SECURITIES continued 166996CF B6AA 4D8A 8662 359D238F1CD7 Consol Fin stat 2007 English

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 40

6. SECURITIES continued

g. Movements of Allowance for Possible Losses on Securities: 2007 2006 Balance at beginning of year 1,145,838 1,209,035 Reversal during the year Note 36 22,773 30,839 Others 8,568 32,358 Balance at end of year 1,114,497 1,145,838 Includes effect of foreign exchange translation. Management believes that the allowance for possible losses on securities is adequate.

7. GOVERNMENT BONDS

Government Bonds consist of bonds issued by the Government acquired from primary and secondary markets with details as follows: 2007 2006 Trading, fair value 972,392 1,289,480 Available for sale, fair value 27,294,443 28,978,475 Held to maturity, at cost 61,199,482 61,193,915 89,466,317 91,461,870 Based on maturities, the Government Bonds are as follows: 2007 2006 Rupiah Trading: Less than 1 year 9,280 205 1 - 5 years 272,954 158,206 5 - 10 years 261,452 852,595 Over 10 years 409,943 268,841 953,629 1,279,847 Available for sale: Less than 1 year 739,520 20,112 1 - 5 years 348,686 1,191,215 5 - 10 years 13,366,139 14,946,600 Over 10 years 12,761,785 12,711,782 27,216,130 28,869,709 Held to maturity: 1 - 5 years 1,350,000 1,350,000 5 - 10 years 25,810,000 12,388,900 Over 10 years 33,934,598 47,355,698 61,094,598 61,094,598 Total Rupiah 89,264,357 91,244,154 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 41

7. GOVERNMENT BONDS continued

Based on maturities, the Government Bonds are as follows continued: 2007 2006 Foreign Currency Trading: 5 - 10 years 9,792 - Over 10 years 8,971 9,633 18,763 9,633 Available for sale: 5 - 10 years 49,321 59,026 Over 10 years 28,992 49,740 78,313 108,766 Held to maturity: 5 - 10 years 104,884 81,332 Over 10 years - 17,985 104,884 99,317 Total Foreign Currency 201,960 217,716 89,466,317 91,461,870 2007 Rupiah Trading Interest Rates Maturity Frequency of Nominal per Annum Fair Value Dates Interest Payment Fixed rate bonds 896,832 9.00- 943,603 11282008- 6 months 14.28 09152025 Variable rate bonds 10,000 3-month SBI 10,026 06252011 3 months 906,832 953,629 Available for sale Interest Rates Maturity Frequency of Nominal per Annum Fair Value Dates Interest Payment Fixed rate bonds 613,617 9.50- 674,430 11152010- 6 months 15.58 02152028 Variable rate bonds 26,577,428 3-month SBI 26,541,700 01252008- 3 months 07252020 27,191,045 27,216,130 Held to maturity Interest Rates Maturity Frequency of Nominal per Annum Dates Interest Payment Fixed rate bonds 1,350,000 13.15 03152010 6 months Variable rate bonds 59,744,598 3-month SBI 12252014- 3 months 07252020 61,094,598