Capital Charge Calculation to Cover Operational Risk

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 5174 57. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued

e. Settlement Mandatory Convertible Bond MCB PT Garuda Indonesia Persero continued

On 10 November 2009, Bank Mandiri received a letter from Bank Indonesia which stated that Bank Indonesia has no objection on the proposed settlement plan of Garuda’s MCB by converting the MCB into Bank Mandiri’s temporary investment in Garuda. On 30 December 2009, Bank Mandiri and Garuda signed the MCB Settlement Agreement based on Notarial Deed No. 272 dated 30 December 2009 in front of Notary Aulia Taufani S.H., as the substitute of Notary Sutjipto S.H. On the signing date, Garuda made cash payments of 5.00 of MCB principal, amounting to Rp50,940 and converted the remaining MCB balance of 95.00 of MCB principal into Bank Mandiri’s investment in Garuda’s share, amounting to Rp967,869 or equivalent to 967,869 shares equivalent to 10.60 ownership. In accordance with Letter of Minister of State Owned Enterprises’, the investment in Garuda’s shares can be divested in conjunction with Garuda’s planned Initial Public Offering IPO which is expected to be done in 2011. Based on regulation of Capital Market Supervisory Board and Financial Institution No. IX.A.6, Appendix of the Decree of the Chairman of Capital Market and Financial Institution Supervisory Board No. 06PM2001 regarding Restriction on Shares Issued Prior to Public Offering, the divestment of Garuda’s shares by Bank Mandiri can only be done if the Registration Statement of IPO of Garuda is submitted more than 6 six months after the date of conversion of MCB into temporary investment. In December 2010, Garuda has submitted its Initial Public Offering IPO registration to the Capital Market Supervisory Board and Financial Institution Bapepam-LK and it has became effective in February 2011. Through this IPO, Garuda offered 9.3 billion shares or 36.48 of the total issued shares, which consists of 7.4 billion new shares and 1.9 billion Bank Mandiri’s shares in Garuda after stock split. See Note 60b Subsequent Events for Completion of Garuda’s IPO. As at 31 December 2010 and 2009, this temporary investment in Garuda’s shares is not recorded in the Bank’s consolidated balance sheet instead it is recorded as an extra-comtable account Notes 11B.m and 60.

58. GOVERNMENT GUARANTEE FOR THE OBLIGATIONS OF LOCALLY INCORPORATED BANKS

Based on the Decree of the Minister of Finance of the Republic of Indonesia No. 26KMK.0171998 dated 28 January 1998, as amended by Decree of the Minister of Finance of the Republic of Indonesia No. 179KMK.0172000 dated 26 May 2000, the Government of the Republic of Indonesia guarantees certain obligations of locally incorporated banks including demand deposits, saving deposits, time deposits and deposit on call, bonds, securities, interbank loans, fund borrowings, foreign currency swap transactions and other contingent liabilities such as bank guarantees, standby letters of credit and other liabilities, excluding subordinated loans and obligations to directors, commissioners and parties that have a special relationship. In accordance with the Joint Decree of the Chairman of the Board of Directors of Bank Indonesia and IBRA No. 3246KEPDIR and No. 181BPPN0599 dated 14 May 1999, the term of these guarantees have been extended automatically, unless IBRA issued a notification for not to extend the term of such guarantee at least 6 six months time before the expiry of that period. In 2001, the Joint Decree of the Chairman of the Board of Directors of Bank Indonesia and IBRA canceled by Bank Indonesia Regulation No. 37PBI2001 and IBRA Chairman Decision No. 1035BPPN0401. In 2001, the Chairman of IBRA issued Decree No. SK-1036BPPN0401 that regulated specific guidelines for the Government of the Republic of Indonesia guarantees on the obligations of locally incorporated banks.