SUBORDINATED LOANS continued LOAN CAPITAL

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 120

30. LOAN CAPITAL continued

If Bank Mandiri was required to redeem the BDN SUFRNs prior to the interest payment date falling in November 2005 and to make repayment in full then, pursuant to the terms of a Collateral Agreement dated November 26, 1990 between BDN, acting through its Cayman Islands Branch, Badaneg and STL Investment Panama S.A., Badaneg is, subject to the prior discharge by Badaneg of its obligations to STB Leasing Co., Ltd. and the investors under the Purchase Agreement, the Deferred Sale Agreement and other related agreements, obliged to transfer the Zero Coupon Bonds to the Bank for no consideration. The accreted value of the Zero Coupon Bonds is recognized by Bank Mandiri as an other asset Note 15 on the basis that Bank Mandiri has a right to the Zero Coupon Bonds and that under the terms of the Collateral Agreement, Bank Mandiri has an option, subject to the prior discharge by Badaneg of its obligations to STB Leasing Co., Ltd. and the investors under the Purchase Agreement, the Deferred Sale Agreement and other related agreements, to purchase the BDN SUFRNs for a total consideration of US3,000 full amount. As there is no legal right of offset until this option to purchase is exercised, Bank Mandiri has recognized the accreted value of the zero coupon bonds as an other asset instead of offsetting the asset against the aggregate nominal value of the BDN SUFRNs. The asset recognized by Bank Mandiri for the accreted value of Zero Coupon Bonds amounted to Rp989,516, Rp995,514 and Rp1,027,013 as of December 31, 2003, April 30, 2003 and December 31, 2002, respectively Note 15.

31. MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES

This account represents minority interests in net assets of subsidiaries as follows: December 31, April 30, December 31, 2003 2003 2002 Yayasan Dana Pensiun Bank Dagang Negara 864 864 773 Dana Pensiun Bank Bumi Daya 2,609 2,374 2,723 3,473 3,238 3,496

32. SHAREHOLDERS’ EQUITY

December 31, April 30, December 31, 2003 2003 2002 Issued and fully paid-up capital 10,000,000 4,251,000 4,251,000 Additional Paid-In capitalAgio 5,926,418 10,675,418 173,550,319 Differences Arising from Translation of Foreign Currency Financial Statements 34,462 48,498 64,164 Unrealized LossesGains on Securities and Government Recapitalization Bonds Available for Sale 1,860,850 1,299,676 2,138,186 Premises and Equipment Revaluation Increment 3,056,724 9,788 9,788 Share Options 9,897 - - Retained EarningsAccumulated Losses Appropriated - 1,000,000 2,099,638 Unappropriated 3,228,574 - 163,402,213 Total Shareholders’ Equity 20,395,225 17,284,380 14,434,510 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 121

32. SHAREHOLDERS’ EQUITY continued

Authorized, Issued and Fully Paid-up Capital The Bank’s authorized, issued and fully paid-up capital as of December 31, 2003, April 30, 2003 and December 31, 2002 is as follows: December 31, 2003 Number of Nominal Value Per Share Share Value Percentage of Shares Full Amount Full Amount Ownership Authorized Capital - Dwiwarna Share A Series 1 500 500 0.00 - Common Shares B Series 31,999,999,999 500 15,999,999,999,500 100.00 Total Authorized Capital 32,000,000,000 16,000,000,000,000 100.00 Issued and Fully Paid-up Capital Republic of Indonesia - Dwiwarna Share A Series 1 500 500 0.00 - Common Shares B Series 15,999,999,999 500 7,999,999,999,500 80.00 Public - Common Shares B Series 4,000,000,000 500 2,000,000,000,000 20.00 Total Issued and Fully Paid-up Capital 20,000,000,000 10,000,000,000,000 100.00 April 30, 2003 Number of Nominal Value Per Share Share Value Percentage of Shares Full Amount Full Amount Ownership Authorized Capital 16,000,000 1,000,000 16,000,000,000,000 Issued and Fully Paid-up Capital Republic of Indonesia 4,251,000 1,000,000 4,251,000,000,000 100.00 December 31, 2002 Number of Nominal Value Per Share Share Value Percentage of Shares Full Amount Full Amount Ownership Authorized Capital 16,000,000 1,000,000 16,000,000,000,000 Issued and Fully Paid-up Capital Republic of Indonesia 4,251,000 1,000,000 4,251,000,000,000 100.00 Based on notarial deed No. 10 of Sutjipto, S.H., dated October 2, 1998, the authorized capital of Bank Mandiri amounts to Rp16,000,000 with a par value of Rp1,000,000 full amount per share. The establishment of issued and fully paid-up capital amounting to Rp4,000,000 by the Republic of Indonesia at the date of establishment of Bank Mandiri was carried out as follows: a. Cash payment through Bank Indonesia amounting to Rp1,600,004.