PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011
Figures in tables are presented in billions of Rupiah, unless otherwise stated
81
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 Rp2,024 billion and Rp1,851 billion for the years ended December 31, 2012 and 2011, respectively. The Company expects to contribute Rp179 billion to its defined benefit pension plan
during 2013.
The movements of the prepaid pension benefit costs during the years ended December 31, 2012 and 2011 are as follows:
2012 2011
Prepaid pension benefits costs at beginning of year 990
743 Net periodic pension costs benefits less amounts
charged to subsidiaries 133
62 Amounts charged to subsidiaries
under contractual agreements 12
2 Employer’s contributions
186 187
Prepaid pension benefits costs at end of year 1,031
990
As of December 31, 2012 and 2011, plan assets mainly consisted of :
2012 2011
Indonesian equity securities 21.82
22.13 Government bonds
37.96 39.67
Corporate bonds 16.91
17.37 Others
23.31 20.83
Total 100.00
100.00
Pension plan assets also include Series B shares issued by the Company with fair value totaling Rp223 billion and Rp234 billion representing 1.23 and 1.41 of total plan assets as of
December 31, 2012 and 2011, respectively, and bonds issued by the Company with fair value totaling Rp159 billion and Rp156 billion representing 0.87 and 0.94 of total plan assets as of
December 31, 2012 and 2011, 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 DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011
Figures in tables are presented in billions of Rupiah, unless otherwise stated
82
34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued
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:
2012 2011
Service costs 372
307 Interest costs
1,151 1,105
Expected return on pension plan assets 1,517
1,441 Amortization of prior service costs
139 139
Recognized actuarial gain -
170 Net periodic pension costs benefits
145 60
Amount charged to subsidiaries under contractual agreements
12 2
Total net periodic pension cost benefits less amounts charged to subsidiaries Note 27
133 62
Historical information: 2012 2011
2010 2009 2008
Present value of funded defined benefit obligation
19,249 16,188 11,924 10,131 9,100
Fair value of plan assets 18,222 16,597
15,098 12,300 8,713
Deficit surplus in the plan 1,027
409 3,174
2,169 387
Experience adjustments arising on plan liabilities
1 156
314 318
1,308 Experience adjustments arising on
plan assets 507
410 1,604
2,028 1,774
