PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
104
40. GENERAL AND ADMINISTRATIVE EXPENSES
2008 2007
Depreciation and amortization of premises and equipment Note 14 573,105
583,877 Promotions
514,760 419,835
Rent 510,997
466,808 Professional fees
428,124 338,147
Communications 379,456
376,893 Repairs and maintenance
329,311 297,788
Electricity, water and gas 226,337
208,762 Office supplies
197,412 179,641
Transportations 114,108
96,192 Research and development
5,066 6,056
Others 583,008
447,784 3,861,684
3,421,783
Professional fees included audit services amounting to Rp10,403 and Rp14,817 for the years ended December 31, 2008 and 2007, respectively.
41. SALARIES AND EMPLOYEE BENEFITS
2008 2007
Salaries, wages, pension and tax allowances 2,686,225
2,160,692 Holidays THR, leave and related entitlements
438,734 378,625
Provision for post-employment benefit expenses and free of service period 312,259
300,177 Employee benefits in kind
284,341 163,574
Training and development 241,353
250,606 Compensation expense on stock options Note 32
- 87,034
Provision of tantiem 50,000
50,000 Bonuses and others
550,856 638,251
4,563,768 4,028,959
Total gross salaries, allowances and bonuses of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp148,101 and Rp84,240 for the years ended December 31, 2008 and
2007, respectively as follows:
2008 Number of
Members Officers
Salaries Allowances
Bonuses Total
Board of Commissioners 8
5,940 4,307
9,301 19,548
Board of Directors 12
26,842 16,284
36,229 79,355
Audit Committee 2
755 277
215 1,247
Executive Vice Presidents and Senior Vice Presidents
48 25,955
10,864 11,132
47,951
70 59,492
31,732 56,877
148,101
Includes Richard Claproth from period January until May 2008, Yap Tjay Soen from period January until March 2008 and Mahmuddin Yasin since June 2008.
Includes Omar S. Anwar from period January until May 2008 and Ogi Prastomiyono since June 2008.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
105
41. SALARIES AND EMPLOYEE BENEFITS continued 2007
Number of Members
Officers Salaries
Allowances Bonuses
Total
Board of Commissioners 7
5,257 3,605
4,515 13,377 Board of Directors
11 21,343
10,429 - 31,772 Audit committee
2 755
145 185 1,085
Executive Vice Presidents and Senior Vice President
47 18,668
10,668 8,670 38,006
67 46,023
24,847 13,370 84,240
42. PENSION AND SEVERANCE
Under the Bank’s policy, in addition to salaries, employees are entitled to allowances and benefits, such as holiday allowance THR, pre-retirement MBT 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 based on the prevailing Labor
Law.
Pension Plan Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows:
a. One defined contribution pension plan, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti DPPK-PPIP or the Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM established on
August 1, 1999. The DPBM’s regulations were legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14, 1999 and was included
in the Addendum to 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 included in the Addendum to 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 and 5 of the Base Pension Plan Employee Income, respectively.
The President Director 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. As a consequence,
transactions between the DPBM and Bank Mandiri are considered related party transactions. The DPBM invests a part of its financial resources in Bank Mandiri time deposits, which balances as of
December 31, 2008 and 2007 were Rp36,500 and Rp10,000, respectively. The interest rates on these time deposits are at arms-length.
The Bank paid pension contributions totaling Rp154,830 and Rp129,470, respectively, for the years ended December 31, 2008 and 2007, respectively.
