RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 87

b. Pension benefit costs provisions continued

i The Company continued The components of total periodic pension costs are as follows: June 30, December 31, 2014 2013 Service costs 40 97 Interest costs 97 150 Amortization of prior service costs 66 132 Recognized actuarial gains losses 10 33 Total periodic pension costs Note 27 193 412 ii Telkomsel 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 their service. PT Asuransi Jiwasraya “Jiwasraya”, a state-owned life insurance company, manages the plan under an annuity insurance contract. Until 2004, the employees contributed 5 of their monthly salaries to the plan and Telkomsel contributed any remaining amount required to fund the plan. Starting 2005, the entire contributions are fully made by Telkomsel. The following table presents the change in projected pension benefits obligation, change in pension plan assets, funded status of the pension plan and net amount recognized in the Company’s consolidated statement of financial position for six month period ended June 30, 2014 and for the year ended December 31, 2013 of its defined benefit pension plan: June 30, December 31, 2014 2013 Change in projected pension benefits obligation Projected pension benefits obligation at beginning of year 899 1,472 Service cost 37 130 Interest cost 40 88 Actuarial gains - 789 Expected pension benefits paid - 2 Projected pension benefits obligation at end of year 976 899 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 88

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued

b. Pension benefit costs provisions continued