PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
92
34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued
c. Other post-retirement benefits
The Company provides other post-retirement benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of last housing allowance “Biaya Fasilitas
Perumahan Terakhir” or “BFPT” and home passage leave “Biaya Perjalanan Pensiun dan Purnabhakti” or “BPP”.
Movements of the other post-retirement benefit costs provisions for nine months period ended September 30, 2014 and for the year ended December 31, 2013:
September 30, Desember 31, 2014
2013
Other post-retirement benefit costs provisions at beginning of year
349 310
Other post-retirement benefit costs 46
66 Other post-retirement benefits paid by the Company
24 27
Net other post-retirement benefit costs provisions at end of period
371 349
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 Rate of compensation
8.00 8.00
Components of the total periodic other post-retirement benefit costs for nine months period ended September 30, 2014 and for the year ended December 31, 2013:
September 30, December 31, 2014
2013
Service costs 7
11 Interest costs
29 30
Amortization of past service costs 5
7 Recognized actuarial losses
5 18
Other post-retirement benefit costs Note 27 46
66 d. Obligation under the Labor Law
Under Law No. 13 Year 2003, the Company and subsidiaries are required to provide minimum pension benefit, if not covered yet by the sponsored pension plans, to their employees upon
retirement age. The total related obligation recognized as of September 30, 2014 and December 31, 2013 amounted to Rp202 billion and Rp189 billion, respectively. The related employee benefit
costs charged to expense amounted to Rp23 billion and Rp17 billion for nine months period ended September 30, 2014 and for the year ended December 31, 2013, respectively.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
93
35. LONG SERVICE AWARDS “LSA”
Telkomsel provides certain cash awards or certain number of days leave benefits to its employees based on the employees’ length of service requirements, including LSA and LSL. LSA are either paid
at the time the employees reach certain years during employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management, provided
to employees who meet the requisite number of years of service and with a certain minimum age. The obligation with respect to these awards was determined based on an actuarial valuation using the
Projected Unit Credit method, and amounted to Rp352 billion and Rp336 billion as of September 30, 2014 and December 31, 2013, respectively. The related benefit costs charged to
expense amounted to Rp47 billion and Rp19 billion for nine months ended September 30, 2014 and for the year ended December 31, 2013, respectively Note 27.
36. POST-RETIREMENT HEALTH CARE BENEFITS
The Company provides a post-retirement health care plan to all of its employees hired before November 1, 1995 who have worked for the Company for 20 years or more when they retire, and to
their eligible dependents. The requirement to work for 20 years does not apply to employees who retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995
are no longer entitled to this plan. The plan is managed by Yakes. The defined contribution post-retirement health care plan is provided to employees hired with
permanent status on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement. The Company’s contribution amounted to Rp15 billion and Rp17 billion for
nine months period ended September 30, 2014 and for the year ended December 31, 2013, respectively.
The following table presents the change in the projected post-retirement health care benefits obligation, change in post-retirement health care benefits plan assets, funded status of the post-
retirements health care benefits plan and net amount recognized in the Company’s consolidated statement of financial position as of September 30, 2014 and December 31, 2013:
September 30, December 31, 2014
2013 Change in projected post-retirement
health care benefits obligation
Projected post-retirement health care benefits obligation at beginning of year
10,653 13,162
Service costs 34
70 Interest costs
706 813
Actuarial losses gains 468
3,099 Expected post-retirement health care benefits paid
279 293
Projected post-retirement health care benefits obligation at end of period
11,582 10,653
