PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
78
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
i. The Company continued a. Funded pension plan continued
As of March 31, 2017 and December 31, 2016, plan assets consist of:
March 31, 2017 December 31, 2016
Quoted in active market
Unquoted Quoted in
active market Unquoted
Cash and cash equivalents 1,386
- 1,064
- Equity instruments
Finance 1,039
- 1,039
- Consumer goods
1,238 -
1,206 -
Infrastructure, utilities and transportation
579 -
536 -
Construction, property and real estate
482 -
577 -
Basic industry and chemical 130
- 130
- Trading, service and investment
292 -
216 -
Mining 64
- 62
- Agriculture
65 -
71 -
Miscellaneous industries 370
- 361
- Equity-based mutual fund
1,291 -
1,296 -
Fixed income instruments Corporate bonds
- 3,978
- 3,817
Government bonds 8,157
- 7,978
- Mutual funds
30 -
30 -
Non-public equity: Direct placement
- 174
- 174
Property -
187 -
188 Others
- 268
- 301
Total 15,123
4,607 14,566
4,480
Pension plan assets also include Series B shares issued by the Company with fair values totalling Rp402 billion and Rp395 billion, representing 2.04 and 2.07 of total plan assets
as of March 31, 2017 and December 31, 2016, respectively, and bonds issued by the Company with fair value totalling Rp327 billion and Rp311 billion representing 1.66 and
1.63 of total plan assets as of March 31, 2017 and December 31, 2016, respectively.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
79
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
i. The Company continued a. Funded pension plan 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 Rp978 billion and Rp2,600 billion for the three month periods ended March 31, 2017 and for the year ended December 31, 2016, respectively. Based on the Company’s
policy issued on January 14, 2014 regarding Dapen’s Funding Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency Ratio FSR is above 105. Based
on Dapen’s financial statement as of December 31, 2016, Dapen’s FSR is above 105. Therefore, the Company does not expect to contribute to the defined benefit pension plan in
2017.
Based on the Company policy issued on July 1, 2014 regarding Pension Regulation by “Dana Pensiun Telkom”, there is an increase in monthly benefits given to the pensioners,
widowwidower or the children of participants who stopped working before the end of June 2002.
During 2015, the Company made settlements to pensioners, widowwidower or the children of participants who have monthly pension benefits under Rp1,500,000 and chose to
withdraw their pension benefits in lump sum.
Based on the Company’s policy issued on June 24, 2016 regarding Pension Regulation by Dana Pensiun Telkom, widowwidower or the children of participants who enrolled before
April 20, 1992, will receive increase in monthly pension benefits from 60 to 75 of pension benefits received by the pensioners which became
effective starting from January 1, 2016. In addition, the Company provided other benefits to enhance the
pensioners’ welfare which were provided only in 2016. Such other benefits consist of Rp6 million per month to pension beneficiaries who retired before end of June 2002 and other
benefit of Rp3 million per month to pension beneficiaries who retired starting from the end of June 2002 until the end of May 2016.
The movements of the prepaid pension benefit cost during the three month periods ended March 31, 2017 and for the year ended December 31, 2016 are as follows:
March 31, 2017 December 31, 2016
Prepaid pension benefit cost at beginning of year 197
1,329 Net periodic pension benefit cost
95 640
Actuarial gain losses recognized in OCI 623
1,680 Asset ceiling recognized in OCI
- -
Return on plan assets excluding amount included in net interest
expense 623
1,188
Prepaid pension benefit cost at end of year 102
197
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
80
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
