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 June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 88

34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued

b. Pension benefit costs provisions continued

ii Telkomsel continued Changes in pension plan asset Fair value of pension plan assets at beginning of year 439 666 Expected return on pension plan assets 40 Actuarial losses - 265 Expected pension benefits paid - 2 Fair value of pension plan assets at end of year 439 439 Funded status 537 460 Unrecognized items in the consolidated statement of financial position: Prior service costs Net actuarial loss 131 153 Pension benefit costs provisions 668 613 The components of the net periodic pension costs are as follows: June 30, December 31, 2014 2013 Service costs 37 130 Interest costs 40 88 Expected return on pension plan assets 20 40 Amortization of past service costs 1 Recognized actuarial gain losses 2 15 Net periodic pension costs Note 27 55 194 The net periodic pension costs for the pension plan was calculated based on actuary measurement date as of December 31, 2013 and 2012, with reports dated February 20, 2014 and February 12, 2013, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2013 and 2012, are as follows: December 31, December 31, 2013 2012 Discount rate 9.00 6.00 Expected long-term return on plan assets 9.00 6.00 Rate of compensation increases 6.50 6.50

34. 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 June 30, 2014 and for the Six Months Period Then Ended unaudited Figures in tables are expressedin billions of rupiah, unless otherwise stated 89 continued c. Other post-retirement benefits The Company provides other post-retirement benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of last housing allowance “Biaya Fasilitas Perumahan Terakhir” or “BFPT” and home passage leave “Biaya Perjalanan Pensiun dan Purnabhakti” or “BPP”. Movements of the other post-retirement benefit costs provisions for six months period ended June 30, 2014 and for the year ended December 31, 2013: June 30, Desember 31, 2014 2013 Other post-retirement benefit costs provisions at beginning of year 349 310 Other post-retirement benefit costs 31 66 Other post-retirement benefits paid by the Company 14 27 Net other post-retirement benefit costs provisions at end of period 366 349 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 Rate of compensation 8.00 8.00 Components of the total periodic other post-retirement benefit costs for six months period ended June 30, 2014 and for the year ended December 31, 2013: June 30, December 31, 2014 2013 Service costs 5 11 Interest costs 19 30 Amortization of past service costs 4 7 Recognized actuarial losses 3 18 Other post-retirement benefit costs Note 27 31 66

d. Obligation under the Labor Law

Under Law No. 13 Year 2003, the Company and subsidiaries are required to provide minimum pension benefit, if not covered yet by the sponsored pension plans, to their employees upon retirement age. The total related obligation recognized as of June 30, 2014 and December 31, 2013 amounted to Rp193 billion and Rp189 billion, respectively. The related employee benefit costs charged to expense amounted to Rp14 billion and Rp17 billion for six months period ended June 30, 2014 and for the year ended December 31, 2013, respectively.