RETIREMENT BENEFITS OBLIGATION September 30, December 31,

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 83

34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs 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 Rp1,535 billion and Rp2,024 billion for nine months period ended September 30, 2013 and the years ended December 31, 2012. The movements of the prepaid pension benefit costs during nine months period ended September 30, 2013 and the years ended December 31, 2012 are as follows: September 30, December 31, 2013 2012 Prepaid pension benefits costs at beginning of year 1,031 990 Net periodic pension costs less amounts charged to subsidiaries 200 133 Amounts charged to subsidiaries under contractual agreements 15 12 Employer’s contributions 138 186 Prepaid pension benefits costs at end of period 954 1,031 As of September 30, 2013 and December 31, 2012, plan assets mainly consisted of : September 30, December 31, 2013 2012 Indonesian equity securities 20.59 21.82 Government bonds 39.72 37.96 Corporate bonds 22.18 16.91 Others 17.51 23.31 Total 100.00 100.00 Pension plan assets also include Series B shares issued by the Company with fair value totaling Rp268 billion and Rp233 billion representing 1.64 and 1.23 of total plan assets as of September 30, 2013 and December 31, 2012, respectively, and bonds issued by the Company with fair value totaling Rp152 billion and Rp159 billion representing 0.93 and 0.87 of total plan assets as of September 30, 2013 and December 31, 2012, respectively. The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits Notes 34b and 34c was performed based on the measurement date as of December 31, 2012 and 2011, with reports dated February 28, 2013 and March 7, 2012, respectively, by PT Towers Watson Purbajaga “TWP”, an independent actuary in association with Towers Watson “TW” formerly Watson Wyatt Worldwide. The principal actuarial assumptions used by the independent actuary as of December 31, 2012 and 2011 are as follows: PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 84

34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued