PENSION AND OTHER POST-RETIREMENT BENEFITS continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 84

36. POST-RETIREMENT HEALTH CARE BENEFITS

The Company provides a post-retirement health care plan to all of its employees hired before November 1, 1995 who have worked for the Company for 20 years or more when they retire, and to their eligible dependents. The requirement to work for 20 years does not apply to employees who retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995 no longer are entitled to this plan. The plan is managed by Yayasan Kesehatan Pegawai Telkom “Yakes”. The defined contribution post retirement health care plan is provided to employees hired with permanent status on or after November 1, 1995 or employees with terms of service less than 20 years on the time of retirement. The Company’s contribution amounted to Rp.19 billion and Rp.20 billion for the years ended December 31, 2011 and 2010, respectively. The following table presents the change in the projected benefits obligation, change in plan assets, funded status of the plan and net amount recognized in the Company’s consolidated statement of financial positions as of December 31, 2011 and 2010: 2011 2010 Change in projected benefits obligation Projected benefits obligation at beginning of year 8,741 7,166 Service costs 43 84 Interest costs 818 744 Actuarial losses 1,208 1,035 Expected post-retirement health care paid 263 288 Projected benefits obligation at end of year 10,547 8,741 Change in plan assets Fair value of plan assets at beginning of year 8,005 6,022 Expected return on plan assets 662 589 Employer’s contributions 361 991 Actuarial gains 222 691 Expected post-retirement health care paid 264 288 Fair value of plan assets at end of year 8,986 8,005 Funded status 1,561 736 Unrecognized net actuarial losses gains 673 314 Post-retirement health care benefits costs provisions 888 1,050 The actual return on plan assets was Rp.884 billion and Rp.1,280 billion for the years ended December 31, 2011 and 2010, respectively.