PENSION AND OTHER POST-RETIREMENT BENEFITS continued a. Pension continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 96

41. PENSION AND OTHER POST-RETIREMENT BENEFITS continued a. Pension continued

1. The Company continued December 31, December 31,

2009 2010 Discount rate 10.75 9.5 Expected long-term return on plan assets 10.5 9.7 Rate of compensation increases 8 8 The components of net periodic pension costs are as follows: December 31, September 30, 2010 2011 Service costs 330,734 296,839 Interest costs 1,199,971 974,276 Expected return on plan assets 1,286,718 1,080,745 Amortization of prior service costs 312,074 203,802 Recognized actuarial gain 124,407 104,927 Net periodic pension costs 431,654 289,245 Amount charged to subsidiaries under contractual agreements 1,484 975 Total net periodic pension costs less amounts charged to subsidiaries Note 34 430,170 288,270 2. 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. The following table reconciles the unfunded status of the plans with the amounts included in the consolidated statement of financial positions as of December 31, 2010 and September 30, 2011: PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND SEPTEMBER 30, 2011 UNAUDITED AND NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 97

41. PENSION AND OTHER POST-RETIREMENT BENEFITS continued a. Pension continued