MANAGEMENT STOCK OPTION PLAN continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated 103

36. PROVISION FOR POSSIBLE LOSSES ON EARNING ASSETS

2008 2007 Provisionreversal of allowance for possible losses on: Current accounts with other banks Note 4e 71,072 2,731 Placements with other banks Note 5e 323,475 36,337 Securities Note 6g 58,416 22,773 Other receivables - trade transactions Note 8d 196,581 5,527 Securities purchased with agreements to resell Note 9b 14,387 25,000 Derivative receivables Note 10 2,501 467 Loans Note 11B.j 2,299,377 2,247,854 Acceptances receivable Note 12d 137,045 96,805 Investments in shares of stock Note 13c 339 318 2,986,361 2,113,994

37. REVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES - OTHERS - NET

2008 2007 Reversalprovision of allowance for: Possible losses on legal cases Note 28 31,133 106,619 Possible losses on fraud cases 12,778 107 Others assets Note 15 151,530 208,072 Others 254 1,783 170,139 313,015

38. GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERNMENT BONDS

2008 2007 Securities 1,450 15,129 Government Bonds 36 29,190 1,486 14,061 39. GAINSLOSSES FROM SALE OF SECURITIES AND GOVERNMENT BONDS 2008 2007 Securities 23,917 43,504 Government Bonds 30,144 184,994 54,061 228,498 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated 104

40. GENERAL AND ADMINISTRATIVE EXPENSES

2008 2007 Depreciation and amortization of premises and equipment Note 14 573,105 583,877 Promotions 514,760 419,835 Rent 510,997 466,808 Professional fees 428,124 338,147 Communications 379,456 376,893 Repairs and maintenance 329,311 297,788 Electricity, water and gas 226,337 208,762 Office supplies 197,412 179,641 Transportations 114,108 96,192 Research and development 5,066 6,056 Others 583,008 447,784 3,861,684 3,421,783 Professional fees included audit services amounting to Rp10,403 and Rp14,817 for the years ended December 31, 2008 and 2007, respectively.

41. SALARIES AND EMPLOYEE BENEFITS

2008 2007 Salaries, wages, pension and tax allowances 2,686,225 2,160,692 Holidays THR, leave and related entitlements 438,734 378,625 Provision for post-employment benefit expenses and free of service period 312,259 300,177 Employee benefits in kind 284,341 163,574 Training and development 241,353 250,606 Compensation expense on stock options Note 32 - 87,034 Provision of tantiem 50,000 50,000 Bonuses and others 550,856 638,251 4,563,768 4,028,959 Total gross salaries, allowances and bonuses of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp148,101 and Rp84,240 for the years ended December 31, 2008 and 2007, respectively as follows: 2008 Number of Members Officers Salaries Allowances Bonuses Total Board of Commissioners 8 5,940 4,307 9,301 19,548 Board of Directors 12 26,842 16,284 36,229 79,355 Audit Committee 2 755 277 215 1,247 Executive Vice Presidents and Senior Vice Presidents 48 25,955 10,864 11,132 47,951 70 59,492 31,732 56,877 148,101 Includes Richard Claproth from period January until May 2008, Yap Tjay Soen from period January until March 2008 and Mahmuddin Yasin since June 2008. Includes Omar S. Anwar from period January until May 2008 and Ogi Prastomiyono since June 2008.