PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs continued PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs continued

86 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Contents

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs continued

i. The Company continued b. Unfunded continued The following table presents the change in projected pension benefits obligation of MPS and MPP for the three months period ended March 31, 2016 and for the year ended December 31, 2015: March 31, 2016 December 31,2015 Changes in projected pension benefit obligations Unfunded projected pension benefit obligations at beginning of year 2,500 2,326 Service costs 16 60 Interest costs 54 191 Actuarial losses recognized in OCI - 187 Benefits paid by employer 80 264 Unfunded projected pension benefit obligations at end of year 2,490 2,500 The components of total periodic pension benefit cost are as follows: March 31, 2016 March 31, 2015 Service costs 16 15 Net interest cost 54 48 Total periodic pension benefit cost 70 63 Amounts recognized in OCI amounted to RpNil billion as of March 31, 2016 and 2015, respectively. The actuarial valuation on defined benefit pension plan and other post employment benefits Note 30b and 31c was performed based on the date of December 31, 2015 and 2014, in a report dated February 25, 2016 and March 13, 2015 by PT Towers Watson Purbajaga TWP, independent actuary in association with Towers Watson Willis WTW formerly Towers Watson. The principal actuarial assumptions used by the independent actuary as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Discount rate 9.00 8.50 Rate of compensation increases varies 8.00 Indonesian mortality table 2011 2011 87 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Contents

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. 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 based on their latest basic salary or take-home pay and the number of years of their service. PT Asuransi Jiwasraya “Jiwasraya”, a state- owned life insurance company, manages the plan under an annuity insurance contract. Until 2004, the employees contributed 5 of their monthly salaries to the plan and Telkomsel contributed any remaining amount required to fund the plan. Starting 2005, the entire contributions have been fully made by Telkomsel. Telkomsel’s contributions to Jiwasraya amounted to RpNil and Rp192 billion for the three months period ended March 31, 2016 and for the year ended December 31, 2015, respectively. The following table presents the change in projected pension benefits obligation, change in pension plan assets, funded status of the pension plan and net amount recognized in the Company’s consolidated statement of financial position for the three months period ended March 31, 2016 and for the year ended December 31, 2015 of its defined benefit pension plan: March 31, 2016 December 31, 2015 Changes in projected pension benefit obligation Projected pension benefit obligation at beginning of year 1,415 1,281 Charged to profit or loss Service costs 27 101 Net interest cost 29 106 Actuarial losses gain recognized in OCI - 64 Expected benefits paid - 9 Projected pension benefit obligation at end of year 1,471 1,415 Changes in pension benefit plan assets Fair value of plan assets at beginning of year 612 469 Interest income in profit or loss 11 39 Return on plan assets excluding amount included in net interest expense - 79 Employer’s contributions - 192 Expected benefits paid - 9 Fair value of plan assets at end of year 623 612 Funded status 848 803 Provision for pension benefit cost 848 803 88 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Contents

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs continued