MANAGEMENT STOCK OPTION PLAN continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 100

36. PROVISION FOR POSSIBLE LOSSES ON EARNING ASSETS

2007 2006 Provisionreversal of allowance for possible losses on: Current accounts with other banks Note 4e 2,731 4,101 Placements with other banks Note 5f 36,337 51,542 Securities Note 6g 22,773 30,839 Other receivables - trade transactions Note 8d 5,527 215,583 Securities purchased with agreements to resell Note 9b 25,000 8,600 Derivative receivables Note 10 467 874 Loans Note 11B.j 2,247,854 4,158,551 Acceptances receivable Note 12d 96,805 202,701 Investments in shares of stock Note 13c 318 327 2,113,994 3,671,788 37. REVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES - OTHERS 2007 2006 Reversalprovision of allowance for: Possible losses on legal cases Note 28 106,619 154,427 Possible losses on fraud cases 107 51,018 Others assets Note 15 208,072 53,663 Others 1,783 22,837 313,015 128,945

38. GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERNMENT BONDS

2007 2006 Securities 15,129 8,318 Government Bonds 29,190 101,063 14,061 109,381 39. GAINS FROM SALE OF SECURITIES AND GOVERNMENT BONDS 2007 2006 Securities 43,504 94,286 Government Bonds 184,994 43,256 228,498 137,542 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 101

40. GENERAL AND ADMINISTRATIVE EXPENSES

2007 2006 Depreciation and amortization of premises and equipment Note 14 583,877 608,358 Rent 466,808 452,025 Promotions 419,835 406,826 Communications 364,257 342,519 Professional fees 338,147 281,925 Repairs and maintenance 297,788 312,698 Electricity, water and gas 208,762 191,234 Office supplies 179,641 159,897 Transportations 96,192 82,023 Research and development 6,056 7,114 Others 447,897 406,274 3,409,260 3,250,893 Professional fees included audit services amounting to Rp14,817 and Rp15,775 for the years ended December 31, 2007 and 2006, respectively.

41. SALARIES AND EMPLOYEE BENEFITS

2007 2006 Salaries, wages, pension and tax allowances 2,155,020 1,727,159 Holidays THR, leave and related entitlements 378,625 324,168 Provision for post-employment benefit expenses 300,177 303,691 Training and development 250,494 133,087 Employee benefits in kind 216,950 213,459 Compensation expense on stock options Note 32 87,034 130,670 Provision for tantiem 50,000 - Bonuses and others 643,923 185,268 4,082,223 3,017,502 Total gross salaries, allowances and bonuses of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp84,240 and Rp61,242 for the years ended December 31, 2007 and 2006, respectively, are as follows: 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 Presidents 47 18,668 10,668 8,670 38,006 67 46,023 24,847 13,370 84,240