GENERAL AND ADMINISTRATIVE EXPENSES EMPLOYEE BENEFITS

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 5136 45. EMPLOYEE BENEFITS continued Pension Plan continued The projected benefit obligations and fair value of plan assets as at 31 December 2011, based on independent actuary report, are as follows: DPBM I DPBM II DPBM III DPBM IV Projected benefit Obligations 1,212,086 1,484,395 614,362 395,053 Fair value of plan Assets 1,517,006 1,748,625 742,595 544,190 Funded status 304,920 264,230 128,233 149,137 Unrecognised past service cost - - - - Unrecognised actuarial gains 221,559 144,142 111,007 52,637 Surplus based on SFAS No. 24 Revised 2004 83,361 120,088 17,226 96,500 Asset ceilling - - - - Pension Plan Program Assets recognised in balance sheet - - - - There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognised in the Balance Sheets because the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled. The projected benefit obligations and fair value of plan assets as at 31 December 2010, based on independent actuary report, are as follow: DPBM I DPBM II DPBM III DPBM IV Projected benefit Obligations 1,046,218 1,279,128 540,301 340,394 Fair value of plan Assets 1,534,816 1,664,164 700,682 534,501 Funded status 488,598 385,036 160,381 194,107 Unrecognised past service cost - - - - Unrecognised actuarial gains 350,059 190,703 88,451 94,632 Surplus based on SFAS No. 24 Revised 2004 138,539 194,333 71,930 99,475 Asset ceilling - - - - Pension Plan Program Assets recognised in balance sheet - - - - There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognised in the Balance Sheets because the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled. 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 5137 45. EMPLOYEE BENEFITS continued Pension Plan continued Labor Law No. 132003 Bank Mandiri has implemented an accounting policy for employment benefits SFAS 24 Revised 2004 to recognise provision for employee service entitlements. As at 31 December 2011 and 2010 the Bank recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp1,404,375 included Rp8,240 which is compensation benefits for employees that have resigned but not yet paid and have been excluded from actuarial calculation and Rp1,178,427 included Rp9,187 which is compensation benefits for employees that have resigned but not yet paid and have been excluded from actuarial calculation which is estimated post employment benefit based on the independent actuarial reports Note 30. Provision for employee service entitlements as at 31 December 2011 and 2010 , are estimated using the employees service entitlements calculation for the years ended 31 December 2011 and 2010 as shown in the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated 18 January 2012 for the year ended 31 December 2011 and independent actuarial report of PT Eldridge Gunaprima Solution dated 28 January 2011 for the year ended 31 December 2010. The assumptions used by the actuary for the year ended 31 December 2011 and 2010 are as follows: a. Discount rate is 6.00 per annum. b. Expected rate of annual salary increase is 8.50. c. Mortality rate table used is Indonesia Mortality Table 1999 or TMI II. d. Turnover rate is 5.00 for employees’ age of 25 and decreasing linearly by 0.167 each year up to 0.00 at age 55. e. Actuarial method is projected unit credit method. f. Normal retirement age is 56 years. g. Disability rate is 10.00 of TMI II. Reconciliation between the provision for post employment benefits presented in the balance sheets and statements of income, based on independent actuary report, are as follows Bank Mandiri only: 2011 2010 Present value of obligations 1,547,952 1,262,717 Unrecognised past service cost 39,675 40,813 Unrecognised actuarial gainslosses 314,525 215,958 Provision for Post Employment Benefits presented in Balance Sheets 1,273,102 1,087,572 Current service cost 127,117 93,965 Interest cost 96,892 91,579 Amortisation of unrecognised past service cost 1,138 1,138 Amortisation of unrecognised actuarial gainslosses 8,682 - Immediate recognition of past service cost 28,244 58,831 Cost of Pension benefits 203,309 125,575 Reconciliation of provision for post employment benefits are as follows Bank Mandiri only: 2011 2010 Beginning balance of provision for post employment benefits 1,087,572 983,052 Expenses during the year 203,309 125,575 Payments of benefits 17,779 21,055 Provision for Post Employee Benefits Note 30 1,273,102 1,087,572 As at 31 December 2011 and 2010 , the amount does not include unpaid severance for resigned employees amounting to Rp8,240 and Rp9,187 respectively, which was excluded from actuarial computation. 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 5138 45. EMPLOYEE BENEFITS continued Labor Law No. 132003 continued As at 31 December 2011 and 2010 , the provision for post employment benefits in the Subsidiaries amounting to Rp123,033 and Rp81,668 respectively. Service-Free Period MBT MBT is the period prior to retirement age where the employees are released from their active routine jobs thus they do not go to work but still obtain employee benefits such as: salary, medical facility, religion vacation benefit, annual leave if in the current period the employee still has active working period, long service leave if the long service leave is within the MBT period, mourning benefit and mourning facility. The MBT benefits are aimed to provide employee with an opportunity to prepare prior entering the pension age. The Pension Age, Minimal Working Period and MBT period are as follows: No Pension Age Minimal Working Period MBT Period 1. 56 years 12 years 12 months 2. 46 years 9 years 9 months Reconciliation of Provision for Service-Free Period benefit, which recognised on balance sheets and statements of income based on independent actuary report, are as follows: 2011 2010 Current Service Cost - 1,158 Interest Cost - 100,831 Recognition of actuarial gainlosses 15,962 155,203 Revenuecost of provision for service-free period 15,962 257,192 Beginning balance of provision for service - free period facilities 56,273 973,347 IncomeExpenses during the year 15,962 257,192 Payment of benefits 29,959 39,063 Payment to Koperasi - 1,135,203 Provision for service-free period Note 30 10,352 56,273 In accordance with Director’s Decision letter No KEP.DIR3462010, dated 22 December 2010, Management decided that the MBT benefit is terminated since 1 January 2012 and that 2011 is the MBT transition period, where employees who enter their pension age in 2011 are still entitled with the benefit and the last payment for MBT will be at the end of May 2012. The provision for service – free period benefit MBT as at 31 December 2011 and 2010 is amounting to Rp10,352 and Rp56,273, respectively. 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 5139 45. EMPLOYEE BENEFITS continued Service-Free Period MBT continued Furthermore, in accordance with Director’s Decision letter No KEP.DIR3472010, dated 22 December 2010, Management decided that the Pensioner’s Health Program effectively applied since 1 January 2011. This Pensioner’s Health Program is intended for pensioners and permanent employees in their pension age. The management program was operated by Bank Mandiri’s Employees and Pensioners Health Cooperation or called Mandiri Healthcare “Koperasi”, which was established on 1 November 2010, and includes pension members and Bank Mandiri employees. During the program implementation, as at 31 December 2010, the Bank has placed initial funds to the Cooperation under the name of the program’s participants amounting to Rp1,135,203, which was sourced from the provision of service free period MBT that has been recorded by the Bank. Subsequently, the Bank and its employees will contribute to the Cooperation every month, amounting to 3 and 2 of the employee’s basic salary, respectively. Subsidiaries does not have Service-Free Period MBT Benefit.

46. OTHER OPERATING EXPENSES - OTHERS - NET

2011 2010 Fees and commissions expenses 470,304 479,306 Sales force compensations 271,646 52,093 Fees related to Credit card and ATM transactions 138,529 87,695 Fees from RTGS, remittance and clearing transactions 68,487 58,869 Employee restructuring cost 49,392 104,538 Others 1,969,549 22,327 2,967,907 804,828 Others consist of Subsidiary’s commission expense from bancassurance and other commission expenses, and other expense besides expenses disclosed above.

47. NON-OPERATING INCOME - NET

2011 2010 Rental income 69,354 65,712 Gain on sale of fixed assets 37,53 8 66,862 Penalties 3,270 3,817 Others - net 59,480 101,385 163,102 230,142 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 5140 48. COMMITMENTS AND CONTINGENCIES The following accounts represent accounts which are recorded in off-balance sheet: 2011 2010 COMMITMENTS Commitment Payables: Unused loan facilities granted Third parties 54,104,438 41,961,727 Related parties 15,592,735 10,863,082 69,697,173 52,824,809 Outstanding irrevocable letters of credit Note 28: Third parties 7,129,96 2 4,806,440 Related parties 4,940,828 2,852,448 12,070,790 7,658 ,888 Total Commitment Payables 81,767,963 60,483,697 Commitment Payables - Net 81,767,963 60,483,697 CONTINGENCIES Contingent Receivables: Guarantees received from other banks 5,707,442 3,803,084 Interest receivable on non -performing assets 5,348,404 5,072,817 Others 32,729 32,729 Total Contingent Receivables 11,088,575 8,908,630 Contingent Payables: Guarantees issued in the form of: Bank guarantees Note 28: Third parties 20,784,987 14,667,364 Related parties 6,644,295 6,682,817 27,429,282 21,350,181 Standby letters of credit Note 28 Third parties 3,526,296 1,019,049 Related parties 1,759,233 2,213,975 5,285,529 3,233,024 Others 70,264 36,337 Total Contingent Payables 32,785,075 24,619,542 Contingent Payables - Net 21,696,500 15,710,912 COMMITMENTS AND CONTINGENCIES PAYABLE - NET 103,464,463 76,194,609 Include committed and uncommitted unused loan facilities 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 5141 49. FOREIGN CURRENCY TRANSACTIONS Forward and cross currency swap transactions are presented as derivative receivablespayables in the consolidated statement of financial position Note 11. Details of outstanding buy and sell foreign currency spot transactions Bank Mandiri only are as follows: 31 December 2011 Spot - Buy Spot - Sell Original Currency Rupiah Original Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollar 140,565,523 1,274,578 143,904,023 1,304,850 Others - 34,726 - 31,759 1,309,304 1,336,609 31 December 2010 Spot - Buy Spot - Sell Original Currency Rupiah Original Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollar 150,375,000 1,354,879 186,400,000 1,679,464 Others - 45,728 - 77,516 1,400,607 1,756,980 Consist of various foreign currencies

50. IMPACT ON THE INITIAL IMPLEMENTATION OF SFAS 50 REVISED 2006 AND SFAS 55 REVISED 2006

The Group implement prospectively the SFAS 50 Revised 2006 and SFAS 55 Revised 2006 on 1 January 2010 in accordance with the transitional provisions of those standards Note 2c I. As a result of the initial and prospective implementation of SFAS 55 Revised 2006, on 1 January 2010, the Group has recalculated the Allowance for Impairment Losses of Financial Assets in accordance with transitional provisions. The difference between the balances of such allowance as at 31 December 2009 and the required allowance calculated based on SFAS 55 Revised 2006 for all financial assets as at 1 January 2010 amounting to Rp221,896 was credited to the opening balance of Retained Earnings and deferred tax assets amounting to Rp164,343 and Rp57,553, respectively. Details of adjustment of such allowance for each allowance for impairment losses financial assets are as follows: Initial As previously implementation reported adjustments As adjusted Reversalallowance for impairment losses on: - Current account with other banks Note 5d 86,962 73,098 13,864 - Placements with other banks Note 6e 347,184 108,175 239,009 - Marketable securities Note 7g 53,492 2,354 51,138 - Other receivables – trade transactions Note 9d 844,781 59,563 904,344 - Securities purchased under resale agreements Note 10c 30,488 30,488 - - Derivative receivables Note 11 1,765 1,765 - - Loans Note 12B.j 12,435,525 65,395 12,370,130 - Acceptance receivables Note 14d 52,773 184 52,589 Total 13,852,970 221,896 13,631,074 On 1 January 2010, in relation with the implementation of SFAS 50 Revised 2006 and SFAS 55 Revised 2006, the Bank has reassessed the classification of its financial assets and as such, has reclassified its Government Bonds as disclosed in Note 8c of the consolidated financial statements. 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 5142 51. RELATED PARTY TRANSACTIONS In the normal course of business, Bank Mandiri entered into certain transaction with the following related parties:  Related party relationship as the controlling shareholder: The Government of the Republic of Indonesia  Related parties relationship by ownership andor management: Related Parties Nature of Relationship PT Kustodian Sentral Efek Indonesia Associate Company PT Sarana Bersama Pengembangan Indonesia Associate Company Dana Pensiun Bank Mandiri Bank Mandiri as a founder Dana Pensiun Bank Mandiri 1 Bank Mandiri as a founder Dana Pensiun Bank Mandiri 2 Bank Mandiri as a founder Dana Pensiun Bank Mandiri 3 Bank Mandiri as a founder Dana Pensiun Bank Mandiri 4 Bank Mandiri as a founder PT Estika Daya Mandiri Owned by Dana Pensiun Bank Mandiri 1 PT Asuransi Staco Mandiri formerly PT Asuransi Staco Jasapratama Owned by Dana Pensiun Bank Mandiri 2 PT Mulia Sasmita Bhakti Owned by Dana Pensiun Bank Mandiri 3 PT Krida Upaya Tunggal Owned by Dana Pensiun Bank Mandiri 4 PT Wahana Optima Permai Owned by Dana Pensiun Bank Mandiri 4 PT Mandiri Management Investasi Owned by the same ultimate shareholders PT Pengelola Investama Mandiri Owned by the same ultimate shareholders Koperasi Kesehatan Pegawai dan Pensiunan Bank Mandiri Mandiri Healthcare Employees and pensioners as member and key management relationship The nature of transactions with related parties includes among others, current accounts with other banks, investments in shares, securities, employee’s pension plan, loans, deposits from customers and bank guarantee.  Related parties relationship with government related entities Related Parties Nature of Relationship PT Asuransi Jiwa Inhealth Indonesia Subsidiary of State Owned Enterprise PT Bahana Artha Ventura Subsidiary of State Owned Enterprise PT Bank BRI Syariah Subsidiary of State Owned Enterprise PT Infomedia Nusantara Subsidiary of State Owned Enterprise PT Reasuransi Internasional Indonesia Subsidiary of State Owned Enterprise PT Telekomunikasi Indonesia International Subsidiary of State Owned Enterprise PT Telekomunikasi Selular Subsidiary of State Owned Enterprise PT Wijaya Karya Beton Subsidiary of State Owned Enterprise PT Wijaya Karya Realty Subsidiary of State Owned Enterprise PT Polytama Propindo Subsidiary of State Owned Enterprise PT PRIMKOKAS Subsidiary of State Owned Enterprise Universitas Airlangga State Owned Legal Entity PDAM Surya Sembada Kota Surabaya Regional Owned Enterprise