SECURITIES continued Bank Mandiri Tbk (english)

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated 43

6. SECURITIES continued

g. Movements of Allowance for Possible Losses on Securities: 2008 2007 Balance at beginning of year 1,114,497 1,145,838 Write-off 1,018,809 - Reversal during the year Note 36 58,416 22,773 Others 6,774 8,,568 Balance at end of year 44,046 1,114,497 Includes effect of foreign exchange translation. Management believes that the allowance for possible losses on securities is adequate. Based on the letter of Bank Indonesia No. 10177DpGDPNP dated October 9, 2008, Determination of Fair Value and Reclassification of Government Bonds SUN, dated December 19, 2008 the Bank has reclassified trading and available for sale securities with nominal amount of Rp147,000 and Rp434,000, respectively to held to maturity securities. The fair value of trading and available for sale before reclassification amounted to Rp142,772 and Rp433,975, respectively, and the fair value of trading and available for sale securities at the time of reclassification amounted to Rp138,210 and Rp407,590, respectively. The difference between the fair value before and after reclassification coming from available for sale securities on reclassification date will be amortized till the securities matured. If the marketable securities remained as trading and available for sale securities, the market value as of December 31, 2008 amounted to Rp137,689 and Rp397,798, respectively, which have impact on the consolidated profit and loss amounting to Rp521 and consolidated shareholders’ equity amounting to Rp9,792.

7. GOVERNMENT BONDS

Government Bonds consist of bonds issued by the Government acquired from primary and secondary markets with details as follows: 2008 2007 Trading, fair value 43,748 972,392 Available for sale, fair value 26,244,185 27,294,443 Held to maturity, at cost 61,971,106 61,199,482 88,259,039 89,466,317 Based on maturities, the Government Bonds are as follows: 2008 2007 Rupiah Trading: Less than 1 year 4,950 9,280 1 - 5 years 38,798 272,954 5 - 10 years - 261,452 Over 10 years - 409,943 43,748 953,629 Available for sale: Less than 1 year - 739,520 1 - 5 years 643,223 348,686 5 - 10 years 14,562,198 13,366,139 Over 10 years 10,946,419 12,761,785 26,151,840 27,216,130 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated 44

7. GOVERNMENT BONDS continued

Based on maturities, the Government Bonds are as follows continued: 2008 2007 Rupiah continued Held to maturity: Less than 1 year 5,334 - 1 - 5 years 1,515,614 1,350,000 5 - 10 years 36,684,355 25,810,000 Over 10 years 23,642,622 33,934,598 61,847,925 61,094,598 Total Rupiah 88,043,513 89,264,357 Foreign currency Trading: 5 - 10 Years - 9,792 Over 10 years - 8,971 - 18,763 Available for sale: 5 - 10 years 47,723 49,321 Over 10 years 44,622 28,992 92,345 78,313 Held to maturity: 5 - 10 years 123,181 104,884 Total Foreign currency 215,526 201,960 88,259,039 89,466,317 2008 Rupiah Trading Interest Rates Maturity Frequency of Nominal per Annum Fair Value Dates Interest Payment Fixed rate bonds 44,130 9.28- 43,748 08092009- 6 months 13.40 09152013 Available for sale Interest Rates Maturity Frequency of Nominal per Annum Fair Value Dates Interest Payment Fixed rate bonds 461,466 9.00- 460,795 03122012- 6 months 14.28 11152020 Variable rate bonds 25,839,044 3-month SBI 25,691,045 06252011- 3 months 07252020 26,300,510 26,151,840