PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
82
34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued
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 billion and Rp2,024 billion for six months period ended June 30, 2013 and the years ended December 31, 2012.
The movements of the prepaid pension benefit costs during six months period ended June 30, 2013 and the years ended December 31, 2012 are as follows:
Juni 30, December 31,
2013 2012
Prepaid pension benefits costs at beginning of year 1,031
990 Net periodic pension costs less amounts
charged to subsidiaries 136
133 Amounts charged to subsidiaries
under contractual agreements 7
12 Employer s contributions
93 186
Prepaid pension benefits costs at end of period 981
1,031
As of June 30, 2013 and December 31, 2012, plan assets mainly consisted of :
Juni 30, December 31,
2013 2012
Indonesian equity securities 23.82
21.82 Government bonds
35.68 37.96
Corporate bonds 19.69
16.91 Others
20.81 23.31
Total 100.00
100.00
Pension plan assets also include Series B shares issued by the Company with fair value totaling Rp304 billion and Rp233 billion representing 1.69 and 1.23 of total plan assets as of June
30, 2013 and December 31, 2012, respectively, and bonds issued by the Company with fair value totaling Rp155 billion and Rp159 billion representing 0.86 and 0.87 of total plan assets
as of June 30, 2013 and December 31, 2012, respectively.
The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits Notes 34b and 34c was performed based on the measurement date as of December 31, 2012
and 2011, with reports dated February 28, 2013 and March 7, 2012, respectively, by PT Towers Watson Purbajaga TWP , an independent actuary in association with Towers Watson TW
formerly Watson Wyatt Worldwide. The principal actuarial assumptions used by the independent actuary as of December 31, 2012 and 2011 are as follows:
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
83
34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued
December 31, December 31,
2012 2011
Discount rate 6.25
7.25 Expected long-term return on pension plan assets
8.25 9.25
Rate of compensation increases 8
8 The components of net periodic pension costs are as follows:
Juni 30, December 31,
2012 2012
Service costs 225
372 Interest costs
591 1,151
Expected return on pension plan assets 743
1,517 Amortization of prior service costs
70 139
Net periodic pension costs 143
145 Amount charged to subsidiaries
under contractual agreements 7
12
Total net periodic pension cost benefits less amounts charged to subsidiaries Note 27
136 133
b. Pension benefit costs provisions
i The Company The Company sponsors unfunded defined benefit pension plans and a defined contribution
pension plan. The defined contribution pension plan is provided to employees hired with permanent status
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 Rp3 billion Rp5 billion for each of six months period ended June 30, 2013 and the years
ended December 31, 2012, respectively.
Since 2007, the Company provides pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. The change in benefit had increased the Company s liabilities by Rp699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced
the uniformulation with Manfaat Pensiun Sekaligus MPS . MPS is given to those employees reaching retirement age, upon death or upon being disabled starting from
February 1, 2009. The change in benefit had increased the Company s liabilities by Rp435 billion, which is amortized over 8.63 years until 2018.
