BASIC AND DILUTED EARNINGS PER SHARE

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 87

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS

continued a. Prepaid pension benefit costs continued Based on company regulations published on July 1, 2014, in respect of pension regulatory by Dana Pensiun Telkom, there is an increasing in monthly benefits given to the pensionary, widowwidower or the child of participants who stop working before the month ended of June, 2002. The movements of the prepaid pension benefit costs during nine months period ended September 30, 2014 and for the year ended December 31, 2013 are as follows: September 30, December 31, 2014 2013 Prepaid pension benefit costs at beginning of period 927 1,031 Net periodic pension costs less amounts charged to subsidiaries 19 265 Amounts charged to subsidiaries under contractual agreement - 21 Employer’s contributions - 182 Prepaid pension benefit costs at end of period 908 927 As of September 30, 2014 and December 31, 2013, pension plan assets mainly consisted of : September 30, December 31, 2014 2013 Government bonds 37.09 40.30 Indonesian equity securities 22.70 21.97 Corporate bonds 18.45 21.19 Others 21.76 16.54 Total 100.00 100.00 Pension plan assets also include Series B shares issued by the Company with fair values totaling Rp364 billion and Rp336 billion, representing 1.99 and 2.00 of total plan assets as of September 30, 2014 and December 31, 2013, respectively, and bonds issued by the Company with fair values totaling Rp151 billion representing 0.83 and 0.90 of total plan assets as of September 30, 2014 and December 31, 2013, respectively. The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits Notes 34b and 34c was performed based on the measurement date as of December 31, 2013 and 2012, with reports dated February 28, 2014 and February 28, 2013, respectively, by PT Towers Watson Purbajaga “TWP”, 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, 2013 and 2012 are as follows: December 31, December 31, 2013 2012 Discount rate 9.00 6.25 Expected long-term return on pension plan assets 9.75 8.25 Rate of compensation increases 8.00 8.00 The components of net periodic pension costs are as follows: