PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5145 58. ECONOMIC CONDITIONS continued
The consolidated financial statements include the effects of economic condition to the extent they can be determined and estimated. Economic recovery to a sound and stable condition depends on fiscal and
monetary policies which will be issued by the Government of the Republic of Indonesia, a condition beyond the control of Bank Mandiri and its subsidiaries. There is no events subsequent to balance sheet
date until the date of this report occur that give rise to the uncertainties of the Bank’s going concern as an impact of the uncertainties current economy of Indonesia.
59. GOVERNMENT GUARANTEE FOR THE OBLIGATIONS OF LOCALLY INCORPORATED BANKS
Based on the Decree of the Ministry of Finance of the Republic of Indonesia No. 26KMK.0171998 dated 28 January 1998, which was renewed by the Decree of the Ministry of Finance No. 179KMK.0172000
dated 26 May 2000, the Government of the Republic of Indonesia is guaranteeing certain obligations of locally incorporated banks namely demand deposits, savings deposits, time deposits and deposits on call,
bonds, marketable securities, inter-bank placements, fund borrowings, currency swaps and contingent liabilities such as bank guarantees, standby letters of credit and other liabilities, excluding subordinated
loans and amounts due to directors, commissioners and related parties.
Based on Joint Decrees of the Directors of Bank Indonesia and Head of IBRA No. 3246KEPDIR and No. 181BPPN0599 dated 14 May 1999, the guarantee period is automatically extended, unless
otherwise that within six months before the maturity of this guarantee, IBRA decided not to extend its maturity. In 2001, the Joint Decrees of the Directors of Bank Indonesia and the Head of IBRA were
canceled by BI regulation No. 37PBI2001 and the Decree of the Head of IBRA No. 1035BPPN0401.
In 2001, the Head of IBRA issued Decree No. SK-1036BPPN0401 that regulates a specific operational guidance in respect of the Government of the Republic of Indonesia’s Guarantee for the obligations of
locally incorporated banks.
The Government charges a premium in respect of its guarantee program in accordance with prevailing regulations Note 35.
Based on the Presidential Decree No. 152004 dated 27 February 2004 in relation to the termination of IBRA’s duties and its dissolution, and Decree of the Ministry of Finance No. 84KMK.062004 dated
27 February 2004, the Government of the Republic of Indonesia established Government Guarantee Implementation Unit UP3, a new institution replacing IBRA, to continue the Government Guarantee
Program for Obligations of Locally Incorporated Banks.
Based on the Ministry of Finance Decree No. 17PMK.052005 dated 3 March 2005, starting from 18 April 2005, the Government Guarantee Program covers the obligations of locally incorporated banks which
consisted of demand deposits, savings deposits, time deposits and deposits from other banks from Money Market Inter-Bank transactions.
Government Guarantee Program through Government Guarantee Implementation Unit UP3 was ended on 22 September 2005, as stated in Ministry of Finance Decree No. 68PMK.052005 dated
10 August 2005 regarding Calculation and Premium Payment for the Government Guarantee Program for the Obligations of Locally Incorporated Banks for the period from 1 July until 21 September 2005.
The Government replaced UP3 with an independent institution, Indonesia Deposit Insurance Corporation LPS based on the Republic of Indonesia Decree No. 24 year 2004 dated 22 September
2004 regarding Lembaga Penjamin Simpanan LPS, whereby LPS guaranteed third party funds including placement from other banks in the form of current accounts, time deposits, certificate of
deposits, savings deposits and other form that is equivalent to them.
