F-97 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 33. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued
d. Obligation under the Labor Law provisions
Under Law No. 13 Year 2003, the Group is required to provide minimum pension benefits, if not covered yet by the sponsored pension plans, to its employees upon retirement age. The total related obligation recognized as of
December 31, 2012 and 2013 amounted to Rp157 billion and Rp154 billion, respectively. The related employee benefits cost charged to expense amounted to Rp24 billion, Rp35 billion and Rp15 billion for the years ended
December 31, 2011, 2012 and 2013, respectively. The actuarial losses gains recognized in OCI amounted to Rp21 billion, Rp8 billion and Rp50 billion for the years ended December 31, 2011, 2012 and 2013,
respectively.
Maturity Profile of Defined Benefit Obligation “DBO”
Weighted Average duration of DBO for the Company and Telkomsel are 19.96 years and 15.14 years, respectively. The timing of benefits payments for 2013 is as follows in millions of rupiah:
Expected Benefits Payment Time Period
Funded Unfunded
Telkomsel Post-
employment health care
Other post- employment
benefits
Within next 10 years 13,077
3,207 206
4,670 691
Within 10-20 years 18,562
587 2,340
6,405 197
Within 20-30 years 16,588
26 6,021
6,659 53
Within 30-40 years 9,775
6,550 5,337
4 Within 40-50 years
3,188 -
- 2,832
- Within 50-60 years
465 -
- 430
- Within 60-70 years
24 -
- 2
- Within 70-80 years
- -
-
Sensitivity Analysis
0.5 change in discount rate and rate of salary would have effect on DBO, as follows:
Discount Rate Rate of Compensation
Sensitivity 0.5 Increase
0.5 Decrease 0.5 Increase
0.5 Decrease
Funded 722
786 113
123 Unfunded
47 48
27 29
Telkomsel 83
94 55
51 Post-employment health care
679 753
1,720 1,413
Other post-employment benefits 10
11 -
-
The sensitivity analyses have been determined based on a method that extrapolates the impact on DBO as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The sensitivity results above determine the individual impact on the Plan’s end of the year DBO. In reality, the Plan is subject to multiple external experience items which may move the DBO in similar or opposite directions, and the
Plan’s sensitivity to such changes can vary over time.
There are no changes in the methods and assumptions used in preparing the sensitivity analyses from the previous period.
F-98 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 34. LSA
Telkomsel provides certain cash awards or certain number of days leave benefits to its employees based on the employees’ length of service requirements, including LSA and LSL. LSA are either paid at the time the employees
reach certain years during employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management, provided to employees who meet the requisite number of years
of service and certain minimum age.
The obligation with respect to these awards was determined based on an actuarial valuation using the Projected Unit Credit method, amounted to Rp347 billion and Rp336 billion as of December 31, 2012 and 2013, respectively. The
related benefit costs charged to expense amounted to Rp96 billion, Rp121 billion and Rp19 billion for the years ended December 31, 2011, 2012 and 2013, respectively Note 28.
35. RELATED PARTY TRANSACTIONS
