RETIREMENT BENEFITS OBLIGATION continued b. Pension benefit costs provisions continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 88

34. RETIREMENT BENEFITS OBLIGATION continued c. Other post-retirement benefits continued

The components of the net periodic other post-retirement benefits costs for nine months period ended September 30, 2013 and the years ended December 31, 2012: September 30, December 31, 2013 2012 Service costs 8 10 Interest costs 23 32 Amortization of past service costs 5 7 Recognized actuarial losses 14 16 Total net periodic other post-retirement benefits costs Note 27 50 65

d. Obligation under Labor Law

Under Law No. 13 Year 2003 concerning labor regulation, the Company and subsidiaries are required to provide a minimum pension benefit, if not covered yet by the sponsored pension plans, to their employees upon retirement age. The total related obligation recognized as of September 30, 2013 and December 31, 2012 amounted to Rp168 billion and Rp146 billion, respectively. The related employees benefits cost charged to expense amounted to Rp24 billion and Rp22 billion for nine months period ended September 30, 2013 and 2012, respectively.

35. LONG SERVICE AWARDS “LSA”

Telkomsel provides certain cash awards or certain number of days leave benefits to its employees based on the employees’ length of service requirements, including LSA and LSL. LSA are either paid at the time the employees reach certain years during 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 meet the requisite number of years of service and with a certain minimum age. The obligation with respect to these awards was determined based on an actuarial valuation using the Projected Unit Credit method, and amounted to Rp365 billion and Rp347 billion as of September 30, 2013 and December 31, 2012, respectively. The related benefits costs charged to expense amounted to Rp43 billion and Rp38 billion for nine months period ended September 30, 2013 and 2012, respectively Note 27.

36. POST-RETIREMENT HEALTH CARE BENEFITS

The Company provides a post-retirement health care plan 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 Yakes. The defined contribution post retirement health care plan is provided to employees hired with permanent status on or after November 1, 1995 or employees with terms of service less than 20 years on the time of retirement. The Company’s contribution amounted to Rp17 billion and Rp18 billion for nine months period ended September 30, 2013 and the years ended December 31, 2012, respectively. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 89

36. POST-RETIREMENT HEALTH CARE BENEFITS continued

The following table presents the change in the projected post-retirement health care benefits obligation, change post-retirement health care benefits in plan assets, funded status of the post- retirement health care benefits plan and net amount recognized in the Company’s consolidated statement of financial position as of September 30, 2013 and December 31, 2012: September 30, December 31, 2013 2012 Change in projected post-retirement health care benefits obligation Projected post-retirement health care benefits obligation at beginning of year 13,162 10,547 Service costs 53 56 Interest costs 610 755 Actuarial gains losses 619 2,074 Expected post-retirement health care benefits paid 220 270 Projected post-retirement health care benefits obligation at end of period 12,986 13,162 Change post-retirement health care benefits in plan assets Fair value of plan assets at beginning of year 9,913 8,986 Expected return on plan assets 558 720 Employer’s contributions 272 300 Actuarial losses gains 619 177 Expected post-retirement health care paid 220 270 Fair value of plan assets at end of period 9,904 9,913 Funded status 3,082 3,249 Unrecognized net actuarial losses 2,393 2,570 Post-retirement health care benefits costs provisions 689 679 As of September 30, 2013 and December 31, 2012, plan assets mainly consisted of: September 30, December 31, 2013 2012 Mutual funds 78.85 81.00 Time deposits 7.81 10.72 Equity securities 12.15 7.61 Corporate obligation - - Others 1.19 0.67 Total assets 100.00 100.00 Yakes plan assets also include Series B shares issued by the Company with fair value totaling Rp142 billion and Rp35 billion representing 1.43 and 0.35 of total plan assets as of September 30, 2013 and December 31, 2012, respectively.