FIXED ASSETS Laporan Tahunan 2016 PT Bank Mandiri (Persero) Tbk versi B.Inggris

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 124

18. FIXED ASSETS continued Others continued

d. The value of land is based on the cost model on December 31, 2016 amounted to Rp2.879.510. The table below presents non-financial instruments recognised at fair value based on the hierarchy used by the Bank to determine and disclose the fair value of non-financial instruments: i Level 1: Quoted prices on active markets for identical assets or liabilities; ii Level 2: valuation technique in which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; iii Level 3: valuation techniques in which all inputs which have a significant effect on the recorded fair value that can not be observed from market data. December 31, 2016 Level 1 Level 2 Level 3 Fair value Land - 28,822,150 - 28,822,150 The fair value of Land for level 2 is calculated using the comparison of market price approach and estimation of income and expenses generated by the asset. The market price of the land that most closely adjusted for differences in the primary attributes such as asset size, location and usage of assets. The most significant input in this assessment approach is the assumption of the price per meter. e. Land rights acquired through Leasehold Certificate “HGB” that can be renewed will expire between 2016 and 2042. Based on past experience, the Group has the confidence to extend the HGB. f. On December 31, 2016, the Bank has insured fixed assets excluding land rights, construction in progress and the leased property to cover potential losses against fire, theft and natural disasters to PT Asuransi Adira Dinamika, PT Asuransi Dayin Mitra Tbk., PT Asuransi Himalaya Pelindung, PT Asuransi Indrapura, PT Asuransi Jasatania, PT Asuransi Jaya Proteksi, PT Asuransi Rama Satria Wibawa, PT Asuransi Ramayana Tbk, PT Asuransi Wahana Tata, PT Caraka Mulia, PT Estika Jasatama, PT Gelora Karya Jasatama, PT Krida Upaya Tunggal, PT Sarana Lindung Upaya, PT Asuransi Bosowa Periskop, PT Asuransi Umum Bumiputeramuda 1967, PT Asuransi Astra Buana, PT Asuransi Bangun Askrida, PT Asuransi Bintang, PT Asuransi Tugu Pratama, PT Central Asia Raya, PT Rama Satria Wibawa, PT Asuransi Parolamas and PT Asuransi Sinar Mas, entirety are third parties, and PT Asuransi Jasa Indonesia Persero, PT Asuransi Jasaraharja Putera, PT Mandiri AXA General Insurance, PT Asuransi Staco Mandiri, entirety are related parties, with total sum insured approximately Rp11,892,502 December 31, 2015: Rp8,878,933. Management believes that the insurance coverage is adequate to cover possible losses on the assets insured. g. The fixed assets that have been fully depreciated but still in use by the Bank among others, office machines and printing equipment and office equipment and housing. h. Management also believes that there is no impairment of fixed assets as of December 31, 2016 and 2015. 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 125

19. INTANGIBLE ASSETS December 31, December 31,

2016 2015 Software 1,532,381 1,492,077 Goodwill 423,115 423,115 1,955,496 1,915,192 Net of amortisation of Rp2,257,826 and Rp1,877,989 as of December 31, 2016 and 2015. Software is amortised over its useful lives, which is 5 years refer to Note 2.r.i. As of December 31, 2016 and 2015, included in the software balance are construction in progress for software amounting to Rp528,857 and Rp471,478, respectively. The estimated percentage of completion of software as of December 31, 2016 was ranging between 5.00 - 95.00 December 31, 2015: 15.00 - 95.00. Goodwill arises from the difference between the cost of acquisition with the fair value of Subsidiaries’s assets acquired. Goodwill is assessed regularly for impairment. As of December 31, 2016 and 2015, there are no impairment of goodwill.

20. OTHER ASSETS December 31, December 31,

2016 2015 Rupiah: Accrued Income 3,602,766 3.297.600 Receivables from customer transactions 1,134,536 888,426 Receivables from mutual fund 374,651 626,492 Receivables from government bonds pledged as collateral 593,466 592,668 Receivables from transactions related to ATM and credit card 472,948 477,159 Receivables from policyholders 488,208 453,560 Abandoned properties - net of accumulated losses amounting to Rp870 and Rp947 as of December 31, 2016 and 2015, respectively. 145,943 149,325 Receivables from sales of marketable securities 17,680 92,688 Repossessed assets - net of accumulated losses amounting to Rp9,850 as of December 31, 2016 and 2015 11,565 11,565 Others 3,176,323 3,255,764 Total 10,018,086 9,845,247 Foreign currencies: Accrued Income Note 61B.v 763,096 763,393 Receivables from policyholder Note 61B.v 16,266 23,247 Receivable from sale of marketable securities Note 61B.v 12,605 6,922 Receivables from customer transactions Note 61B.v 7,451 6,802 Receivables from transactions related to ATM and credit card 2 - Others 1,254,178 1,079,145 Total 2,053,598 1,879,509 12,071,684 11,724,756 Less: Allowance for possible losses 514,446 432,029 Net 11,557,238 11,292,727