PENSION AND OTHER POST-EMPLOYMENT BENEFITS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 79

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

i. The Company continued a. Funded pension plan continued September 30, 2016 December 31, 2015 Changes in pension benefit plan assets Fair value of pension plan assetsat beginning of year 17,834 18,929 Interest income 1,104 1,576 Return on plan assets excluding amount included in net interest expense 2,015 1,837 Pension plan participants’ contributions 33 45 Expected pension benefits paid 1,063 808 Administrative expenses paid 35 71 Fair value of pension plan assets at end of period 19,888 17,834 Funded status 805 1,329 Prepaid pension benefit cost 805 1,329 As of September 30, 2016 and December 31, 2015, plan assets consisted of : September 30, 2016 December 31, 2015 Quoted in active market Unquoted Quoted in active market Unquoted Cash and cash equivalent 1,254 - 1,335 - Equity instruments Finance 1,123 - 1,153 - Consumer goods 1,244 - 953 - Infrastructure, utilities and transportation 616 - 637 - Construction, property and real estate 591 - 573 - Basic industry and chemical 153 163 - Trading, service and investment 187 - 183 - Mining 61 - 45 - Agriculture 59 - 29 - Miscellaneous industries 346 - 240 - Equity-based mutual fund 1,333 - 1,120 - Fixed income instruments Corporate bonds - 3,779 - 3,587 Government bonds 8,535 - 7,257 - Non-public equity: - 30 Direct placement - 163 - 163 Property - 155 - 156 Others - 259 - 240 Total 15,502 4,386 13,688 4,146 Pension plan assets also include Series B shares issued by the Company with fair values totalling Rp467 billion and Rp445 billion, representing 2.35 and 2.49 of total plan assets as of September 30, 2016 and December 31, 2015, respectively, and bonds issued by the Company with fair value totalling Rp329 billion and Rp464 billion representing 1.65 and 2.60 of total assets as of September 30, 2016 and December 31, 2015, respectively. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 80

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