RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011 Figures in tables are presented in billions of Rupiah, unless otherwise stated 84

34. RETIREMENT BENEFITS OBLIGATION continued b. Pension benefit costs provisions continued

1. The Company continued The movements of the pension benefit costs provisions during the years ended December 31, 2012 and 2011, are as follows: 2012 2011 Pension benefits costs provisions at beginning of year 1,067 804 Net periodic pension costs 459 446 Benefits paid by employer 153 183 Pension benefits costs provisions at end of year 1,373 1,067 The components of net periodic pension costs are as follows: 2012 2011 Service costs 104 89 Interest costs 173 194 Amortization of prior service costs 133 133 Recognized actuarial losses 49 30 Total net periodic pension costs Note 27 459 446 Historical information: 2012 2011 2010 2009 2008 Present value of unfunded defined benefit obligation 2,436 2,440 2,096 1,622 417 Fair value of plan assets - - - - - Deficit in the plan 2,436 2,440 2,096 1,622 417 Experience adjustments arising on plan liabilities 72 30 23 309 3 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012 AND FOR THE YEAR THEN ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2011 AND FOR THE YEAR THEN ENDED AND AS OF JANUARY 1, 2011 Figures in tables are presented in billions of Rupiah, unless otherwise stated 85

34. RETIREMENT BENEFITS OBLIGATION continued b. Pension benefit costs provisions continued

2. 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. Telkomsel’s contributions to Jiwasraya amounted to Rp45 billion and Rp2 billion for 2012 and 2011, respectively. The reconciliation of the unfunded status of the plans with the amounts included in the consolidated statements of financial position as of December 31, 2012 and 2011 are as follows: 2012 2011 Projected benefits obligation 1,472 1,237 Fair value of plan assets 666 458 Funded status 806 779 Unrecognized items in the consolidated statements of financial position: Unrecognized prior service costs Unrecognized net actuarial losses 387 515 Pension benefits costs provisions 419 264 The components of the net periodic pension costs are as follows: 2012 2011 Service costs 119 67 Interest costs 83 59 Expected return on pension plan assets 31 22 Amortization of past service costs 1 1 Recognized actuarial losses 25 12 Net periodic pension costs Note 27 197 117