RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 90

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued

b. Pension benefit costs provisions continued

i The Company continued The components of total periodic pension costs are as follows: September 30, December 31, 2014 2013 Service costs 60 97 Interest costs 146 150 Amortization of prior service costs 100 132 Recognized actuarial gains losses 16 33 Total periodic pension costs Note 27 290 412 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 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 2005, the entire contributions are fully made by Telkomsel. The following table presents the change in projected pension benefits obligation, change in pension plan assets, funded status of the pension plan and net amount recognized in the Company’s consolidated statement of financial position for nine months period ended September 30, 2014 and for the year ended December 31, 2013 of its defined benefit pension plan: September 30, December 31, 2014 2013 Change in projected pension benefits obligation Projected pension benefits obligation at beginning of year 899 1,472 Service cost 55 130 Interest cost 61 88 Actuarial gains - 789 Expected pension benefits paid - 2 Projected pension benefits obligation at end of year 1,015 899 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 91

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued