CASH DIVIDENDS AND GENERAL RESERVE

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED continued JUNE 30, 2009 AND 2010, AND SIX MONTHS PERIOD ENDED JUNE 30, 2009 AND 2010 Figures in tables are presented in millions of Rupiah, unless otherwise stated 87

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

1. The Company continued In 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.698,583 million, which is amortized over 9.9 years until 2016. The actual return on plan assets was Rp.1,407,261 million and Rp.976,476 million for six months period ended June 30, 2009 and 2010, respectively. The movement of the accrued pension benefits costs during the six months period ended June 30, 2009 and 2010, is as follows: 2009 2010 Accrued pension benefits costs at beginning of year 775,657 410,209 Net periodic pension cost less amounts charged to subsidiaries 236,674 138,656 Amounts charged to subsidiaries under contractual agreements 367 861 Employer’s contributions 444,531 282,382 Benefits paid by the Company 16,082 171,193 Accrued pension benefits costs at end of year 552,085 96,151 As of June 30, 2009 and 2010, plan assets consisted mainly of Indonesian Government bonds and corporate bonds. As of June 30, 2009 and 2010, plan assets included Series B shares issued by the Company with fair value totaling Rp.308,999 million and Rp.310,975 million, respectively, representing 3.00 and 2.52 of total assets of Dapen as of June 30, 2009 and 2010, respectively. The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits Note 42b was performed based on the measurement date as of December 31, 2008 and 2009, with reports dated March 31, 2009 and March 30, 2010, respectively, by PT Watson Wyatt Purbajaga “WWP”, an independent actuary in association with Towers Watson “TW” formerly Watson Wyatt Worldwide. The principal actuarial assumptions used by the independent actuary as of December 31, 2008 and 2009, are as follows: 2008 2009 Discount rate 12 10.75 Expected long-term return on plan assets 11.5 10.5 Rate of compensation increases 8 8