Fixed Assets and Leased Assets continued

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 539 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

v. Deposits from Customers

Deposits from customers are the funds placed by customers excluding banks with the Bank based on a fund deposit agreements. Included in this account are demand deposits, saving deposits, time deposits and other similar deposits. Demand deposits represent deposits of customers that may be used as instruments of payment, and which may be withdrawn at any time by cheque, automated teller machine card ATM or other orders of payment or transfers. Saving deposits represent deposits of customers that may only be withdrawn over the counter and via ATMs or funds transfers by SMS Banking, Phone Banking and Internet Banking when certain agreed conditions are met, but which may not be withdrawn by cheque or other equivalent instruments. Time deposits represent customers deposits that may only be withdrawn after a certain time based on the agreement between the depositor and the Bank. These are stated at amortised cost in the certificates between the Bank and the holders of time deposits. Included in demand deposits are wadiah demand and saving deposits. Wadiah demand deposits can be used as payment instruments and can be withdrawn any time using cheque and bilyet giro. Wadiah demand and saving deposits earn bonus based on Bank’s policy. Wadiah saving and demand deposits are stated at the Bank’s liability amount. Deposits from customers are classified as financial liabilities at amortised cost. Incremental costs directly attributable to acquistion of deposits from customers are included in the amount of deposits and amortised over the expected life of the deposits. Refer to Note 2b for the accounting policy for financial liabilities at amortised cost. Syirkah Temporer Fund Syirkah temporer fund is the fund received by Subsidiary PT Bank Syariah Mandiri where the Subsidiary has the right to manage the fund in accordance with the Subsidiary’s policy unrestricted investment or policy from the investors restricted investment, and the profit distribution based on agreement of both parties. Syirkah temporer fund is not classified as liability as the Subsidiary is not oblige, when loss incurred, to return the original fund received from the investors, except due to the default or negligent of the Subsidiary. In addition, the Syirkah temporer fund is not classified as an equity as it has a maturity period and the investors do not have the equal ownership with shareholders, such as voting right and the right on income distribution from current asset and other non investment accounts. The investors of Syirkah temporer fund received return in accordance with the agreement and bear the loss incurred proportionately. The distribution of return from Syirkah temporer fund can be in form of profit sharing or income sharing. Prior to 1 January 2010 Current and saving accounts are stated at the payable amount. Included in the saving accounts is Wadiah saving deposits. Time deposits are stated at their nominal value. Certificates of deposits are stated at their nominal value less unamortised interest.