ADDITIONAL EQUITY INVESTMENT IN PT BANK SINAR HARAPAN BALI Law No. 21 of 2011 on the Financial Services Authority

Annual Report 2013 PT Bank Mandiri Persero Tbk.

4. ADDITIONAL EQUITY INVESTMENT IN PT BANK SINAR HARAPAN BALI

On 28 May 2013, Bank Mandiri has made an additional investment in PT Bank Sinar Harapan Bali BSHB amounted to 11.77 of the total issued and fully paid up shares, or Rp32,377,072,750.00, by purchasing shares owned by a number of BSHB’s minority shareholders. The total number of shares purchased was 23,546,962 Names of Parties to Transaction Bank Mandiri was the buyer and 12 BSHB shareholders were the sellers, namely: Putu Arniyati, Made Lely N., I Ketut Patra, I Ketut Molog, I Wayan Supatra N., Made Cangker S., Komang Sudirtha, Ni Made Kerti, I B Putui Arsana, Ida Ayu Rama Dewi, I B Ketut Mudana, and Wayan D. Arjana. Bank Indonesia Approval The increase in Bank Mandiri’s investment in BSHB was approved by Bank Indonesia as evidenced by Bank Indonesia Letter No. 1533DPB1PB1-1 dated 6 May 2013. With this approval, Bank Mandiri’s ownership of BSHB increased by 11.77 to 93.23. Fairness of Transaction An independent appraisal was conducted on the Bank’s purchase of 18.54 of the shares of BSHB, which found that the fair value of the shares was Rp48,267,000,000.00 or Rp1,302 per BSHB share as of 30 June 2012. The Indendent Appraiser was KJPP Toto Suharto Partners, Appraiser License No.. PB-1.08.00060, MAPPI No. 93-S-00361, which is listed as a capital markets supporting professional irm by Bapepam-LK under No. 01PM STTD-PAB2006. Material information on investments, expansion, divestments, mergers, acquisitions, material conlict of interest transactions and transactions with ailiates Annual Report 2013 PT Bank Mandiri Persero Tbk. legislative and regulatory changes The following legislative and regulatory changes have had an efect on Bank Mandiri’s business:

1. Law No. 21 of 2011 on the Financial Services Authority

Pursuant to Article 552 and Article 7 of Law No. 21 of 2011 on the Financial Services Authority OJK Law, as of 31 December 2013, regulatory and supervisory functions, duties, and powers over inancial services in the banking sector microprudential were transferred from Bank Indonesia to the Financial Services Authority OJK. The direct impact of this transition is that the Bank will be required to coordinate with 2 two regulators, namely BI and the OJK. Bank Mandiri is also required to continue complying with all regulations issued by BI to the extent that they are not amended, modiied or revoked, or declared void by the OJK or BI. These regulations include those on: a. adjustment in shareholdings on the part of shareholders whose holdings exceed the maximum limit over 5 ive years counting from 1 January 2014. b. adjustments to the commercial operations where such operations are not in accordance with BUKU. c. the obligation of branch oices of banks that are domiciled overseas KCBA to place operational funds in inancial assets by fulilling certain requirement, where such placements shall amount to 8 of the relevant bank’s total liabilities every month, and at least Rp 1 trillion, up to December 2017.

2. Bank Indonesia Regulation Number 1517PBI2013 on Hedging Swap Transactions with Bank