PT Bank Tabungan Negara

These financial statements are originally issued in Indonesian language PT BANK DKI NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005 In Full Rupiah 42 DRAFT For Discussion Purpose Only April 26, 2007 To be Finalized Agreed by : Date :

30. Pension Plan and Other Employee Benefits

a. Pension Plan

The Bank has a defined contribution retirement plan covering all of its permanent employees. This program is administered by Dana Pensiun Bank DKI. This pension plan was approved by the Ministry of Finance in its Decree No. Kep-015KM171994 dated January 21, 1994. Pension plan contribution charged to statement of income that ended December 31, 2006 amounting to Rp 10,085,089,899 2005: Rp 7,152,883,868.

b. Employees’ Benefits Program

The Bank has calculated its estimated employee benefits liability in accordance with Labor Law No. 132003. No funding of benefits has been done in relation to the employee benefits program. The balances of employee benefits liability for the year 2006 and 2005 are based an Independent Actuary’s PT Dian Artha Tama calculation with regards to the application of PSAK No. 24 Revised 2004, “Employee Benefits”. Total liabilities based on the Independent Actuary’s calculation and Labor Law No. 132003 as of December 31, 2006 and 2005 are as follows: 2006 2005 Rp Rp Present Value of Employee Benefit Liabilities 257,086,497,278 172,268,248,000 Fair Value of Asset Program 286,243,911,953 235,925,293,515 Financing Status 29,157,414,675 63,657,045,515 Unrecognized Past Service Cost - Non Vested -- -- Unrecognized Actuarial Gains Losses 22,631,780,904 17,297,926,817 Prepaid Employee Benefits 51,789,195,579 46,359,118,698 The employee benefit expenses for the years are as follows: 2006 2005 Rp Rp Current Service Cost 11,632,401,084 6,817,876,356 Interest Expense 18,949,507,280 21,393,338,400 Results of Return Asset Program that is expected 25,951,782,287 27,094,800,244 Actuarial Loss Gains -- -- Amortization from Past Service Cost - Non Vested -- -- Past Service Cost - Non Vested Due to Amended Program -- -- Total Employee Benefits Expense 4,630,126,077 1,116,414,512 These financial statements are originally issued in Indonesian language PT BANK DKI NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005 In Full Rupiah 43 DRAFT For Discussion Purpose Only April 26, 2007 To be Finalized Agreed by : Date : Changes in recognized liabilities in accordance with Independent Actuary’s calculations: 2006 2005 Rp Rp Beginning Balance of Prepaid Employees Benefits 46,359,118,698 40,663,251,966 Employees Benefits Expense- Net 4,630,126,077 1,116,414,512 Contribution 10,060,202,958 6,812,281,244 Ending Balance of Prepaid Employees Benefits 51,789,195,579 46,359,118,698 The key assumptions used by the Independent Actuary for year 2006 and 2005 for the calculation of pension benefit expenses, are as follows: 2006 2005 Discount Rate 11 12 Salary Increase Rate 5 per annum 5 per annum Mortality Rate CSO 1958 CSO 1958 Permanent Disability Rate 0.01 per annum 0.01 per annum Resignation Rate 0.5 per annum 0.5 per annum Proportion of Early Retirement 0.5 per annum 0.5 per annum Method Projected Credit Unit Projected Credit Unit Total balance of liability of employee benefits based on Independent Actuary’s calculation and the Bank’s Labor policy that are not included in Labor Law No. 132003 in year 2006 is Rp 219,287,638 2005: nil.

31. Transactions with Related Parties

The Bank has business transactions with companies having the same stockholders andor management of the Bank. These transactions primarily relate to lending and borrowing of funds in the normal course of their business and are substantially made on an arm’s legth basis except loan to employees and Bank’s Directors with period of 1 one to 15 fifteen years, 5 interest rates per year and monthly payment through monthly salary deduction. Significant transactions with related parties are as follows: 2006 2005 Rp Rp Loans Rupiah PT BPR Darbeni 196,766,984 198,626,950 Commissioners, Directors, and Executive Bank Officers 5,383,449,188 4,579,254,381 Total Loans Less: Allowance for Possible Losses 55,802,162 47,778,813 Total-Net 5,524,414,010 4,730,102,518 Deposits from Customers Demand Deposits 672,454,159 670,323,899 Savings Deposits 3,469,934,448 3,535,805,078 Time Deposits 1,755,257,614 704,000,000 Total 5,897,646,221 4,910,128,977