PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
87
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued c. Other post-employment benefits provisions continued
The movements of the unfunded projected other post-employment benefit obligations for the three month periods ended March 31, 2017 and for the year ended December 31, 2016 are as follows :
March 31, 2017 December 31, 2016
Unfunded projected benefit obligations at beginning of year
502 497
Charged to profit or loss: Service costs
2 7
Net interest cost 9
41 Actuarial losses recognized in OCI
- 20
Benefits paid by employer 15
63
Provision for other post-employment benefits 498
502
The components of the projected other post-employment benefit cost for the three month periods ended March 31, 2017 and 2016 are as follows:
2017 2016
Service costs 2
2 Net interest costs
9 10
Total 11
12
Amounts recognized in OCI amounted to RpNil billion as of March 31, 2017 and 2016, respectively.
The actuarial valuation for the other post-employment benefits plan was performed based on measurement date as of December 31, 2014, 2015 and 2016, with reports dated March 13, 2015,
February 25, 2016 and February 22, 2017 respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of
December 31, 2014, 2015 and 2016, 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. The total related
obligation recognized as of March 31, 2017 and December 31, 2016 amounted to Rp346 billion and Rp332 billion, respectively. The related employee benefits cost charged to expense
amounted to Rp16 billion and Rp12 billion for the three month periods ended March 31, 2017 and 2016, respectively Note 23. The actuarial losses recognized in OCI amounted to Rp16 billion
and Rp33 billion for the three month periods ended March 31, 2017 and 2016, respectively.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
88
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 16,583
2,822 1,653
6,152 563
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 compensation 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 1,644
1,937 400
413 Unfunded
67 72
69 69
Telkomsel 112
121 120
112 Post-employment health care
benefits 1,633
1,991 2,152
1,785
Other post-employment benefits 16
17 -
- The sensitivity analysis has 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 DBO at the end of the year. 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 preparing the sensitivity analysis
from the previous period.
30. LSA PROVISIONS
Telkomsel and Patrakom provide certain cash awards or certain number of days leave benefits to their employees based on the employees’ length of service requirements, including LSA and LSL. LSA are
either paid at the time the employees reach certain years of employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management,
provided to employees who meet the requisite number of years of service and reach a certain minimum age.
The obligation with respect to these awards which was determined based on an actuarial valuation using the Projected Unit Credit method, amounted to Rp614 billion and Rp613 billion as of
March 31, 2017 and December 31, 2016, respectively. The related benefit costs charged to expense amounted to Rp30 billion and Rp27 billion for the three month periods ended March 31, 2017 and
2016, respectively Note 23.
