PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
92
34. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs provisions continued
ii Telkomsel Telkomsel provides a defined benefit pension plan to its employees. Under this plan,
employees are entitled to pension benefits based on their latest basic salary or take-home pay and the number of years of their service. PT Asuransi Jiwasraya “Jiwasraya”, a state-owned
life insurance company, manages the plan under an annuity insurance contract. Until 2004, the employees contributed 5 of their monthly salaries to the plan and Telkomsel contributed
any remaining amount required to fund the plan. Starting 2005, the entire contributions are fully made by Telkomsel.
Telkomsel’s contributions to Jiwasraya amounted to Rp98 billion and RpNil for the years ended December 31, 2014 and 2013, respectively.
The following table presents the change in projected pension benefits obligation, change in pension plan assets, funded status of the pension plan and net amount recognized in the
Company’s consolidated statement of financial position for the years ended December 31, 2014 and 2013 of its defined benefit pension plan:
2014 2013
Change in projected pension benefits obligation
Projected pension benefits obligation at beginning of year 899
1,472 Service cost
74 130
Interest cost 81
88 Actuarial losses gains
234 789
Expected pension benefits paid 7
2 Projected pension benefits obligation at end of year
1,281 899
Changes in pension plan asset
Fair value of pension plan assets at beginning of year 439
666 Expected return on pension plan assets
40 40
Employers contributions 98
- Actuarial gains losses
67 265
Expected pension benefits paid 7
2 Fair value of pension plan assets at end of year
637 439
Funded status 644
460 Unrecognized items in the consolidated
statement of financial position: Prior service costs
Net actuarial losses gains 18
153
Pension benefit costs provisions 626
613
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
93
34. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs provisions continued
ii Telkomsel continued The components of the net periodic pension costs are as follows:
2014 2013
Service costs 74
130 Interest costs
81 88
Expected return on pension plan assets 40
40 Amortization of past service costs
1 1
Actuarial gain losses recognized 5
15
Net periodic pension costs Note 27 111
194
The net periodic pension costs for the pension plan was calculated based on actuary measurement date as of December 31, 2014 and 2013, with reports dated February 5, 2015
and February 20, 2014, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary based on the
measurement date as of December 31, 2014 and 2013, are as follows:
2014 2013
Discount rate 8.25
9.00 Expected long-term return on plan assets
8.25 9.00
Rate of compensation increases 6.50
6.50 Historical information
2014 2013 2012 2011 2010
Present value of funded defined benefit obligation
1,281 899
1,472 1,237
663 Fair value of plan assets
637 439
666 458
246
Deficit in the plan 644
460 806
779 417
Experience adjustments arising
on plan liabilities 55
43 71
44 9
Experience adjustments arising
on plan assets 67
265 139
192 49
c. Other post-employment benefits provisions
The Company provides other post-retirement benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of final housing allowance “Biaya Fasilitas
Perumahan Terakhir” or “BFPT” and home passage leave “Biaya Perjalanan Pensiun dan Purnabhakti” or “BPP”.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
94
34. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued c. Other post-employment benefits provisions lanjutan
Movements of the other post-employment benefit costs provisions for the years ended December 31, 2014 and 2013:
2014 2013
Other post-employment benefit costs provisions at beginning of year
349 310
Other post-employment benefit costs 61
66 Other post-employment benefits paid by the Company
34 27
Net other post-employment benefit costs provisions at end of year
376 349
The principal actuarial assumptions used by the independent actuary as of December 31, 2014 and 2013 are as follows:
2014 2013
Discount rate 8.50
9.00 Rate of compensation increases
8.00 8.00
Components of the total periodic other post-employment benefit costs for the years ended December 31, 2014 and 2013:
2014 2013
Service costs 9
11 Interest costs
38 30
Amortization of past service costs 7
7 Actuarial losses recognized
7 18
Other post-employment benefit costs Note 27 61
66 Historical information:
2014 2013 2012 2011 2010
Present value of funded defined benefit obligation
488 450
508 462
409
Deficit in the plan 488
450 508
462 409
Experience adjustments arising on
plan liabilities 12
7 5
13 11
d. Obligation under the Labor Law provisions
Under Law No. 13 Year 2003, the Group is 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 December 31, 2014 and 2013 amounted to Rp239 billion and Rp189 billion, respectively. The related employee benefit costs charged to
expense
amounted to
Rp54 billion
and Rp17
billion for
the years
ended December 31, 2014 and 2013, respectively.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
95
35. LONG SERVICE AWARDS “LSA”
Telkomsel and Patrakom 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 Rp410 billion and Rp336 billion as of
December 31, 2014 and 2013, respectively. The related benefit costs charged to expense amounted to Rp115 billion and Rp19 billion for the years ended December 31, 2014 and 2013, respectively
Note 27.
36. POST-EMPLOYMENT HEALTH CARE BENEFITS PROVISIONS The Company provides a post-employment health care benefits 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- employment health care benefits 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 the years ended December 31, 2014 and 2013, respectively.
The following table presents the change in the projected post-employment health care benefits obligation, change in post-employment health care benefits plan assets, funded status of the post-
employment health care benefits plan and net amount recognized in the Company’s consolidated statement of financial position as of December 31, 2014 and 2013:
2014 2013
Change in projected post-employment health care benefits obligation
Projected post-employment health care benefits obligation at beginning of year
10,653 13,162
Service costs 45
70 Interest costs
942 813
Actuarial losses gains 237
3,099 Expected post-employment health care benefits paid
373 293
Projected post-employment health care benefits obligation at end of year
11,504 10,653