PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 80

29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued

i. The Company continued a. Funded pension plan continued Based on the Company policy issued on July 1, 2014 regarding Pension Regulation by “Dana Pensiun Telkom ”, there is an increase in monthly benefits given to the pensioners, widowwidower or the children of participants who stopped working before the end of June 2002. During 2015, the Company made settlements to pensioners, widowwidower or the children of participants who have monthly pension benefits under Rp1,500,000 and chose to withdraw their pension benefits in lump sum. Based on the Company ’s policy issued on June 24, 2016 regarding Pension Regulation by Dana Pensiun Telkom, widowwidower or the children of participants who enrolled before April 20, 1992, will receive increase in monthly pension benefits from 60 to 75 of pension benefits received by the pensioners which became effective starting from January 1, 2016. In addition, the Company provided other benefits to enhance the pensioners ’ welfare which were provided only in 2016. Such other benefits consist of Rp6 million per month to pension beneficiaries who retired before end of June 2002 and other benefit of Rp3 million per month to pension beneficiaries who retired starting from the end of June 2002 until the end of May 2016. Based on the companys policy issued on June 15, 2016 regarding Pension Regulation by Dana Pensiun Telkom, the Company provided other benefits amounted to Rp4,5 million per month to pension beneficiaries who retired before end of June 2002 and Rp2,5 million per month to pension beneficiaries who retired starting from the end of June 2002 until the end of April 2017. In addition, the Company has made Additional Benefit Fund derived from maximum 10 of development of the pension plan, in condition Dapen’s FSR is above 105 and Dapen’s Return on Investment “ROI” is above the actuarial interest rate. The amount and timing of payment d epend on the availability of additional benefit fund that set by Dapen’s Managements and approved by Dapen’s Commisioners in Annual Strategic Plan. The movements of the prepaid pension benefit cost during the six months period ended June 30, 2017 and for the year ended December 31, 2016 are as follows: June 30, 2017 December 31, 2016 Prepaid pension benefit cost at beginning of year 197 1,329 Net periodic pension benefit cost 454 640 Actuarial gain losses recognized in OCI 966 1,680 Asset ceiling recognized in OCI - - Return on plan assets excluding amount included in net interest expense 966 1,188 Prepaid pension benefit cost at end of period 257 197 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 81

29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued