RETIREMENT BENEFITS OBLIGATION continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 84

34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued

December 31, December 31, 2012 2011 Discount rate 6.25 7.25 Expected long-term return on pension plan assets 8.25 9.25 Rate of compensation increases 8 8 The components of net periodic pension costs are as follows: September 30, December 31, 2013 2012 Service costs 338 372 Interest costs 887 1,151 Expected return on pension plan assets 1,114 1,517 Amortization of prior service costs 104 139 Net periodic pension costs 215 145 Amount charged to subsidiaries under contractual agreements 15 12 Total net periodic pension cost benefits less amounts charged to subsidiaries Note 27 200 133 b. Pension benefit costs provisions i The Company The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan. The defined contribution pension plan is provided to employees hired with permanent status on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund “Dana Pensiun Lembaga Keuangan” or “DPLK”. The Company’s contribution to DPLK is determined based on a certain percentage of the participants’ salaries and amounted to Rp4 billion Rp5 billion for each of nine months period ended September 30, 2013 and the years ended December 31, 2012, respectively. Since 2007, the Company provides pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced the uniformulation with Manfaat Pensiun Sekaligus “MPS”. MPS is given to those employees reaching retirement age, upon death or upon being disabled starting from February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp435 billion, which is amortized over 8.63 years until 2018. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 85

34. RETIREMENT BENEFITS OBLIGATION continued

b. Pension benefit costs provisions continued i The Company continued The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre- retirement benefits “Masa Persiapan Pensiun” or “MPP”. During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not limited to, regular salary, health care, annual leave, bonus and other benefits. Since 2012, the Company has issued a new requirement for MPP effective for employees retiring beginning April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, he or she is required to work until the retirement date. The following table presents the change in projected benefits obligation of MPS and MPP for nine months period ended September 30, 2013 and the years ended December 31, 2012: September 30, December 31, 2013 2012 Change in projected benefits obligation Unfunded projected benefits obligation at beginning of year 2,436 2,440 Service costs 73 104 Interest costs 112 173 Actuarial gains 39 128 Benefits paid by employer 62 153 Unfunded projected benefits obligation at end of year 2,520 2,436 Unrecognized prior service costs 539 639 Unrecognized net actuarial losses 400 424 Pension benefit costs provisions at end of period 1,581 1,373 The movements of the pension benefit costs provisions during nine months period ended September 30, 2013 and the years ended December 31, 2012: September 30, December 31, 2013 2012 Pension benefits costs provisions at beginning of year 1,373 1,067 Net periodic pension costs 310 459 Employer’s contribution 102 153 Pension benefits costs provisions at end of period 1,581 1,373