PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
172
49. GENERAL AND ADMINISTRATIVE EXPENSES For the year ended December 31,
2015 2014
Professional fees 2,750,772
2,380,440 Rent
1,627,002 1,291,413
Depreciation of fixed assets Note 18 1,187,795
938,547 Goodsservices provided by third parties
1,186,835 1,116,362
Communication 1,025,079
918,280 Repairs and maintenance
1,039,401 973,698
Promotion 982,701
986,272 Office supplies
518,344 488,373
Electricity, water and gas 527,356
512,952 Transportations
365,134 339,631
Amortisation of intangible assets 302,590
217,254 Traveling expenses
187,991 247,239
Insurance expenses 66,899
70,404 Others
1,031,952 967,445
12,799,851 11,448,310
For the year ended December 31, 2015 and 2014, promotions expenses include the sweepstakes prize expense of third party funds amounting to Rp68,648 and Rp48,145, respectively.
50. EMPLOYEE BENEFITS
Under the Bank’s policy, in addition to salaries, employees are entitled to allowances and benefits, such as holiday 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 in accordance with prevailing Labor Law.
Pension Plan
Bank Mandiri has five pension plans in the form of Employer Pension Plans DPPK as follows: a. One defined contribution pension fund, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti
DPPK-PPIP or Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM which was established on August 1, 1999. The DPBM’s regulations were approved by the Minister of Finance
of the Republic of Indonesia through its Decision Letter No. KEP300KM.0171999 dated July 14, 1999 and was published in supplement of 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
Decision Letter No. KEP-213KM.52005 dated July 22, 2005 and was published in the supplement of 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 10.00 and 5.00 of the Base Pension Plan Employee Income, respectively.
The Board of Directors 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.
DPBM invests a part of its investment fund in Bank Mandiri time deposits and deposit on-call, of which total balance as of December 31, 2015 and 2014 were Rp198,800 and Rp374,090,
respectively. The interest rates on these time deposits are given on arms-length basis.
For the years ended December 31, 2015 and 2014, the Bank has paid pension contributions amounting to Rp331,278 and Rp290,647, respectively.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
173
50. EMPLOYEE BENEFITS continued Pension Plan
continued
b. Four defined benefit pension funds, Dana Pensiun Pemberi Kerja Program Pensiun Manfaat Pasti DPPK-PPMP which were derived from the respective pension plans of the ex-legacy Merged
Banks, namely Dana Pensiun Bank Mandiri Satu or DPBMS BBD, DPBMD BDN, DPBMT Bank Exim and DPBME Bapindo. Participants of defined benefit pension plans are come from
the legacy banks with three years working periods or more at the time of the merger consisting of active employees of the bank, former employees employees who stopped working and did not
transfer his rights to another pension fund and retirees.
The regulations of the respective pension plans were approved by the Minister of Finance of the Republic of Indonesia’s through its decision letters No. KEP-394KM.0171999, No. KEP-
395KM.0171999, No. KEP-396KM.0171999
and No. KEP-397KM.0171999
all dated
November 15, 1999. Based on the approval from shareholders No. S-923M-MBU2003 dated March 6, 2003, Bank Mandiri has adjusted pension benefits for each Pension Fund. Such approval
has been incorporated in each of the Pension Fund’s Regulations Peraturan Dana Pensiun PDP which have been approved by the Minister of Finance of the Republic of Indonesia based
on its decision letters No. KEP115KM.62003 for PDP DPBMS, No. KEP116KM.62003 for PDP DPBMD, No. KEP117KM.62003 for PDP DPBMT, and No. KEP118KM.62003 for DPBME, all
dated March 31, 2003.
Based on the decision of the General Meeting of Shareholders dated May 28, 2007, Bank Mandiri increased the pension benefit from each of the Pension Plans. The decision was stated in each
Pension Plan Regulation and has been approved by the Minister of Finance of the Republic of Indonesia with decision letter No. KEP-144KM.102007 DPBMS; No. KEP-145KM.102007
DPBMD; No. KEP-146KM.102007 DPBMT and No. KEP-147KM.102007 DPBME, all dated July 20, 2007.
Based on the approval of the General Meeting of Shareholders AGM on May 17, 2010, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension
benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-441KM.102010 dated August 10, 2010 DPBMS;
No. KEP-442KM.102010 dated August 10, 2010 DPBMD; No. KEP-443KM.102010 dated August 10, 2010 DPBMT and No. KEP-444KM.102010 dated August 10, 2010 DPBME.
Based on the approval of the General Meeting of Shareholders AGM on May 23, 2011, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension
benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-588KM.102011 dated July 20, 2011 DPBMS;
No. KEP-589KM.102011 dated July 20, 2011 DPBMD; No. KEP-590KM.102011 dated July 20, 2011 DPBMT and No. KEP-591KM.102011 dated July 20, 2011 DPBME.
Based on the approval of the General Meeting of Shareholders AGM on April 2, 2013, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension
benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-349NB.12013 dated June 14, 2013 DPBMS;
No. KEP-350NB.12013 dated June 14, 2013 DPBMD; No. KEP-351NB.12013 dated June 14, 2013 DPBMT and No. KEP-352NB.12013 dated June 14, 2013 DPBME.
The AGM also decided granting of another benefits as well as the delegation of authority to the Board to decide on the increase in pension benefits and other benefits to the extent consistent with
applicable regulations, ie after the increase in pension benefits or the provision of other benefits Adequacy Ration Fund, DPBMS, DPBMD, DPBMT and DPBME minimum of 115.
Based on the approval of the Board of Commissioner Meeting on July 2, 2014, Bank Mandiri gave other benefits to each pension fund. Decision to give this other benefits was set forth in the
respective Regulation of Pension Fund and has been approved by the Minister of Finance Decree No. KEP-1773NB.12014 dated July 17, 2014 DPBMS; No. KEP-1774NB.12014 dated
