PENSION AND SEVERANCE continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated 114

43. PENSION AND SEVERANCE continued

Free of Service Period MBT MBT is a period prior to pension age which frees the employee from their active routine job where the related employee does not come to work but still obtains employee benefits such as: salary, medical facility, religion vacation benefit, annual leave if in the current year the employee has active working period, special leave if the special leave is in the MBT period and mourning benefit and mourning facility. In addition to the above benefits, the MBT facilities are to provide the employee a preparation opportunity before entering pension age. The pension age, Minimal Working Period and MBT period are as follows: No Pension Age Minimal Working Period MBT Period 1. 56 years 12 years 12 months 2. 46 years 9 years 9 months Assumptions used in the actuarial report for MBT are as follows: a. Discount rate is 13 per annum. b. Expected rate of annual salary increase is 12. c. Normal pension age 56 years. d. Early retirement rate is 5 from age 25 decreasing linearly at 0.25 per year up to 0 at age 45 and thereafter. e. Mortality rate table is US 1980 Commissioners’ Standard Ordinary Table of Mortality. f. Disability rate is 10 of mortality rate. Based on those assumptions, provision for MBT facilities as of December 31, 2005 as stated in the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated March 2, 2006 amounts to Rp376,340 Note 28. 44. OTHER OPERATING EXPENSES – OTHERS - NET 2005 2004 Insurance premiums on customer guarantees 442,916 529,209 Others 157,745 116,353 600,661 645,562

45. NON-OPERATING INCOME - NET

2005 2004 Gain on sale of premises and equipment 16,781 29,425 Penalties 31,489 48,735 Others - net 59,688 23,713 44,980 4,403 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated 115

46. COMMITMENTS AND CONTINGENCIES

2005 2004 COMMITMENTS Commitment Receivables: Unrealized spot foreign currencies bought Note 47 Third Parties 479,336 131,889 Total Commitment Receivables 479,336 131,889 Commitment Payables: Unused loan facilities granted Third Parties 19,494,865 19,758,736 Related Parties 32,008 98,229 19,526,873 19,857,035 Outstanding irrevocable letters of credit Note 26 Third Parties 3,827,930 6,486,555 Related Parties 11,830 - 3,839,760 6,486,555 Unrealized spot foreign currencies sold Note 47 Third Parties 478,878 93,611 478,878 93,611 Total Commitment Payables 23,845,511 26,437,201 Commitment Payables - Net 23,366,175 26,305,312 CONTINGENCIES Contingent Receivables: Interest receivable on non-performing assets 4,205,991 1,923,241 Guarantees received from other banks 2,542,446 2,562,975 Others 32,904 32,970 Total Contingent Receivables 6,781,341 4,519,186 Contingent Payables: Guarantees issued in the form of: Bank guarantees issued Note 26: Third Parties 8,486,811 7,493,454 Related Parties 6,342 - 8,493,153 7,493,454 Standby letters of credit Note 26 3,557,056 2,973,434 Others 106,227 85,640 Total Contingent Payables 12,156,436 10,552,528 Contingent Payables - Net 5,375,095 6,033,342 COMMITMENTS AND CONTINGENCIES PAYABLE – NET 28,741,270 32,338,654