Other post-retirement benefits continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended Figures in tables are expressed in billions of rupiah, unless otherwise stated 92

36. POST-RETIREMENT HEALTH CARE BENEFITS continued

The actuarial valuation for the post-retirement health care benefits was performed based on the measurement date as of December 31, 2013 and 2012, with reports dated February 28, 2014 and February 28, 2013, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary as of December 31, 2013 and 2012 are as follows: 2013 2012 Discount rate 9.00 6.25 Expected long-term return on plan assets 9.50 7.50 Health care costs trend rate assumed for next year 7.00 7.00 1 change in assumed future health care costs trend rates would have the following effects: 1 point increase 1 point decrease Service costs and interest costs 289 227 Accumulated post-retirement health care benefits obligation 1,720 1,413 Historical information: 2013 2012 2011 2010 2009 Present value of funded defined benefit obligation 10,653 13,162 10,547 8,741 7,166 Fair value of plan assets 9,661 9,913 8,986 8,005 6,022 Deficit in the plan 992 3,249 1,561 736 1,144 Experience adjustments arising on plan liabilities 56 74 64 231 722 Experience adjustments arising on plan assets 1,005 177 222 691 756

37. RELATED PARTY TRANSACTIONS

In the normal course of its business, the Company and subsidiaries entered into transactions with related parties. It is the Companys policy that the pricing of these transactions be the same as those of arm’s length transactions.

a. Nature of relationships and accountstransactions with related parties

Details of the nature of relationships and transactionsaccounts with significant related parties are as follows: Nature of relationships Related parties with related parties Nature of transactionsaccounts The Government Majority stockholder Finance costs and investment in Ministry of Finance financial instruments State-owned enterprises Entity under common control Operation expenses, purchase of property and equipment, construction and installation services, insurance expense, finance income, finance costs, investment in financial instruments Indosat Entity under common control Interconnection revenues, interconnection expenses, telecommunications facilities usage, operating and maintenance cost, leased lines revenue, satellite transponders usage revenues, usage of data communication network system expenses and lease revenues