RETIREMENT BENEFITS OBLIGATION continued b. Pension benefit costs provisions continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011 Figures in tables are presented in billions of Rupiah, unless otherwise stated 87

34. RETIREMENT BENEFITS OBLIGATION continued c. Other post-retirement benefits continued

The components of the net periodic other post-retirement benefits costs for the years ended December 31, 2012 and 2011: 2012 2011 Service costs 10 9 Interest costs 32 37 Amortization of past service costs 7 7 Recognized actuarial losses 16 12 Total net periodic other post-retirement benefits costs Note 27 65 65 Historical information: 2012 2011 2010 2009 2008 Present value of unfunded defined benefit obligation 508 462 409 336 277 Fair value of plan assets - - - - - Deficit in the plan 508 462 409 336 277 Experience adjustments arising on plan liabilities 5 13 11 1 10

d. Obligation under Labor Law

Under Law No. 13 Year 2003 concerning labor regulation, the Company and subsidiaries are required to provide a minimum pension benefit, if not covered yet by the sponsored pension plans, to their employees upon retirement age. The total related obligation recognized as of December 31, 2012 and 2011 amounted to Rp146 billion and Rp111 billion, respectively. The related employees’ benefits cost charged to expense amounted to Rp38 billion and Rp30 billion for the years ended December 31, 2012 and 2011, respectively.

35. LONG SERVICE AWARDS “LSA”

Telkomsel provides certain cash awards or certain number of days leave benefits to its 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 during 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 with a certain minimum age. The obligation with respect to these awards was determined based on an actuarial valuation using the Projected Unit Credit method, and amounted to Rp347 billion and Rp287 billion as of December 31, 2012 and 2011, respectively. The related benefits costs charged to expense amounted to Rp121 billion and Rp96 billion for the years ended December 31, 2012 and 2011, respectively Note 27. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011 Figures in tables are presented in billions of Rupiah, unless otherwise stated 88

36. POST-RETIREMENT HEALTH CARE BENEFITS

The Company provides a post-retirement health care plan to all of its employees hired before November 1, 1995 who have worked for the Company for 20 years or more when they retire, and to their eligible dependents. The requirement to work for 20 years does not apply to employees who retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995 are no longer entitled to this plan. The plan is managed by Yakes. The defined contribution post retirement health care plan is provided to employees hired with permanent status on or after November 1, 1995 or employees with terms of service less than 20 years on the time of retirement. The Company’s contribution amounted to Rp18 billion and Rp19 billion for the years ended December 31, 2012 and 2011, respectively. The following table presents the change in the projected post-retirement health care benefits obligation, change post-retirement health care benefits in plan assets, funded status of the post- retirement health care benefits plan and net amount recognized in the Company’s consolidated statement of financial position as of December 31, 2012 and 2011: 2012 2011 Change in projected post-retirement health care benefits obligation Projected post-retirement health care benefits obligation at beginning of year 10,547 8,741 Service costs 56 43 Interest costs 755 818 Actuarial losses 2,074 1,208 Expected post-retirement health care benefits paid 270 263 Projected post-retirement health care benefits obligation at end of year 13,162 10,547 Change post-retirement health care benefits in plan assets Fair value of plan assets at beginning of year 8,986 8,005 Expected return on plan assets 720 662 Employer’s contributions 300 361 Actuarial gains 177 222 Expected post-retirement health care paid 270 264 Fair value of plan assets at end of year 9,913 8,986 Funded status 3,249 1,561 Unrecognized net actuarial losses 2,570 673 Post-retirement health care benefits costs provisions 679 888