BASIC AND DILUTED EARNINGS PER SHARE

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 84

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS

continued a. Prepaid pension benefit costs continued The movements of the prepaid pension benefit costs during six months period ended June 30, 2014 and for the year ended December 31, 2013 are as follows: June 30, December 31, 2014 2013 Prepaid pension benefit costs at beginning of period 927 1,031 Net periodic pension costs less amounts charged to subsidiaries 15 265 Amounts charged to subsidiaries under contractual agreement - 21 Employer’s contributions - 182 Prepaid pension benefit costs at end of period 942 927 As of June 30, 2014 and December 31, 2013, pension plan assets mainly consisted of : June 30, December 31, 2014 2013 Government bonds 37.81 40.30 Indonesian equity securities 22.84 21.97 Corporate bonds 19.18 21.19 Others 20.17 16.54 Total 100.00 100.00 Pension plan assets also include Series B shares issued by the Company with fair values totaling Rp334 billion and Rp336 billion, representing 1.86 and 2.00 of total plan assets as of June 30, 2014 and December 31, 2013, respectively, and bonds issued by the Company with fair values totaling Rp151 billion representing 0.84 and 0.90 of total plan assets as of June 30, 2014 and December 31, 2013, 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, 2013 and 2012, with reports dated February 28, 2014 and February 28, 2013, 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, 2013 and 2012 are as follows: December 31, December 31, 2013 2012 Discount rate 9.00 6.25 Expected long-term return on pension plan assets 9.75 8.25 Rate of compensation increases 8.00 8.00 The components of net periodic pension costs are as follows:

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS