PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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43. PENSION PLANS
continued
c. Infomedia
Infomedia provides a defined benefit pension plan for its employees. The reconciliation of the funded status of the plan with the net amount recognized in the balance sheets as of June 30, 2005
and 2006 is as follows:
2005 2006
Projected benefit obligation 4,051
5,519 Fair value of plan assets
5,413 5,979
Funded status 1,362
460 Prepaid pension benefit cost
1,362 460
The net periodic pension cost of Infomedia amounted to Rp16 million and Rp16 million for the six months period ended June 30, 2005 and 2006, respectively.
d. Obligation Under Labor Law
Under Law No. 132003 concerning labor regulation, the Company and its subsidiaries are required to provide a minimum pension benefit, if not already covered by the sponsored pension
plans, to their employees upon retiring at the age of 55. The total related obligation recognized as of June 30, 2005 and 2006 amounted to Rp21,677 million and Rp31,128 million, respectively.
The total related employee benefit cost charged to expense amounted to Rp5,755 million and Rp5,712 million for the six months period ended June 30, 2005 and 2006, respectively.
e. Additional THT benefit
Starting January 1, 2005 the Company has increased the pension benefit by using additional two times of basic salary for pre-1992 employees who will leave the Company due to reaching normal
retirement age, death and disability during year 2005 until 2006. These additional benefit will be paid directly from the Company. The total related obligation recognized as of June 30, 2005 and
2006 amounted to Rp3,688 million and Rp43,547 million, respectively. The total related employee benefit cost charged to expense amounted to Rp72,270 million and Rp3,865 million for
the six months period ended June 30, 2005 and 2006, respectively.
44. LONG SERVICE
AWARDS
a. The Company
The Company provides certain cash awards for its employees who meet certain length of service requirement. The benefits are either paid at the time the employee reaches certain anniversary
dates during employment, upon retirement or termination.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2005 AND 2006, AND FOR THE SIX MONTHS PERIOD ENDED
JUNE 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
- 92
44. LONG SERVICE
