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

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 88

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

ii Telkomsel continued Movements of the provision for pension benefit cost for the six month period ended June 30, 2016 and for the year ended December 31, 2015: 2016 2015 Provision for pension benefit cost at beginning of year 803 812 Periodic pension benefit cost 91 168 Actuarial gain losses recognized via the OCI - 64 Return on plan assets excluding amount included in net interest expense - 79 Employer contributions 93 192 Provision for pension benefit cost at end of year 801 803 The components of the periodic pension benefit cost for the six month periods ended June 30, 2016 and 2015 are as follows: 2016 2015 Service costs 54 51 Net interest cost 37 26 Total periodic pension benefit cost 91 77 Amounts recognized in OCI amounted to Rpnil. The net periodic pension cost for the pension plan was calculated, based on the measurement date as of December 31, 2015 and 2014, with reports dated February 12, 2016 and February 5, 2015, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2015 and 2014, are as follows: 2015 2014 Discount rate 9.25 8.25 Rate of compensation increases 8.00 6.50 Indonesian mortality table 2011 2011 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 Yakes. The defined contribution post-employment health care benefit plan its provided to employees hired with permanent status on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement. The Company’s contribution to th e plan amounted to Rp17 billion and Rp15 billion for the six month period ended June 30, 2016 and for the year ended December 31, 2015, respectively. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 89 30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Post-employment health care benefits provisions continued ii. Telkomsel continued The following table presents the changes in projected post-employment health care benefit provision, change in post-employment health care benefit plan assets, funded status of the post-employment health care benefit plan, and net amount recognized in the Company’s consolidated statement of financial position as of June 30, 2016 and December 31, 2015: 2016 2015 Changes in projected post-employment health care benefit obligation Projected post-employment health care benefit obligation at beginning of year 10,942 11,505 Charged to profit or loss: Service costs 5 49 Net interest cost 496 961 Actuarial gain losses 773 1,187 Expected post-employment health care benefits paid 208 386 Projected post-employment health care benefit provision at end of year 12,008 10,942 Changes in post-employment health care benefit plan assets Fair value of plan assets at beginning of year 10,824 11,064 Interest income 491 924 Return on plan assets excluding amount included in net interest expense 773 647 Expected post-employment health care benefits paid 208 386 Administrative expense paid 81 131 Fair value of plan assets at end of year 11,799 10,824 Funded status 209 118 Provision for post-employment health care benefit 209 118