SALARIES AND EMPLOYEE BENEFITS

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 103

42. PENSION AND SEVERANCE continued

Pension Plan continued 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. The members of the defined benefit pension plans originated from the legacy banks who have rendered three or more service years at the time of merger and are comprised of active employees of the Bank, deferred members those whose employment has been terminated but for whom the beneficial rights were not transferred to other pension plans, and pensioners. Based on the decision of General Shareholders meeting dated May 28, 2007, Bank Mandiri increased the pension benefit from each Pension Plans. The decision was stated in each Pension Plan Regulation and has been approved by the Ministry of Finance with decision letter No. KEP-144KM.102007 DPBM I; No.KEP-145KM.102007 DPBM II; No. KEP-146KM.102007 DPBM III and No. KEP- 147KM.102007 DPBM IV all dated July 20, 2007. As of December 31, 2007 and 2006, the calculation of the fair value of plan assets and projected benefit obligation is based on the independent actuarial report of PT Dayamandiri Dharmakonsilindo dated January 31, 2008 and February 23, 2007 for the years ended December 31, 2007 and 2006, respectively. In its calculation, the actuary used the following assumptions: DPBM I DPBM II DPBM III DPBM IV Discount rate 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 Expected rate of return on plan assets 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 Working period used As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 Pensionable salary used As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary Expected rates of pensionable salary increase Nil Nil Nil Nil Mortality rate table CSO-1958 CSO-1958 CSO-1958 CSO-1958 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 104

42. PENSION AND SEVERANCE continued

Pension Plan continued DPBM I DPBM II DPBM III DPBM IV Turnover rate 5 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter 5 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter 5 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to at age 45 and thereafter 5 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter Disability rate 10 of mortality rate 10 of mortality rate 10 of mortality rate 10 of mortality rate Actuarial method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit Normal pension age 56 years for all grades 56 years for all grades 56 years for all grades 56 years for all grades Maximum defined benefit amount 80 of latest gross pensionable salary PhDP 80 of latest gross pensionable salary PhDP 62.50 of latest gross pensionable salary PhDP 75 of latest gross pensionable salary PhDP Expected rate of pension benefit increase Nil Nil Nil 4 every 2 years Tax rates - average 15 of pension benefit 15 of pension benefit 15 of pension benefit 15 of pension benefit The projected benefit obligations and fair value of plan assets as of December 31, 2007 are as follows: DPBM I DPBM II DPBM III DPBM IV Projected Benefit Obligations 1,033,826 1,004,599 542,654 317,468 Fair Value of Plan Assets 1,500,073 1,573,220 709,311 483,169 Funded Status 466,247 568,621 166,657 165,701 Unrecognized Past Service Cost - - - - Unrecognized Actuarial Gains 406,468 357,302 165,814 87,767 Surplus Based on PSAK No. 24 Revised 59,779 211,319 843 77,934 Asset Ceilling - - - - Pension Plan Program Assets recognized in balance sheet - - - -