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PENSION AND OTHER POST-EMPLOYMENT BENEFITS | 12 Months Ended
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Dec. 31, 2018
PENSION AND OTHER POST-EMPLOYMENT BENEFITS |
PENSION AND OTHER POST-EMPLOYMENT BENEFITS | 31. PENSION AND OTHER POST-EMPLOYMENT BENEFITS The details of pension and other post-employment benefit liabilities are as follows:
|  | Notes |  | 2017 |  | 2018
Pension benefit and other post-employment benefit obligations |  |  |  |  |  |
Pension benefit |  |  |  |  |  |
The Company - funded |  | 31a.i.a |  |  |  |
Defined pension benefit obligation |  | 31a.i.a.i |  | 1,540 |  | 1,057
Additional pension benefit obligation |  | 31a.i.a.ii |  | 1,076 |  | 6
The Company - unfunded |  | 31a.i.b |  | 2,384 |  | 1,830
Telkomsel |  | 31a.ii |  | 1,839 |  | 1,541
Telkomsat |  |  |  | 0 |  | 0
MD Media |  |  |  | 0 |  | 0
Infomedia |  |  |  | 0 |  | —
Projected pension benefit obligations |  |  |  | 6,839 |  | 4,434
Net periodic post-employment health care benefit |  | 31b |  | 2,419 |  | 195
Other post-employment benefit |  | 31c |  | 510 |  | 419
Obligation under the Labor Law |  | 31d |  | 427 |  | 507
Total |  |  |  | 10,195 |  | 5,555
The details of net pension benefit expense recognised in the consolidated statements of profit or loss and other comprehensive income is as follows:
|  | Notes |  | 2016 |  | 2017 |  | 2018
Pension benefit cost |  |  |  |  |  |  |  |
The Company - funded |  | 31a.i.a |  |  |  |  |  |
Defined pension benefit obligation |  | 31a.i.a.i |  | 608 |  | 557 |  | 511
Additional pension benefit obligation |  | 31a.i.a.ii |  | — |  | 657 |  | 69
The Company - unfunded |  | 31a.i.b |  | 279 |  | 239 |  | 198
Telkomsel |  | 31a.ii |  | 181 |  | 247 |  | 342
MD Media |  |  |  | 0 |  | 0 |  | 0
Infomedia |  |  |  | 0 |  | 0 |  | 0
Telkomsat |  |  |  | 0 |  | 0 |  | 0
Total pension benefit cost |  | 27 |  | 1,068 |  | 1,700 |  | 1,120
Net periodic post-employment health care benefit cost |  | 27,31b |  | 163 |  | 276 |  | 335
Other post-employment benefit cost |  | 27,31c |  | 48 |  | 42 |  | 32
Obligation under the Labor Law |  | 27,31d |  | 82 |  | 62 |  | 113
Total |  |  |  | 1,361 |  | 2,080 |  | 1,600
The details of net pension benefit expense recognised in the consolidated statements of profit or loss and other comprehensive income is as follows (continued): The amounts recognised in OCI are as follows:
|  | Notes |  | 2016 |  | 2017 |  | 2018
Defined benefit plan actuarial gain (losses) |  |  |  |  |  |  |  |
The Company - funded |  | 31a.i.a |  |  |  |  |  |
Defined pension benefit obligation |  | 31a.i.a.i |  | (492) |  | (1,154) |  | 1,236
Additional pension benefit obligation |  | 31a.i.a.ii |  | — |  | (419) |  | 934
The Company - unfunded |  | 31a.i.b |  | (119) |  | (100) |  | 137
Telkomsel |  | 31a.ii |  | (292) |  | (530) |  | 514
MD Media |  |  |  | (1) |  | (2) |  | 0
Infomedia |  |  |  | 0 |  | (1) |  | 0
Telkomsat |  |  |  | 0 |  | 0 |  | 0
Post-employment health care benefit cost |  | 31b |  | (1,309) |  | (551) |  | 2,559
Other post-employment benefit |  | 31c |  | (20) |  | (40) |  | 24
Obligation under the Labor Law |  | 31d |  | (33) |  | (72) |  | 14
Sub-total |  |  |  | (2,266) |  | (2,869) |  | 5,418
Deferred tax effect at the applicable tax rates |  | 30i |  | 208 |  | 494 |  | (598)
Defined benefit plan actuarial (losses) gain - net of tax |  |  |  | (2,058) |  | (2,375) |  | 4,820
a. Pension benefit cost i. The Company a. Funded pension plan i. Defined pension benefit obligation The Company sponsors a defined benefit pension plan for employees with permanent status prior to July 1, 2002. The plan is governed by the pension laws in Indonesia and managed by Telkom Pension Fund (“Dana Pensiun Telkom” or “Dapen”). The pension benefits are paid based on the participating employees’ latest basic salary at retirement and the number of years of their service. The participating employees contribute 18% (before March 2003: 8.4%) of their basic salaries to the pension fund. The Company did not make contributions to the pension fund for the years ended December 31, 2016, 2017 and 2018. The following table presents the changes in projected pension benefit obligations, changes in pension benefit plan assets, funded status of the pension plan and net amount recognised in the consolidated statements of financial position as of December 31, 2017 and 2018, under the defined benefit pension plan:
|  | 2017 |  | 2018
Changes in projected pension benefit obligations |  |  |  |
Projected pension benefit obligations at beginning of year |  | 18,849 |  | 22,354
Charged to profit or loss: |  |  |  |
Service costs |  | 366 |  | 384
Past service cost - plan amendments |  | 94 |  | —
Interest costs |  | 1,454 |  | 1,459
Pension plan participants’ contributions |  | 41 |  | 38
Actuarial losses (gain) recognised in OCI |  | 2,862 |  | (2,691)
Pension benefits paid |  | (1,312) |  | (1,423)
Projected pension benefit obligations at end of year |  | 22,354 |  | 20,121
Changes in pension benefit plan assets |  |  |  |
Fair value of pension plan assets at beginning of year |  | 19,046 |  | 20,814
Interest income |  | 1,388 |  | 1,357
Return on plan assets (excluding amount included in net interest expense) |  | 1,708 |  | (1,455)
Pension plan participants’ contributions |  | 41 |  | 38
Pension benefits paid |  | (1,312) |  | (1,423)
Provision of additional benefit |  | — |  | (205)
Plan administration cost |  | (57) |  | (62)
Fair value of pension plan assets at end of year |  | 20,814 |  | 19,064
Projected pension benefit obligations at end of year |  | (1,540) |  | (1,057)
As of December 31, 2017 and 2018, plan assets consist of:
|  | 2017 |  | 2018
|  | Quoted in |  |  |  | Quoted in |  |
|  | active market |  | Unquoted |  | active market |  | Unquoted
Cash and cash equivalents |  | 1,481 |  | — |  | 873 |  | —
Equity instruments: |  |  |  |  |  |  |  |
Finance |  | 1,463 |  | — |  | 1,456 |  | —
Consumer goods |  | 1,411 |  | — |  | 1,336 |  | —
Infrastructure, utilities and transportation |  | 656 |  | — |  | 530 |  | —
Construction, property and real estate |  | 363 |  | — |  | 199 |  | —
Basic industry and chemical |  | 115 |  | — |  | 124 |  | —
Trading, service and investment |  | 388 |  | — |  | 420 |  | —
Mining |  | 92 |  | — |  | 112 |  | —
Agriculture |  | 46 |  | — |  | 55 |  | —
Miscellaneous industries |  | 377 |  | — |  | 362 |  | —
Equity-based mutual fund |  | 1,233 |  | — |  | 1,336 |  | —
Fixed income instruments: |  |  |  |  |  |  |  |
Corporate bonds |  | — |  | 5,428 |  | — |  | 5,267
Government bonds |  | 6,968 |  | — |  | 6,166 |  | —
Mutual funds |  | 54 |  | — |  | 54 |  | —
Non-public equity: |  |  |  |  |  |  |  |
Direct placement |  | — |  | 237 |  | — |  | 288
Property |  | — |  | 188 |  | — |  | 178
Others |  | — |  | 314 |  | — |  | 308
Total |  | 14,647 |  | 6,167 |  | 13,023 |  | 6,041
Pension plan assets include Series B shares issued by the Company with fair values totalling Rp469 billion and Rp372 billion, representing 2.25% and 1.95% of total plan assets as of December 31, 2017 and 2018, respectively, and bonds issued by the Company with fair value totalling Rp340 billion and Rp314 billion, representing 1.64% and 1.65% of total plan assets as of December 31, 2017 and 2018, respectively. The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp3,039 billion and Rp(158) billion for the years ended December 31, 2017 and 2018, respectively. Based on the Company’s policy issued on January 14, 2014 regarding Dapen’s Funding Policy, the Company will not contribute to Dapen when Dapen’s Funding Sufficiency Ratio ("FSR") is above 105%. Based on Dapen’s financial statement as of December 31, 2018, Dapen’s FSR is below 105%. Therefore, the Company will make contributions to the defined benefit pension plan in 2019. Based on the Company's policy issued on June 7, 2017 regarding Pension Regulation by Dapen, the Company provided other benefits in the form of additional benefit in 2017 amounted to Rp4.5 million to monthly pension beneficiaries who retired before end of June 2002 and Rp2.25 million to monthly pension beneficiaries who retired starting from the end of June 2002 until the end of April 2017. The movement of the projected pension benefit obligations for the years ended December 31, 2017 and 2018 are as follow:
|  | 2017 |  | 2018
Projected pension benefit obligations (prepaid pension benefit cost) at beginning of year |  | (197) |  | 1,540
Net periodic pension benefit cost |  | 583 |  | 548
Provision of additional pension benefit |  | — |  | 205
Actuarial losses (gain) recognised in OCI |  | 2,862 |  | (2,691)
Return on plan assets (excluding amount included in net interest expense) |  | (1,708) |  | 1,455
Projected pension benefit obligations at end of year |  | 1,540 |  | 1,057
The components of net periodic pension benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follows:
|  | 2016 |  | 2017 |  | 2018
Service costs |  | 363 |  | 366 |  | 384
Past service cost - plan amendments |  | 245 |  | 94 |  | —
Plan administration cost |  | 46 |  | 57 |  | 62
Net interest cost |  | (14) |  | 66 |  | 102
Net periodic pension benefit cost |  | 640 |  | 583 |  | 548
Amount charged to subsidiaries under contractual agreements |  | (32) |  | (26) |  | (37)
Net periodic pension benefit cost less cost charged to subsidiaries |  | 608 |  | 557 |  | 511
Amounts recognised in OCI are as follow:
|  | 2016 |  | 2017 |  | 2018
Actuarial losses (gain) recognised during the year due to: |  |  |  |  |  |
Experience adjustments |  | 70 |  | 163 |  | 329
Changes in demographic assumptions |  | 140 |  | — |  | —
Changes in financial assumptions |  | 1,470 |  | 2,699 |  | (3,020)
Return on plan assets (excluding amount included in net interest expense) |  | (1,188) |  | (1,708) |  | 1,455
Net |  | 492 |  | 1,154 |  | (1,236)
The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018, and April 1, 2019, 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, 2017 and 2018 are as follows:
|  | 2016 |  | 2017 |  | 2018 |
Discount rate |  | 8.00 | % | 6.75 | % | 8.25 | %
Rate of compensation increases |  | 8.00 | % | 8.00 | % | 8.00 | %
Indonesian mortality table |  | 2011 |  | 2011 |  | 2011 |
ii. Additional pension benefit obligation Based on the Company’s policy issued on June 7, 2017 regarding Pension Regulation by Dapen, the Company established additional benefit fund at maximum 10% of surplus of defined benefit plan, when FSR is above 105% and return on investment is above actuarial discount rate of pension fund. The additional pension benefit obligation for the year ended December 31, 2018 is as follows:
|  | 2017 |  | 2018
Changes in projected pension benefit obligations |  |  |  |
Projected pension benefit obligations at beginning of year |  | — |  | 1,076
Charged to profit or loss: |  |  |  |
Past service costs |  | 657 |  | —
Interest costs |  | — |  | 69
Actuarial losses (gain) recognised in OCI |  | 419 |  | (948)
Pension benefits paid |  | — |  | (93)
Projected pension benefit obligations at end of year |  | 1,076 |  | 104
Changes in pension benefit plan assets |  |  |  |
Fair value of pension plan assets at beginning of year |  | — |  | —
Provision of additional benefit |  | — |  | 205
Return of benefit plan assets |  | — |  | (14)
Pension benefits paid |  | — |  | (93)
Fair value of pension plan assets at end of year |  | — |  | 98
Projected pension benefit obligations at end of year |  | (1,076) |  | (6)
As of December 31, 2018, there is no plan asset on additional pension benefits funds determined by management of Dapen with the approval of the Oversight Board. Changes in additional pension benefit obligation for the years ended December 31, 2017 and 2018 are as follow:
|  | 2017 |  | 2018
Additional pension benefit obligation at beginning of year |  | — |  | 1,076
Past service cost |  | 657 |  | —
Interest costs |  | — |  | 69
Provision of additional benefit |  | — |  | (205)
Actuarial loss (gain) recognised in OCI |  | 419 |  | (948)
Return on plan asset |  | — |  | 14
Projected additional pension benefit obligation at end of year |  | 1,076 |  | 6
The components of additional pension benefit cost for the years ended December 31, 2017 and 2018 are as follows:
|  | 2017 |  | 2018
Past service costs |  | 657 |  | —
Net interest costs |  | — |  | 69
Pension benefit costs |  | 657 |  | 69
Amounts recognised in OCI for the years ended December 31, 2017 and 2018 are as follow:
|  | 2017 |  | 2018
Actuarial (gain) losses recognised during the year due to: |  |  |  |
Experience adjustment |  | — |  | (773)
Changes in financial assumption |  | 419 |  | (175)
Return on plan assets (excluding amount included in net interest expense) |  | — |  | 14
Total |  | 419 |  | (934)
The actuarial valuation for the additional pension benefit plan was performed based on the measurement date as of December 31, 2017 and 2018, with report dated February 27, 2018 and April 1, 2019, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary for the year ended December 31, 2017 and 2018 is as follows:
|  | 2017 |  | 2018 |
Rate of return on investment |  | 9.50%-10.25 | % | 9.30%-10.00 | %
Discount rate |  | 6.75 | % | 8.25 | %
Actuarial discount rate of pension fund |  | 9.25-9.50 | % | 9.25-9.50 | %
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 with permanent status hired 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 Rp10 billion and Rp13 billion for the years ended December 31, 2017 and 2018, respectively. Since 2007, the Company has provided pension benefit based on uniformization for both participants prior to and from April 20, 1992 effective for employees retiring beginning February 1, 2009. In 2010, the Company replaced the uniformization with Manfaat Pensiun Sekaligus (“MPS”). MPS is given to those employees reaching retirement age, upon death or upon becoming disabled starting from February 1, 2009. 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 has issued a new requirement for MPP effective for employees retiring since April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, such employee is required to work until the retirement date. The following table presents the changes in the unfunded projected pension benefit obligations for MPS and MPP for the years ended December 31, 2017 and 2018:
|  | 2017 |  | 2018
Unfunded projected pension benefit obligations at beginning of year |  | 2,507 |  | 2,384
Charged to profit or loss: |  |  |  |
Service costs |  | 51 |  | 54
Net interest costs |  | 188 |  | 144
Actuarial losses (gain) recognised in OCI |  | 100 |  | (137)
Benefits paid by employer |  | (462) |  | (615)
Unfunded projected pension benefit obligations at end of year |  | 2,384 |  | 1,830
The components of total periodic pension benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follows:
|  | 2016 |  | 2017 |  | 2018
Service costs |  | 64 |  | 51 |  | 54
Net interest costs |  | 215 |  | 188 |  | 144
Total periodic pension benefit cost |  | 279 |  | 239 |  | 198
Amounts recognised in OCI are as follow:
|  | 2016 |  | 2017 |  | 2018
Actuarial losses (gain) recognised during the year due to: |  |  |  |  |  |
Experience adjustments |  | (9) |  | 19 |  | 27
Changes in demographic assumptions |  | 30 |  | — |  | (21)
Changes in financial assumptions |  | 98 |  | 81 |  | (143)
Net |  | 119 |  | 100 |  | (137)
The actuarial valuation for the defined benefit pension plan was performed, based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018 and April 1, 2019, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary for the years ended December 31, 2016, 2017 and 2018 are as follow:
|  | 2016 |  | 2017 |  | 2018 |
Discount rate |  | 7.75%-8.00 | % | 6.00%-6.75 | % | 8.00%-8.25% |
Rate of compensation increases |  | 6.10%-8.00 | % | 6.10%-8.00 | % | 6.10%-8.00% |
Indonesian mortality table |  | 2011 |  | 2011 |  | 2011 |
ii. Telkomsel Telkomsel sponsors 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 (excluding functional allowance) and 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 have been fully made by Telkomsel. Telkomsel’s contributions to Jiwasraya amounted to Rp131 billion and Rp125 billion for the years ended December 31, 2017 and 2018, respectively. The following table presents the changes in projected pension benefit obligation, changes in pension benefit plan assets, funded status of the pension plan and net amount recognised in the consolidated statement of financial position for the years ended December 31, 2017 and 2018, under Telkomsel’s defined benefit pension plan:
|  | 2017 |  | 2018
Changes in projected pension benefit obligation |  |  |  |
Projected pension benefit obligation at beginning of year |  | 2,034 |  | 2,928
Charged to profit or loss: |  |  |  |
Service costs |  | 149 |  | 213
Net Interest costs |  | 167 |  | 203
Actuarial losses (gain) recognised in OCI |  | 584 |  | (583)
Benefit paid |  | (6) |  | (27)
Projected pension benefit obligation at end of year |  | 2,928 |  | 2,734
Changes in pension benefit plan assets |  |  |  |
Fair value of plan assets at beginning of year |  | 841 |  | 1,089
Interest income |  | 69 |  | 74
Return on plan assets (excluding amount included in net interest expense) |  | 54 |  | (68)
Employer’s contributions |  | 131 |  | 125
Benefit paid |  | (6) |  | (27)
Fair value of pension plan assets at end of year |  | 1,089 |  | 1,193
Pension benefit obligation at end of year |  | 1,839 |  | 1,541
Movements of the Pension benefit obligation during the years ended December 31, 2017 and 2018:
|  | 2017 |  | 2018
Pension benefit obligation at beginning of year |  | 1,193 |  | 1,839
Periodic pension benefit cost |  | 247 |  | 342
Actuarial losses (gain) recognised in OCI |  | 584 |  | (583)
Return on plan assets (excluding amount included in net interest expense) |  | (54) |  | 68
Employer’s contributions |  | (131) |  | (125)
Pension benefit obligation at end of year |  | 1,839 |  | 1,541
The components of the periodic pension benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follow:
|  | 2016 |  | 2017 |  | 2018
Service costs |  | 107 |  | 149 |  | 213
Net interest costs |  | 74 |  | 98 |  | 129
Total |  | 181 |  | 247 |  | 342
Amounts recognised in OCI are as follow:
|  | 2016 |  | 2017 |  | 2018
Actuarial (gain) losses recognised during the year due to: |  |  |  |  |  |
Experience adjustments |  | 32 |  | (77) |  | 192
Changes in financial assumptions |  | 360 |  | 661 |  | (774)
Return on plan assets (excluding amount included in net interest expense) |  | (100) |  | (54) |  | 68
Net |  | 292 |  | 530 |  | (514)
The actuarial valuation for the defined benefit pension plan was performed based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 7, 2017, February 8, 2018 and February 14, 2019 respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016, 2017 and 2018, are as follows:
|  | 2016 |  | 2017 |  | 2018 |
Discount rate |  | 8.25 | % | 7.00 | % | 8.25 | %
Rate of compensation increases |  | 8.00 | % | 8.00 | % | 8.00 | %
Indonesian mortality table |  | 2011 |  | 2011 |  | 2011 |
b. Post-employment health care benefit cost The Company provides post-employment health care benefits 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 are no longer entitled to this plan. The plan is managed by Yayasan Kesehatan Telkom (“Yakes”). The defined contribution post-employment health care benefit plan is provided to employees with permanent status hired on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement. The Company did not make contributions to Yakes for the years ended December 31, 2017 and 2018. The following table presents the changes in projected post-employment health care benefit obligation, changes in post-employment health care benefit plan assets, funded status of the post-employment health care benefit plan and net amount recognised in the Company’s consolidated statement of financial position as of December 31, 2017 and 2018:
|  | 2017 |  | 2018
Changes in projected post-employment health care benefit obligation |  |  |  |
Projected post-employment health care benefit obligation at beginning of year |  | 13,357 |  | 15,448
Charged to profit or loss: |  |  |  |
Interest costs |  | 1,115 |  | 1,102
Actuarial losses (gain) recognised in OCI |  | 1,460 |  | (3,641)
Post-employment health care benefits paid |  | (484) |  | (486)
Projected post-employment health care benefit obligation at end of year |  | 15,448 |  | 12,423
Changes in post-employment health care benefit plan assets |  |  |  |
Fair value of plan assets at beginning of year |  | 11,765 |  | 13,029
Interest income |  | 979 |  | 927
Return on plan assets (excluding amount included in net interest expense) |  | 909 |  | (1,082)
Post-employment health care benefits paid |  | (484) |  | (486)
Plan administration costs |  | (140) |  | (160)
Fair value of pension plan assets at end of year |  | 13,029 |  | 12,228
Projected for post-employment health care benefit obligation - net |  | 2,419 |  | 195
As of December 31, 2017 and 2018, plan assets consist of:
|  | 2017 |  | 2018
|  | Quoted in |  |  |  | Quoted in |  |
|  | active market |  | Unquoted |  | active market |  | Unquoted
Cash and cash equivalents |  | 1,354 |  | — |  | 1,115 |  | —
Equity instruments: |  |  |  |  |  |  |  |
Manufacturing and consumer |  | 835 |  | — |  | 799 |  | —
Finance industries |  | 840 |  | — |  | 799 |  | —
Construction |  | 254 |  | — |  | 190 |  | —
Infrastructure and telecommunication |  | 350 |  | — |  | 332 |  | —
Wholesale |  | 137 |  | — |  | 177 |  | —
Mining |  | 65 |  | — |  | 77 |  | —
Other Industries: |  |  |  |  |  |  |  |
Services |  | 38 |  | — |  | 60 |  | —
Agriculture |  | 35 |  | — |  | 32 |  | —
Biotechnology and pharma industry |  | 68 |  | — |  | 85 |  | —
Others |  | 1 |  | — |  | 3 |  | —
Equity-based mutual funds |  | 1,113 |  | — |  | 1,204 |  | —
Fixed income instruments: |  |  |  |  |  |  |  |
Fixed income mutual funds |  | 7,642 |  | — |  | 7,020 |  | —
Unlisted shares: |  |  |  |  |  |  |  |
Private placement |  | — |  | 297 |  | — |  | 335
Total |  | 12,732 |  | 297 |  | 11,893 |  | 335
Yakes plan assets also include Series B shares issued by the Company with fair value totalling Rp265 billion and Rp249 billion, representing 2.04% and 2.03% of total plan assets as of December 31, 2017 and 2018, respectively. The expected return is determined based on market expectation for the returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets was Rp1,748 billion and Rp(315) billion for the years ended December 31, 2017 and 2018, respectively. The movements of the projected post-employment health care benefit obligation for the years ended December 31, 2017 and 2018 are as follow:
|  | 2017 |  | 2018
Projected post-employment health care benefit obligation at beginning of year |  | 1,592 |  | 2,419
Net periodic post-employment health care benefit costs |  | 276 |  | 335
Actuarial losses (gain) recognised in OCI |  | 1,460 |  | (3,641)
Return on plan assets (excluding amount included in net interest expense) |  | (909) |  | 1,082
Projected post-employment health care benefit obligation at end of year |  | 2,419 |  | 195
The components of net periodic post-employment health care benefit cost for the years ended December 31, 2016, 2017, and 2018 are as follow:
|  | 2016 |  | 2017 |  | 2018
Service costs |  | 9 |  | — |  | —
Plan administration costs |  | 144 |  | 140 |  | 160
Net interest costs |  | 12 |  | 136 |  | 175
Periodic post-employment health care benefit cost |  | 165 |  | 276 |  | 335
Amounts charged to subsidiaries under contractual agreements |  | (2) |  | — |  | —
Net periodic post-employment health care benefit cost less cost charged to subsidiaries |  | 163 |  | 276 |  | 335
Amounts recognised in OCI are as follow:
|  | 2016 |  | 2017 |  | 2018
Actuarial losses (gain) recognised during the year due to: |  |  |  |  |  |
Experience adjustments |  | 26 |  | (1,198) |  | (1,100)
Changes in demographic assumptions |  | 66 |  | — |  | —
Changes in financial assumptions |  | 1,736 |  | 2,658 |  | (2,541)
Return on plan assets (excluding amount included in net interest expense) |  | (519) |  | (909) |  | 1,082
Net |  | 1,309 |  | 551 |  | (2,559)
The actuarial valuation for the post-employment health care benefits plan was performed based on the measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018, and April 1, 2019, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016, 2017 and 2018 are as follow:
|  | 2016 |  | 2017 |  | 2018 |
Discount rate |  | 8.50 | % | 7.25 | % | 8.75 | %
Health care costs trend rate assumed for next year |  | 7.00 | % | 7.00 | % | 7.00 | %
Ultimate health care costs trend rate |  | 7.00 | % | 7.00 | % | 7.00 | %
Year that the rate reaches the ultimate trend rate |  | 2017 |  | 2018 |  | 2018 |
Indonesian mortality table |  | 2011 |  | 2011 |  | 2011 |
c. Other post-employment benefits cost The Company provides other post-employment benefits in the form of cash paid to employees on their retirement or termination. These benefits consist of final housing allowance (Biaya Fasilitas Perumahan Terakhir or “BFPT”) and home passage leave (Biaya Perjalanan Pensiun dan Purnabhakti or “BPP”). The movements of the unfunded projected other post-employment benefit obligations for the years ended December 31, 2017 and 2018 are as follow:
|  | 2017 |  | 2018
Projected other post-employment benefit obligations at beginning of year |  | 502 |  | 510
Charged to profit or loss: |  |  |  |
Service costs |  | 6 |  | 6
Net interest costs |  | 36 |  | 26
Actuarial losses (gain) recognised in OCI |  | 40 |  | (24)
Benefits paid by employer |  | (74) |  | (99)
Projected other post-employment benefits obligations at the end of year |  | 510 |  | 419
The components of the projected other post-employment benefit cost for the years ended December 31, 2016, 2017 and 2018 are as follow:
|  | 2016 |  | 2017 |  | 2018
Service costs |  | 7 |  | 6 |  | 6
Net interest costs |  | 41 |  | 36 |  | 26
Total |  | 48 |  | 42 |  | 32
Amounts recognised in OCI are as follow:
|  | 2016 |  | 2017 |  | 2018
Actuarial losses (gain) recognised during the year due to: |  |  |  |  |  |
Experience adjustments |  | 2 |  | 10 |  | 40
Changes in demographic assumptions |  | 0 |  | — |  | (34)
Changes in financial assumptions |  | 18 |  | 30 |  | (30)
Total |  | 20 |  | 40 |  | (24)
The actuarial valuation for the other post-employment benefits plan was performed based on measurement date as of December 31, 2016, 2017 and 2018, with reports dated February 22, 2017, February 27, 2018 and April 1, 2019, respectively, by TWP, an independent actuary in association with WTW. The principal actuarial assumptions used by the independent actuary as of December 31, 2016, 2017 and 2018, are as follow:
|  | 2016 |  | 2017 |  | 2018 |
Discount rate |  | 7.75 | % | 5.75 | % | 8.00 | %
Indonesian mortality table |  | 2011 |  | 2011 |  | 2011 |
d. Obligation under the Labor Law Under Law No. 13 Year 2003, the Group is required to provide minimum pension benefits, if not covered yet by the sponsored pension plans, to its employees upon retirement. Total obligation recognised as of December 31, 2017 and 2018 amounted to Rp427 billion and Rp507 billion, respectively. The related employee benefits cost charged to expense amounted to Rp82 billion, Rp62 billion and Rp113 billion for the years ended December 31, 2016, 2017 and 2018, respectively (Note 27). The actuarial losses recognised in OCI amounted to Rp33 billion, Rp72 billion and Rp(14) billion for the years ended December 31, 2016, 2017 and 2018, respectively. e. Maturity Profile of Defined Benefit Obligation (“DBO”) The timing of benefits payments and weighted average duration of DBO for 2018 are as follow:
|  | Expected Benefits Payment
|  | The Company |  |  |  |  |  |
|  | Funded |  |  |  |  |  | Post-employment |  | Other post-
|  | Defined pension | Additional pension |  |  |  |  |  | health care |  | employment
Time Period |  | benefit obligation | benefit obligation |  | Unfunded |  | Telkomsel |  | benefits |  | benefits
Within next 10 years |  | 16,370 | — |  | 948 |  | 2,498 |  | 5,620 |  | 485
Within 10-20 years |  | 20,349 | — |  | 160 |  | 7,880 |  | 6,913 |  | 91
Within 20-30 years |  | 16,207 | 20 |  | 29 |  | 6,680 |  | 6,217 |  | 39
Within 30-40 years |  | 9,400 | 38 |  | 9 |  | 1,580 |  | 3,193 |  | 3
Within 40-50 years |  | 3,383 | 30 |  | — |  | — |  | 661 |  | —
Within 50-60 years |  | 644 | 50 |  | — |  | — |  | 22 |  | —
Within 60-70 years |  | 62 | 101 |  | — |  | — |  | 0 |  | —
Within 70-80 years |  | 2 | — |  | — |  | — |  | — |  | —
Weighted average duration of DBO |  | 9.11 years | 9.11 years |  | 3.97 years |  | 10.58 years |  | 17.41 years |  | 3.13 years
f. Sensitivity Analysis 1% change in discount rate and rate of compensation would have effect on DBO, as follows:
|  | Discount Rate |  | Rate of Compensation
|  | 1% Increase |  | 1% Decrease |  | 1% Increase |  | 1% Decrease
Sensitivity |  | Increase (decrease) in amounts |  | Increase (decrease) in amounts
Funded: |  |  |  |  |  |  |  |
Defined pension benefit obligation |  | (1,568) |  | 1,832 |  | 275 |  | (286)
Additional pension benefit obligation |  | (2) |  | 1 |  | — |  | —
Unfunded |  | (41) |  | 38 |  | 42 |  | (45)
Telkomsel |  | (497) |  | 562 |  | 294 |  | (276)
Post-employment health care benefits |  | (1,428) |  | 1,815 |  | 1,783 |  | (1,508)
Other post-employment benefits |  | (12) |  | 13 |  | — |  | —
The sensitivity analysis has been determined based on a method that extrapolates the impact on DBO as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity results above determine the individual impact on the Plan’s DBO at the end of the year. In reality, the Plan is subject to multiple external experience items which may move the DBO in similar or opposite directions, and the Plan’s sensitivity to such changes can vary over time. There are no changes in the methods and assumptions used in preparing the sensitivity analysis from the previous period.

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