PREMISES AND EQUIPMENT 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 68

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The estimated percentage of completion of construction in progress for integrated banking system agreement with PT Silverlake Informatikatama was approximately 96.24, while with Silverlake Corporation is 73.77 as of December 31, 2007. a. In accordance with the Decrees of the Minister of Finance KMK No. 211KMK.032003 dated May 14, 2003 and No. S-206MK.012003 dated May 21, 2003, Bank Mandiri engaged PT Vigers Hagai Sejahtera, a registered appraisal company, to revalue the premises and equipment of the merged banks, BBD, BDN, Bank Exim and Bapindo as of July 31, 1999, in relation to the transfer to Bank Mandiri of tax losses of these taxpayers which transferred assets to Bank Mandiri. Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated May 26, 2003, the value of premises and equipment of the Bank and the corresponding increment in value as of July 31, 1999 were as follows: Fixed Assets Market Value Book Value Increment in Value Land and buildings 4,427,510 843,414 3,584,096 Furniture, fixtures and equipment 438,086 275,370 162,716 Vehicles 19,604 355 19,249 4,885,200 1,119,139 3,766,061 PT Vigers Hagai Sejahtera’s opinion of the market value was based on “Indonesian Appraisal Standards” issued by the Indonesian Appraisal Companies Association GAPPI and the Indonesian Society of Appraisers MAPPI. In arriving at the market values, PT Vigers Hagai Sejahtera has taken into consideration the market data approach and cost approach valuation methodologies. The results of the revaluation have been approved by the Directorate General of Taxation through Kepala Kantor Pelayanan Pajak Perusahaan Negara dan Daerah through its Decision Letter No. Kep- 01WPJ.07KP.01052003 dated June 18, 2003. Bank Mandiri has recorded the results of the revaluation for tax purpose on June 18, 2003, the date of approval from the Directorate General of Taxation, after deducting the relevant accumulated depreciation for the period from August 1, 1999 to June 18, 2003. The net increment of premises and equipment of Rp3,046,936, involved land, buildings, vehicles, and office equipment. As explained in Note 2p, the Bank has chosen the cost model as its accounting policy for measurement of premises and equipment in accordance with PSAK No. 16 Revised 2007, “Fixed Assets” and reclassified the balance of revaluation increment of premises and equipment Rp3,046,936 as presented in the shareholders’ equity in the 2007 consolidated balance sheets to consolidated retained earnings in 2008 Note 31c. The recognition of the premises and equipment revaluation increment did not impact the Bank’s tax expense position, as the tax losses used to compensate the premises and equipment revaluation increment had not been recognized as deferred tax assets by the Bank. 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 69

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