PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 82

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

i. The Company continued a. Funded pension plan continued The components of net periodic cost for the years ended December 31, 2016 and 2015 are as follows: 2016 2015 Service costs 363 218 Past service cost - plan amendments 245 55 Plan administration cost 46 71 Net interest cost 14 131 Settlement - 76 Net periodic pension benefit cost 640 27 Amount charged to subsidiaries under contractual agreements 32 15 Net periodic pension benefit cost 608 12 Amounts recognized in OCI are as follows: 2016 2015 Actuarial gain losses recognized during the year due to: Experience adjustments 70 991 Changes in demographic assumptions 140 137 Changes in financial assumptions 1,470 812 Effect of asset ceiling - 357 Return on plan assets excluding amount included in net interest expense 1,188 1,837 Net 492 186 The actuarial valuation for the defined benefit pension plan was performed, based on the measurement date as of December 31, 2016 and 2015, with reports dated February 22, 2017 and February 25, 2016, respectively, by PT Towers Watson Purbajaga “TWP”, an independent actuary in association with Willis Towers Watson “WTW” formerly Towers Watson. The principal actuarial assumptions used by the independent actuary as of December 31, 2016 and 2015 are as follows: 2016 2015 Discount rate 8.00 9.00 Rate of compensation increases 8.00 8.00 Indonesian mortality table 2011 2011 b. Unfunded pension plan The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan for its employees. The defined contribution pension plan is provided to employees hired with permanent status on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund Dana Pensiun Lembaga Keuangan or “DPLK”. The Company’s contribution to DPLK is determined based on a certain percentage of the participants’ salaries and amounted to Rp9 billion and Rp7 billion for the years ended December 31, 2016 and 2015, respectively. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 83

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