EMPLOYEE BENEFITScontinued Pension Plan

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 187

50. EMPLOYEE BENEFITScontinued

Pension Plan continued The projected benefit obligations and fair value of plan assets as of December 31, 2016, based on independent actuarial report, are as follows: DPBMS DPBMD DPBMT DPBME Projected benefit obligations 1,393,976 1,673,195 717,416 479,583 Fair value of plan assets unaudited 1,620,439 1,810,473 827,718 575,742 Funded Status 226,463 137,278 110,302 96,159 Asset ceiling 226,463 137,278 110,302 96,159 Pension Plan Program Assets recognised in consolidated statement of financial position - - - - 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 consolidated statements of financial position because the requirements under SFAS No. 24 regarding “Employee Benefits” are not fulfilled. The projected benefit obligations and fair value of plan assets as of December 31, 2015, based on independent actuarial report, are as follows: DPBMS DPBMD DPBMT DPBME Projected benefit obligations 1,482,397 1,600,083 606,730 445,196 Fair value of plan assets unaudited 1,516,555 1,820,417 817,262 578,209 Funded Status 34,158 220,334 210,532 133,013 Asset ceiling 34,158 220,334 210,532 133,013 Pension Plan Program Assets recognised in consolidated statement of financial position - - - - 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 consolidated statements of financial position because the requirements under SFAS No. 24 regarding “Employee Benefits” are not fulfilled. The composition of plan assets from Pension Fund for the years ended December 31, 2016 and 2015 are as follows: December 31, 2016 unaudited DPBMS DPBMD DPBMT DPBME Deposit 6 8 4 12 Bonds 31 44 27 36 Direct Investment 6 16 28 15 Land and building 22 4 24 10 Shares 6 3 1 Government Bond 21 21 15 10 Others 8 4 2 16 Total 100 100 100 100 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 188

50. EMPLOYEE BENEFITS continued

Pension Plan continued The composition of plan assets from Pension Fund for the years ended December 31, 2016 and 2015 are as follows:continued December 31, 2015 unaudited DPBMS DPBMD DPBMT DPBME Deposit 21 23 10 10 Bonds 38 50 35 37 Direct Investment 7 15 28 15 Land and building 19 4 20 10 Shares 7 2 - 2 Government Bonds 3 4 6 11 Others 5 2 1 15 Total 100 100 100 100 Labor Law No. 132003 Bank Mandiri has implemented an accounting policy for employment benefits SFAS No. 24 to recognise provision for employee service entitlements. As of December 31, 2016 and 2015 the Group recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp2,943,664 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculationamounted to Rp8,240 and Rp2,411,613 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculationamounted to Rp8,240 based on the estimated post employment benefit in the independent actuarial reports Note 34. Provision for employee service entitlements as of December 31, 2016 and 2015 are estimated using the employees service entitlements calculation for the years ended December 31, 2016 and 2015 as shown in the independent actuarial report of PT Bestama Aktuaria dated January 5, 2017 for the year ended December 31, 2016 and the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated January 5, 2016 for the year ended December 31, 2016 and 2015. The assumptions used by the actuary for the years ended December 31, 2016 and 2015 are as follows: a. Discount rate is 8.20 per annum 2015: 9.10 per annum. b. Expected rate of annual salary increase is 9.50 per annum 2015: 9.50 per annum c. Mortality rate table used is Indonesia Mortality Table 2011 or TMI III. d. Turnover rate is 5 for employees’ age of 25 and decreasing linearly up to 0 at age 55. e. Actuarial method is projected unit credit method. f. Normal retirement age between 36 to 56 years according to the grades. g. Disability rate is 10 of TMI III. The amounts recognised in the statement of financial position are determined based on independent actuarial report as follows Bank Mandiri only: December 31, December 31, 2016 2015 Provision for post employment benefits presented in statement of financial position 2,434,892 1,976,724