PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 80

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued

i. The Company continued a. Funded pension plan continued The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp3,085 billion and Rp332 billion for the nine months period ended September 30, 2016 and for the year ended December 31, 2015, respectively. Based on the Company’s policy issued on January 14, 2014 regarding Dapen’s Funding Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency Ratio FSR is above 105. Therefore, the Company does not expect to contribute to the defined benefit pension plan in 2016. Based on the Company policy issued on July 1, 2014 regarding Pension Regulation by Dana Pensiun Telkom, there is an increase in monthly benefits given to the pensioners, widowwidower or the children of participants who stopped working before the end of June, 2002. During 2015, the Company made settlements to pensioners, widowwidower or the children of participant who has monthly pension benefits under Rp1,500,000 and choose to withdraw their pension benefits in lump sum. Based on the Company policy issued on June 24, 2016 regarding Pension Regulation by Dana Pensiun Telkom, there is an increase in monthly benefits given to the widowwidowerchildren of participants who enrolled before April 20, 1992, from 60 to 75 of pension benefits received by the pensioners. In addition, the company also provide a one-time benefits in 2016 with intention to improve the pensioners’ welfare. The movements of the prepaid pension benefit cost during the nine-month periods ended September 30, 2016 and the year ended December 31, 2015 are as follows: September 30, 2016 December 31, 2015 Prepaid pension benefit cost at beginning of year 1,329 1,170 Net periodic pension benefit cost 524 27 Actuarial gain losses recognized via the OCI 2,015 1,666 Asset ceiling recognized via the OCI - 357 Return on plan assets excluding amount included in net interest expense 2,015 1,837 Prepaid pension benefit cost at end of year 805 1,329 The components of net periodic benefit cost for the nine-month periods ended September 30, 2016 and 2015 are as follows: 2016 2015 Service costs 267 164 Past service cost 245 - Plan administration cost 35 46 Net interest cost 23 98 Net periodic pension benefit cost 524 112 Amount charged to subsidiaries under contractual agreements 23 10 Net periodic pension benefit cost 501 102 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 81

30. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued