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 Table of Content
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS continued a. Pension benefit costs continued
i. The Company continued a. Fundedpension 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 Table of Content
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITScontinued a. Pension benefit costs continued
