INTEREST INCOME 2002 12 Full Audited Financial Statements w Notes

PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 108 -

40. GENERAL AND ADMINISTRATIVE EXPENSES

2002 2001 Depreciation and amortization of premises and equipment Note 15 329,732 258,892 Rent 326,811 328,538 Communications 305,310 289,789 Promotions 267,496 169,309 Repairs and maintenance 176,494 151,879 Electricity, water and gas 83,452 53,565 Professional fees 278,187 107,125 Office supplies 72,249 95,132 Rental of office equipment 39,837 80,097 Transportation 28,825 96,987 Research and development 4,747 2,328 Others 147,002 112,898 2,060,142 1,746,539 Professional fees include audit and tax services amounting to Rp10,472 and Rp5,687 for the years ended December 31, 2002 and 2001, respectively. In 2002, the Bank expensed all the cost of preparing for the Initial Public Offering incurred up to December 31, 2002.

41. SALARIES AND EMPLOYEE BENEFITS

2002 2001 Salaries, wages and pension expenses Note 42 904,883 797,498 Holidays, leave, vacations and related entitlements 288,505 157,127 Employee benefits in kind 97,825 81,829 Training and development 86,754 48,968 Tax allowances 5,186 69,484 Employee service entitlements in accordance with the Decree of the Minister of Manpower No. Kep-150Men2000 Note 42 - 239,780 Bonus and others 182,798 275,500 1,565,951 1,670,186 In accordance with the Decree of the Minister of Manpower No. Kep-150Men2000 dated June 20, 2000, regarding the Settlement of Labor Dismissal and the Stipulation of Severance Pay, Gratuity and Compensation in Companies, Bank Mandiri has adopted an accounting policy to recognize a provision for employee service entitlements based on actuarial valuations. The liabilities recognized as of December 31, 2002 and 2001 amounting to Rp674,062 and Rp793,631, respectively, were based on actuarial valuation reports issued by PT Dayamandiri Dharma Konsilindo and PT Jasa Aktuaria Peniun dan Asuransi, respectively. The expense recognized in the statements of profit and loss amounted to RpNil and Rp239,780 for the years ended December 31, 2002 and 2001, respectively.