TAXATION a. Taxes payable

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009, 2008 AND 2007 Expressed in millions of Rupiah, unless otherwise stated Appendix 590 28. TAXATION continued

e. Deferred tax assets

Deferred tax arises from temporary differences between book value based on commercial and tax calculation are as follows: 2009 2008 2007 Bank Mandiri Deferred tax assets: Loans write-off 2,894,873 3,605,776 2,276,445 Allowance for possible on loan losses 1,239,895 777,476 429,374 Allowance for personnel expenses 769,586 665,157 599,122 Allowance for possible losses on earning assets other than loans 609,493 872,525 659,274 Estimated losses on commitments and contingencies 81,641 87,889 140,394 Allowance for other assets 100,000 - - Allowance for possible losses arising from legal cases- net of provision for deferred tax asset of Rp24,253 and Rp38,926 for the years ended 31 December 2008 and 2007 105,056 25,073 22,614 Unrealised losses for marketable securities and Government Bonds available for sale 86,947 66,233 1,521 Allowance for abandoned properties 47,095 10,641 13,833 Allowance for repossessed assets 29,205 6,675 7,150 Accumulated losses arising from difference in net realisable value of abandoned properties 3,306 5,963 8,774 Accumulated losses arising from difference in net realisable value of repossessed assets 2,541 2,926 3,135 Deferred tax assets 5,969,638 6,126,334 4,161,636 Deferred tax liabilities: Net book value of fixed assets 25,697 44,464 81,161 Mark to market of marketable securities 3,899 - 7 Net deferred tax assets - Bank Mandiri only 5,940,042 6,081,870 4,080,468 Net deferred tax assets - Subsidiaries 74,043 42,049 15,979 Total consolidated deferred tax assets - net 6,0 14,085 6,123,919 4,096,447 Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at balance sheet dates. Management believes that it is possible that future taxable income will be available against the temporary difference, which results in deferred tax assets, can be utilised.

29. OTHER LIABILITIES

2009 2008 2007 Rupiah: Accrued bonus, employee incentives, leave and yearly allowance THR 1,066,838 775,927 647,930 Provision for post employment benefits Note 43 1,044,505 925,002 784,938 Provision for free of service period facilities Note 43 973,347 794,159 655,489 Payable to customer 516,897 483,824 557,822 Allowance for possible losses on legal cases Note 57c 494,200 157,560 204,611 Guarantee deposits 493,899 466,130 527,347 Deferred income 377,442 368,933 351,257 Others 2,566,160 1,897,308 2,681,784 Total Rupiah 7,5 33,288 5,868,843 6,411,178 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2009, 2008 AND 2007 Expressed in millions of Rupiah, unless otherwise stated Appendix 591 29. OTHER LIABILITIES continued 2009 2008 2007 Foreign currencies: Guarantee deposits 537,120 440,451 565,340 Deferred income 148,856 198,791 199,043 Allowance for possible losses on legal cases Note 57c 20,166 18,756 1,131 Obligation under capital lease 1,008 2,248 - Others 892,148 1,470,279 2,447,339 Total foreign currencies 1,599,29 8 2,130,525 3,212,853 9,1 32,586 7,999,368 9,624,031 As at 31 December 2009, others mainly consist of accruals in relation to Bank’s operational cost amounted to Rp702,402 2008: Rp458,480 and 2007: Rp428,770 and payment related to ATM and credit card transaction amounted to Rp288,998 2008: Rp595,089 and 2007: Rp966,750. Movements of allowance for possible losses on legal cases for the years ended 31 December 2009, 2008 and 2007 were as follows: 2009 2008 2007 Balance at beginning of year 176,316 205,742 316,227 Allowancereversal during the year Note 38 340,707 31,133 106,619 Others 2,657 1,707 3,866 Balance at end of year 514,366 176,316 205,742 Includes effect of foreign currency translation. Management believes that the allowance for possible losses on legal cases is adequate.

30. SUBORDINATED LOANS

By Type and Currency: 2009 2008 2007 Rupiah: Two-Step Loans TSL a Nordic Investment Bank NIB 159,784 181,089 213,724 b ASEAN Japan Development Fund-Overseas Economic Cooperation Fund AJDF-OECF 45,504 58,505 71,506 c ASEAN Japan Development Fund-Export-Import Bank of Japan AJDF-EBJ - 562 1,687 d Asian Development Bank ADB - - 688 205,288 240,156 287,605 Bank Indonesia 2,319,559 2,366,859 2,423,859 Subordinated Bond Rupiah Bank Mandiri I 3,500,000 - - Total Rupiah 6,024,847 2,607,015 2,711,464 Foreign currencies: d Two-Step Loans - Asian Development Bank ADB 192,221 229,635 203,864 e Two-Step Loans - Kreditanstalt fur Wiederaufbau, Frankfurt KfW - - 19,947 Total Foreign currencies 192,221 229,635 223,811 6,217,068 2,836,650 2,935,275