FUND BORROWINGS continued f Direct Off-shore Loans continued

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 80

27. TAXATION continued c. Tax expense - current

The reconciliation between income before tax benefit expense as shown in the consolidated statements of income and estimated income tax computations, and the related current tax expense for Bank Mandiri and its Subsidiaries is as follows: 2007 2006 Consolidated income before tax benefitexpense and minority interests 6,333,383 2,831,196 Less: Income before tax expense of Subsidiaries after elimination 134,525 66,696 Income before tax benefitexpense and minority interests - Bank Mandiri only 6,198,858 2,764,500 Adddeduct permanent differences: Non-deductible expenses 52,436 332,524 Losses from Dili branch - 4,876 Others 15,126 194,930 Adddeduct temporary differences: Over provision for loans losses 1,933,422 5,160,826 Over provision for personnel expenses 506,484 264,876 Over provision of abandoned properties 46,110 - Over provision of repossessed assets 23,838 - Lossgains on decreaseincrease in market value of securities and Government Bonds 14,464 87,001 Difference in net realizable value of abandoned properties 486 2,303 Under provision for losses on earning assets other than loans 104,899 670,837 Loan recovery and write back 90,915 2,371,131 Under provision for estimated losses on commitments and contingencies 44,209 46,577 Under provision for losses arising from legal cases 22,293 156,026 Under depreciation of fixed assets 19,684 23,436 Estimated taxable income 8,509,224 5,365,221 Estimated tax expense - current Bank Mandiri only 2,552,750 1,609,549 Subsidiaries 133,404 65,461 Estimated tax expense - current 2,686,154 1,675,010 The amount in 2007 includes the loans recovery amounting to Rp90,915 to which the deferred tax impact were not computed. The amount in 2006 includes the write back amounting to Rp2,336,399 and the loans recovery amounting to Rp34,732 to which the deferred tax impact were not computed. Under the Indonesian taxation laws, Bank Mandiri and its Subsidiaries submit tax return on the basis of self assessment. The tax authorities may assess or amend taxes within 10 years after the date of the tax filings.