PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
63
14. PREMISES AND EQUIPMENT continued
Movements from January 1, 2005 Beginning
Ending to June 30, 2005
Balance Additions
Deductions Reclassifications Balance
Cost Valuation
Direct ownership
Land 2,829,613
70 4,989
- 2,824,694
Buildings 1,460,171
6,113 24,380
7,694 1,449,598
Furnitures, fixtures, office equipment and computer
equipmentsoftware 3,125,558
63,046 2,793
148,525 3,334,336
Vehicles 63,157
4,882 730
- 67,309
Construction in
progress 265,551
65,704 -
118,669 212,586
Leased assets
81,528 -
43,978 37,550
- 7,825,578
139,815 76,870
- 7,888,523
Accumulated Depreciation and Amortization
Direct ownership
Buildings 695,344
43,959 30,482
- 708,821
Furnitures, fixtures, office equipment and computer
equipmentsoftware 1,580,906
227,981 1,318
20,027 1,827,596
Vehicles 32,963
4,083 726
- 36,320
Leased assets
32,737 2,504
15,214 20,027
- 2,341,950
278,527 47,740
- 2,572,737
Net book
value Direct
ownership Land
2,824,694 Buildings
740,777 Furniture, fixtures, office equipment and computer equipmentsoftware
1,506,740 Vehicles
30,989 5,103,200
Construction in
progress 212,586
5,315,786
The amount includes an increment in value of fixed assets based on revaluation of fixed assets of the merged banks performed by an Independent Appraiser, PT Vigers Hagai Sejahtera, using market values as of July 31, 1999. The
revaluation increment was recorded prospectively on June 18, 2003 Note 14a.
Construction in progress as of June 30, 2005 is comprised of:
Product and license - Core Banking System 145,145
Buildings 28,176
Others 39,265
212,586
The construction in progress was approximately 92.82 complete as of June 30, 2005.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
64
14. PREMISES AND EQUIPMENT continued
a. In accordance with the Decrees of the Minister of Finance KMK No. 211KMK.032003 dated May 14, 2003 and No. S-206MK.012003 dated May 21, 2003, Bank Mandiri engaged PT Vigers Hagai
Sejahtera, a registered appraisal company, to revalue the premises and equipment of the merged banks, BBD, BDN, Bank Exim and Bapindo as of July 31, 1999, in relation to the transfer to Bank
Mandiri of tax losses of these taxpayers which transferred assets to Bank Mandiri.
Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated May 26, 2003, the value of premises and equipment of the Bank and the corresponding increment in value as of July
31, 1999 were as follows:
Fixed Assets Market Value
Book Value Increment in Value
Land and buildings 4,427,510
843,414 3,584,096
Furniture, fixtures and equipment 438,086
275,370 162,716
Vehicles 19,604
355 19,249
4,885,200 1,119,139 3,766,061
PT Vigers Hagai Sejahtera’s opinion of the market value was based on “Indonesian Appraisal Standards” issued by the Indonesian Appraisal Companies Association GAPPI and the Indonesian
Society of Appraisers MAPPI.
In arriving at the market values, PT Vigers Hagai Sejahtera has taken into consideration the market data approach and cost approach valuation methodologies.
The results of the revaluation have been approved by the Directorate General of Taxation through Kepala Kantor Pelayanan Pajak Perusahaan Negara dan Daerah through its Decision Letter No. Kep-
01WPJ.07KP.01052003 dated June 18, 2003.
Bank Mandiri has recorded the results of the revaluation on June 18, 2003, the date of approval from the Directorate General of Taxation, after deducting the relevant accumulated depreciation for the
period from August 1, 1999 to June 18, 2003. The net increment of premises and equipment of Rp3,046,936, involved land, buildings, vehicles, and office equipment.
The recognition of the premises and equipment revaluation increment did not impact the Bank’s tax expense position, as the tax losses used to compensate the premises and equipment revaluation
increment had not been recognized as deferred tax assets by the Bank.
b. Bank Mandiri and Subsidiaries have insured their premises and equipment excluding land against physical loss; fire, theft and natural disaster with PT Staco Jasapratama, PT Asuransi Raya and PT
Asuransi Dharma Bangsa for total coverage amounts of Rp2,083,530 and US110,384,915.54 full amount as of June 30, 2006 and Rp3,065,189 as of June 30, 2005. Management believes that the
insurance coverage is adequate to cover the possibility of losses arising in relation to premises and equipment.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
65
15. OTHER ASSETS
