PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
135
57. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
e. Additional Prudential Supervision Requirements from Bank Indonesia continued Based on letter No. 587DPwB2PwB21 dated December 3, 2003, Bank Indonesia also required Bank
Mandiri to achieve a maximum ratio of corporate credit to total credit of 50 by 2004. With regards to Bank Mandiri’s corporate banking portfolio that has been guarded under 50 from total
loans and referring to Bank Mandiri letter to Bank Indonesia No. COO2872005 dated July 12, 2005, Bank Mandiri sent another letter to Bank Indonesia No. DIRUT0382006 dated March 6, 2006 which
states the cancellation of ratio requirement as stated in the Bank Indonesia letter No.55DGSDPwB2 dated August 29, 2003 and No. 58DGSDPwB2 dated November 17, 2003.
On April 3, 2006, Bank Mandiri and Bank Indonesia had a meeting to discuss the Bank Business Plan for 2006-2008 period. In the related meeting, it was also discussed regarding the letter from Bank Indonesia
on the pillar ratio’s change that was not received by the Bank. With regards to the meeting, Bank Mandiri has sent a letter to Bank Indonesia No. DIRUT0542006 dated April 3, 2006 regarding Study on Bank
Indonesia’s Pillar Rasio, where Bank Mandiri stated: 1. Decrease the SR ratio limit from
≥ 12 to around 5-7 and not as a requirement in corporate credit disbursement.
2. CETA and IETA ratio should not be a requirement in corporate credit disbursement because the ratios are not directly related with the achievement of the corporate credit.
As of June 30, 2006, the various ratios under the additional prudential supervision requirements were as follows:
Bank Indonesia’s
Ratios Actual
Minimum Requirement
a. Secondary reserve
9.61 12
b. Cost of funds to total assets ratio 6.55
7.5 c. Core earnings to total assets ratio
2.15 1.5
d. Corporate credit to total credit ratio 45.14 50
f. Legal Matters
Bank Mandiri received a request from a customer to liquidate its current account and deposit since the Directorate General of Taxes has taken off the blockage and confiscation. Due to several
conditions, the request cannot be executed directly since Bank Mandiri has to clarify it first to IBRA. In the process, Bank Mandiri received admonition from the customer directly via the High Court to
disburse as soon as possible the above mentioned accounts. Receiving the admonition, Bank Mandiri took steps by proposing a request to consign the funds to the High Court.
When transferring the customer funds to the High Court account, Bank Mandiri received an order from the Minister of State Owned Enterprises as the Deputy of Clearance Team of IBRA to freeze
the fund transfer. Bank Mandiri also received a letter from the Minister of Finance as the Chief of Clearance Team of IBRA confirming that Bank Mandiri not to execute the disbursement of that
customer funds.
Minister of Finance as the Chief of Clearance Team of IBRA in his letter dated November 15, 2005 instructed the Coordinator of Execution Clearance Team of IBRA to ask Bank Mandiri to set off the
customer’s demand deposit and time deposit, and follow up the letter of the Minister of Finance,
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
136
57. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
