ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 88

28. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES

a. Commitment and contingent transactions in the normal course of Bank Mandiri activities that have credit risk are as follows: June 30, 2004 June 30, 2003 April 30, 2003 Rupiah: Outstanding irrevocable letters of credit Note 48 475,207 512,749 393,314 B ank guarantees issued Notes 48 and 50 2,824,824 2,217,035 2,042,590 Standby letters of credit Notes 48 and 50 - 30,000 30,000 Others 17,647 - 963 3,317,678 2,759,784 2,466,867 Foreign currency: Outstanding irrevocable letters of credit Note 48 5,660,691 4,765,410 4,849,354 B ank guarantees issued Notes 48 and 50 3,639,156 2,483,668 2,647,886 Standby letters of credit Notes 48 and 50 2,924,598 2,244,733 2,334,538 Others 1,847 - - 12,226,292 9,493,811 9,831,778 15,543,970 12,253,595 12,298,645 b. By Collectibility: June 30, 2004 June 30, 2003 April 30, 2003 Current 14,985,176 10,386,850 11,003,957 Special mention 551,725 1,769,723 1,262,938 Sub-standard 5,886 34,113 - Doubtful - 32,309 1,150 Loss 1,183 30,600 30,600 Total 15,543,970 12,253,595 12,298,645 Le ss: Allowance for possible losses 612,542 1,550,434 1,488,315 Net commitments and contingencies 14,931,428 10,703,161 10,810,330 c. Movements of estimated losses on commitments and contingencies: Six-month Six-month Two-month Four-month Period ended Period ended Period ended Period ended June 30, 2004 June 30, 2003 June 30, 2003 April 30, 2003 Balance at beginning of period 572,267 1,211,211 1,488,315 1,211,211 Reversaladdition of provision during the period 14,274 352,096 146,779 205,317 Others 54,549 12,873 84,660 71,787 Balance at end of period 612,542 1,550,434 1,550,434 1,488,315 includes foreign currency translation effect. The minimum estimated losses on commitments and contingencies, under the guidelines prescribed by Bank Indonesia, as of June 30, 2004 and 2003, and April 30, 2003 were Rp379,759, Rp1,243,527 and Rp1,253,383, respectively. Management believes that the estimated losses on commitments and contingencies is adequate. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 89

29. TAXATION a. Taxes payable