POLICYHOLDERS’ INVESTMENT AND LIABILITY TO UNIT-LINKED HOLDERS

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 587 16. FIXED ASSETS continued Movements from 1 January 2009 Beginning Ending to 31 December 2009 Balance Additions Deductions Reclassifications Balance CostRevalued Amount Direct ownership Land 2,761,131 92 192 28,487 2,789,518 Buildings 1,637,465 148,140 422 46,843 1,832,026 Furnitures, fixtures, office equipment and computer equipmentsoftware 4,167,285 168,031 3,779 365,154 4,696,691 Vehicles 79,069 12,013 5,812 3,678 88,948 Construction in progress 416,690 454,833 - 449,045 422,478 Leased assets 3,267 - - - 3,267 9,064,907 783,109 10,205 4,883 9,832,928 Accumulated Depreciation and Amortisation Note 43 Direct ownership Buildings 925,316 82,793 403 4,843 1,012,549 Furnitures, fixtures, office equipment and computer equipmentsoftware 3,478,309 355,936 1,305 34,849 3,798,091 Vehicles 57,069 6,697 5,781 309 57,676 Leased assets 653 653 - - 1,306 4,461,347 446,079 7,489 30,315 4,869,622 Net book value Direct ownership Land 2,789,518 Buildings 819,477 Furniture, fixtures, office equipment and computer equipmentsoftware 898,600 Vehicles 31,272 4,538,867 Construction in progress 422,478 Leased assets 1,961 4,963,306 The fixed assets were revalued in 1979, 1987 and 2003. The amount include increment in value of fixed assets based on revaluation of fixed assets of the merged banks performed by an Independent Appraiser, PT Vigers Hagai Sejahtera, using market values as at 31 July 1999. The revaluation increments were recorded prospectively on 18 June 2003 Note 16a. Reclassified from Abandoned Property and Construction In Progress. Construction in progress as at 31 December 2009 was comprised of: Balance Computers and other hardware that have not been installed 161,017 Product development and license - Integrated Banking System 106,049 Office equipment and i nventory 102,105 Buildings 49,287 Others 4,020 422,478 The estimated percentage of completion of construction in progress as at 31 December 2009 for Integrated Banking System agreement was ranging between 97.22 - 98.98. Included in the addition of fixed assets during 2009 is a building which was transferred by the Subsidiary PT Usaha Gedung BDN or UG BDN in accordance with the Joint Operation agreement KSO, which states that at the end of KSO agreement, UG BDN will transfer the building to Bank Mandiri. Bank Mandiri recorded the building at fair value of Rp131,640 Note 46 and depreciate it for 20 years. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 588 16. FIXED ASSETS continued Movements from 1 January 2008 Beginning Ending to 31 December 2008 Balance Additions Deductions Reclassifications Balance CostRevalued Amount Direct ownership Land 2,710,520 20,817 - 29,794 2,761,131 Buildings 1,607,835 14,477 45,577 60,730 1,637,465 Furnitures, fixtures, office equipment and computer equipmentsoftware 3,956,361 136,129 35,697 110,492 4,167,285 Vehicles 77,025 4,407 2,363 - 79,069 Construction in progress 150,903 434,410 - 168,623 416,690 Leased assets - 3,267 - - 3,267 8,502,644 613,507 83,637 32,393 9,064,907 Accumulated Depreciation and Amortisation Note 43 Direct ownership Buildings 887,272 83,297 45,295 42 925,316 Furnitures, fixtures, office equipment and computer equipmentsoftware 3,035,079 478,530 35,300 - 3,478,309 Vehicles 48,716 10,625 2,272 - 57,069 Leased assets - 653 - - 653 3,971,067 573,105 82,867 42 4,461,347 Net book value Direct ownership Land 2,761,131 Buildings 712,149 Furniture, fixtures, office equipment and computer equipmentsoftware 688,976 Vehicles 22,000 4,184,256 Construction in progress 416,690 Leased assets 2,614 4,603,560 The fixed assets were revalued in 1979, 1987 and 2003. The amount include increment in value of fixed assets base d on revaluation of fixed assets of the merged banks performed by an Independent Appraiser, PT Vigers Hagai Sejahtera, using market values as at 31 July 1999. The revaluation increments were recorded prospectively on 18 June 2003 Note 16a. Reclassified from Abandoned Property and Construction In Progress. Construction in progress as at 31 December 2008 was comprised of: Balance Computers and other hardware that has not been installed 297,136 Product development and license - Integrated Banking System 78,567 Office equipment and inventory 24,175 Buildings 10,864 Others 5,948 416,690 The estimated percentage of completion of construction in progress as at 31 December 2008 for Integrated Banking System agreement was ranging between 74.95 - 96.24. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 589 16. FIXED ASSETS continued a. Based on Minister of Finance Decree KMK No. 211KMK.032003 dated 14 May 2003 and No. S-206MK.012003 dated 21 May 2003, Bank Mandiri has appointed PT Vigers Hagai Sejahtera, a registered appraisal company, to perform fixed assets valuation revaluation of the merged banks BBD, BDN, Bank Exim and Bapindo as at 31 July 1999, in relation to the transfer of tax losses and its compensations from taxpayers who transferred their assets to Bank Mandiri. Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated 26 May 2003, the value of the Bank’s fixed assets and the increase in value as at 31 July 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. To determine the market value PT Vigers Hagai Sejahtera had used market data and the cost approach in its valuation methodology. The results of the revaluation have been approved by the Directorate General of Taxation Head of Tax Service Office through its Decision Letter No. Kep-01WPJ.07KP.01052003 dated 18 June 2003. For tax purpose, Bank Mandiri recorded the results of the revaluation on 18 June 2003 the approval date from the Directorate General of Taxation. After deducting the fixed assets with the relevant accumulated depreciation from the period of 1 August 1999 until 18 June 2003, the net increase of fixed assets was amounting to Rp3,046,936. As explained in Note 2p, the Bank has adopted the cost model for measurement of fixed assets in accordance with SFAS No. 16 Revised 2007, “Fixed Assets” and thus reclassified the revaluation increase of fixed assets amounting to Rp3,046,936 to the shareholders’ equity in the 2007 consolidated balance sheets to consolidated retained earnings in 2008. The recognition of the fixed assets revaluation increase did not have any impact on the Bank’s deferred tax balance, since the tax losses used to compensate the fixed assets revaluation increment had never been recognised as deferred tax assets by the Bank. b. 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 use the building for 22 years. By the end of the KSO agreement on 22 March 2012, the ownership of building will be handed over to Bank Mandiri. 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 the 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 since the construction was completed the office building will be handed over in June 2014 for the first tower and in June 2016 for the second tower. On the maturity date, PT Duta Anggada Realty Tbk. will hand over the ownership of the building to Bank Mandiri. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 590 16. FIXED ASSETS continued c. Bank Mandiri and Subsidiaries 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 Dharma Bangsa, PT Staco Jasapratama, PT Asuransi Raya, PT Asuransi Jasa Indonesia, PT Asuransi Ramayana Tbk., PT Asuransi Wahana Tata, PT Asuransi Tri Pakarta, PT Asuransi Parolamas, PT Asuransi Bumida Bumiputera, PT Asuransi Jasa Tania Tbk., PT Asuransi Central Asia, PT Asuransi Bosowa, PT Asuransi Sinarmas, PT Asuransi Purna Arthanugraha, PT Asuransi Bina Dana Arta Tbk., PT Asuransi Dayin Mitra Tbk., PT Asuransi Puri Asih, PT Asuransi Raksa Pratikara, PT Asuransi Jasaraharja Putera, PT Asuransi Takaful Umum, PT Asuransi Jasindo Takaful, MSIG Insurance S’pore Pte, Ltd., British Caymanian Insurance Co. Ltd., Tugu Insurance Co. Ltd., Bank of China Group Insurance Co. Ltd. and HSBC Insurance Asia Ltd. with total sum insured of Rp2,512,683 and USD147,973,294.07 full amount as at 31 December 2010 Rp3,448,575 and USD3,727,274.25 full amount as at 31 December 2009, Rp1,997,281, USD84,249,506.46 full amount, SGD2,206,235 full amount and HKD3,745,000 full amount and as at 31 December 2008. 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 2010, 2009 and 2008.

17. OTHER ASSETS

2010 2009 2008 Accrued income 1,687,176 1,615,086 2,052,859 Others - net 3,697,621 2,197,179 3,341,275 5,384,797 3,812,265 5,394,134 Accrued Income Accrued income mainly consist of accrued interest receivables from placements, marketable securities, Government Bonds, loans, accrued fees and commissions. Others - net 2010 2009 2008 Rupiah: Prepaid expenses 887,825 472,973 354,908 Abandoned properties - net of accumulated losses arising from difference in net realisable value amounting to Rp10,349, Rp13,226 and Rp21,295 as at 31 December 2010 2009 and 2008, respectively 175,979 188,628 253,603 Receivables from customer transactions 694,517 459,829 702,656 Repossessed assets - net of accumulated losses arising from difference in net realisable value amounting to Rp10,129, Rp10,163 and Rp10,451 as at at 31 December 2010, 2009 and 2008, respectively 142,928 151,660 186,175 Prepaid taxes 23,277 29,079 9,843 Receivables from sale of marketable securities 1,374 959 - Others 1,709,755 1,494,477 1,417,213 Total Rupiah 3,635,655 2,797,605 2,924,398 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 591 17. OTHER ASSETS continued Others – net continued 2010 2009 2008 Foreign currencies: Prepaid expenses 10,023 33,344 22,509 Receivables from customer transactions Note 56e 7,147 19,585 17,274 Prepaid taxes 295 - - Others 784,513 283,267 1,016,669 Total foreign currencies Note 56e 801,978 336,196 1,056,452 Total 4,437,633 3,133,801 3,980,850 Less: Allowance for possible losses 740,012 936,622 639,575 3,697,621 2,197,179 3,341,275 Receivable from sale of marketable securities represent receivable arising from undue securities transactions. Receivables from customer transactions mainly consist of receivable arising from PT Mandiri Sekuritas’s Subsidiary securities transactions. As at 31 December 2010, included in receivables from customer transactions is an impaired portfolio amounting to Rp335,372. Prepaid expenses mostly consist of advance payments relating to housing rental and building maintenance. Others mainly consist of interbranch 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: 2010 2009 2008 Balance at beginning of year 936,622 639,575 612,638 Reversalallowance during the year Note 39 89,803 541,981 151,530 Settlement during the year - 33,689 - Reclassification during the year 112,475 192,343 166,521 Others 5,668 18,902 11,946 Balance at end of year 740,012 936,622 639,575 Includes effect of foreign currency translation. Management believes that the allowance for possible losses is adequate to cover any potential losses from other assets.

18. DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS

a. By Currency, Related Parties and Third Parties: 2010 2009 2008 Rupiah: Related parties Note 50 398,311 205,442 110,273 Third parties 45,804,219 53,671,693 53,155,575 Total Rupiah 46,202,530 53,877,135 53,265,848 Foreign currencies: Related parties Note 50 96,843 48,997 5,584 Third parties 21,987,880 18,765,393 15,815,256 Total foreign currencies Note 56e 22,084,723 18,814,390 15,820,840 68,287,253 72,691,525 69,086,688 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 592 18. DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS continued a. By Currency, Related Parties and Third Parties :continued Included in demand deposits were wadiah deposits amounting to Rp3,930,121, Rp2,685,509 and Rp1,454,837 as at 31 December 2010, 2009 and 2008, respectively. b. Average interest rates cost of funds and range of profit sharing per annum: Average interest rates cost of funds per annum: 2010 2009 2008 Rupiah 2.89 3.61 2.85 Foreign currencies 0.16 0.87 1.35 Range of profit sharing per annum on wadiah deposits: 2010 2009 2008 Rupiah 0.85 - 0.99 0.93 - 1.09 0.9 4 - 1.04 Foreign currencies 0.21 - 0.99 0.23 - 0.99 0.2 4 - 1.05 c. As at 31 December 2010, 2009 and 2008, demand deposits pledged as collateral for bank guarantees, loans and trade finance facilities irrevocable letters of credits were amounting to Rp1,127,973, Rp1,053,844 and Rp813,755, respectively Note 11B.c and 28e. d. As at 31 December 2010, 2009 and 2008, total demand deposits from related parties were amounting to Rp495,154, Rp254,439 and Rp115,857, respectively or 0.73, 0.35 and 0.17, from total demand deposits Note 50.

19. DEPOSITS FROM CUSTOMERS - SAVING DEPOSITS

a. By Type and Currency: 2010 2009 2008 Rupiah: Mandiri Saving 111,487,800 96,889,256 81,743,647 Mandiri Haji Saving 822,321 178,435 580,367 112,310,121 97,067,691 82,324,014 Foreign currencies: Mandiri Saving Note 56e 11,646,486 9,659,673 7,384,357 123,956,607 106,727,364 89,708,371 b. As at 31 December 2010, 2009 and 2008, saving deposits from related parties were amounting to Rp105,513, Rp90,589 and Rp40,562, respectively, or 0.09, 0.08, and 0.05 from total saving deposits Note 50. c. Average interest rates cost of funds per annum: 2010 2009 2008 Rupiah 2.39 2.78 3.12 Foreign currencies 0.24 1.69 2.26 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 593 20. DEPOSITS FROM CUSTOMERS - TIME DEPOSITS a. By Currency: 2010 2009 2008 Rupiah 133,085,909 108,401,300 95,733,092 Foreign currencies Note 56e 12,058,140 15,073,461 21,535,898 145,144,049 123,474,761 117,268,990 b. By Contract Period: 2010 2009 2008 Rupiah: 1 month 98,329,104 73,812,907 72,414,010 3 months 26,820,757 19,603,632 13,045,972 6 months 3,547,941 8,732,868 7,218,788 12 months 4,311,500 5,937,427 2,900,687 Over 12 months 76,607 314,466 153,635 Total Rupiah 133,085,909 108,401,300 95,733,092 Foreign currencies: 1 month 10,093,542 12,682,034 16,554,655 3 months 1,082,728 1,126,293 3,287,011 6 months 742,280 1,016,491 1,111,117 12 months 137,700 245,955 580,028 Over 12 months 1,890 2,688 3,087 Total foreign currencies 12,058,140 15,073,461 21,535,898 145,144,049 123,474,761 117,268,990 c. By Maturity: 2010 2009 2008 Rupiah: Less than 1 month 97,686,092 80,433,307 76,081,013 1 - 3 months 22,302,868 19,254,315 13,327,886 3 - 6 months 7,333,596 5,376,312 2,524,108 6 - 12 months 5,455,285 3,077,063 3,731,345 Over 12 months 308,068 260,303 68,740 Total Rupiah 133,085,909 108,401,300 95,733,092 Foreign currencies: Less than 1 month 10,197,521 13,073,705 17,391,586 1 - 3 months 720,434 1,566,301 2,702,721 3 - 6 months 439,323 338,292 1,129,296 6 - 12 months 697,435 93,437 310,841 Over 12 months 3,427 1,726 1,454 Total foreign currencies 12,058,140 15,073,461 21,535,898 145,144,049 123,474,761 117,268,990