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 JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 85

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

i The Company continued The components of net periodic pension costs are as follows: Juni 30, December 31, 2013 2012 Service costs 48 104 Interest costs 75 173 Amortization of prior service costs 66 133 Recognized actuarial losses 17 49 Total net periodic pension costs Note 27 206 459 ii 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. The reconciliation of the unfunded status of the plans with the amounts included in the consolidated statements of financial position as of June 30, 2013 and December 31, 2012 are as follows: Juni 30, December 31, 2013 2012 Projected benefits obligation 1,581 1,472 Fair value of plan assets 666 666 Funded status 915 806 Unrecognized items in the consolidated statements of financial position: Unrecognized prior service costs Unrecognized net actuarial losses 399 387 Pension benefits costs provisions 516 419 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated 86

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

ii Telkomsel continued The components of the net periodic pension costs are as follows: Juni 30, December 31, 2013 2012 Service costs 65 119 Interest costs 44 83 Expected return on pension plan assets 20 31 Amortization of past service costs 1 Recognized actuarial losses 8 25 Net periodic pension costs Note 27 97 197 The net periodic pension cost for the pension plan was calculated based on the measurement date as of December 31, 2012 and 2011, with reports dated February 12, 2013 and February 24, 2012, respectively, by TWP, an independent actuary in association with TW. The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2012 and 2011 for each of the years, are as follows: December 31, December 31, 2012 2011 Discount rate 6 6.75 Expected long-term return on plan assets 6 6.75 Rate of compensation increases 6.5 8

c. Other post-retirement benefits

The Company provides other post-retirement benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of last housing allowance Biaya Fasilitas Perumahan Terakhir or BFPT and home passage leave Biaya Perjalanan Pensiun dan Purnabhakti or BPP . The movements of the other post-retirement benefits provisions for six months period ended June 30, 2013 and the years ended December 31, 2012: Juni 30, December 31, 2013 2012 Other post-retirement benefits costs provisions at beginning of year 310 273 Other post-retirement benefits costs 33 65 Other post-retirement benefits paid by the Company 13 28 Total other post-retirement benefits costs provisions at end of period 330 310