PROVISIONREVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES ON EARNING ASSETS

PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 109 -

41. SALARIES AND EMPLOYEE BENEFITS Continued

Total gross salaries, allowances and bonus of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp57,372 and Rp39,727 for the years ended December 31, 2002 and 2001, respectively. Details for 2002 are as follows: Number of Members Officers Salary Allowances Bonus Total Board of Commissioners 4 1,988 728 1,867 4,583 Board of Directors 3 4,491 1,639 4,047 10,177 Audit Committee 3 459 92 185 736 EVP Coordinators 5 6,686 1,478 3,991 12,155 Group Heads and Assistants to the President Director 31 18,928 2,922 7,871 29,721 46 32,552 6,859 17,961 57,372

42. PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS

Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows: a. One defined contribution pension plan or the Bank Mandiri Pension Plan, Dana Pensiun Pemberi Kerja-Program Pensiun Iuran Pasti “DPPK-PPIP” established on August 1, 1999. The members are active employees of Bank Mandiri. The Bank Mandiri Pension Plan Regulation was 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 Dana Pensiun Bank Mandiri “DPBM” are active employees of Bank Mandiri; therefore, in substance Bank Mandiri has control over DPBM. As a consequence, transactions between DPBM and Bank Mandiri are considered related party transactions. DPBM invests some of its financial resources in Bank Mandiri time deposits, whose balancess as of December 31, 2002 and 2001 are Rp150,000 and Rp139,650, respectively. The interest rates on these time deposits are similar to those of arm’s- length transactions. The Bank paid pension contributions totaling Rp63,294 and Rp55,127 for the years ended December 31, 2002 and 2001, 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 decision letters No. KEP- 394KM.0171999, No. KEP-395KM.0171999, No. KEP-396KM.0171999 and No. KEP- 397KM.0171999 dated July 14, 1999. The assets of the respective pension plans were derived from the pension plan assets of the Merged Banks. The working period and the basic salary used as the basis for the computation of pension benefits represents the working period of employees in the pension plans until July 31, 1999.