PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended 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 As of June 30, 2017 and December 31, 2016, plan assets consist of: June 30, 2017 December 31, 2016 Quoted in active market Unquoted Quoted in active market Unquoted Cash and cash equivalents 1,392 - 1,064 - Equity instruments Finance 1,156 - 1,039 - Consumer goods 1,344 - 1,206 - Infrastructure, utilities and transportation 623 - 536 - Construction, property and real estate 412 - 577 - Basic industry and chemical 123 - 130 - Trading, service and investment 339 - 216 - Mining 78 - 62 - Agriculture 56 - 71 - Miscellaneous industries 369 - 361 - Equity-based mutual fund 1,313 - 1,296 - Fixed income instruments Corporate bonds - 3,801 - 3,817 Government bonds 8,302 - 7,978 - Mutual funds 53 - 30 - Non-public equity: Direct placement - 227 - 174 Property - 187 - 188 Others - 297 - 301 Total 15,560 4,512 14,566 4,480 Pension plan assets also include Series B shares issued by the Company with fair values totalling Rp432 billion and Rp395 billion, representing 2.15 and 2.07 of total plan assets as of June 30, 2017 and December 31, 2016, respectively, and bonds issued by the Company with fair value totalling Rp328 billion and Rp311 billion representing 1.64 and 1.63 of total plan assets as of June 30, 2017 and December 31, 2016, respectively. 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 Rp1,650 billion and Rp2,600 billion for the six months period ended June 30, 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. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended 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