 487 Year 2022 of the MoCI amd. Decree No. 92 Year 2023 of the MoCI	On November 18, 2022, Telkomsel received a right to use reallocated radio frequency license for band 2,340 – 2,355 MHz paired with 2,330 – 2,360 MHz.
Decree No. 188 Year 2023 of the MoCI	On April, 2023, Telkomsel granted an approval to allocate part of the rights-of-use of 2.3 GHz radio frequency spectrum to PT Smart Telecom Tbk.

(ii) Radio frequency spectrum cooperation agreement

The MoCI has given approval to Telkomsel for a cooperation on the use of radio frequency spectrum with PT KCIC through a letter No. B-171/M.KOMINFO/SP.01.01/03/2023 dated 17 March 2023, regarding the Cooperation Agreement on the Use of Radio Frequency Spectrum in the range of 891 – 895 MHz paired with 936 – 940 MHz, with a period up to December 14, 2030.

As result from this agreement, PT KCIC shall pay to the Company several compensations, which are annual utilization fees totaling Rp878.10 billion, network recovery fee of Rp1.25 trillion, as well as incremental operational and maintenance costs.

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PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 5. SIGNIFICANT COMMITMENTS AND AGREEMENTS (continued)

c. Others (continued)

(ii) Radio frequency spectrum cooperation agreement (continued)

As of September 30, 2023, the Company has recognized the installment of network recovery fees and annual utilization fees amounting to Rp1.1 trillion and Rp99.00 billion

(iii) Receivable under non-cancelable lease agreements

The Group entered into non-cancelable lease agreements with both third and related parties. The lease agreements cover leased lines, telecommunication equipment and land and building with terms ranging from 1 to 10 years and with expiry dates between 202 3 and 203 2 . Periods may be extended based on the agreement by both parties.

The minimum amount of future lease payments and receipts for operating lease agreements are as follows:


	September 30, 2023	December 31, 2022
Less than 1 year	2,768	2,582
1-5 years	9,280	8,354
More than 5 years	5,851	5,107
Total	17,899	16,043

(iv) USO

On December 27, 2011, Telkomsel (on behalf of Konsorsium Telkomsel, a consortium which was established with Mitratel on December 9, 2011) was selected by Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika (“BPPPTI”), now has been renamed as Badan Aksesibilitas Telekomunikasi dan Informasi (“BAKTI”) as a provider of the USO Program in the border areas with a total price of Rp261 billion.

In 2015, the Program was ceased. In January 2016, Telkomsel filed an arbitration claim to BANI for the settlement of the outstanding receivables of USO Programs.

On June 22, 2017, Telkomsel received a decision letter from BANI No. 792/1/ARB-BANI/2016 requesting BAKTI to pay compensation to Telkomsel amounting to Rp218 billion, and as of the date of the issuance of these consolidated financial statements Telkomsel has received the payment from BAKTI amounting to Rp91 billion (before tax) and no additional payment.

The MoCI issued Regulation No. 5 Year 2021 dated March 31, 2021 which replaced previous regulations regarding policies underlying the USO program. The regulation requires telecommunications operators in Indonesia to contribute 1.25% of gross revenues (with due consideration for bad debts and/or interconnection charges and/or connection charges and/or the exclusion of certain revenues that are not considered as part of gross revenues as a basis to calculate the USO charged) for USO development.

Based on Decree No. 827/KOMINFO/BAKTI.31/KS.1/10/2021 dated October 4, 2021 of BAKTI granted Telkomsel as operating cooperation partners (“KSO”) for eight packages KSO, which cover Nusa Tenggara, Kalimantan, Sulawesi, Maluku, West Papua, West Central Papua, North Central Papua and South East Papua for period from 2021 until 2031.

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

AS SE T S AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

Assets and liabilities denominated in foreign currencies are as follows:

—	September 30, 2023 — U.S Dollar	Japanese Yen	Others*	Rupiah equivalent
	(in millions)	(in millions)	(in millions)	(in billions)
Assets
Cash and cash equivalents	249.84	5.72	16.03	4,116
Other current financial assets	26.34	-	-	409
Trade receivables
Related parties	0.27	-	-	5
Third parties	99.11	-	12.06	1,726
Contract assets	26.71	-	-	415
Other receivables	0.75	-	1.10	29
Other current assets	1.33	-	0.46	28
Long-term investment in financial instruments	393.27	-	8.83	6,215
Other non-current assets	0.49	-	0.54	17
Total assets	798.11	5.72	39.02	12,960
Liabilities
Trade payables
Related parties	(0.16)	-	-	(2)
Third parties	(131.41)	(1.36)	(4.62)	(2,111)
Other payables	(1.71)	-	(1.00)	(42)
Accrued expenses	(34.32)	(12.47)	(1.16)	(551)
Advances from customers	(6.41)	-	(0.11)	(101)
Current maturities of long-term borrowings	(10.76)	(767.90)	(5.10)	(326)
Long-term borrowings - net of current maturities	(13.94)	(383.95)	(26.64)	(669)
Other liabilities	(2.00)	-	(18.44)	(39)
Total liabilities	(200.71)	(1,165.68)	(57.07)	(3,841)
Assets (liabilities) - net	597.40	(1,159.96)	(18.05)	9,119

—	December 31, 2022 — U.S Dollar	Japanese Yen	Others*	Rupiah equivalent
	(in millions)	(in millions)	(in millions)	(in billions)
Assets
Cash and cash equivalents	261.09	5.74	13.60	4,298
Other current financial assets	27.06	-	0.02	42 7
Trade receivables
Related parties	0.47	-	-	7
Third parties	86.06	-	8.24	1,481
Contract assets	30.91	-	-	486
Other receivables	0.92	-	1.11	32
Other current assets	0.30	-	0.46	13
Long-term investment in financial instruments	372.84	-	6.22	5,907
Other non-current assets	0.43	-	0.55	1 7
Total assets	780.08	5.74	30.20	12,668
Liabilities
Trade payables
Related parties	(0.13)	-	-	(2)
Third parties	(104.25)	(25.34)	(5.82)	(1,728)
Other payables	(1.58)	-	(2.93)	(70)
Accrued expenses	(39.41)	(5.21)	(2.31)	(657)
Advances from customers	(2.39)	-	(0.11)	(38)
Current maturities of long-term borrowings	(15.78)	(767.90)	(4.72)	(413)
Long-term borrowings – net of current maturities	(24.75)	(767.90)	(30.60)	(958)
Other liabilities	(2.00)	-	-	(33)
Total liabilities	(190.29)	(1,566.35)	(46.49)	(3,899)
Assets (liabilities) - net	589.79	(1,560.61)	(16.29)	8,769

* Assets and liabilities denominated in other foreign currencies are presented as U.S. Dollar equivalents using the buy and sell rates quoted by Reuters prevailing at the end of the reporting period.

The Group’s activities expose them to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates, and interest rates.

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 7 . FINANCIAL INSTRUMENTS

a. Fair value of financial assets and financial liabilities

i. Classification


(a)	Financial asset
		September 30, 2023	December 31, 2022
	Amortized cost
	Cash and cash equivalents	25,905	31,947
	Other current financial assets	1,477	1,268
	Trade receivables	9,895	8,634
	Other receivables	576	245
	Other non-current assets	164	186
	FVTPL
	Long-term investment in financial instruments	8,581	8,508
	Other current financial assets	296	81
	FVTOCI
	Long-term investment in financial instruments	22	22
	Total financial assets	46,916	50,891


(b)	Financial liabilities
		September 30, 2023	December 31, 2022
	Financial liabilities measured at amortized cost
	Trade payables	13,445	18,457
	Other payables	477	463
	Accrued expenses	13,044	15,445
	Customers deposits	10	44
	Short-term bank loans	11,796	8,191
	Two-step loans	132	209
	Bonds and notes	5,342	4,793
	Long-term bank loans	32,366	29,873
	Other borrowings	482	1,314
	Lease liabilities	18,881	18,661
	Total financial liabilities	95,975	97,450

ii. Fair value s

The following table presents comparison of the carrying amounts and fair values of the Company’s financial instruments, other than those the fair values are considered to approximate their carrying amounts as the impact of discounting is not significant:


			Fair value measurement at reporting date using
			Quoted prices in
			active markets	Significant
			for identical	other	Significant
			assets or	observable	unobservable
	Carrying		liabilities	inputs	inputs
September 30, 2023	value	Fair value	(level 1)	(level 2)	(level 3)
FVTPL
Other current financial assets	296	296	296	-	-
Long-term investment in financial instruments	8,581	8,581	2,022	-	6,559
FVTOCI
Long-term investment in financial instruments	22	22	-	-	22
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans	132	133	-	-	133
Bonds and notes	5,342	6,104	5,575	-	529
Long-term bank loans	32,366	31,941	-	-	31,941
Other borrowings	482	478	-	-	478
Lease liabilities	18,881	18,881	-	-	18,881
Total	66,102	66,436	7,893	-	58,543

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 7 . FINANCIAL INSTRUMENTS (continued)

a. Fair value of financial assets and financial liabilities (continued)

ii. Fair value s (continued)


			Fair value measurement at reporting date using
			Quoted prices in
			active markets	Significant
			for identical	other	Significant
			assets or	observable	unobservable
	Carrying		liabilities	inputs	inputs
December 31, 2022	value	Fair value	(level 1)	(level 2)	(level 3)
FVTPL
Other current financial assets	81	81	81	-	-
Long-term investment in financial instruments	8,508	8,508	2, 17 2	-	6, 33 6
FVTOCI
Long-term investment in financial instruments	22	22	-	-	22
Financial liabilities at amortized cost
Interest-bearing loans and other borrowings:
Two-step loans	209	207	-	-	207
Bonds	4,793	5,614	5,614	-	-
Long-term bank loans	29,873	29,860	-	-	29,860
Other borrowings	1,314	1,311	-	-	1,311
Lease liabilities	18,661	18,661	-	-	18,661
Other liabilities	170	170	-	-	170
Total	63,631	64,434	7, 867	-	56, 567

As of December 31, 2022, there was a transfer of the fair value hierarchy of financial assets from level 2 and level 3 to level 1 with the consideration that there was a quoted price in an active market condition for identical assets that could be accessed on the measurement date. Therefore, these financial assets can be categorized as level 1. These financial assets are long-term investments in shares in GOTO of Rp2,159 billion and in PT Global Sukses Solusi Tbk. of Rp13 billion.

Loss on fair value measurement recognized in consolidated statements of profit or loss and other comprehensive income for the nine months period ended September 30, 2023 amounting to Rp93 billion.

Reconciliations of the beginning and ending balances for items measured at fair value using significant unobservable inputs (level 3) for the nine months period ended September 30, 2023 and for the years ended December 31, 2022 are as follows:

	September 30, 2023	December 31, 2022
Beginning balance	6,358	4,762
Gain (loss) recognized in consolidated statement
of profit or loss and other comprehensive income	(93)	282
Purchase/addition	316	1,338
Settlement/deduction	-	(24)
Ending balance	6,581	6,358

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 7 . FINANCIAL INSTRUMENTS (continued)

a. Fair value of financial assets and financial liabilities (continued)

iii. Fair value measurement

Fair value is the amount for which an asset could be exchanged, or a liability settled, between parties in an arm's length transaction.

The fair values of short-term financial assets and financial liabilities with maturities of one year or less (cash and cash equivalents, trade and other receivables, other current financial assets, trade and other payables, accrued expenses, and short-term bank loans) and other non-current assets are considered to approximate their carrying amounts as the impact of discounting is not significant.

The fair values of long-term financial assets (other non-current assets (long-term trade receivables and restricted cash)) approximate their carrying amounts as the impact of discounting is not significant.

The Group determined the fair value measurement for disclosure purposes of each class of financial assets and financial liabilities based on the following methods and assumptions:

(a) F air value through profit or loss, primarily consist of stocks, mutual funds, corporate and government bonds , and convertible bonds. Stocks and mutual funds actively traded in an established market are stated at fair value using quoted market price or, if unquoted, determined using a valuation technique. The fair value of convertible bonds are determined using valuation technique. Corporate and government bonds are stated at fair value by reference to prices of similar at the reporting date.

(b) T he fair values of long-term financial liabilities are estimated by discounting the future contractual cash flows of each liability at rates offered to the Group for similar liabilities of comparable maturities by the bankers of the Group, except for bonds which are based on market price .

The fair value estimates are inherently judg e mental and involve various limitations, including:

(a) Fair values presented do not take into consideration the effect of future currency fluctuations.

(b) Estimated fair values are not necessarily indicative of the amounts that the Group would record upon disposal/termination of the financial assets and liabilities.

b. Financial risk management objectives and policies

The Group ’s activities expose it to a variety of financial risks such as market risks (including foreign exchange risk, market price risk, and interest rate risk), credit risk, and liquidity risk. Overall, t he Group’s financial risk management program is intended to minimize losses on the financial assets and financial liabilities arising from fluctuation of foreign currency exchange rates and the fluctuation of interest rates. Management has a written policy on foreign currency risk management mainly on time deposit placements and hedging to cover foreign currency risk exposures for periods ranging from 3 up to 12 months.

Financial risk management is carried out by the Corporate Finance unit under policies approved by the Board of Directors. The Corporate Finance unit identifies, evaluates and hedges financial risks.

i. Foreign exchange risk

The Group is exposed to foreign exchange risk on sales, purchases and borrowings that are denominated in foreign currencies. The foreign currency denominated transactions are primarily in U.S. Dollars and Japanese Y en. The Group ’s exposure s to other foreign exchange rates are not material.

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 7 . FINANCIAL INSTRUMENTS (continued)

b. Financial risk management objectives and policies (continued)

i. Foreign exchange risk (continued)

Increasing risks of foreign currency exchange rates on the obligations of t he Group are expected to be partly offset by the effects of the exchange rates on time deposits and receivables in foreign currencies that are equal to at least 25% of the outstanding current foreign currency liabilities.

The following table presents t he Group ’s financial assets and financial liabilities exposure to foreign currency risk:

—	September 30, 2023 — U.S. Dollar	Japanese Yen	December 31, 2022 — U.S. Dollar	Japanese Yen
	(in billions)	(in billions)	(in billions)	(in billions)
Financial assets	0.80	0.01	0.78	0.01
Financial liabilities	(0.20)	(1.17)	(0.19)	(1.57)
Net exposure	0.60	(1.16)	0.59	(1.56)

Sensitivity analysis

A strengthening of the U .S. Dollar and Japanese Y en , as indicated below, against the Rupiah at September 30, 2023 would have decreased equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that t he Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant.

							Equity/profit (loss)
September 30, 2023
U.S. Dollar (1% strengthening)							92
Japanese Yen (5% strengthening)							(6)

A weakening of the U .S. D ollar and Japanese Y en against the Rupiah at September 30, 2023, would have had an equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

ii. Market price risk

The Group is exposed to cha n ges in debt and equity market prices related to financial assets measured at FVTPL carried at fair value. Gain s and losses arising from changes in the fair value of financial assets measured at FVTPL are recogni z ed in the consolidated statements of profit or loss and other comprehensive income.

The performance of t he Group ’s financial assets measured at FVTPL is monitored periodically, together with a regular asses s ment of their relevance to t he Group ’s long - term strategic plans.

As of September 30, 2023 , management considered the price risk for the Group’s financial assets measured at FVTPL to be immaterial in terms of the possible impact on profit or loss and total equity from a reasonably possible change in fair value.

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 7 . FINANCIAL INSTRUMENTS (continued)

b. Financial risk management objectives and policies (continued)

i. Interest rate risk

Interest rate fluctuation is monitored to minimize any negative impact to financial p erformance . Borrowings at variable interest rates expose t he Group to interest rate risk (Notes 18 and 19 ). To measure market risk pertaining to fluctuations in interest rates, t he Group primarily use s interest margin and maturity profile of the financial assets and liabilities based on changing schedule of the interest rate.

At reporting date, the interest rate profile of the Group’s interest-bearing borrowings was as follows:

	September 30, 2023		December 31, 2022
Fixed rate borrowings	(38,560)		(27,767)
Variable rate borrowings	(30,439)		(35,274)

S ensitivity analysis for variable rate borrowings

As of September 30, 2023 , a decrease (increase) by 25 basis points in interest rates of variable rate borrowings would have increased (decreased) equity and profit or loss by Rp76 billion, respectively. The analysis assumes that all other variables, in particular foreign currency rates, remain constant .

ii. Credit risk

The following table presents the maximum exposure to credit risk of the Group’s financial assets:


	September 30, 2023	December 31, 2022
Cash and cash equivalents	25,905	31,947
Other current financial assets	1,773	1,349
Trade receivable	9,895	8,634
Other receivable	576	245
Other non-current assets	164	186
Total	38,313	42,361

The Group is exposed to credit risk primarily from cash and cash equivalents and trade and other receivables. The credit risk is controlled by continuous monitoring of outstanding balance and collection. Credit risk from balances with banks and financial institutions is managed by the Group’s Corporate Finance Unit in accordance with the Group’s written policy.

The Group placed the majority of its cash and cash equivalents in state-owned banks because they have the most extensive branch networks in Indonesia and are considered to be financially sound banks . Therefore, it is intended to minimize financial loss through banks and financial institutions’ potential failure to make payments.

The customer c redit risk is managed by continuous monitoring of outstanding balances and collection . Trade and other receivables do not have any major concentration of risk whereas no customer r eceivable balance exceeds 3.69 % of trade receivables as of September 30, 2023 . (December 31, 2022: 4.33%)

M anagement is confident in its ability to continue to control and sustain minimal exposure to the customer credit risk given that t he Group ha s recognize d sufficient provision for impairment of receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses .

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Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

37 . FINANCIAL INSTRUMENTS (continued)

b. Financial risk management objectives and policies (continued)

v . L iquidity risk

L iquidity risk arises in situations where t he Group ha s difficulties in fulfilling financial liabilities when they become due.

Prudent liquidity risk management implies maintaining sufficient cash in order to meet t he Group’ s financial obligations . The Group continuously perform s an analysis to monitor financial position ratios, such as liquidity ratios and debt -to- equity ratios , against debt covenant requirements.

The following is the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:


	Carrying	Contractual					2027 and
	amount	cash flows	2023	2024	2025	2026	thereafter
September 30, 2023
Trade and other payables	13,445	(13,445)	(13,445)	-	-	-	-
Trade and other payables	477	(477)	(477)	-	-	-	-
Accrued expenses	13,044	(13,044)	(13,044)	-	-	-	-
Customer deposits	10	(10)	(10)	-	-	-	-
Interest bearing loans and
other borrowings:
Short-term bank loans	11,796	(11,796)	(11,796)	-	-	-	-
Two-step loans	132	(137)	(96)	(41)	-	-	-
Bonds and notes	5,342	(10,299)	(1,094)	(128)	(2,574)	(293)	(6,210)
Long-term bank loans	32,366	(38,553)	(12,969)	(1,993)	(7,633)	(6,094)	(9,864)
Other borrowings	482	(495)	(495)	-	-	-	-
Lease liabilities	18,881	(21,474)	(6,363)	(820)	(2,930)	(2,556)	(8,805)
Total	95,975	(109,730)	(59,789)	(2,982)	(13,137)	(8,943)	(24,879)


	Carrying	Contractual					2026 and
	amount	cash flows	2023	2024	2025	2026	thereafter
December 31, 2022
Trade and other payables	18,457	(18,457)	(18,457)	-	-	-	-
Trade and other payables	463	(463)	(463)	-	-	-	-
Accrued expenses	15,445	(15,445)	(15,445)	-	-	-	-
Customer deposits	44	(44)	(44)	-	-	-	-
Interest bearing loans and
other borrowings:
Short-term bank loans	8,191	(8,191)	(8,191)	-	-	-	-
Two-step loans	209	(216)	(123)	(93)	-	-	-
Bonds and notes	4,793	(10,096)	(509)	(510)	(2,574)	(293)	(6,210)
Long-term bank loans	29,873	(36,301)	(10,020)	(8,346)	(6,871)	(4,874)	(6,190)
Other borrowings	1,314	(1,394)	(1,027)	(367)	-	-	-
Lease liabilities	18,661	(22,053)	(5,893)	(4,545)	(2,766)	(2,258)	(6,591)
Other liabilities	170	(196)	(20)	(44)	(44)	(44)	(44)
Total	97,620	(112,856)	(60,192)	(13,905)	(12,255)	(7,469)	(19,035)

The difference between the carrying amount and the contractual cash flows is interest value. The interest value of variable-rate borrowings are determined based on the effective interest rates as of reporting date.

111

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

3 8 . CAPITAL MANAGEMENT

The capital structure of the Group is as follows:


	September 30, 2023		December 31, 2022
	Amount	Portion	Amount	Portion
Short-term debts	11,796	5.91%	8,191	4.26%
Long-term debts	57,203	28.64%	54,850	28.52%
Total debts	68,999	34.55%	63,041	32.78%
Equity attributable to owners
of the parent company	130,693	65.45%	129,258	67.22%
Total	199,692	100.00%	192,299	100.00%

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for stockholders and benefits to other stakeholders and to maintain an optimum capital structure to minimize the cost of capital.

Periodically, the Group conducts debt valuation to assess possibilities of refinancing existing debts with new ones with have more efficient cost that will lead to more optimized cost-of-debt. In case of idle cash with limited investment opportunities, the Group will consider buying back its shares of stock or paying dividend to its stockholders.

In addition to complying with loan covenants, the Group also maintains its capital structure at the level it believes will not risk its credit rating and which is comparable with its competitors.

Debt - to - equity ratio (comparing net interest-bearing debt to total equity) is a ratio which is monitored by management to evaluate the Group’s capital structure and review the effectiveness of the Group’s debts. The Group monitors its debt levels to ensure the debt - to - equity ratio complies with or is below the ratio set out in its contractual borrowing s arrangements and that such ratio is comparable or better than th at of regional area entities in the telecommunications industry.

The Group ’s debt-to-equity ratio as of September 30, 2023 and December 31, 2022, respectively were as follows:


	September 30, 2023	December 31, 2022
Total interest-bearing debts	68,999	63,041
Less: cash and cash equivalents	(25,905)	(31,947)
Net debts	43,094	31,094
Total equity attributable to owners of the parent company	130,693	129,258
Net debt-to-equity ratio	32.97%	24.06%

As stated in Note 19, the Group is required to maintain a certain debt-to-equity ratio and debt service coverage ratio by the lenders. For the periods ended September 30, 2023 and December 31, 2022, the Group has complied with externally imposed capital requirements.

112

Table of Contents These consolidated financial statements are originally issued in the Indonesian language

PERUSAHAAN PERSEROAN (PERSERO)

PT TELEKOMUNIKASI INDONESIA Tbk . AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2023 and For the Nine Months Period Then Ended (unaudited)

( Amounts in the tables expressed in billions of Indonesian Rupiah, unless otherwise stated)

39 . SUPPLEMENTAL CASH FLOWS INFORMATION

a. The non-cash investing activities for the nine months ended September 30, 2023 and 2022 are as follows:


	2023	2022
Acquisition of property and equipment:
Credited to trade payables	2,234	3,270
Borrowing cost capitalization	95	37

Addition of right of uses assets credited
to leases (Note 12)	7,853	7,055

Acquisition of intangible assets:
Credited to trade payables	391	492

b. The changes in liabilities arising from financing activities is as follows:

			Non-cash changes
			Foreign exchange		Other
	January 1, 2023	Cash flows	movement	New leases	Changes	September 30, 2023
Short-term bank loans	8,191	3,605	-	-	-	11,796
Two step loans	209	(65)	(12)	-	-	132
Bonds and notes	4,793	550	-	-	(1)	5,342
Long-term bank loans	29,873	2,492	(17)	-	18	32,366
Other borrowings	1,314	(834)	-	-	2	482
Lease liabilities	18,661	(4,556)	(11)	7,853	(3,066)	18,881
Total liabilities from
financing activities	63,041	1,192	(40)	7,853	(3,047)	68,999

SUBSEQUENT EVENTS

a. On October 9 and October 18, 2023, Telkomsel has paid the entire outstanding short-term and medium-term loans due to MUFG, BJB and BCA amounting to Rp3,500 billion.

b. On October 17, 2023, Telkomsel has received a loan drawdown from BCA amounting to Rp1,000 billion.

c. As of October 30, 2023, the market value of GOTO shares is Rp56.00 per share, therefore unrealized loss from changes in the fair value of investment in GOTO would increase by IDR 688 billion.

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