Principles of Consolidation continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 531 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

h. Current Accounts with Bank Indonesia and Other Banks continued

The Minimum Statutory Reserve continued GWM in foreign currency is set at 8.00 of foreign currency third party fund. Subsidiary company that engaged in business operation using Sharia principle, had implemented the Minimum Statutory Reserve in accordance with Bank Indonesia Regulation No. 621PBI2004 dated 3 August 2004 regarding the Minimum Statutory Reserve in Rupiah and foreign currencies for Commercial Bank that engaged in business operation based on Sharia principle, which amended by Bank Indonesia Regulation No. 823PBI2006 dated 5 October 2006 and the latest amendment using Bank Indonesia Regulation No. 1023PBI2008 dated 16 October 2008 and subsequently replace by PBI No.1516PBI2013 dated 24 December 2013, where every bank is obliged to maintain the Minimum Statutory Reserve in Rupiah by 5.00 from TPF in Rupiah and in foreign currencies by 1.00 from TPF in foreign currencies

i. Placements with Bank Indonesia and Other Banks

Placements with Bank Indonesia and other banks represent placements in the form of Bank Indonesia deposit facility FASBI, sharia FASBI FASBIS, call money, “fixed-term” placements, time deposits and others. Placements with Bank Indonesia and other banks are stated at amortised cost using effective interest rate less any allowance for impairment losses. Placement with Bank Indonesia and other banks are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.

j. Marketable Securities

Marketable securities consist of securities traded in the money market such as Certificates of Bank Indonesia SBI, Sharia Certificates of Bank Indonesia SBIS, Surat Perbendaharaan Negara SPN, Negotiable Cerfiticates of Deposits, Medium Term Notes, Treasury Bills issued by government of other country and Government of Republic of Indonesia, export bills, securities traded on the capital market such as mutual fund units and securities traded on the stock exchanges such as shares of stocks and bonds including Sharia Corporate bonds. Marketable securities are classified as financial assets at fair value through profit or loss, available for sale, held to maturity and loan and receivables. Refer to Note 2c for the accounting policy of financial assets at fair value through profit or loss, available for sale, held to maturity, and loan and receivables. Investments in mutual fund units are stated at market value, in accordance with the net value of assets of the mutual funds at the consolidated statement of financial position date. For marketable securities which are traded in organised financial markets, fair value is generally determined by reference to quoted market prices by the stock exchanges at the close of business on the consolidated statement of financial position date. For marketable securities with no quoted market price, a reasonable estimate of the fair value is determined by reference to the current market value of another instrument which substantially have the same characteristic or calculated based on the expected cash flows of the underlying net asset base of the marketable securities. Any permanent decline in the fair value of marketable securities classified as held to maturity and available for sale is charged to current year’s consolidated statement of comprehensive income.