Assessment Center, Telkom uses the Top Talent data to ill layer 1 and 2 positions below Board of Directors
level throughout the Telkom Group. Career movements of our employees refer to the
Staing Plan and may be efected through a request to ill vacant positions at the Unit ManagerBoard of
Directors level to Telkom’s HRD Director. Our HR management has earned external recognition.
We won ive awards at the Indonesian Human Capital Studies 2011 held by Dunamis Human Capital and
Business Review Magazine on June 30, 2011, and received the runner-up award for Best SOEs HR
Innovation at the 2011 State-Owned Enterprises Awards on December 1, 2011 from BUMN Track Magazine, the
SOEs Public Relations Forum and the Ministry of SOEs.
B.competitive remuneration
Telkom ofers a competitive remuneration package that relects market prices as well as the prevailing
regulations, and consists of a basic salary and certain allowances, bonuses and beneits, including a pension
program postretirement health care plan, health beneits for themselves and certain immediate family members,
and housing allowance and other beneits, including those related to their work unit. The remuneration
package is regularly evaluated to ensure that it keeps pace with market movements in salaries.
Bonuses are budgeted in advance and paid out in the year following that in which they were accrued.
The total bonuses paid in a year ranged from Rp236 billion to Rp518 billion over the last ive years. Bonuses
accrued in 2011 will be paid to all employees following the completion of our 2011 audited inancial statement
and the approval of the 2011 GMS. Subsidiaries similarly provide competitive remuneration.
c.employee rewards
As a mark of our appreciation for employees whose eforts have made a particular contribution to the
achievement of our business targets, as well as for external parties who have contributed to Telkom’s
success, the Company awards a number of rewards each year.
The following table shows the rewards presented to Telkom employees in 2011:
No. Reward Type
Reward Recipients
Number Type
INDIVIDUAL REWARDS Internal Rewards
1. Religious Devotion Award
Hajj, Umrah, Christian Pilgrimage, Tirtayatra
104 Individual
2. The Healthiest Family
3 Individual
3. Best Manager Staf
16 Individual
4. Best Innovator
15 Individual
5. Special Recognition for
Innovation in CSR 1
Individual 6.
Kampiun Award 3
Individual 7.
Main Reward 4
Individual
External Rewards
Customer Service Award 33
Individual
TOTAL 179
Individual UNIT REWARDS
Internal Rewards
1. Best Unit Award
11 Unit
2. Kampiun Award
3 Unit
External Rewards
3. Best Channel Award
35 Unit
4. TCSR Award
20 Unit
TOTAL 69
Unit
Subsidiaries also maintain employee reward programs.
d.It-Based Hr services
To make it easier for employees to do their jobs, Telkom has developed an integrated communications
infrastructure to facilitate the coordination and dissemination of corporate policies and business
strategies between policy makers, HR managers and employees. The heart of this infrastructure is
the Human Capital General Affairs website, which enables all employees to access HR policies and
other HR-related information. Since 2009 we have also taken steps to develop
and improve IT-based HR services, including online personal work targets, online attendance, online
travel warrants, online leave, online careers, and online training needs analysis “TNA”. We have also
introduced various other IT applications, including
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
business automation processes in the form of electronic memos, virtual meetings, shared files,
online surveys, and the intranet. To ensure that employee-related issues are handled
and communicated effectively, we established our employee relations media and human resources
care center “HRCC” in October 2007. We deploy telephone, in-person, email and website strategies to
enable communication between employees and HR. Subsidiaries similarly deploy various
communications strategies by which their HR functions reach their employees.
PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications
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
