Obligation under Labor Law

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 90

36. POST-RETIREMENT HEALTH CARE BENEFITS continued

The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp60 billion and Rp896 billion for nine months period ended September 30, 2013 and the years ended December 31, 2012, respectively. The components of net periodic post-retirement health care benefits cost are as follows: September 30, December 31, 2013 2012 Service costs 53 56 Interest costs 610 755 Expected return on plan assets 558 720 Recognized actuarial losses 177 - Net periodic post-retirement benefits costs 282 91 Amounts charged to subsidiaries under contractual agreements 1 1 Total net periodic post-retirement health care benefits costs less amounts charged to subsidiaries Note 27 281 90 The movements of the projected post-retirement health care benefits costs provisions for nine months period ended September 30, 2013 and the years ended December 31, 2012, are as follows: September 30, December 31, 2013 2012 Projected post-retirement health care benefits costs provisions at beginning of year 679 888 Net periodic post-retirement health care benefits costs less amounts charged to subsidiaries Note 27 281 90 Amounts charged to subsidiaries under contractual agreements 1 1 Employer’s contributions 272 300 Projected post-retirement health care benefits costs provisions at end of period 689 679 The actuarial valuation for the post-retirement health care benefits was performed based on the measurement date as of December 31, 2012 and 2011, with reports dated February 28, 2013 and March 7, 2012, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2012 and 2011 are as follows: December 31, December 31, 2012 2011 Discount rate 6.25 7.25 Expected long-term return on plan assets 7.50 8.00 Health care costs trend rate assumed for next year 7 7 Ultimate health care costs trend rate 7 7 Year that the rate reaches the ultimate trend rate 2013 2012