SALARIES AND EMPLOYEE BENEFITS Continued PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS

PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 111 -

42. PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS Continued

As of December 31, 2001, the calculation of net asset value and pension liabilities is based on the actuarial report of PT Jasa Aktuaria Pensiun dan Asuransi. Based on the audited financial statements of the respective pension plans DPBM as of December 31, 2001, the pension liabilities and net assets value as of December 31, 2001 are as follows: DPBM I DPBM II DPBM III DPBM IV Pension liabilities 863,722 853,009 487,678 154,408 Net assets value 1,054,947 1,036,978 550,466 318,241 Surplus 191,225 183,969 62,788 163,833 One defined contribution pension program Program Pensiun Iuran Pasti is for permanent employees of PT Bank Syariah Mandiri “BSM”, a subsidiary. The members are employees under the age of 56 years. The program, which commenced in August 2000, is managed by Principal Indonesia Financial Institution Pension Fund “Dana Pensiun Lembaga Keuangan Principal Indonesia”, abbreviated as DPLK-PI. The employees’ pension contribution is 5, whilst the employer contributes 10 of the monthly employees’ Gross Pension Salary PhDP. The total cash contributions received by DPLK-PI amounted to Rp870 and Rp1,368 as of December 31, 2002 and 2001, respectively. Decree of the Minister of Manpower No. Kep-150Men2000 As of December 31, 2002, the Bank has engaged an actuarial company, PT Dayamandiri Dharmakonsilindo, to calculate its liability for the provision of employee service entitlements. The assumptions used by the actuary were as follows: a. The calculation is based on the Decree of the Minister of Manpower No. Kep-150Men2000 dated June 20, 2000 regarding The Settlement of Labor Dismissal and the Stipulation of Severance Pay, Gratuity and Compensation in Companies. b. Actuarial date is December 31, 2002. c. Actuarial method is projected unit credit method. d. Employee age is calculated as of December 31, 2002. e. Employee working period is calculated from the employment date up to the actuarial date. f. Normal pension age is 56 years. g. Interest rate is 11 per annum. Based on the actuarial report, Bank Mandiri recognized a provision amounting to Rp674,062 as of December 31, 2002. The calculation of the provisions for employee service entitlements as of December 31, 2001 is based on the actuarial report of PT Jasa Aktuaria Pensiun dan Asuransi. In its calculation, the actuary used generally similar assumptions of the previous actuary, except that the interest rate for 2001 was assumed at 12 per annum. Based on the actuarial report, Bank Mandiri recognized a provision amounting to Rp793,631 as of December 31, 2001. PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 112 -

43. OTHER OPERATING INCOME - OTHERS

2002 2001 Accretion in the realizable value of the security and effective reduction of principal related to SUFRN s Notes 16, 30 and 31 281,691 327,313 Administration fee 45,075 44,492 Others 481,477 348,604 808,243 720,409

44. OTHER OPERATING EXPENSES - OTHERS

2002 2001 Insurance premiums on customer guarantees 632,853 515,461 Provision for legal expenses 519,944 8,709 Others 181,366 218,661 1,334,163 742,831

45. NON-OPERATING INCOMEEXPENSES - NET

2002 2001 Reversal of over-provision for merger costs, investments and employee benefits 1,263,605 1,942,404 Gainloss on sale of premises and equipment 929 1,282 Penalties 52,893 97,733 Others - net 25,908 359,035 1,237,549 2,204,988 Reversals of the provision related to merger costs were made in 2002 and 2001 as a result of Bank Mandiri’s periodic evaluation of the estimated remaining costs related to the merger. There is no outstanding provision for merger cost as of December 31, 2002.