RELATED PARTY TRANSACTIONS Continued SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES

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 - 135 -

58. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued

b. Earning Assets Transfer Agreement In 1999 Bank Mandiri entered into an Earning Assets Transfer Agreement with IBRA based on the Decree of Ministry of Finance No. 53KMK.0171999 and Governor of Bank Indonesia No. 3112KEP.GBI1999 dated February 8, 1999. Under the agreement, Bank Mandiri agreed to transfer to IBRA its loss category earning assets for RpNil consideration. Bank Mandiri transferred its loss category earning assets to IBRA as follows: • September 4, 2001 Following discussions between Bank Mandiri and IBRA regarding the transfer and repurchase of certain non-performing loans on January 26, 2001, based on notarial deed No. 6 dated September 4, 2001 of Mr. Teddy Anwar, S.H., SpN. and in accordance with the Decree of the Minister of Finance No. S-25MK.012000 dated February 1, 2000 and joint decision letter of the Committee of Policy and Finance Sector KKSK No. KEP.02K.KKSK022001 dated February 15, 2001 and the Decree of the Minister of Finance No. SR-110MK.062001 dated May 4, 2001, Bank Mandiri transferred certain of its non- performing loans amounting to Rp4,587,313 to IBRA for RpNil value assets rated as loss under Bank Indonesia criteria together with the related interest, penalties and claims that may be received by the Bank in the future. In accordance with the agreement, Bank Mandiri is liable to bear the cost of liabilities which may arise in the future relating to the transferred assets. Details of assets transferred to IBRA on September 4, 2001 are as follows: Loans 3,737,546 Commercial papers 15,625 Off-balance sheet accounts 262,747 Participation 20,357 Interest and penalties 551,038 4,587,313 No Temporary Assets Administration Agreement was signed in respect of the above assets. 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 - 136 -

58. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued