POST-RETIREMENT HEALTH CARE BENEFITS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 89

36. POST-RETIREMENT HEALTH CARE BENEFITS continued

The actuarial valuation for the post-retirement health care benefits was performed based on the measurement date as of December 31, 2013 and 2012, with reports dated February 28, 2014 and February 28, 2013, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2013 and 2012 are as follows: December 31, December 31, 2013 2012 Discount rate 9.00 6.25 Expected long-term return on plan assets 9.50 7.50 Health care costs trend rate assumed for next year 7.00 7.00

37. RELATED PARTY TRANSACTIONS

In the normal course of its business, the Company and subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those of arm’s length transactions.

a. Nature of relationships and accountstransactions with related parties

Details of the nature of relationships and transactionsaccounts with significant related parties are as follows: Nature of relationships Related parties with related parties Nature of transactionsaccounts The Government Majority stockholder Finance costs and investment in Ministry of Finance financial instruments State-owned enterprises Entity under common control Operation expenses, purchase of property and equipment, construction and installation services, insurance expense, finance income, finance costs, investment in financial instruments Indosat Entity under common control Interconnection revenues, interconnection expenses, telecommunications facilities usage, operating and maintenance cost, leased lines revenue, satellite transponders usage revenues, usage of data communication network system expenses and lease revenues PT Aplikanusa Lintasarta Entity under common control Network revenues, usage of data “Lintasarta” communication network system expenses and leased lines expenses Indosat Mega Media Entity under common control Network revenues CSM Associated company Satellite transponders usage revenues, leased lines revenues, transmission lease expenses PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 90 37. RELATED PARTY TRANSACTIONS continued a. Nature of relationships and accountstransactions with related parties continued Details of the nature of relationships and transactionsaccounts with significant related parties are as follows: Nature of relationships Related parties with related parties Nature of transactionsaccounts Patrakom Associated company Satellite transponders usage revenues, leased lines revenues, transmission lease expenses PSN Associated company Satellite transponders usage revenues, leased lines revenues, transmission lease expenses, interconnection revenues and interconnection expense Indonusa Associated company Leased line revenues, telecommunication services revenue, data telecommunication expense PT Industri Telekomunikasi Entity under common control Purchase of property and equipment Indonesia “INTI” PT Asuransi Jasa Indonesia Entity under common control Insurance of property and equipment “Jasindo” PT Jaminan Sosial Tenaga Kerja Entity under common control Insurance for employees “Jamsostek” PT Perusahaan Listrik Negara Entity under common control Electricity expenses Persero “PLN” PT Pos Indonesia Entity under common control Cost of SIM cards State-owned banks Entity under common control Finance income and finance costs BNI Entity under common control Finance income and finance costs Bank Mandiri Entity under common control Finance income and finance costs BRI Entity under common control Finance income and finance costs BTN Entity under common control Finance income and finance costs BSM Entity under common control Finance costs PT Bank BRI Syariah Entity under common control Finance costs “BRI Syariah” Bahana Entity under common control Available-for-sale financial assets, bonds and notes Koperasi Pegawai Telkom Entity under common control Purchase of property and equipment, “Kopegtel” construction and installation services, leases of buildings, leases of vehicles, purchases of materials and construction services, utilities maintenance and cleaning services and RSA revenues PT Sandhy Putra Makmur Entity under common control Leases of buildings, leases of vehicles, “SPM” purchase of materials and construction services, utilities maintenance and cleaning services Koperasi Pegawai Telkomsel Entity under common control Leases of vehicles, printing and distribution “Kisel” of customer bills, collection fee, and other services fee, distribution of SIM cards and pulse reload vouchers PT Graha Informatika Entity under common control Leased lines revenues, purchase of Nusantara “Gratika” property and equipment, installation expense, and maintenance expense Directors and commissioners Key management personnel Honorarium and facilities Yakes Entity under significant Medical expenses influence Patrakom became a subsidiary on September 25, 2013 Note 3. On October 8, 2013, the Company sold its 80 ownership in Indonusa Notes 3 and 10.