Obligation under the Labor Law

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 88 29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued e. Maturity Profile of Defined Benefit Obligation “DBO” The timing of benefits payments and weighted average duration of DBO for 2016 are as follows in billions of Rupiah: Expected Benefits Payment The Company Post-employment health care benefits Other post- employment benefits Time Period Funded Unfunded Telkomsel Within next 10 years 16,583 2,822 1,653 6,152 563 Within 10-20 years 20,052 263 6,257 8,401 139 Within 20-30 years 17,289 29 5,758 8,648 47 Within 30-40 years 11,827 5 936 6,711 3 Within 40-50 years 2,872 - - 2,986 - Within 50-60 years 238 - - 245 - Within 60-70 years 9 - - 1 - Within 70-80 years - - - - - Weighted average duration of DBO 9.15 years 4.33 years 11.33 years 13.81 years 3.62 years

f. Sensitivity Analysis

1 change in discount rate and rate of compensation would have effect on DBO, as follows : Discount Rate Rate of Compensation 1 Increase 1 Decrease 1 Increase 1 Decrease Sensitivity Increase decrease in amounts Increase decrease in amounts Funded 1,644 1,937 400 413 Unfunded 67 72 69 69 Telkomsel 112 121 120 112 Post-employment health care benefits 1,633 1,991 2,152 1,785 Other post-employment benefits 16 17 - - The sensitivity analysis has 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 DBO at the end of the year. 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 analysis from the previous period.

30. LSA PROVISIONS

Telkomsel and Patrakom provide certain cash awards or certain number of days leave benefits to their 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 of 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 reach a certain minimum age. The obligation with respect to these awards which was determined based on an actuarial valuation using the Projected Unit Credit method, amounted to Rp614 billion and Rp613 billion as of March 31, 2017 and December 31, 2016, respectively. The related benefit costs charged to expense amounted to Rp30 billion and Rp27 billion for the three month periods ended March 31, 2017 and 2016, respectively Note 23. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the three month periods Ended March 31, 2017 and 2016 unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 89 31. RELATED PARTY TRANSACTIONS a. Nature of relationships and accountstransactions with related parties Details of the nature of relationships and accountstransactions with significant related parties are as follows: Related parties Nature of relationships parties Nature of accountstransactions The Government Ministry of Finance Majority stockholder Internet and data service revenues, other telecommunication service revenues, finance income, finance costs, and investment in financial instruments State-owned enterprises Entity under common control Internet and data service revenues, other telecommunication services revenues, operating expenses and purchase of property and equipment Indosat Entity under common control Interconnection revenues, leased lines revenues, satellite transponder usage revenues, interconnection expenses, telecommunication facilities usage expenses, operating and maintenance expenses, usage of data communication network system expenses PT Aplikanusa Lintasarta “Lintasarta” Entity under common control Interconnection revenues, network service revenues, leased lines expenses, and usage of communication network system expenses Indosat Mega Media Entity under common control Network service revenues PT Perusahaan Listrik Negara “PLN” Entity under common control Electricity expenses, finance income, finance costs, investment in financial instrument PT Pertamina Persero “Pertamina” Entity under common control Internet and data service revenues, other telecommunication service revenues PT Kereta Api Indonesia “KAI” Entity under common control Internet and data service revenues, other telecommunication service revenues PT Pegadaian Entity under common control Internet and data service revenues, other telecommunication service revenues PT Garuda Indonesia Tbk Entity under common control Internet and data service revenues, other telecommunication service revenues PT Indonesia Comnet Plus “ICON Plus” Entity under common control Internet and data service revenues, other telecommunication service revenues, interconnection revenues, network revenues and interconnection expenses PT Asuransi Jasa Indonesia “Jasindo” Entity under common control Satellite insurance expenses and vehicle insurance expenses PT Adhi Karya Tbk “Adhi Karya” Entity under common control Purchase of materials and construction services PT Waskita Karya Tbk “Waskita” Entity under common control Purchase of materials and construction services INTI Entity under common control Purchase of property and equipment and construction services LEN Entity under common control Purchase of property and equipment and construction services State-owned banks Entity under common control Finance income and finance costs BNI Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs Bank Mandiri Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs BRI Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs BTN Entity under common control Internet and data service revenues, other telecommunication service revenues, finance income and finance costs