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
109
42. SALARIES AND EMPLOYEE BENEFITS
2005 2004
Salaries, wages, pension and tax allowances Note 43 1,547,352
1,337,272 Provision for post-employment benefit expenses Note 28
456,190 84,837
Holidays THR, leave and related entitlements 356,060
302,524 Compensation expense on stock options Note 33
169,746 13,196
Employee benefits in kind 163,768
148,397 Training
and development
127,835 125,648
Bonuses and
others 366,304 389,883
3,187,255 2,401,757
Total gross salaries, allowances and bonuses of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp107,086 and Rp96,168 for the years ended December 31, 2005 and
2004, respectively, are as follows:
December 31, 2005
Number of Members
Officers Salaries
Allowances Bonuses
Total Board of Commissioners
7 4,983
3,258 5,587
13,828 Board of Directors
8 15,378
16,140 19,745
51,263 Audit Committee
2 634
123 369
1,126 Senior Executive Vice Presidents,
Group Heads and Advisors of
Directors 47
25,568 9,131
6,170 40,869
64 46,563
28,652 31,871
107,086
December 31, 2004
Number of Members
Officers Salaries
Allowances Bonuses
Total Board of Commissioners
7 4,436
2,663 7,302
14,401 Board of Directors
9 14,919
7,752 20,750
43,421 Audit
Committee 2 636
123 272 1,031
Senior Executive Vice Presidents, Group Heads and Advisors
of Directors
37 21,333
4,903 11,079 37,315
55 41,324
15,441 39,403
96,168
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
110
43. PENSION AND SEVERANCE
Under the Bank’s policy, in addition to salaries, the employees are entitled to allowances and benefits, such as: holiday allowance THR, pre-retirement MBT allowance, medical reimbursements, death allowance,
leave allowance, functional allowance for certain levels, pension plan for permanent employees, incentives based on employee’s and the Bank’s performance, and post-employment benefits based on the prevailing
Labor Law. Pension Plan
Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows:
a. One defined contribution pension plan, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti DPPK-PPIP or the Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM established on
August 1, 1999. The DPBM’s regulations were legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14, 1999 and was included
in the Addendum to the State Gazette of the Republic of Indonesia No. 62 dated August 3, 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated April 26, 1999.
Bank Mandiri and the employees contribute 10 and 5 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 of December 31, 2005 and 2004 were Rp24,000 and Rp43,000, respectively. The interest rates on these
time deposits are at arms-length.
The Bank paid pension contributions totaling Rp96,272 and Rp87,974, respectively, for the years ended December 31, 2004 and 2005, 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 legalized by the Minister of Finance of
the Republic of Indonesia in his decision letters No. KEP-394KM.0171999, No. KEP-
395KM.0171999, No. KEP-396KM.0171999 and No. KEP-397KM.0171999 dated November 15, 1999. Based on the approval of shareholders No. S-923M-MBU2003 dated March 6, 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 Minister of Finance of the Republic of Indonesia based on his 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
March 31, 2003.
