MANAGEMENT STOCK OPTION PLAN continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 128

36. OTHER OPERATING INCOME - OTHERS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Accretion in the realizable value of the security and effective reduction of principal related to SUFRNs Notes 15, 29 and 30 144,830 113,316 89,458 23,858 Others 557,487 522,636 376,072 146,564 702,317 635,952 465,530 170,422

37. PROVISION FOR POSSIBLE LOSSES ON EARNING ASSETS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Provisionreversal of allowance for possible losses on: Current accounts with other banks Note 4e 2,112 331 438 107 Placements with other banks Note 5f 19,428 19,522 3,389 22,911 Securities Note 6g 45,622 10,251 22,551 32,802 Other receivables - trade transactions Note 8d 26,651 41,863 46,130 4,267 Securities purchased with agreements to resell Note 9 4,800 - - - Derivative receivables Note 10 7,462 6,717 6,145 572 Loans Note 11B.j 275,662 1,056,661 453,382 603,279 Acceptances receivable Note 12d 6,626 29,607 49,859 20,252 Investments in shares of stock Note 13c 1,922 35,626 70,823 35,197 371,517 1,179,414 645,063 534,351

38. REVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES - OTHERS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Reversal of allowanceprovision for: Possible losses on legal cases Note 28 259,172 569,563 451,103 118,460 Possible losses on other assets Note 15 - 166,192 165,094 1,098 Others 50,000 82,634 82,634 - 309,172 320,737 203,375 117,362 39. GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERN- MENT RECAPITALIZATION BONDS Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Securities 71 52,306 20,764 31,542 Government Recapitalization Bonds 66,201 1,364 747,476 748,840 66,272 50,942 768,240 717,298 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 129

40. GAINS FROM SALE OF SECURITIES AND GOVERNMENT RECAPITALIZATION BONDS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Securities 218,892 254,884 242,214 12,670 Government Recapitalization Bonds 1,365,343 1,868,554 1,556,802 311,752 1,584,235 2,123,438 1,799,016 324,422

41. GENERAL AND ADMINISTRATIVE EXPENSES

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Depreciation and amortization of premises and equipment 533,559 340,993 250,124 90,869 Rent 346,168 344,068 231,793 112,275 Promotions 321,910 255,305 199,222 56,083 Repairs and maintenance 313,723 225,111 178,704 46,407 Communications 301,263 226,736 166,907 59,829 Professional fees 256,084 203,132 190,090 13,042 Public relations 198,343 184,255 152,076 32,179 Electricity, water and gas 153,664 94,701 72,508 22,193 Office supplies 117,450 100,937 81,374 19,563 Transportation 51,671 32,848 24,022 8,826 Office equipment 20,889 16,860 13,064 3,796 Research and development 8,469 9,713 9,153 560 Others 365,479 214,883 137,584 77,299 2,988,672 2,249,542 1,706,621 542,921 Professional fees include audit and tax services amounting to Rp21,227, Rp16,437 and Rp1,630 for the year ended December 31, 2004, the eight-month period ended December 31, 2003, and the four-month period ended April 30, 2003, respectively. 42. SALARIES AND EMPLOYEE BENEFITS Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Salaries, wages, pension and tax allowances Note 43 1,337,272 1,133,364 748,509 384,855 Holidays THR, leave and related entitlements 302,524 256,798 183,030 73,768 Employee benefits in kind 148,397 128,716 100,474 28,242 Training and development 125,648 98,303 91,074 7,229 Provisionreversal for post-employment benefit expenses Note 28 84,837 312,609 312,609 - Compensation expense on stock options Note 33 24,942 9,897 9,897 - Bonuses and others 378,137 350,481 231,738 118,743 2,401,757 1,664,950 1,052,113 612,837 In accordance with PSAK No. 24 Revised 2004 regarding Employee Benefits, the Bank have accrued tantiem expense in 2004.