PREPAID EXPENSES Insurance liabilities on insurance contracts and Liability Adequacy Test LAT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 591 19. FIXED ASSETS continued Others a. On 22 February 1990, the Bank signed a Joint Operation agreement KSO with PT Pakuwon Jati, where PT Pakuwon Jati will build a shopping center and office tower with 17 storeys and other supporting facilities on land owned by Bank Mandiri, which located on Jalan Basuki Rachmat No. 2, 4, 6 Surabaya. PT Pakuwon Jati is entitled to utilise the building for 22 years. The KSO agreement has matured on 21 February 2012 and the ownership of building has been transferred to Bank Mandiri. Through the Temporary utilisation agreement No. 05 dated 21 February 2012, developers can still utilise the building in the form of room rental for one year period until 20 February 2013. As at 20 February 2013, the agreement has been extended until 20 February 2014. However, the Bank has the right to terminate the agreement anytime if the Bank will utilise the building or transfer the rights to third party. On 14 June 1991, the Bank signed an Amendment I of Joint Operation agreement KSO with PT Duta Anggada Realty Tbk., in which PT Duta Anggada Realty Tbk. will build 2 office towers with 32 storeys on land owned by Bank Mandiri which located on Jalan Jenderal Sudirman lot 53-56, Jakarta. The agreement became effective from 14 June 1991 up to 20 years from the date of the construction was completed, but not longer than 23 years starting the construction was completed the office building will be handed over in May 2014 for the first tower and in May 2016 for the second tower. On the expiry date of the agreements, PT Duta Anggada Realty Tbk. will hand over the ownership of the building to Bank Mandiri. b. Estimated fair value of land and buildings owned by the Bank as at 31 December 2012 are determined using value of Sales Value of Tax Object NJOP. NJOP is regarded as the best estimates which reflect the fair value. As at 31 December 2012, the NJOP of land and buildings owned by the Bank are Rp8,199,856 and Rp1,859,879, respectively. Other than land and buildings, there are no significant difference between the estimated fair value and carrying value of fixed assets. c. Land rights acquired through Leasehold Certificate HGB that can be renewed will expire between 2014 to 2017. Based on past experience, the Group has the confidence to extend the HGB. d. All of fixed assets as at the reporting date are used to support the operating activities of the Group. e. Bank Mandiri have insured their fixed assets excluding land rights, construction in progress and leased assets to cover potential losses from risk of fire, theft and natural disaster with PT Asuransi Adira Dinamika, PT Asuransi Bina Dana Arta Tbk., PT Asuransi Bringin Sejahtera Artamakmur, PT Asuransi Dayin Mitra Tbk., PT Asuransi Himalaya Pelindung, PT Asuransi Indrapura, PT Asuransi Jasatania, PT Asuransi Jasa Indonesia Persero, PT Asuransi Jasaraharja Putera, PT Asuransi Jaya Proteksi, PT Asuransi Parolamas, PT Asuransi Raksa Pratikara, PT Asuransi Rama Satria Wibawa, PT Asuransi Ramayana Tbk., PT Asuransi Staco Mandiri formerly PT Asuransi Staco Jasapratama, PT Asuransi Umum Mega, PT Asuransi Wahana Tata, PT Caraka Mulia, PT Estika Jasatama, PT Gelora Karya Jasatama, PT Krida Upaya Tunggal, PT Asuransi Raya, PT Asuransi Purna Artanugraha and PT Mandiri AXA General Insurance formerly PT Asuransi Dharma Bangsa with total sum insured of Rp1,721,667 and USD76,357,754 full amount as at 31 December 2012 and Rp3,119,177 and USD75,699,481 full amount as at 31 December 2011. Management believes that the above insurance coverage is adequate to cover possible losses that may arise on the assets insured. Management also believes that there is no impairment of fixed assets as at 31 December 2012 and 2011. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 592 20. INTANGIBLE ASSETS 2012 2011 - Software 717,842 555,853 - Godwill 142,860 142,860 860,702 698,713 Net of amortisation of Rp1,213,891 and Rp1,125,502 as at 31 December 2012 and 2011. Software is amortised over its useful lives, which is 5 years refer to Note 2.r.i. As at 31 December 2012 and 2011, the balance of construction in progress for software were Rp288,621 and Rp456,715. The estimated percentage of completion of software as at 31 December 2012 was ranging between 15 - 95. Goodwill arises from the difference between the cost of acquisition with the fair value of Subsidiary’s assets acquired. Goodwill is assessed regularly for impairment. As at 31 December 2012 and 2011 there is no impairment on the Bank’s goodwill.

21. OTHER ASSETS

2012 2011 Accrued income 1,926,902 1,704,382 Others - net 5,413,063 3,960,856 7,339,965 5,665,238 Accrued Income 2012 2011 Rupiah 1,716,630 1,570,405 Foreign currencies Note 60B.v 210,272 133,977 1,926,902 1,704,382 Accrued income mainly consist of accrued interest receivables from placements, marketable securities, Government Bonds, loans and accrued fees and commissions. Others - net 2012 2011 Rupiah: Receivables from customer transactions 980,166 551,262 Receivables from transactions related to ATM and credit card 872,740 447,975 Receivables from policy’s holders 272,331 167,955 Receivables from sales of marketable securities 214,351 1,298,053 Abandoned properties - net of accumulated losses arising from impairment in net realisable value amounting to Rp10,349 and Rp10,349 as at 31 December 2012 and 2011, respectively 169,931 169,931 Repossessed assets - net of accumulated losses arising from impairment in net realisable value amounting to Rp9,850 and Rp9,871 as at 31 December 2012 and 2011, respectively 23,988 133,181 Others 2,419,343 1,160,109 Total Rupiah 4,952,850 3,928,466 Foreign currencies: Receivables from customer transactions Note 60B.v 4,996 7,192 Receivables to policy’s holder Note 60B.v 1,870 1,569 Receivables from sales of marketable securities Note 60B.v - 3,716 Others 730,116 319,918 Total foreign currencies 736,982 332,395 Total 5,689,832 4,260,861 Less: Allowance for possible losses 276,769 300,005 5,413,063 3,960,856 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 593 21. OTHER ASSETS continued Receivables from customer transactions mainly consist of receivables arising from securities transactions of PT Mandiri Sekuritas Subsidiary. As at 31 December 2012 and 2011, included in receivables from customer transactions is an impaired portfolio amounting to Rp166,216 and Rp175,484, respectively. Receivables related to ATM and credit card transactions represent receivable arising from ATM transactions within ATM Bersama, Prima and Link network and receivable from Visa and MasterCard on credit card transactions. Receivables to policy holders represent the Subsidiary’s receivables to policy holders related to policy holders’ premium of non unit-linked products. Receivables from sales of marketable securities represent receivables arising from sale of marketable securities which have settlement date on 3 January 2013 and 4 January 2012, respectively for the year 2012 and 2011. Others mainly consist of inter-office accounts, various receivables from transaction with third parties, including clearing transactions and others. Movement of allowance for possible losses on other assets are as follows: 2012 2011 Balance at beginning of the year 300,005 740,012 Reversal during the year Note 44 13,124 339,620 Others 10,112 100,387 Balance at end of the year 276,769 300,005 Including effect of foreign currency translation. Management believes that the allowance for possible losses is adequate.

22. DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS

a. By Currency, Related Parties and Third Parties: 2012 2011 Rupiah: Related parties Note 54 12,876,389 18,749,205 Third parties 64,971,338 48,460,014 Total Rupiah 77,847,727 67,209,219 Foreign currencies: Related parties Note 54 12,677,893 4,577,963 Third parties 23,382,236 20,743,404 Total foreign currencies Note 60B.v 36,060,129 25,321,367 113,907,856 92,530,586 Included in demand deposits were wadiah deposits amounting to Rp6,430,911 and Rp4,583,523 as at 31 December 2012 and 2011, respectively. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 594 22. DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS continued b. Average Interest Rates Cost of Funds and Range of Profit Sharing per Annum: Average interest rates cost of funds per annum: 2012 2011 Rupiah 2.04 2.32 Foreign currencies 0.22 0.13 Range of profit sharing per annum on wadiah deposits: 2012 2011 Rupiah 0.75 - 1.10 0.76 - 2.83 Foreign currencies 0.19 - 0.68 0.19 - 0.89 c. As at 31 December 2012 and 2011, demand deposits pledged as collateral for bank guarantees, loans and trade finance facilities irrevocable Letters of Credits were amounting to Rp2,440,972 and Rp1,592,173, respectively Note 12B.c and 30e.

23. DEPOSITS FROM CUSTOMERS - SAVING DEPOSITS

a. By Currency, Type, Related Parties and Third Parties: 2012 2011 Rupiah: Related parties Note 54 Mandiri Saving 165,577 748,157 Third parties Mandiri Saving 167,555,465 136,230,651 Mandiri Haji Saving 938,976 862,304 Total Rupiah 168,660,018 137,841,112 Foreign currencies: Related parties Note 54 Mandiri Saving 763,274 - Third parties Mandiri Saving 14,546,464 12,027,221 Total foreign currencies Note 60B.v 15,309,738 12,027,221 183,969,756 149,868,333 b. Average Interest Rates Cost of Funds per annum: 2012 2011 Rupiah 1.61 2.25 Foreign currencies 0.22 0.22 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 595 24. DEPOSITS FROM CUSTOMERS - TIME DEPOSITS a. By Currency, Related Parties and Third Parties: 2012 2011 Rupiah Related parties Note 54 17,233,023 25,151,704 Third parties 112,839,400 100,637,584 Total Rupiah 130,072,423 125,789,288 Foreign currencies Related parties Note 54 4,371,767 3,499,812 Third parties 10,516,061 13,040,584 Total foreign currencies Note 60B.v 14,887,828 16,540,396 144,960,251 142,329,684 b. By Contract Period: 2012 2011 Rupiah: 1 month 81,288,822 89,028,175 3 months 30,279,072 24,481,581 6 months 14,657,520 7,909,980 12 months 3,613,750 4,192,834 Over 12 months 233,259 176,718 Total Rupiah 130,072,423 125,789,288 Foreign currencies: 1 month 13,292,026 14,400,413 3 months 787,908 880,973 6 months 297,357 930,113 12 months 490,862 312,509 Over 12 months 19,675 16,388 Total foreign currencies Note 60B.v 14,887,828 16,540,396 144,960,251 142,329,684 c. By remaining period until maturity dates: 2012 2011 Rupiah: Less than 1 month 92,986,410 94,264,718 1 - 3 months 26,652,009 24,343,627 3 - 6 months 8,271,875 4,336,161 6 - 12 months 1,971,598 2,722,676 Over 12 months 190,531 122,106 Total Rupiah 130,072,423 125,789,288 Foreign currencies: Less than 1 month 13,532,537 13,165,726 1 - 3 months 754,434 2,295,551 3 - 6 months 403,816 877,713 6 - 12 months 190,147 186,644 Over 12 months 6,894 14,762 Total foreign currencies Note 60B.v 14,887,828 16,540,396 144,960,251 142,329,684 d. Average Interest Rates Cost of Funds per Annum: 2012 2011 Rupiah 5.15 6.37 Foreign currencies 0.68 0.63