MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES SHAREHOLDER’S EQUITY

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 - 104 -

33. SHAREHOLDER’S EQUITY Continued

Authorized and Share Capital Continued The Ministry of State Owned Enterprise as the Bank’s Shareholder, through its Decision Letter No.KEP-154M-MBU2002 dated October 29, 2002 has approved the increase in the Bank’s paid-up capital amounting to Rp1,000,000, which will be taken from the Reserve. As of December 31, 2002 such increasing has not been implemented as the Bank is awaiting the issuance of Government Regulations. The Ministry of Finance through its letter No. S-360MK.022002 dated November 5, 2002 has requested the State Secretary to issue Government Regulations as follows: a. Government regulation 1 - Government equity participation in legacy bank amounting to Rp3,461,513; b. Government regulation 2 - increase of Bank Mandiri paid-up capital by Rp1,000,000; c. Government regulation 3 - divestment of Bank Mandiri. Currently, these Government Regulations are being processed by the State Secretary, except for Government Regulation 3 is on hold as it awaits for Parliament approval. Additional Paid-In Capital The additional paid-in capital represents additional capital arising from the Recapitalization Program Note 3. Pursuant to Government Regulations No. 52 of 1999 and No. 97 of 1999, the Ministry of Finance is to issue a letter as a further instruction as to the Government’s additional equity participation and its divestment policy, as well as the final amount of the Government’s additional equity participation. Additionally, the Ministry of Finance is to implement a procedure and its rights on the Government’s additional equity participation. Up to now the Ministry of Finance has not issued the letter, therefore the additional equity participation arising from the Recapitalization Program is still recorded in additional paid-in capital account. Moreover, the Bank through its April 17, 2002 letter, has requested the Ministry of State-Owned Enterprises, as the Bank’s Shareholder, to assist the Bank in obtaining a decision letter from the Ministry of Finance clarifying the status of the recapitalized amount which is recorded as additional paid-in capital, as to whether it is paid-up capital share capital, additional paid-in capital or paid-in capital in excess of par value. Currently, the Bank is awaiting a decision from the Ministry of Finance. Based on the results of a due diligence review conducted on behalf of the Government dated December 31, 1999 and Management Contract “IMPA” dated April 8, 2000, it was determined that there was excess recapitalization amounting to Rp4,069,000. The Bank returned Rp2,657,000 of Government recapitalization bonds to the Government on July 7, 2000 pursuant to the Management Contract. The balance of Rp1,412,000 will be returned to the Government as approved by the Shareholder during its meeting on October 29, 2002 and the Ministry of State-owned Enterprise Decision Letter No. KEP-154M-MBU2002 dated October 29, 2002. 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 - 105 -

33. SHAREHOLDER’S EQUITY Continued