Financial instruments continued J.

These consolidated financial statements are originally issued in Bahasa. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 47

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

e. Foreign Currency Transactions and Balances continued

Transactions and balances in foreign currencies continued The exchange rates used against the Rupiah at the dates of the consolidated statement of financial position are as follows amounts in full Rupiah: 2015 2014 Great Britain Pound Sterling 1Rp 20,439.02 19,288.40 Euro 1Rp 15,056.67 15,053.35 United Stated Dollar 1Rp 13,785.00 12,385.00 Japanese Yen 100Rp 11,452.00 10,356.00 Other foreign currencies are not disclosed as above since it is considered not material in the translation of transaction in foreign currencies of the Bank and Subsidiaries.

f. Transactions with related parties

The Bank and Subsidiaries enter into transactions with parties which are defined as related parties in accordance with Statement of Financial Accounting Standards SFAS No. 7 regarding “Related Party Disclosures” and Regulation of OJK formerly Bapepam and LK No. KEP-347BL2012, dated June 25, 2012 regarding “Financial Statements Presentation and Disclosure of Issuers or Public Companies”, which are defined, among others, as: I. Entities under the control of the Bank and Subsidiaries; II. Associated companies; III. Investors with voting rights which gives them significant influence; IV. Entities controlled by investors under Note III above; V. Key employees and their family members; and VI. Entity that is controlled, jointly controlled or significantly influenced by Government, which is defined as the Minister of Finance or Provincial Government who has share ownership in the entity. All significant transactions with related parties have been disclosed in Note 55.

g. Cash and cash equivalents

Cash and cash equivalents consist of cash, current accounts with Bank Indonesia and current accounts with other banks and other short term highly liquid investments with original maturities of 3 three months or less.

h. Current accounts with Bank Indonesia and other banks

The minimum statutory reserve Current accounts with Bank Indonesia and Other Banks are classified as loans and receivables. Refer to Note 2c for the accounting policy of loans and receivables.