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

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

28. CASH DIVIDENDS AND GENERAL RESERVE

Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 26 dated April 17, 2015 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2014 amounting to Rp7,319 billion Rp74.55 per share and Rp1,464 billion Rp14.91 per share, respectively. On May21, 2015, the Company paid the cash dividend and special cash dividend totalling Rp8,783 billion. Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 50 dated April 22, 2016 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2015 amounting to Rp7,744 billion Rp78.86 per share and Rp1,549 billion Rp15.77 per share, respectively. On May26, 2016, the Company paid the cash dividend and special cash dividend totalling Rp9,293 billion. On December 27, 2016, the Company had paid an interim dividend amounting to Rp1,920 billion or totalling Rp19.38 per share. Appropriation of Retained Earnings Under the Limited Liability Company Law, the Company is required to establish a statutory reserve amounting to at least 20 of its issued and paid-up capital. The balance of the appropriated retained earnings of the Company as of December 31, 2016 and 2015 amounting to Rp15,337 billion, respectively.

29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS

The details of pension and other post-employment benefitliabilities are as follows: Notes 2016 2015 Prepaid pension benefit cost The Company - funded 29a.i.a 197 1,329 MDM 1 2 Infomedia 1 Total prepaid pension benefit cost 199 1,331 Pension benefit and other post-employment benefit obligations Pension benefit The Company - unfunded 29a.i.b 2,507 2,500 Telkomsel 29a.ii 1,193 803 Patrakom - Sub-total pension benefit 3,700 3,303 Net periodic post-employment health care benefit 29b 1,592 118 Other post-employment benefit 29c 502 497 Obligation under the Labor Law 29d 332 253 Pension benefit and other post-employment benefit obligations 6,126 4,171 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued

The breakdown of the net benefit expense recognized in the consolidated statements of profit or loss and other comprehensive income is as follows: Notes 2016 2015 Pension benefit cost The Company- funded 29a.i.a 608 12 The Company- unfunded 29a.i.b 279 251 Telkomsel 29a.ii 181 168 MDM 1 Infomedia Patrakom - Total pension benefit cost 23 1,068 432 Net periodic post-employment health care benefit cost 23,29b 163 216 Other post-employment benefit cost 23,29c 48 47 Obligation under the Labor Law 23,29d 82 53 Total 1,361 748 Notes 2016 2015 Defined benefit plan actuarial gain losses The Company- funded 29a.i.a 492 186 The Company- unfunded 29a.i.b 119 187 Telkomsel 29a.ii 292 15 Infomedia 1 Patrakom MDM 1 Post-employment health care benefit 29b 1,309 540 Other post-employment benefit 29c 20 11 Obligation under the Labor Law 29d 33 20 Sub-total 2,266 494 Deferred tax effect at the applicable tax rates 208 12 Defined benefit plan actuarial gain losses - net 2,058 506

a. Pension benefit costs

i. The Company a. Funded pension plan The Company sponsors a defined benefit pension plan for employees with permanent status prior to July 1, 2002. The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The plan is governed by the pension laws in Indonesia and managed by Telkom Pension Fund Dana Pensiun Telkom or “Dapen”. The participating employees contribute 18 before March 2003: 8.4 of their basic salaries to the pension fund. The Company’s contributions to the pension fund for the yearsended December 31, 2016 and2015 amounted to Rpnil, respectively. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

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

i. The Company continued a. Funded pension plan continued The following table presents the changes in projected pension benefit obligations, changesin pension benefit plan assets, funded status of the pension plan and net amount recognized in the consolidated statements of financial position as of December 31, 2016 and2015, and for the years ended December 31, 2016 and 2015, on the defined benefit pension plan: 2016 2015 Changes in projected pensionbenefit obligations Projected pension benefit obligations at beginning of year 16,505 17,402 Charged to profit or loss: Service costs 363 218 Past service cost - plan amendments 245 55 Interest costs 1,444 1,445 Pension plan participants’ contributions 44 45 Actuarial gain losses 1,680 1,666 Pension benefits paid 1,432 808 Settlement - 76 Projected pension benefit obligations at end of year 18,849 16,505 2016 2015 Changes in pension benefit plan assets Fair value of pension plan assetsat beginning of year 17,834 18,929 Interest income 1,458 1,576 Return on plan assets excluding amount included in net interest expense 1,188 1,837 Pension plan participants’ contributions 44 45 Pension benefits paid 1,432 808 Plan administrationcost 46 71 Fair value of pension plan assets at end of period 19,046 17,834 Funded status 197 1,329 Effect of asset ceiling - - Prepaid pension benefit cost 197 1,329 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content

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