GENERAL AND ADMINISTRATIVE EXPENSES

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 103

42. PENSION AND SEVERANCE continued

Pension Plan continued b. Four employer defined benefit pension plans, Dana Pensiun Pemberi Kerja Program Pensiun Manfaat Pasti DPPK-PPMP are derived from the respective pension plans of the Merged Banks, namely Dana Pensiun Bank Mandiri Satu or DPBM I BBD, DPBM II BDN, DPBM III Bank Exim and DPBM IV Bapindo. The regulations of the respective pension plans were legalized by the Minister of Finance of the Republic of Indonesia in his decision letters No. KEP-394KM.0171999, No. KEP- 395KM.0171999, No. KEP-396KM.0171999 and No. KEP-397KM.0171999 dated November 15, 1999. Based on the approval of shareholders No. S-923M-MBU2003 dated March 6, 2003, Bank Mandiri has adjusted pension benefits for each Pension Fund. Such approval has been incorporated in each of the Pension Fund’s Regulations Peraturan Dana Pensiun PDP which have been approved by the Minister of Finance of the Republic of Indonesia based on his decision letters No. KEP115KM.62003 for PDP DPBM I, No. KEP116KM.62003 for PDP DPBM II, No. KEP117KM.62003 for PDP DPBM III, and No. KEP118KM.62003 for PDP DPBM IV, all dated March 31, 2003. The members of the defined benefit pension plans originated from the legacy banks who have rendered three or more service years at the time of merger and are comprised of active employees of the Bank, deferred members those whose employment has been terminated but for whom the beneficial rights were not transferred to other pension plans, and pensioners. Based on the decision of General Shareholders meeting dated May 28, 2007, Bank Mandiri increased the pension benefit from each Pension Plans. The decision was stated in each Pension Plan Regulation and has been approved by the Ministry of Finance with decision letter No. KEP-144KM.102007 DPBM I; No.KEP-145KM.102007 DPBM II; No. KEP-146KM.102007 DPBM III and No. KEP- 147KM.102007 DPBM IV all dated July 20, 2007. As of December 31, 2007 and 2006, the calculation of the fair value of plan assets and projected benefit obligation is based on the independent actuarial report of PT Dayamandiri Dharmakonsilindo dated January 31, 2008 and February 23, 2007 for the years ended December 31, 2007 and 2006, respectively. In its calculation, the actuary used the following assumptions: DPBM I DPBM II DPBM III DPBM IV Discount rate 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 Expected rate of return on plan assets 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 9.5 per annum 2006: 9.5 Working period used As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 Pensionable salary used As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary Expected rates of pensionable salary increase Nil Nil Nil Nil Mortality rate table CSO-1958 CSO-1958 CSO-1958 CSO-1958