NON-CONTROLLING INTERESTS 2013 Disposal of Indonusa continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 83

34. RETIREMENT BENEFIT

AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued a. Prepaid pension benefit costs continued As of December 31, 2013 and 2012, pension plan assets mainly consisted of : 2013 2012 Government bonds 40.30 37.96 Indonesian equity securities 21.97 21.82 Corporate bonds 21.19 16.91 Others 16.54 23.31 Total 100.00 100.00 Pension plan assets also include Series B shares issued by the Company with fair values totaling Rp336 billion and Rp223 billion, representing 2.00 and 1.23 of total plan assets as of December 31, 2013 and 2012, respectively, and bonds issued by the Company with fair values totaling Rp151 billion and Rp159 billion representing 0.90 and 0.87 of total plan assets as of December 31, 2013 and 2012, respectively. The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits Notes 34b and 34c was performed based on the measurement date as of December 31, 2013 and 2012, with reports dated February 28, 2014 and February 28, 2013, respectively, by PT Towers Watson Purbajaga “TWP”, an independent actuary in association with Towers Watson “TW” formerly Watson Wyatt Worldwide. The principal actuarial assumptions used by the independent actuary as of December 31, 2013 and 2012 are as follows: 2013 2012 Discount rate 9.00 6.25 Expected long-term return on pension plan assets 9.75 8.25 Rate of compensation increases 8.00 8.00 The components of net periodic pension costs are as follows: 2013 2012 Service costs 450 372 Interest costs 1,183 1,151 Expected return on pension plan assets 1,485 1,517 Amortization of prior service costs 139 139 Net periodic pension costs 287 145 Amount charged to subsidiaries under contractual agreements 21 12 Net periodic pension costs less amounts charged to subsidiaries Note 27 266 133