Summary of Social Security and Private Employee Benefits INDONESIA

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1 Private Employee Benefits INDONESIA 2013

2 Your Local Link to IGP in INDONESIA: PT Asuransi Jiwa Manulife Indonesia PT Asuransi Jiwa Manulife Indonesia (Manulife Indonesia) offers the most comprehensive products and services in the Indonesian financial services industry through life insurance and employee benefits and through mutual funds and asset management services provided by its sister company, PT Manulife Aset Manajemen Indonesia. Headquartered in Jakarta, Manulife Indonesia operates through a network of marketing offices in 24 cities across the country, supported by more than 7,400 employees and professional agents and has approximately 1.5 million in force policies. Throughout the years, Manulife Indonesia has earned numerous prestigious awards: 2013: First Place in the Excellent Service Experience Award (ESEA) 2013 for the category of Life & Health Insurance from Bisnis Indonesia and Carre - Center for Customer Satisfaction and Loyalty (Carre-CCSL) Second Place in the Digital Brand of the Year 2012 awards in the Life Insurance Company Category from Infobank Magazine and PingFans 2012: Excellent rating in the Life Insurance category at the Net Promoter Loyalty Awards 2012 from Hachiko-Net Promoter Solutions and SWA Magazine First place in the category The Most Reliable at the Bisnis Indonesia Insurance Award 2012 Very Good rating from Infobank Insurance Awards 2012 for the 7th time in the Life Insurance Company Category with gross premium income above IDR 1 trillion for the 2011 performance Bronze Award for Best Customer Choice of Health Insurance at the Indonesia Brand Champion 2012, which was initiated by MarkPlus Inc., a respected Southeast Asian-based research firm The Most Innovative Life Insurance Company in Product Development in 2012 from Business Review Magazine Two Service Quality Awards 2012 with a Gold rating for Health Insurance and Life Insurance Service from the Service Excellence and Center for Customer Satisfaction & Loyalty 2011: Service Quality Award 2011 in the Health Insurance Service category from Service Excellence Magazine, Marketing Magazine and Carre - Center for Customer Satisfaction & Loyalty (Carre - CCSL) The Best Insurance Company of the Year at the ASEAN Business & Company Awards 2011, which are initiated by the International Achievement Foundation (IAF) Indonesia Brand Champion 2011 for the following categories: 1) The Best Customer Choice of Health Insurance; 2) The Best Customer Choice of Unit-Linked Insurance; and 3) The Most Popular Brand of Health Insurance by MarkPlus, Inc International Group Program 1

3 Your Local Link to IGP in INDONESIA: PT Asuransi Jiwa Manulife Indonesia 2010: Winner of the Best Life Insurance Company in 2010 award from Indonesian Insurance and Reinsurance Broker Association (ABAI) Most Favorite Life Insurance Company 2010 from Indonesian Insurance and Reinsurance Broker Association (ABAI) Runner-Up Best Life Insurance Company 2010 from Investor Magazine (fourth consecutive year) Call Center Award for Service Excellence 2010 from Marketing Magazine and Carre-CCSL (Center for Customer Satisfaction and Loyalty) for the fourth time, having previously won the same award in 2006, 2008, and 2009 Service Quality Award 2010 from Marketing Magazine and Carre-CCSL (Center for Customer Satisfaction and Loyalty) Net Promoter Customer Loyalty Award 2010 from Octovate Consulting Group and SWA Magazine Key Products Life Life Accidental Death and Disability Permanent and Total Disability Medical Hospital and Surgical Pensions Pension Administration Services for Employer-Provided Pension Funds Financial Institution Pension Fund Additional information on PT Asuransi Jiwa Manulife Indonesia is available on the internet at: International Group Program 2

4 Customary Private Employee Benefit Plans Social Security (Jamsostek) Participation is mandatory for all companies with more than 10 employees or a monthly payroll of IDR 1,000,000 or more. Savings Program: Age 55, death prior to age 55, or total and permanent disability. A lump sum equal to the accumulation of employee and employer contributions plus accrued interest if the total benefit amount is less than IDR 3,000,000. If the total benefit amount is IDR 3,000,000 or more, it will be paid regularly for the maximum of five years term. 3.7% of covered wages by the employer, and 2.0% by the employee or 5.7% of total contribution covered wages by the employer. Life Insurance: Death before the age of 55, provided the death did not result from an employment-related accident or disease. A lump sum of IDR 10 million plus a funeral expense benefit amounting to IDR 2 million. The beneficiary will also receive a regular monthly allowance of IDR 200,000 for the period of 24 months. 0.3% of covered wages by the employer only. Workers Compensation: Benefits: Death or disability (either temporary or permanent) resulting from an employment-related accident or disease. Medical care reimbursement, temporary disability income benefit, lump sum permanent disability benefit, death benefit with funeral expense benefit, rehabilitation expenses, and employment-related disease benefit. 0.24% to 1.74% of covered wages by the employer, depending upon the company's industrial risk classification. Medical Benefits: Employees and their dependents (up to a maximum of three). Medical expense reimbursement, dental, and maternity care. 6% for married employees and 3% for single employees International Group Program 3

5 Customary Private Employee Benefit Plans Private Employee Benefits The Pension Fund Law requires that benefits be paid as an annuity after a possible lump sum payment equal to 20% of the value of the benefit. When total benefits payable are less than IDR 50 million, lump sum payment is possible for both the Financial Institution Pension Fund and for the Employer Pension Fund. Retirement Plans: Eligibility: All full-time employees at least 18 years of age or married with one year of service. Defined One to two and a half months' salary per year of service. Salary is frequently the average salary over the last months of service. Defined Contribution: 5% - 12% of salary accumulated with interest. The benefit is to be paid as an annuity after a partial lump sum disbursement. Survivors Benefits: Widow or widower and orphans benefits before and after retirement. Vesting: Retirement Age: Employee Contribution: 100% after three years of participation for an Employer Pension Fund and immediate vesting for a Financial Institution Pension Fund. Usually age 55 for both males and females. Generally none for an Employer Pension Fund and 1% - 5% for a Financial Institution Pension Fund. Death Usually months' salary, in some cases, reduced by the Social Security death benefit. Accidental Death and Dismemberment and/or Permanent Disability benefits are sometimes provided as a rider. Medical: Practice varies widely, from 100% reimbursement of employee and dependent medical expenses, to a flat monthly medical allowance. Usually self-insured, but larger companies and multinationals may have insured hospital/surgical and major medical plans. Benefit levels usually vary based on job classification International Group Program 4