ACCEPTANCES RECEIVABLE continued INVESTMENT IN SHARES

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 122

18. FIXED ASSETS continued

The details of fixed assets were as follows continued: December 31, 2015 Beginning Ending Balance Additions Deductions Reclassifications Balance Accumulated Depreciation Note 49 Direct ownership Buildings 1,450,960 189,886 7,526 - 1,633,320 Furniture and fixtures, office equipment and computer 4,948,105 962,248 26,374 - 5,883,979 Vehicles 156,996 35,036 3,653 - 188,379 6,556,061 1,187,170 37,553 - 7,705,678 Leased assets 2,135 625 - - 2,760 6,558,196 1,187,795 37,553 - 7,708,438 Net book value Direct ownership Land 2,845,929 Buildings 2,435,748 Furniture and fixtures, office equipment and computer 2,918,326 Vehicles 100,191 Construction in progress 1,451,759 9,751,953 Leased assets 9,735 9,761,688 Construction in progress as of December 31, 2016 and 2015 are as follows: December 31, December 31, 2016 2015 Computers and other hardware that have not been installed 602,843 783,085 Buildings 430,442 399,543 Land 160,611 - Office equipment and inventory 126,242 184,177 Vehicles 13,520 10,391 Others 35,114 74,563 1,368,772 1,451,759 The estimated percentage of completion of construction in progress as of December 31, 2016 and 2015 for computers and other hardwares that have not been installed was ranging between 5.00 - 90.00 and 15.00 - 90.00, respectively. 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 123

18. FIXED ASSETS continued Others

a. Bank Mandiri has an Agreement on Construction; Management and Transfer “BOT Agreement” with PT Duta Anggada Realty Tbk. “Duta Anggada” based on the Deed No. 105 regarding BOT Agreement dated May 24, 1991, as amended by the Deed No. 70 Addendum I on BOT Agreement dated June 14, 1991 and No. 65 Addendum II on BOT agreement dated December 21, 2011. The agreement, among others, managed the development of two tower of 27 floors of offices by Duta Anggada, which the land is owned by Bank Mandiri. The term of the management of Tower 1 and Tower 2 by Duta Anggada ends on May 15, 2014 and May 15, 2016, respectively. On May 19, 2014, the Bank and Duta Anggada has signed the agreement to transfer Tower 1 building to Bank Mandiri in Deed No. 43 dated May 19, 2014 regarding Temporary Utilization Agreement, in which Duta Anggada is entitled to operate the Tower 1 building up to May 15, 2016, along with the right and obligation of each party. On May 11, 2016, the Bank has signed transfer agreement of Menara Mandiri 2 and its management of Menara Mandiri 1 from PT Duta Anggada Realty Tbk. to PT Bank Mandiri Persero Tbk. Currently, building management of Menara Mandiri 1 and Menara Mandiri 2 is performed by PT Bumi Daya Plaza in the form of Temporary Utilization Agreement Kerjasama Pemanfaatan Sementara from 2016 until 2021. b. Based on Minister of Finance of the Republic of Indonesia PMK No. PMK191 dated October 15, 2015, the Group assigned registered independent appraisers to assess revaluate its fixed asset land. The valuations of land are performed by the external independent appraisers, Public Appraiser Company KJPP Amin, Nirwan, Alfiantori and Partners ANA and Muttaqin, Bambang, Purwanto, Rozak, Uswatun and Partners MBPRU. Appraisals are performed based on the Concept and General Principles of Appraisers article 17 in Indonesian Appraisal Standards year 2015. In the fair value measurement of the land, the Independent Appraisers takes into account a market participant’s ability to generate economic benefits by using the assets in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The valuation method used by the Independent Appraiser are market approach and cost approach. Based on the Assessment Report from the Independent Appraisers, the value of fixed assets increased by: Fixed assets Fair value Book value Increase in value Land 28,822,150 2,880,116 25,942,034 Results of revaluation of fixed assets of the Bank was approved by the Directorate General of Taxes DGT through the Regional Office, Head of the Large Tax payer DGT through Decree No. KEP-418WPJ.192016 dated May 25, 2016 Note 33f. c. Assessment in the fair value of buildings owned by the Bank only on December 31, 2015 uses the Taxable Sale Value NJOP. NJOP is regarded as the best estimates of the fair value. On December 31, 2015, the NJOP of buildings owned by the Bank is Rp3,658,460.