Independent Auditor

EXTERNAL AUDIT

In line with existing procedures and taking into consideration the independence and qualifications of independent auditors, at our AGMS on April 17, 2015 we appointed KAP Purwantono, Suherman & Surja (a member firm of Ernst & Young Global Limited) a registered KAP with OJK, to perform the audit on our Consolidated Financial Statements for the fiscal year ended December 31, 2015 and on the effectiveness of internal control on Financial Reporting as of December 31, 2015. The fee for the audit on the Consolidated Financial Statements for fiscal year 2015 was agreed at Rp34.4 billion (excluding VAT). Based on Bapepam-LK No.VIII. A. 2. on the Independence of Accountant Providing Audit Services in Capital Markets noted that the provision of services of general audit of the client’s financial statements can only be done by a public accounting firm for as long as 6 (six) financial years in a row and by an accountant no later than 3 (three) fiscal years in a row. KAP Purwantono, Suherman & Surja is a public accountant firm since 2012. In 2015, company’s public accountant firm is Purwantono, Sungkoro & Surja (previously Purwantono, Suherman &Surja). Accountant who signed the Independent Auditors’ Report for Fiscal Year 2015 was Hari Purwantono. KAP Purwantono, Sungkoro & Surja was also appointed to audit the Effectiveness of Internal Control over Financial Reporting financial year of 2015 and audit the use of funds of the Partnership and Community Development (“PKBL”) in fiscal year 2015

Years Public Accounting Firm Public Accountant  Fee (RP million)
2015 Purwantono, Sungkoro & Surja  Drs. Hari Purwantono 34.400
2014 Purwantono, Sungkoro & Surja  Drs. Hari Purwantono 31.500
2013 Purwantono, Sungkoro & Surja  Drs. Hari Purwantono 28.240
2012 Purwantono, Sungkoro & Surja  Drs. Hari Purwantono 26.619
2011 Tanudireja, Wibisana & Rekan Chrisna A.Wardhana, CPA 40.503

Fees and Services of the External Auditor

The following table summarizes the fees for audit service in 2013, 2014 and 2015:

For years ended December 31

2013

2014

2015

(Rp million)

Audit Fees

28.240

31.500

39.943

All other Fees

340

370

400

AUDIT BY OTHERS EXTERNAL AUDIT INSTITUTIONS

In 2015, in addition to the audit by the Public Accounting Firm (KAP), Auditors from the Audit Board of the Republic of Indonesia (BPK) audited Telkom’s Income and Expenses. This audit further increased the “control awareness” of Telkom’s management in the procurement process of goods and services.

RISK MANAGEMENT

IMPLEMENTATION OF RISK MANAGEMENT

Risk management is important in the communication business because it has a wide scope that requires a large investment with a high degree of competition. Implementation of the risk management system is further strengthened by the Regulation of the Minister of State- Owned Enterprises No. 1 of 2011 which requires Telkom to conduct risk management. In its implementation, risk management is done in a systematic, structured and applied in all parts of the Company. Risk management is applied to minimizeall possible risks that could negatively impact on the achievement of Company targets.

Posted on Agust 30, 2016