SELF-RELIANT COMMUNITY AR Mandiri 2013 English

Annual Report 2013 PT Bank Mandiri Persero Tbk. corporate social responsibility IMPLEMENTATION OF MANDIRI CSR PILLARS In 2013, the implementation and achievements of Mandiri CSR strategy through the three pillars of activities are as follows:

1. SELF-RELIANT COMMUNITY

The pillar of Self-Reliant Community is implemented through the Self Reliance With Mandiri Program or also known as Mandiri Bersama Mandiri MBM Program, a program aimed to foster the communities in an integrated manner in terms of capacity, infrastructure, capability and access. The program is based on the belief that the empowerment of communities in a region will have wider and more comprehensive impact. In addition, long-term empowerment of community will have an impact on improving the standard of living, independence and the business ability of the community in such region. Through the implementation of the MBM program, Bank Mandiri is committed to encouraging small business community in a particular area to be better in production capability and proitability, promoting economic development of the community and enhancing creative and productive activity patterns of the community and ultimately establishing a prosperous life order.

1.1 MBM Region

MBM program has been carried out since 2011 and currently this MBM program has been implemented in several regions, such as the following: The program of mentoring and empowering local potential in a comprehensive, integrated and uniied manner to create food self-suiciency, starting from the Desa Argorejo, Argosari and Giwangan, Yogyakarta and speciically focused on agriculture, livestock and creative industries. Until the end of December 2013, the development of MBM program implementation in the region is as follows: Development of MBM Program Activity Previous Subsequent Rice productivity 7,4 tonhektar 7.4 tonshectare Recycling of cow dung na Recycling of cow dung into compost provides additional income of approximately Rp 600 thousand 1 management cycle Utilization of biogas na Utilization of biogas as a fuel results in savings of approximately Rp 120 thousandmonth per household Use of unirrigated land na Use of approximately 5,000 m2 of unirrigated land for productive purposes t The establishment of Tourism Village community in Pasir Panjang, West Manggarai, East Nusa Tenggara is carried out by optimizing the local marine tourism potential to create job opportunities for the local community. The MBM program in the region is implemented through the trainings on hygiene, improvement of water facilities and tourist infrastructure in the form of a glass bottom boat and kayak. t Establishment of sustainable Tourism Village community in the Desa Bayan, Lombok. The MBM program Annual Report 2013 PT Bank Mandiri Persero Tbk. in the region is implemented in the form of training in the ield of tourism, restorative, administrative aspects and training on security and convenience for travelers. In addition, the implementation of the MBM program is also conducted in the form of community empowerment and infrastructure development to attract tourists in the form of Mandala Spring, Bayan Traditional House and Tourism Center. t Empowerment of weaving artisans and blacksmiths in Desa Tanjung Pinang and Limbang Jaya, Kabupaten Ogan Ilir, Palembang. The purpose of the implementation of MBM program in this area is to establish typical Palembang Tourism Village community through improvement of productivity and creativity of the weavers and blacksmiths and village institutional improvement. t Formation of community based industrial cluster of Straw Mushroom in Desa Balonggandu, Karawang. The MBM program is implemented in the region in the form of production capacity training, management training, processed mushroom training, establishment of institutions, supply of supporting machines and product standardization facilitation. t Establishment of Independent Creative Village in Pengotan region, Bali. Through training program that lasts for 6 months until the end of 2013 in the region, Bank Mandiri tries to expand production capacity and business independence of the 8 business groups in the region with a focus on labor-intensive sectors such as handicrafts, tourism, agriculture and eco-tourism.

1.2 MBM Challenge

In 2012, Bank Mandiri has administered MBM Challenge event namely competition held in order to encourage the growth of social entrepreneurship in Indonesia. The program aims to give recognition to individuals communities that have been successful in developing social entrepreneurship and have helped accelerate the process of social independence in an area for use by the community. Out of 601 participants enrolled in such event, 13 participants have been selected as the winner of MBM Challenge and, therefore, entitled to a project capital for expansion of their business as part of the efort to support the well-being of local communities. The following are the implementation of a project capital granted to some of the winners of MBM Challenge held in 2013: Team of Pasar Sehat Genteng – The Winner II of MBM Challenge for the category of semi-established agricultural business has tried to empower the farmers and traders in Cilawu, Garut to be able to directly sell in Pasar Sehat Genteng, so that the amount of proits received by farmers from their crops can be higher. The following are the development of sociopreneur activities carried out by the Team of Pasar Sehat Genteng through project capital support received from Bank Mandiri: Description Previous Subsequent Number of Traders 96 125 Average turnover per trader ? vegetables ? dry foods ? Wholsaling Rp 300ribu – 1Million Rp 600ribu – 1,5Million Rp 8Million – 15Million Rp 750ribu – 3 Million Rp 1Million – 5Million Rp 15 Million – 35Million Number of contract businesses in vicinity of market 3 7 Number of motorcycle taxi providers 12 25 Kraviti Team – Winner I of MBM Challenge for the category of semi-established creative business, has tried to develop business of batik patchwork creation through the empowerment of women and inmates in Bandung Correctional Institution, so that they can still be productive. The following are Kraviti development after receiving project capital support from Bank Mandiri: corporate social responsibility Annual Report 2013 PT Bank Mandiri Persero Tbk. Description Previous Subsequent Aceptance by and change in mindsets of inmates Programnot accepted by all inmates inmates who received mentoring became more positive, optimistic, less sarcastic, their lives became less monotonous Number of persons helped 3 person 10 person Promotional support no comprehensive promotion comprehensive promotion using website, social media, brochure, company proile and so forth Marketing network ? Stocked by 2 store in Jakarta ? limited distribution in Indonesia ? onlu participated in local expos ? Stocked by 2 store in Jakarta and 4 stores in Bali ? sold in Indonesia and europe ? participated i expos in Jakarta and Netherlands ? 3 regular clients based on purchase order system Nalacity Team – Winner I of MBM Challenge for the category of creative start-up business, has tried to empower the former leprosy patients by developing creative fashion business in Desa Sitanala, Tangerang, West Java. The following are the development of social entrepreneurial activities by Nalacity after receiving project capital support from Bank Mandiri: Description Previous Subsequent Number of persons helped 20 women who were former leprosy patients 25 women who were former leprosy patients Earnings Rp 400 thousand – 800 thousand per month Rp 1 Million – 1,6 Million per month Production volume 20-40 jilbab per month 50-80 hijab per month Number of styles produced 5 styles 13 styles corporate social responsibility Annual Report 2013 PT Bank Mandiri Persero Tbk. 2. EDUCATION AND ENTREPRENEURSHIP 2.1 MANDIRI YOUNG ENTREPRENEUR