CASH DIVIDENDS AND GENERAL RESERVE

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 91 34. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs provisions continued i The Company continued Movements of the pension benefit costs provisions during the years ended December 31, 2014 and 2013: 2014 2013 Pension benefit costs provisions at beginning of year 1,644 1,373 Total periodic pension costs 387 412 Employer’s contributions 180 141 Pension benefit costs provisions at end of year 1,851 1,644 The principal actuarial assumptions used by the independent actuary based on the measurement date as of December 31, 2014 and 2013 are as follow: 2014 2013 Discount rate 8.50 9.00 Rate of compensation increases 8.00 8.00 The components of total periodic pension costs are as follows: 2014 2013 Service costs 80 97 Interest costs 194 150 Amortization of past service costs 132 132 Actuarial gains losses recognized 19 33 Total periodic pension costs Note 27 387 412 Historical information: 2014 2013 2012 2011 2010 Present value of funded defined benefit obligation 2,326 2,200 2,436 2,440 2,096 Deficit in the plan 2,326 2,200 2,436 2,440 2,096 Experience adjustments arising on plan liabilities 12 3 72 30 23 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 92 34. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued b. Pension benefit costs provisions continued 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. Telkomsel’s contributions to Jiwasraya amounted to Rp98 billion and RpNil for the years ended December 31, 2014 and 2013, respectively. The following table presents the change in projected pension benefits obligation, change in pension plan assets, funded status of the pension plan and net amount recognized in the Company’s consolidated statement of financial position for the years ended December 31, 2014 and 2013 of its defined benefit pension plan: 2014 2013 Change in projected pension benefits obligation Projected pension benefits obligation at beginning of year 899 1,472 Service cost 74 130 Interest cost 81 88 Actuarial losses gains 234 789 Expected pension benefits paid 7 2 Projected pension benefits obligation at end of year 1,281 899 Changes in pension plan asset Fair value of pension plan assets at beginning of year 439 666 Expected return on pension plan assets 40 40 Employers contributions 98 - Actuarial gains losses 67 265 Expected pension benefits paid 7 2 Fair value of pension plan assets at end of year 637 439 Funded status 644 460 Unrecognized items in the consolidated statement of financial position: Prior service costs Net actuarial losses gains 18 153 Pension benefit costs provisions 626 613