These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2008 and 2007 Expressed in rupiah, unless otherwise stated
41
22. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
a. Retirement Benefits continued The Company and Subsidiaries have appointed PT Mercer Indonesia, an independent actuary, to
calculate the expected obligation for post-employment, severance, gratuity and compensation benefits of their qualified permanent employees.
The actuarial valuation was determined using the projected-unit-credit method which considered the following assumptions:
Company Subsidiaries
Discount rate 10.10 in 2008 and 11 in 2007 10.10 in 2008 and 11 in 2007 Wage and salary increase
8 in 2008 and 9 in 2007 8 in 2008 and 9 in 2007
Retirement age 55 years
55 years Average employee turnover
1 for employees with ages from 2 - 5 for employees with
20 years old up to 54 years old ages from 20 years old,
decreasing linearly
to 0 at age 45
Table of mortality Indonesian Mortality
Indonesian Mortality Table 1999 TMI ’99 in 2008
Table 1999 TMI ’99 in 2008 and Commissioners Standard
and Commissioners Standard Ordinary 1980 CSO ’80 in 2007
Ordinary 1980 CSO ’80 in
2007 Disability
10 of the mortality rate 10 at the mortality rate
The provisions for employee benefits recognized in the consolidated statements of income consisted of the following:
2008 2007
Current service costs 6,838,770,750
7,698,566,250 Interest
costs 11,317,580,250
13,726,289,250 Actuarial loss recognized
320,224,500 986,526,000
Amortization of past service costs 5,958,368,250 5,958,368,250
Total employee benefits expense 24,434,943,750
28,369,749,750
A reconciliation of estimated liability for employee benefits is as follows:
2008 2007
Present value of defined benefit obligation 152,221,937,380
171,059,217,271 Unamortized balance of non-vested past service
costs 70,084,955,750 80,805,503,750
Actuarial loss
19,911,723,500 31,369,419,082
Liability recognized in the consolidated balance
sheets 62,225,258,130
58,884,294,439
These consolidated financial statements are originally issued in Indonesian language.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2008 and 2007 Expressed in rupiah, unless otherwise stated
42
22. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
