PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 82

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued

i. The Company continued b. Unfunded pension plan continued The following table presents the changes of the unfunded projected pension benefit obligations of MPS and MPP for the nine-month periods ended September 30, 2016 and for the year ended December 31, 2015: September 30, 2016 December 31, 2015 Changes in projected pension benefit obligations Unfunded projected pension benefit obligations at beginning of year 2,500 2,326 Service costs 48 60 Interest costs 161 191 Actuarial losses recognized in OCI - 187 Benefits paid by employer 270 264 Unfunded projected pension benefit obligations at end of period 2,439 2,500 The components of total periodic pension benefit cost for the nine-month periods ended September 30, 2016 and 2015 are as follows: 2016 2015 Service costs 48 45 Net interest cost 161 143 Total periodic pension benefit cost 209 188 Amounts recognized in OCI amounted to RpNil. The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2015 and 2014, with reports dated February 25, 2016 and March 13, 2015, respectively, by TWP independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Discount rate 9.00

8.50 Rate of compensation increases

varies 8.00 Indonesian mortality table 2011 2011 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 83

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued

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 insu rance 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 have been fully made by Telkomsel. Telkomsel’s contributions to Jiwasraya amounted to Rp93 billion and Rp192 billion for the nine- month periods ended September 30, 2016 and for the year ended December 31, 2015, respectively. The following table presents the changes in projected pension benefit obligation, changes in pension benefit plan assets, funded status of the pension plan and net amount recognized in the consolidated statement of financial position for the nine-month periods ended September 30, 2016 and for the year ended December 31, 2015, on Telkomsel’s defined benefit pension plan: September 30, 2016 December 31, 2015 Changes in projected pension benefit obligation 1,415 1,281 Projected pension benefit obligation at beginning of year Charged to profit or loss Service costs 80 101 Net interest cost 88 106 Actuarial gain losses recognized in OCI - 64 Expected benefits paid - 9 Projected pension benefit obligation at end of year 1,583 1,415 Changes in pension benefit plan assets Fair value of plan assets at beginning of year 612 469 Interest income in profit or loss 32 39 Return on plan assets excluding amount includedin net interest expense - 79 Employer’s contributions 93 192 Expected benefits paid - 9 Fair value of plan assets at end of year 737 612 Funded status 846 803 Provision for pension benefit cost 846 803 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 84

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued