ADDITIONAL PAID-IN CAPITAL continued TREASURY STOCK

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 85

34. RETIREMENT BENEFIT

AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued b. Pension benefit cost provisions continued i 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. Since 2012, the Company has issued a new requirement for MPP effective for employees retiring beginning April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, he or she is required to work until the retirement date. The following table presents the change in projected benefits obligation of MPS and MPP for the years ended December 31, 2013 and 2012: 2013 2012 Change in projected benefits obligation Unfunded projected benefits obligation at beginning of year 2,436 2,440 Service costs 97 104 Interest costs 150 173 Actuarial gains 342 128 Benefits paid by employer 141 153 Unfunded projected benefits obligation at end of year 2,200 2,436 Unrecognized prior service costs 506 639 Unrecognized net actuarial losses 50 424 Pension benefit costs provisions at end of year 1,644 1,373 Movements of the pension benefit costs provisions during the years ended December 31, 2013 and 2012: 2013 2012 Pension benefit costs provisions at beginning of year 1,373 1,067 Net periodic pension costs 412 459 Employer’s contributions 141 153 Pension benefit costs provisions at end of year 1,644 1,373