BASIC EARNINGS PER SHARE

78 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 79

34. PENSION AND OTHER POST-RETIREMENT BENEFITS continued

a. Prepaid pension benefit costs continued

2011 2010 Discount rate 7.25 9.5 Expected long-term return on plan assets 9.25 9.7 Rate of compensation increases 8 8 The components of net periodic pension costs are as follows: 2011 2010 Service costs 307 254 Interest costs 1,105 1,003 Expected return on plan assets 1,441 1,287 Amortization of prior service costs 139 139 Recognized actuarial gain 170 159 Net periodic pension benefits 60 50 Amount charged to subsidiaries under contractual agreements 2 2 Total net periodic pension benefits less amounts charged to subsidiaries Note 27 62 52 b. Pension benefit costs provisions 1. The Company The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan. The defined contribution pension plan is provided to employees hired with permanent status on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund “Dana Pensiun Lembaga Keuangan” or “DPLK”. The Company’s contribution to DPLK is determined based on a certain percentage of the participants’ salaries and amounted to Rp.5 billion and Rp.4 billion for the years ended December 31, 2011 and 2010, respectively. Since 2007, the Company provides pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp.699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced the uniformulation with Manfaat Pensiun Sekaligus “MPS”. MPS is given to those employees reaching retirement age, death or disabled starting from February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp.435 billion, which is amortized over 8.63 years until 2018. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 80

34. PENSION AND OTHER POST-RETIREMENT BENEFITS continued

b. Pension benefit costs provisions continued

1. The Company continued The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre- retirement benefits “Masa Persiapan Pensiun” or “MPP”. During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not limited to regular salary, health care, annual leave, bonus and other benefits. The following table presents the change in projected benefits obligation of the MPS and MPP for the year ended December 31, 2011 and 2010: 2011 2010 Change in projected benefits obligation Unfunded projected benefits obligation at beginning of year 2,096 1,622 Service costs 89 77 Interest costs 194 197 Actuarial losses 244 61 Benefits paid by employer 183 296 Benefits changed - 435 Unfunded projected benefits obligation at end of year 2,440 2,096 Unrecognized prior service costs 772 905 Unrecognized net actuarial losses 601 387 Pension benefit costs provisions at end of year 1,067 804 The movement of the pension benefit costs provisions during the years ended December 31, 2011 and 2010, is as follows: 2011 2010 Pension benefits costs provisions at beginning of year 804 619 Net periodic pension 446 481 Benefits paid by employer 183 296 Pension benefits costs provisions at end of year 1,067 804