Determining fair values of financial instruments

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 76

4. CURRENT ACCOUNTS WITH BANK INDONESIA continued December 31, December 31,

2016 2015 Rupiah - Primary Minimum Statutory Reserve 6.50 7.50 - Secondary Minimum Statutory Reserve 4.00 4.00 Foreign Currencies 8.00 8.00 Primary Minimum Statutory Reserve is a minimum reserve that should be maintained by the Bank in the form of Current Accounts with Bank Indonesia. Secondary Minimum Statutory Reserve is the minimum reserves that should be maintained by the Bank, comprises of Certificates of Bank Indonesia SBI, Certificate of Bank Indonesia Deposit SDBI, Treasury Bills andor Excess Reserve, which is determined by Bank Indonesia. Minimum Statutory Reserve on Loan to Funding Ratio LFR is the Minimum Statutory Reserve that should be maintained by the Bank in the form of Current Account with Bank Indonesia for a certain percentage of third party fund calculated based on the difference between the Bank’s LFR and the targeted LFR. GWM LFR is imposed if the Banks LFR is below the minimum of LFR targeted by Bank Indonesia 80 December 31, 2015: 78 and if the Banks LFR is above the maximum of LFR targeted by Bank Indonesia 92 given that the Capital Adequacy Ratio is below BI requirement of 14. LFR is a ratio of loan to third parties issued by the bank in Rupiah and foreign currency, not include loan to other banks, towards: a. Third Party Funds that includes current accounts, saving accounts, and time deposits in Rupiah and foreign currencies, excluding interbank funds; and b. Marketable securities in Rupiah and foreign currencies that meet certain requirements issued by the Bank for obtaining capital. Based on Bank Indonesia BI Regulation No. 1711PBI2015 dated June 25, 2015, the citation of Loan to Deposit Ratio LDR on Bank Indonesia BI Regulation No.1515PBI2013 has been changed into Loan to Funding Ratio LFR since August 3, 2015 and calculation of Minimum Statutory Reserve of LFR has become effective since August 3, 2015. Excess Reserve is an excess Bank’s balance of the Rupiah Account of Primary Minimum Statutory Reserve and Minimum Statutory Reserve on Loan to Funding Ratio that should be maintained in Bank Indonesia. As of December 31, 2016 and 2015 the Bank has fulfilled all the requirements mentioned above. The ratio of the Minimum Statutory Reserve requirement Bank Mandiri only for its Rupiah and foreign currencies accounts as of December 31, 2016 and 2015, are as follows: December 31, December 31, 2016 2015 Rupiah - Primary Minimum Statutory Reserve 6.50 7.50 - Secondary Minimum Statutory Reserve 9.84 14.35 - Minimum Statutory Reserve on Loan to Funding Ratio - - Foreign currencies 8.12 8.50 Bank Mandiri’s LFR as of December 31, 2016 is between 78.00-92.00 December 31, 2015 is between 78-92, therefore no GWM LFR was imposed. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 77

5. CURRENT ACCOUNTS WITH OTHER BANKS

a. By currency, related parties and third parties: December 31, December 31, 2016 2015 Rupiah Related parties Note 55 25,690 23,070 Third parties 482,680 448,180 Total 508,370 471,250 Foreign currencies Related parties Note 55 171 1,445 Third parties 9,854,673 9,682,931 Total Note 61B.v 9,854,844 9,684,376 Total 10,363,214 10,155,626 Less: Allowance for impairment losses 3,049 3,412 Net 10,360,165 10,152,214 Included in foreign currencies are mainly Great Britain Pound Sterling, European Euro, United States Dollar, Japanese Yen, Australian Dollar, Hong Kong Dollar, Chinese Yuan, and Singapore Dollar. b. By Bank Indonesia’s collectibility: December 31, December 31, 2016 2015 Rupiah - Current 508,370 471,250 Foreign currencies Current 9,851,849 9,681,195 Loss 2,995 3,181 Total Note 61B.v 9,854,844 9,684,376 10,363,214 10,155,626 Less: Allowance for impairment losses 3,049 3,412 10,360,165 10,152,214 c. The average interest rate yield per annum: December 31, December 31, 2016 2015 Rupiah 0.01 0.01 Foreign currencies 0.07 0.04