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
101
40. GENERAL AND ADMINISTRATIVE EXPENSES
2007 2006
Depreciation and amortization of premises and equipment Note 14 583,877
608,358 Rent
466,808 452,025
Promotions 419,835
406,826 Communications
364,257 342,519
Professional fees 338,147
281,925 Repairs and maintenance
297,788 312,698
Electricity, water and gas 208,762
191,234 Office supplies
179,641 159,897
Transportations 96,192
82,023 Research and development
6,056 7,114
Others 447,897
406,274 3,409,260
3,250,893
Professional fees included audit services amounting to Rp14,817 and Rp15,775 for the years ended December 31, 2007 and 2006, respectively.
41. SALARIES AND EMPLOYEE BENEFITS
2007 2006
Salaries, wages, pension and tax allowances 2,155,020
1,727,159 Holidays THR, leave and related entitlements
378,625 324,168
Provision for post-employment benefit expenses 300,177
303,691 Training and development
250,494 133,087
Employee benefits in kind 216,950
213,459 Compensation expense on stock options Note 32
87,034 130,670
Provision for tantiem 50,000
- Bonuses and others
643,923 185,268
4,082,223 3,017,502
Total gross salaries, allowances and bonuses of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp84,240 and Rp61,242 for the years ended December 31, 2007 and
2006, respectively, are as follows:
2007 Number of
Members Officers
Salaries Allowances
Bonuses Total
Board of Commissioners 7
5,257 3,605
4,515 13,377
Board of Directors 11
21,343 10,429
- 31,772
Audit Committee 2
755 145
185 1,085
Executive Vice Presidents and Senior Vice Presidents
47 18,668
10,668 8,670
38,006
67 46,023
24,847 13,370
84,240
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.
