PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
91
36. POST-RETIREMENT HEALTH CARE BENEFITS continued
As of December 31, 2013 and 2012, plan assets mainly consisted of:
2013 2012
Mutual funds 81.80
81.00 Equity securities
13.14 7.61
Time deposits 3.68
10.72 Others
1.38 0.67
Total assets 100.00
100.00
Yakes plan assets also include Series B shares issued by the Company with fair values totaling Rp120 billion and Rp35 billion representing 1.25 and 0.35 of total plan assets as of December 31,
2013 and 2012, 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 Rp261 billion and Rp896 billion for the years ended December 31, 2013 and 2012, respectively. The
Company expects to contribute Rp226 billion to its post-retirement health care plan during 2014. The components of net periodic post-retirement health care benefit costs are as follows:
2013 2012
Service costs 70
56 Interest costs
813 755
Expected return on plan assets 744
720 Recognized actuarial losses
236 -
Net periodic post-retirement benefit costs 375
91 Amounts charged to subsidiaries
under contractual agreements 1
1
Net periodic post-retirement health care benefit costs less amounts charged to subsidiaries Note 27
374 90
The movements of the projected post-retirement health care benefit costs provisions for the years ended December 31, 2013 and 2012, are as follows:
2013 2012
Projected post-retirement health care benefit costs provisions at beginning of year
679 888
Net periodic post-retirement health care benefits costs less amounts charged to subsidiaries Note 27
374 90
Amounts charged to subsidiaries under contractual agreements
1 1
Employer’s contributions 302
300
Projected post-retirement health care benefit costs provisions at end of year
752 679
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
92
36. POST-RETIREMENT HEALTH CARE BENEFITS continued
The actuarial valuation for the post-retirement health care benefits 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 TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2013 and
2012 are as follows:
2013 2012
Discount rate 9.00
6.25 Expected long-term return on plan assets
9.50 7.50
Health care costs trend rate assumed for next year 7.00
7.00 1 change in assumed future health care costs trend rates would have the following effects:
1 point increase 1 point decrease
Service costs and interest costs 289
227 Accumulated post-retirement health care benefits obligation
1,720 1,413
Historical information: 2013 2012 2011 2010
2009
Present value of funded defined benefit obligation
10,653 13,162 10,547 8,741
7,166
Fair value of plan assets 9,661
9,913 8,986
8,005 6,022
Deficit in the plan 992
3,249 1,561
736 1,144
Experience adjustments arising on
plan liabilities 56
74 64
231 722
Experience adjustments arising on
plan assets 1,005
177 222
691 756
37. RELATED PARTY TRANSACTIONS
In the normal course of its business, the Company and subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those
of arm’s length transactions.
a. Nature of relationships and accountstransactions with related parties
Details of the nature of relationships and transactionsaccounts with significant related parties are as follows:
Nature of relationships Related parties
with related parties Nature of transactionsaccounts
The Government Majority stockholder
Finance costs and investment in Ministry of Finance
financial instruments State-owned enterprises
Entity under common control Operation expenses, purchase of property
and equipment, construction and installation services, insurance expense,
finance income, finance costs, investment in financial instruments
Indosat Entity under common control
Interconnection revenues, interconnection expenses, telecommunications facilities
usage, operating and maintenance cost, leased lines revenue, satellite transponders
usage revenues, usage of data communication network system expenses
and lease revenues
