employee rewards employee proile by educational background

e.pension programs

1. Ongoing early retirement program

Telkom’s early retirement program was designed to create a more effective and competitive business environment. The program is aligned with our Human Capital Master Plan 2011-2015, which projects a reduction of 2,870 employees. The program is offered on a voluntary basis to employees who meet certain criteria related to education, age, position and performance. Since it started in 2002 until December 31, 2011, a total of Rp7 trillion was paid out to 13,414 employees under this program.

2. deined Beneit pension plan

The retirement age for all Telkom employees is 56. Telkom offers two pension programs: i The Defined Benefit Pension Plan for permanent employees who joined the Company before July 1, 2002; and ii The Defined Contribution Pension Plan for all other permanent employees. Under the defined benefit pension plan, the pension is based on an employee’s length of service and salary level upon retirement, and is transferable to dependents upon the employee’s death. The defined benefit pension plan is managed by Telkom’s Pension Fund and is funded by contributions from us and our employees. Eligible employees contribute 18 of their basic salary prior to March 2003, the employee contribution was 8.4, while we contribute the remaining amount required to fund the plan. The minimum monthly pension benefit for retired employees is approximately Rp425,000. Our total contributions to the pension fund under the defined benefit pension plan amounted to Rp889 billion, Rp485 billion and Rp187 billion for the years 2009, 2010, and 2011, respectively.

3. deined contribution pension plan

We provide a defined contribution pension plan for permanent employees recruited on or after July 1, 2002. The defined contribution pension plan is managed by the Pension Fund Institution, a Financial Institutions Pension Fund “FIPF”. Under this plan, employees may choose from plans sponsored by several recognized pension fund institutions. Our annual contribution to the defined contribution pension plan is determined based on a certain percentage of the participating employees’ salaries, and amounted to Rp4 billion, Rp4 billion and Rp5 billion for the years 2009, 2010 and 2011, respectively. Employees who have served more than a certain number of years are entitled to additional rewards such as retirement housing, a post-retirement cash award, and retirement travel with certain allowances which are determined upon resignation or retirement. Telkomsel provides a defined benefit pension plan to its employees. Under this plan, employees are entitled to pension benefits based on their latest basic salary or take-home pay and the number of years of service. PT Asuransi Jiwasraya, a state- owned life insurance company, manages the plan PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications