PROVISION FOR POSSIBLE LOSSES ON EARNING ASSETS

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 102

41. SALARIES AND EMPLOYEE BENEFITS continued 2006

Number of Members Officers Salaries Allowances Bonuses Total Board of Commissioners 7 4,733 2,673 - 7,406 Board of Directors 11 16,552 12,199 - 28,751 Audit Committee 2 635 177 - 812 Executive Vice Presidents and Senior Vice President 45 15,668 4,670 3,935 24,273 65 37,588 19,719 3,935 61,242 42. PENSION AND SEVERANCE Under the Bank’s policy, in addition to salaries, employees are entitled to allowances and benefits, such as: holiday allowance THR, pre-retirement MBT allowance, medical reimbursements, death allowance, leave allowance, functional allowance for certain levels, pension plan for permanent employees, incentives based on employee’s and the Bank’s performance, and post-employment benefits based on the prevailing Labor Law. Pension Plan Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows: a. One defined contribution pension plan, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti DPPK-PPIP or the Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM established on August 1, 1999. The DPBM’s regulations were legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14, 1999 and was included in the Addendum to the State Gazette of the Republic of Indonesia No. 62 dated August 3, 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated April 26, 1999 and were amended based on the Minister of Finance of the Republic of Indonesia’s letter No. KEP-213KM.52005 dated July 22, 2005 and was included in the Addendum to the State Gazette of the Republic of Indonesia No. 77 dated September 27, 2005 and Bank Mandiri’s Directors’ Resolution No. 068KEP.DIR2005 dated June 28, 2005. Bank Mandiri and the employees contribute 10 and 5 of the Base Pension Plan Employee Income, respectively. The President Director and the members of the Supervisory Board of the DPBM are active employees of Bank Mandiri; therefore, in substance, Bank Mandiri has control over the DPBM. As a consequence, transactions between the DPBM and Bank Mandiri are considered related party transactions. The DPBM invests a part of its financial resources in Bank Mandiri time deposits, which balances as of December 31, 2007 and 2006 were Rp10,000 and Rp30,000, respectively. The interest rates on these time deposits are at arms-length. The Bank paid pension contributions totaling Rp129,470 and Rp107,566, respectively, for the years ended December 31, 2007 and 2006, respectively.