NET INVESTMENT FINANCE LEASES

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 119

15. ACCEPTANCES RECEIVABLE continued

d. Movements of allowance for impairment losses on acceptance receivables: December 31, December 31, 2016 2015 Beginning balance 107,030 106,927 Allowancereversal during the year Note 44 130,909 16,822 Others 3,102 16,925 Ending balance 241,041 107,030 Includes effect of foreign currency translation. Management believes that the allowance for impairment losses on acceptance receivables is adequate. e. Information in respect of classification of “non-impaired” and “impaired” is disclosed in Note 61A.

16. INVESTMENT IN SHARES

a. The detail of investment in shares are as follows: December 31, December 31, 2016 2015 Investment in shares 255,409 58,644 Less: Allowance for impairment losses 10,273 10,250 245,136 48,394 The detail of investment in shares as of December 31, 2016 are as follows: Investee Nature Percentage of Carrying Companies of Business Ownership Amount Fair value method: W estech Electronics Trading and retail 5.50 165 Cost and equity method: PT Mitra Transaksi Indonesia Acquiring Aggregator 51.00 196,738 PT Istaka Karya Persero Construction service 9.30 50,331 Others each less than Rp3,000 Various 3.99 - 34.00 8,175 255,409 Less: Allowance for impairment losses 10,273 Net 245,136 Not consolidated because they do not have any control over that entity. The detail of investment in shares as of December 31, 2015 are as follows: Investee Nature Percentage of Carrying Companies of Business Ownership Amount Fair value method: W estech Electronics Trading and retail 5.50 138 Cost and equity method: PT Istaka Karya Persero Construction service 9.30 50,331 Others each less than Rp3,000 Various 3.99 - 34.00 8,175 58,644 Less: Allowance for impairment losses 10,250 Net 48,394 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 120

16. INVESTMENT IN SHARES continued

b. Investment in shares by Bank Indonesia’s collectibility: December 31, December 31, 2016 2015 Current 202,958 8,175 Substandard 50,331 50,331 Loss 2,120 138 255,409 58,644 Less: Allowance for impairment losses 10,273 10,250 Net 245,136 48,394 c. Movements of allowance for impairment losses on investment in shares: December 31, December 31, 2016 2015 Beginning balance 10,250 3,182 Allowance during the year Note 44 33 7,087 Others 10 19 Ending balance 10,273 10,250 Includes effect of foreign currency translation Management believes that the allowance for impairment losses on investment in shares is adequate. 17. PREPAID EXPENSES December 31, December 31, 2016 2015 Prepaid rent 1,519,688 1,299,001 Building maintenance 679,240 587,060 Others 552,153 413,791 2,751,081 2,299,852 Prepaid rent mostly consists of rentals on buildings which are used as the Group branch’s offices and official residence across Indonesia.