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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 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 in 2005, the entire contributions are fully made by Telkomsel. Telkomsel also provides long service awards in the form of cash or leave days to its employees based on their length of service. These awards may be provided at employment anniversary dates or at the time of termination. Some of these awards are at the discretion of management. Infomedia also provide a defined benefit pension plan to its employees.

f. Healthcare programs

1. employee Health management

We believe that improving employees’ welfare has a positive impact on our productivity. In support of this, Telkom provides health services for our employees and retirees and their immediate family members through the Yakes health foundation. As of December 31, 2011, a total of 130,660 employees, retirees and family members were registered participants in the Yakes program. This figure represents a decrease from the previous year, among other matters due to the expiry of Yakes membership as a result of death or exceeding the stipulated age limit.

2. post retirement Healthcare

Telkom also provides post-retirement healthcare benefits for all retired employees as well as their spouses and children. There are two types of funding for these benefits: i Employees who were hired before November 1, 1995 and who served our Company for at least 20 years are entitled to benefits managed by the Telkom Healthcare Foundation “Yakes”. Our total contributions to this healthcare program were Rp1,101 billion, Rp991 billion and Rp361 billion respectively for the years ended on December 31, 2009, 2010 and 2011. ii All other permanent employees are entitled to a health insurance allowance. Our contributions to this program amounted to Rp23 billion, Rp20 billion and Rp19 billion respectively for the years ended on December 31, 2009, 2010 and 2011. Subsidiaries provide health care benefits through a government-sponsored health care program known as Jamsostek. PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications Education and training programs in 2011 focused on technology, telecommunications, marketing and management, business information and the development of the new wave business.

g.Health, safety and security at Work “k3”

Telkom is committed to creating a safe and healthy operational environment as well as security for all production resources, process and equipment. This commitment is realized through our Health, Safety and Security at Work “K3” program. Since 2009, our K3 management has been focused on achieving zero accidents. This program is based on the K3 provisions and regulations of the local Labor Office and is evaluated annually. In 2009, a K3 survey was carried out in conjunction with the Telkom’s Employee Opinion Survey “TEOS”. The K3 Survey was the first of its kind ever undertaken to determine whether we have provided a working environment that is at par with requirements. Our score on that K3 survey was 77.7, or “satisfactory”. Our success in managing K3 has been widely recognized, with the most recent achievement being the 6 six awards in 2011. H.Employee Relations Management Pursuant to Presidential Decree No.831998 regarding the Ratification of ILO Convention No.871948 regarding Freedom of Association and Protection of the Right to Organize, several Telkom employees established the Telkom Employees Union SEKAR. As of December 31, 2011, SEKAR represented a total of 18,691 employees, or 94.5 of our total workforce. In accordance with Law No.132003 regarding labor, SEKAR is entitled to represent our employees in the negotiation of the Collective Work Agreement “CWA”. The current CWA is effective until 2012. We anticipate that negotiations for the fifth next CWA will commence in June 2012. Telkomsel and Infomedia also have employee unions. The employee union in Telkomsel is known as “SEPAKAT” Serikat Pekerja Karyawan Telkomsel and represents a total of 3,730 employees or 84.0 of Telkomsel’s total workforce.

I. extracurricular activities

In the belief that it supports employee productivity, we offer all employees the opportunity to take part in various religious, cultural and sporting activities. Many of these are also open to employees’ families, such as Al-Quran reciting competitions, church choirs and Hindu chanting Ustawa Dharma Gita as well as a range of sports. PT Telkom Indonesia, Tbk. 2011 Annual Report Moving Forward Beyond Telecommunications