ALLOWANCE FOR POSSIBLE LOSSES ON EARNING ASSETS

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009, 2008 AND 2007 Expressed in millions of Rupiah, unless otherwise stated Appendix 5110 43. PENSION AND SEVERANCE continued Pension Plan continued a. Bank Mandiri and the employees contribute 10.00 and 5.00 of the Base Pension Plan Employee Income, respectively. The President Director and the members of the Supervisory Board of the DPBM are active employees of Bank Mandiri; therefore, in substance, Bank Mandiri has control over the DPBM. As a consequence, transactions between the DPBM and Bank Mandiri are considered related party transactions. The DPBM invests a part of its financial resources in Bank Mandiri time deposits, which balances as at 31 December 2009, 2008 and 2007 were Rp25,500, Rp35,500 and Rp10,000, respectively. The interest rates on these time deposits are at arms-length. The Bank paid pension contributions totaling Rp162,587, Rp154,830 and Rp129,470, respectively, for the years ended 31 December 2009, 2008 and 2007, respectively. b. Four employer defined benefit pension plans, Dana Pensiun Pemberi Kerja Program Pensiun Manfaat Pasti DPPK-PPMP are derived from the respective pension plans of the Merged Banks, namely Dana Pensiun Bank Mandiri Satu or DPBM I BBD, DPBM II BDN, DPBM III Bank Exim and DPBM IV Bapindo. The regulations of the respective pension plans were approved by the Ministry of Finance of the Republic of Indonesia’s through its decision letters No. KEP- 394KM.0171999, No. KEP-395KM.0171999, No. KEP-396KM.0171999 and No. KEP- 397KM.0171999 all dated 15 November 1999. Based on the approval of shareholders No. S- 923M-MBU2003 dated 6 March 2003, Bank Mandiri has adjusted pension benefits for each Pension Fund. Such approval has been incorporated in each of the Pension Fund’s Regulations Peraturan Dana Pensiun PDP which have been approved by the Ministry of Finance of the Republic of Indonesia based on its decision letters No. KEP115KM.62003 for PDP DPBM I, No. KEP116KM.62003 for PDP DPBM II, No. KEP117KM.62003 for PDP DPBM III, and No. KEP118KM.62003 for PDP DPBM IV, all dated 31 March 2003. The members of the defined benefit pension plans are the employees from the legacy banks who have rendered three or more services years at the time of merger and are comprise of active employees of the Bank, former employee those who have resigned and did not transfer their beneficial right to other pension plan and pensioners. Based on the decision of the Annual General Shareholders’ Meeting dated 28 May 2007, Bank Mandiri increased the pension benefit from each of the Pension Plans. The decision was stated in each Pension Plan Regulation and has been approved by the Ministry of Finance of the Republic of Indonesia with decision letter No. KEP-144KM.102007 DPBM I; No. KEP-145KM.102007 DPBM II; No. KEP-146KM.102007 DPBM III and No. KEP-147KM.102007 DPBM IV all dated 20 July 2007. As at 31 December 2009, 2008 and 2007, a pension benefit obligation have been provided based on the calculation obligation and pension benefit cost for the years ended 31 December 2009, 2008, 2007 is based on the independent actuarial report of PT Eldridge Gunaprima Solution dated 25 January 2010 and 30 January 2009 for the years ended 31 December 2009 and 2008 and PT Dayamandiri Dharmakonsilindo dated 31 January 2008 for the years ended 31 December 2007, respectively, in its calculation the actuary used the following assumptions: