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PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 105

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Pension Plan continued The projected benefit obligations and fair value of plan assets as of December 31, 2006 are as follows: There are no unrecognized accumulated actuarial loss-net nor unrecognized past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognized in the Balance Sheets since the requirements under PSAK No. 24 Revised are not fulfilled. Labor Law No. 132003 On March 25, 2003, the House of Representatives of the Republic of Indonesia and the Government of the Republic of Indonesia approved Labor Law No. 13 Year 2003 UU No.132003, which regulates, among others, the calculation of post-employment benefits, compensation upon termination and gratuity. Bank Mandiri has implemented an accounting policy for employment benefits PSAK 24 - Revised 2004 to recognize provision for employee service entitlements. As of December 31, 2007 and 2006, the Bank recognized a provision for employee service entitlements in accordance with Labor Law No. 132003 amounting to Rp784,938 and Rp689,654, respectively, based on independent actuarial reports Note 28. Provision for employee service entitlements as of December 31, 2007 and 2006 is based on independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated January 31, 2008 and February 14, 2007 for the years ended December 31, 2007 and 2006, respectively. The assumptions used by the actuary were as follows: a. Discount rate is 10 per annum. b. Expected rate of annual salary increase is 10. c. Mortality rate table is US 1980 Commissioners’ Standard Ordinary Table of Mortality. d. Early retirement rate is 5 from age 25 decreasing linearly at 0.25 per year up to 0 at age 45 and thereafter. e. Actuarial method is projected unit credit method. f. Normal pension age is 56 years. g. Disability rate is 10 of mortality rate. DPBM I DPBM II DPBM III DPBM IV Projected Benefit Obligations 900,027 849,484 519,172 294,111 Fair Value of Plan Assets 1,342,620 1,456,766 707,511 450,450 Funded Status 442,593 607,282 188,339 156,339 Unrecognized Past Service Cost - - - - Unrecognized Actuarial Gains 258,648 305,567 174,902 55,305 Surplus Based on PSAK No. 24 Revised 183,945 301,715 13,437 101,034 Asset Ceilling - - - - Pension Plan Program Assets recognized in balance sheet - - - - PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 106

42. PENSION AND SEVERANCE continued