Other post-employment benefits provisions

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 b. Post-employment health care benefits provisionscontinued The components of net periodic post-employment health care benefit cost for the years ended December 31, 2016 and 2015 are as follows: 2016 2015 Service costs 9 49 Plan administration cost 144 131 Net interest cost 12 37 Periodic post-employment health care benefit cost 165 217 Amount charged to subsidiariesunder contractual agreement 2 1 Net periodic post-employment health care benefitcost less cost charged to subsidiaries 163 216 Amounts recognized in OCI are as follows: 2016 2015 Actuarial gain losses recognized during the year due to: Experience adjustments 26 53 Changes in demographic assumptions 66 92 Changes in financial assumptions 1,736 1,226 Return on plan assets excluding amount included in net interest expense 519 647 Net 1,309 540 The actuarial valuation for the post-employment health care benefits was performed based on measurement date as of December 31, 2016 and 2015with reports dated February 22, 2017 and February 25, 2016, respectively, was performed 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 8,50 9.25 Health care costs trend rate assumed for the next year 7,00 7.00 Ultimate health care costs trend rate 7,00 7.00 Year that the rate reaches the ultimate trend rate 2017 2016 Indonesian mortality table 2011 2011

c. Other post-employment benefits provisions

The Company provides other post-employment benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of final housing allowance Biaya Fasilitas Perumahan Terakhir or “BFPT” and home passage leave Biaya Perjalanan Pensiun dan Purnabhakti or “BPP”. 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