RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS March 31,

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 81

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued

a. Prepaid pension benefit costs continued

As of March 31, 2014 and December 31, 2013, pension plan assets mainly consisted of : March 31, December 31, 2014 2013 Government bonds 38.72 40.30 Indonesian equity securities 23.42 21.97 Corporate bonds 19.65 21.19 Others 18.21 16.54 Total 100.00 100.00 Pension plan assets also include Series B shares issued by the Company with fair values totaling Rp339 billion and Rp336 billion, representing 1.90 and 2.00 of total plan assets as of March 31, 2014 and December 31, 2013, respectively, and bonds issued by the Company with fair values totaling Rp151 billion and Rp151 billion representing 0.85 and 0.90 of total plan assets as of March 31, 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: March 31, December 31, 2014 2013 Service costs 48 450 Interest costs 327 1,183 Expected return on pension plan assets 402 1,485 Amortization of prior service costs 20 139 Net periodic pension costs 7 287 Amount charged to subsidiaries under contractual agreements - 21 Net periodic pension costs less amounts charged to subsidiaries Note 27 7 266 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 82

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued