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 c. Other post-employment benefits provisions continued
The movements in the projected other post-employment benefit obligations for the yearsended December 31, 2016 and 2015 are as follows:
2016 2015
Unfunded projected benefit obligations at beginning of year
497 488
Charged to profit or loss: Service costs
7 8
Net interest cost 41
39 Actuarial losses recognized in OCI
20 11
Benefits paid by employer 63
49
Provision for other post-employment benefits 502
497
The components of the projected other post-employment benefit cost for the years ended December 31, 2016 and 2015 are as follows:
2016 2015
Service costs 7
8 Net interest cost
41 39
Total 48
`47
2016 2015
Actuarial gain losses recognized during the year due to:
Experience adjustments 2
20 Changes in demographic assumptions
Changes in financial assumptions 18
9
Net 20
11 The actuarial valuation for the other post-employment benefits was performed based on the
measurement date as of December 31, 2016 and 2015,with reports dated February 22, 2017 and February 25, 2016, respectively by TWP, an independent actuary in association with WTW. The
principal actuarial assumptions used by the independent actuary as of December 31, 2016 and 2015 are as follows:
2016 2015
Discount rate 7,75
9.00 Indonesian mortality table
2011 2011
d. Obligation under the Labor Law
Under Law No. 13 Year 2003, the Group is required to provide minimum pension benefits, if not covered yet by the sponsored pension plans, to its employees upon retirement age. The total
related obligation recognized as ofDecember 31, 2016 and 2015 amounted to Rp332 billion and Rp253 billion, respectively. The related employee benefits cost charged to expense amounted to
Rp82 billion and Rp53 billion for the years ended December 31, 2016 and 2015, respectively Note 23.The actuarial losses recognized in OCI amounted to Rp33 billion and Rp20 billion for
the years ended December 31, 2016 and 2015, 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 e. Maturity Profile of Defined Benefit Obligation “DBO”
The timing of benefits payments and weighted average duration of DBO for 2016 are as follows in billions of Rupiah:
Expected Benefits Payment The Company
Post-employment health care
benefits Other post-
employment benefits
Time Period Funded
Unfunded Telkomsel
Within next 10 years 16,888
2,914 1,653
6,273 578
Within 10-20 years 20,052
263 6,257
8,401 139
Within 20-30 years 17,289
29 5,758
8,648 47
Within 30-40 years 11,827
5 936
6,711 3
Within 40-50 years 2,872
- -
2,986 -
Within 50-60 years 238
- -
245 -
Within 60-70 years 9
- -
1 -
Within 70-80 years -
- -
Weighted average duration of DBO
9.15 years 4.33 years 11.33 years
13.81 years 3.62 years
f. Sensitivity Analysis
1 change in discount rate and rate of salary would have effect on DBO, as follows:
Discount Rate Rate of Compensation
1 Increase 1 Decrease
1 Increase 1 Decrease
Sensitivity Increase decrease in amounts
Increase decrease in amounts
Funded 1,579
1,860 384
397 Unfunded
68 73
70 70
Telkomsel 108
116 115
108 Post-employment
health care benefits 1,544
1,882 2,034
1,687 Other post-employment
benefits 16
18 -
-
The sensitivity analysis have been determined based on a method that extrapolates the impact on DBO as a result of reasonable changes in key assumptions occurring at the end of the reporting
period. The sensitivity results above determine the individual impact on the Plan’s end of the year DBO.
In reality, the Plan is subject to multiple external experience items which may move the DBO in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time.
There are no changes in the methods and assumptions used in calculating the sensitivity analysis from the previous period.
30. LSA PROVISIONS
