EMPLOYEE BENEFITS continued Pension Plan continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 188

50. EMPLOYEE BENEFITS continued

Pension Plan continued The composition of plan assets from Pension Fund for the years ended December 31, 2016 and 2015 are as follows:continued December 31, 2015 unaudited DPBMS DPBMD DPBMT DPBME Deposit 21 23 10 10 Bonds 38 50 35 37 Direct Investment 7 15 28 15 Land and building 19 4 20 10 Shares 7 2 - 2 Government Bonds 3 4 6 11 Others 5 2 1 15 Total 100 100 100 100 Labor Law No. 132003 Bank Mandiri has implemented an accounting policy for employment benefits SFAS No. 24 to recognise provision for employee service entitlements. As of December 31, 2016 and 2015 the Group recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp2,943,664 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculationamounted to Rp8,240 and Rp2,411,613 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculationamounted to Rp8,240 based on the estimated post employment benefit in the independent actuarial reports Note 34. Provision for employee service entitlements as of December 31, 2016 and 2015 are estimated using the employees service entitlements calculation for the years ended December 31, 2016 and 2015 as shown in the independent actuarial report of PT Bestama Aktuaria dated January 5, 2017 for the year ended December 31, 2016 and the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated January 5, 2016 for the year ended December 31, 2016 and 2015. The assumptions used by the actuary for the years ended December 31, 2016 and 2015 are as follows: a. Discount rate is 8.20 per annum 2015: 9.10 per annum. b. Expected rate of annual salary increase is 9.50 per annum 2015: 9.50 per annum c. Mortality rate table used is Indonesia Mortality Table 2011 or TMI III. d. Turnover rate is 5 for employees’ age of 25 and decreasing linearly up to 0 at age 55. e. Actuarial method is projected unit credit method. f. Normal retirement age between 36 to 56 years according to the grades. g. Disability rate is 10 of TMI III. The amounts recognised in the statement of financial position are determined based on independent actuarial report as follows Bank Mandiri only: December 31, December 31, 2016 2015 Provision for post employment benefits presented in statement of financial position 2,434,892 1,976,724 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 189

50. EMPLOYEE BENEFITS continued

Labor Law No. 132003 continued The movement in present value of obligation over the year is as follows Bank Mandiri only: For the year ended For the year ended December 31, 2016 December 31, 2015 Beginning balance of present value of obligation 1,976,724 1,924,202 Current service cost 168,654 260,608 Interest cost 183,279 158,580 Benefit paid 93,991 69,315 Actuarial gainslosses 200,226 297,351 Ending Balance of Present Value of Obligation 2,434,892 1,976,724 The amounts recognised in the profit or loss based on independent actuarial report are as follows Bank Mandiri only: For the year ended For the year ended December 31, 2016 December 31, 2015 Current service cost 168,654 260,608 Interest cost 183,279 158,580 Bank payment for termination benefit - 1,683 Cost of Pension benefits 351,933 432,871 Reconciliations of provision for post employment benefits are as follows: For the year ended For the year ended December 31, 2016 December 31, 2015 Bank Mandiri Beginning balance of provision for post employment benefits 1,976,724 1,906,872 Expenses during the year 351,933 432,871 Payments of benefits 93,991 69,315 Adjustment - 3,152 Recognition of actuarial lossesgains in other comprehensive income 200,226 290,552 Provision for post employment benefits Bank Mandiri 2,434,892 1,976,724 Subsidiaries Provision for post employment benefits 500,532 426,649 Total provision for post employment benefits 2,935,424 2,403,373 As of December 31, 2016 and 2015, the amount does not include unpaid severance for resigned employees amounting to Rp8,240, which was excluded from actuarial computation.