PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
76
33. PENSION AND OTHER POST-RETIREMENT BENEFITS continued a. Prepaid pension benefit costs
continued
2011 2010
Discount rate 7.25
9.5 Expected long-term return on plan assets
9.25 9.7
Rate of compensation increases 8
8 The components of net periodic pension costs are as follows:
June 30, December 31,
2012 2011
Service costs 186
307 Interest costs
575 1,105
Expected return on plan assets 758
1,441 Amortization of prior service costs
69 139
Recognized actuarial gain -
170 Net periodic pension costs benefits
72 60
Amount charged to subsidiaries under contractual agreements
6 2
Total net periodic pension cost benefits less amounts charged to subsidiaries Note 26
66 62
b. Pension benefit costs provisions
1. The Company The Company sponsors unfunded defined benefit pension plans and a defined contribution
pension plan. 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 Rp.3 billion and Rp.5 billion for six months period ended June 30, 2012 and the year ended
December 31, 2011, respectively.
Since 2007, the Company provides pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp.699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced
the uniformulation with Manfaat Pensiun Sekaligus “MPS”. MPS is given to those employees reaching retirement age, death or disabled starting from February 1, 2009. The
change in benefit had increased the Company’s liabilities by Rp.435 billion, which is amortized over 8.63 years until 2018.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued JUNE 30, 2012 UNAUDITED AND DECEMBER 31, 2011 AUDITED
AND SIX MONTHS PERIOD ENDED JUNE 30, 2012 AND 2011 UNAUDITED Figures in tables are presented in billions of Rupiah, unless otherwise stated
77
33. PENSION AND OTHER POST-RETIREMENT BENEFITS continued b. Pension benefit costs provisions
continued 1. The Company continued
The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre-
retirement benefits “Masa Persiapan Pensiun” or “MPP”. During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not
limited to regular salary, health care, annual leave, bonus and other benefits. Since 2012, the Company provides new requirement of MPP effective for employees retiring beginning April
1, 2012, in which employees should filed request for MPP and if they are not filed request, then are considered to work until the retirement period. The Company is still assessing the
impact of the requirement on the consolidated financial statements. The following table presents the change in projected benefits obligation of the MPS and MPP
for six months period ended June 30, 2012 and the year ended December 31, 2011:
June 30, December 31,
2012 2011
Change in projected benefits obligation
Unfunded projected benefits obligation at beginning of year
2,440 2,096
Service costs 52
89 Interest costs
87 194
Actuarial gains losses 26
244 Benefits paid by employer
51 183
Unfunded projected benefits obligation at end of period
2,502 2,440
Unrecognized prior service costs 706
772 Unrecognized net actuarial losses
577 601
Pension benefit costs provisions at end of period 1,219
1,067
The movement of the pension benefit costs provisions during for six months period ended June 30, 2012 and the year ended December 31, 2011, is as follows:
June 30, December 31,
2012 2011
Pension benefits costs provisions at beginning of year
1,067 804
Net periodic pension 229
446 Benefits paid by employer
77 183
Pension benefits costs provisions at end of period 1,219
1,067
