Reinforcement of Public’s Positive Perception and CSR Implementation Strengthening Functions of Oice of Chief Economist

Annual Report 2013 PT Bank Mandiri Persero Tbk.

3. Development of Performance Management System PMS

The development of the PMS is an ongoing process that is designed to further reine concepts and methodologies in accordance with prevailing best practices. Process acceleration and improvement continue to be key focuses so that the continuity and accuracy of information on the Bank’s performance can be maintained. Our performance-based culture was further reined through the application of value-driven performance measures that take risk factors or mandatory capital reserves into consideration.

4. Reinforcement of Policy and Procedure System Standards

In order to support the achievement of business strategies more eiciently and efectively in accordance with the applicable plans, the Finance Strategy Directorate strengthened the policy and procedure system standards in Bank Mandiri and its subsidiaries through periodic and regular reviews and the updating of the policy and procedure system standards prudently and eiciently for all SBUs and Supporting Units, including the adjustment of policies in line with Bank Indonesia regulations and standards. During the course of 2013, we successfully conducted annual reviews on 143 manuals, prepared or amended 82 manuals and 63 sets of technical implementation guidelines so as to ensure that they complied with external regulations. We also streamlined the number of policies from 16 to 13.

5. Strengthening of Brand Positioning through Empowering Brand Ambassador

We continuously worked to strengthen our brand position through the development of the comprehensive and compelling Bank Mandiri equity story so as to enhance positive perceptions of Bank Mandiri in the eyes of investors and the public. In addition, we also strengthened brand positioning through the staging of forums featuring highly regarded capital market analysts and investors to serve as brand ambassadors in describing the performance and business strategies of Bank Mandiri. We also actively worked to improve communications and investor understanding of various strategies and business development initiatives through the holding of conferences with stakeholders and analysts, both domestically and internationally. In addition, we also brought our Customer Gathering road show to all regional oices by inviting prime customers in each region with a view to getting closer to our customers and exploring their real needs on the ground.

6. Reinforcement of Public’s Positive Perception and CSR Implementation

Our work to reinforce positive public and stakeholder perceptions of Bank Mandiri is relected in an average score of 95.4 in our Publicity Efectiveness Level. This achievement is the result of our efective dissemination of messages and information to stakeholders through various media. Brand enhancement programs were also actively organized by Bank Mandiri through national events such as Pasar Indonesia, and the Mandiri Jakarta Marathon, CFO Forum and Investment Forum. Through our corporate social responsibility CSR program, Bank Mandiri has provided a positive contribution to the community and environment as part of its eforts to help improve the welfare of Indonesian people. The CSR program is founded on 3 main pillars, namely self-reliant communities, education entrepreneurship, and inancial literacy. The CSR program in 2013 focused on the Mandiri Entrepreneurship program, which is aimed at identifying, encouraging and rewarding young entrepreneurs, especially university students and alumni who have the courage to start up their own businesses. inance strategy Annual Report 2013 PT Bank Mandiri Persero Tbk. As part of the development of the Mandiri Entrepreneurship Program, Bank Mandiri worked together with the Ministry of Education and Culture Kemdikbud – DIKTI to implement National Lecturer Series NLS Program, which consists of public lectures on entrepreneurship delivered via video streaming from the Ministry of Education and Culture to participating universities that have incorporated the Mandiri Entrepreneurship Module into their curricula. In 2013, four NLS events were held at a number of universities around the country.

7. Strengthening Functions of Oice of Chief Economist

In line with our aspiration to be a thought leader in the banking industry, the Finance Strategy Directorate has reinforced the role of the Oice of Chief Economist to ensure strong and respected research capabilities at both the national and regional levels through the provision of industry analysis and reviews and macro- economic outlooks. The enhancements that have been made as regards quality, accuracy and in-depth analysis have helped to boost the development of business units. During 2013, we regularly published macro-economic and industry analyses, including monthly Macro- Economic Booklets and Indonesia Update bulletins for lending business units every month so as to support their operational strategies and prudent lending. We also continued to issue reference indices as part of the early warning process. Such indices include the Mandiri Leading Economic Index and the Banking Pressure Index a newly launched index that covers the prospects of the banking sector. Both indices were issued regularly to support business units in preparing appropriate business plans and in decision making. In addition, we also staged international level macro-economic forums, such as The International Financial Inclusion Forum 2013 and the Indonesia Investment Forum 2013. These served to strengthen the corporate image of Bank Mandiri and to encourage investment in Indonesia. 2014 STRATEGY WORK PLAN A business organization is required to continually make changes in order to remain competitive in an increasingly tight market. Without changes and innovation, an organization will slowly be overtaken by its competitors. The year 2014 marks the last year of the the 2010-2014 Corporate Plan. To date, many achievements have been made, but many challenges remain to be dealt with. As a dynamic company which is very open to change, Bank Mandiri will continue to make improvements to various aspects of the company’s business and organization. In 2014, Bank Mandiri will continue to concentrate on our 3 focus business areas, which policy will be accompanied by enhanced management of liquidity, asset quality control discipline and optimization of margins. To support such strategies, the Finance Strategy Directorate as a working unit, a line unit whose main function is the management of inancial performance and the preparation of strategy, has developed a work program in order to optimize support for SBUs and Supporting Units. This program which will focus on ive strategic initiatives, namely: inance strategy Annual Report 2013 PT Bank Mandiri Persero Tbk.

1. Mandiri Group Financial Data Integration