SHARE CAPITAL continued b. Additional Paid-In CapitalShare Premium continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 181

44. ALLOWANCE AND REVERSAL FOR IMPAIRMENT LOSSES Year ended December 31,

2016 2015 Allowancereversal for provision of impairment losses on: Current accounts with other banks Note 5d 176 46 Placements with other banks Note 6e 21,415 26,256 Marketable securities Note 7g 24,094 34,394 Other receivables - trade transactions Note 9d 35,085 41,428 Securities purchased under resale agreements Note 10c - 41,941 Loans Note 12B.j 24,277,357 11,460,581 Consumer financing receivables Note 13d 455,025 291,624 Net investment in lease finance Note 14d 196 2,356 Acceptance receivables Note 15d 130,909 16,822 Investments in shares Note 16c 33 7,087 24,943,938 11,664,837 45. REVERSAL OF AND PROVISION FOR OTHER ALLOWANCES Year ended December 31, 2016 2015 Reversal forallowance provision for: Estimated losses arising from fraud cases 45,796 10,266 Estimated losses arising from legal cases 265,390 11,594 Others assets Note 20 101,957 157,382 117,637 179,242

46. UNREALISED GAINSLOSSES

FROM INCREASEDECREASE IN FAIR VALUE OF MARKETABLE SECURITIES, GOVERNMENT BONDS AND POLICYHOLDERS INVESTMENT IN UNIT-LINK CONTRACTS Year ended December 31, 2016 2015 Marketable securities 3,505 992 Government bonds 12,133 19,298 Changes in market value of policyholders’ investment and increasedecrease in liability in unit-link contracts - Change in market value of policyholders’ investment 1,416,023 2,142,173 - Increase in liability in unit-link contracts 1,416,023 2,142,173 15,638 18,306 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 182

47. GAIN ON SALE OF MARKETABLE SECURITIES AND GOVERNMENT BONDS Year ended December 31,

2016 2015 Marketable securities Fair value through profit and loss 53,957 27,760 Available for sale 35,259 62,683 Government bonds Fair value through profit and loss 59,725 21,219 Available for sale 596,963 219,357 745,904 275,499

48. SALARIES AND EMPLOYEE BENEFITS Year ended December 31,

2016 2015 Salaries, wages, pension and tax allowances 7,829,540 6,890,207 Holidays allowance, leave and related entitlements 1,444,490 1,192,666 Employee benefits in kind 1,127,755 945,705 Training and education 588,480 557,580 Provision for post-employment benefit expenses 330,895 491,225 Provision of tantiem 211,541 226,952 Bonuses and others 2,086,044 2,072,320 13,618,745 12,376,655 Total gross salaries and allowances, bonus and tantiem, long-term employment benefits of the Boards of Commissioners, Directors, Audit Committee and Risk Monitoring, Sharia Supervisory Board and Senior Executive Vice President and Senior Vice President are amounting to Rp986,140 and Rp857,365 Note 55 for the years ended December 31, 2016 and 2015, respectively as follows: Year ended December 31, 2016 Long-term Salaries and Bonus and employment allowance tantiem benefits Total The Board of Commissioners 53,355 72,662 3,677 129,694 Directors 143,235 242,811 16,875 402,921 Audit Committee and Risk Monitoring Committee 4,902 - - 4,902 Sharia Supervisory Board 1,448 37 - 1,485 Senior Executive Vice Presidents and Senior Vice Presidents 269,239 160,709 17,190 447,138 472,179 476,219 37,742 986,140