CUSTODIAL AND TRUST OPERATIONS continued

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 151

57. CUSTODIAL AND TRUST OPERATIONS continued

Trust Operations continued Bank Mandiri had 38, 22 and 22 trustee customers as of June 30, 2004 and 2003, and April 30, 2003, respectively. The total value of bonds issued amounted to Rp11,097,800 and US100 while the sinking funds managed on behalf of bond issuers amounted to Rp52,837 and the escrow account amounted to Rp2,041,484 on behalf of six customers. 58. CHANNELING LOANS Channeling loans based on sources of funds and economic sectors are as follows: June 30, 2004 June 30, 2003 April 30, 2003 Government: Electricity, gas and water 9,793,696 9,391,721 9,564,015 Transportation and communications 6,716,538 6,848,910 7,089,813 Agriculture 1,707,347 807,618 1,692,122 Manufacturing 842,629 870,827 630,553 Mining 100,812 113,888 118,731 Construction 17,877 12,477 20,307 Others 125,616 129,362 138,378 19,304,515 18,174,803 19,253,919 Bank Mandiri has been appointed to administer channeling loans in various foreign currencies received by the Government of Indonesia from various bilateral and multilateral financing institutions, such as, The Export Import Bank of Japan, ASEAN Japan Development Fund, Overseas Economic Cooperation Fund, International Bank for Reconstruction and Development, Nordiska Investeringbanken, Kreditanstalt Fur Wiederaufbau, Sumitomo, US AID, Barclays Bank, Bank of China, CN Lyonnais, Unibank, Bank of Austria, Ryobhin Hong Kong, Export Finance and Insurance Cooperation - Australia, Mitsubishi Corporation, Chartered West LB, Banque Indosuez, Hitachi Zosen, NEC Corporation, Banque Francais du Comm, US Exim Bank, and Banque Paribas for financing projects in Indonesia. Channeling loans are not recognized in the consolidated balance sheets as the credit risk is not borne by the Bank or its Subsidiaries. Bank Mandiri’s responsibilities under the above arrangements include, among others, collections from borrowers and payments to the Government of principal, interest and other charges and the maintenance of loan documentation. As compensation, Bank Mandiri receives an annual administration fee which varies from 0.15 - 0.4 of the loan balances. 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 152

59. RELATED PARTY TRANSACTIONS