Tax Expense Tax Expense - Current

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Appendix 5109 28. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued c. Movements of allowance for impairment losses on commitments and contingencies: 2011 2010 Balance at beginning of year 371,665 329,362 Reversalallowance during the year 127,257 53,358 Others 10, 044 11, 055 Balance at end of year 234,364 371,665 Includes effect of foreign currencies translation Please refer to Note 2b.b.iv relating to the changes in accounting policies of allowance for impairment losses over financial guarantee contracts and commitments. Management believes that the allowance for impairment losses on commitments and contingencies is adequate. d. Information in respect of classification of “non-impaired” and“impaired” is disclosed in Note 57A. e. Deposits from customers pledged as collateral for bank guarantee and irrevocable letters of credit as at 31 December 2011 and 2010 amounting to Rp738,609 and Rp415,568, respectively Note 19c.

29. TAXATION a. Current Tax Payable

2011 2010 Corporate tax payable - article 29: Bank Mandiri 636,654 629,379 Subsidiaries 125, 083 121,053 761,737 750,432

b. Tax Expense

2011 2010 Tax expense - current: Bank Mandiri 2,619,107 2,656,204 Subsidiaries 553,433 370,262 3,172,540 3,026,466 Tax expensebenefit - deferred: Bank Mandiri 643,581 1,637,191 Subsidiaries 29 60,721 643,610 1,576, 470 3,816,150 4,602,936 As explained in Note 2ad, income tax for Bank Mandiri and its subsidiaries is calculated as a separate legal entity. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Appendix 5110 29. TAXATION continued

c. Tax Expense - Current

The reconciliation between income before tax benefitexpense as shown in the consolidated statements of income and income tax calculations and the related current tax expense for Bank Mandiri and its Subsidiaries are as follows: 2011 2010 Consolidated income before tax expense and non-controlling interests 16,512, 035 13,972, 162 Less: Income before tax expense of Subsidiaries - after elimination 1,003, 303 460, 469 Impact of changes in presenting investment in Subsidiaries by using cost method previously equity method refer to Note 2b.vi 869,011 - Income before tax expense and non-controlling interests – Bank Mandiri only 14,639, 721 13,511,693 Adddeduct permanent differences: Non-deductible expenses non-taxable income 1,675, 490 557,440 Losses from overseas branches 632 52,049 Others 2, 404 6,157 Adddeduct temporary differences: Allowance for impairment losses on loans and write-offs 1,926, 444 2,085 ,428 Allowance for impairment losses on financial assets other than loans 1,170, 835 410,440 Provision for post-employment benefit expense, provisions for bonuses, leave and Holiday THR entitlements 194,806 573,254 Allowance for estimated losses arising from legal cases 251 154,457 Allowance for possible losses on other assets 161, 460 238,540 Provision for estimated losses on commitments and contingencies 136, 401 41,498 Allowance for possible losses of abandoned properties 6, 049 12,635 Allowance for possible losses of repossessed assets 108, 451 3,085 Depreciation of fixed assets 1,097 8,990 Unrealised lossessgains on decrease increase in fair value of marketable securities and Government Bonds - fair value through profit or loss 96,341 93,345 Difference in net realisable value of abandoned properties - 2 ,877 Difference in net realisable value of repossessed assets 258 33 Estimated taxable income 13,095, 534 10,624,817 Estimated tax expense-current Bank Mandiri only 2,619, 107 2,656,204 Subsidiaries 553, 433 370,262 Estimated tax expense- current 3,172,540 3,0 26,466 In calculating estimated tax expense for the year ended 31 December 2010, the Bank still applied equity method to record investment in Subsidiaries refer to Note 2b.vi. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Appendix 5111 29. TAXATION continued

c. Tax expense - Current continued