INVESTMENTS IN SHARES OF STOCK continued INVESTMENTS IN SHARES OF STOCK continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 72

13. INVESTMENTS IN SHARES OF STOCK continued

The details of investments in shares of stock as of December 31, 2002 are as follows: Accumulated Equity in Percentage Retained Earnings Carrying Investee Company Nature of Business of Ownership Cost Accumulated Losses Value Equity Method of Accounting: PT Sarana Bersama Pembiayaan Indonesia Holding company 34.00 2,278 2,881 5,159 PT Bapindo Bumi Sekuritas Securities trading 26.19 2,750 197 2,947 8,106 Cost Method of Accounting: PT Bank Internasional Indonesia Tbk. Banking 2.00 50,400 50,400 PT Semen Kupang a Manufacturing 59.70 45,023 45,023 PT Sri Thai a Manufacturing na 23,055 23,055 PT Kertas Padalarang a Pulp and paper 51.50 9,530 9,530 PT Kustodian Sentral Efek Indonesia Security custodian 16.00 4,800 4,800 PT Bunas Finance Internasional Tbk. a Finance na 3,889 3,889 PT Pisita Wisata a Tourism 16.00 658 658 PT Mega Guna Concrete a Construction 24.00 200 200 Maskapai Pelayaran Laut Shipping 8.50 95 95 PT Bursa Efek Surabaya Stock exchange 2.22 75 75 PT Bursa Efek Jakarta Stock exchange 0.50 60 60 PT Pemeringkat Efek Indonesia Security rating 4.29 429 429 Others 3,583 3,583 141,797 Total 149,903 Less: Allowance for possible losses 62,807 87,096 a These investments, regardless of percentage of ownership, represent restructured loans through debt to equity participations Note 11. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 73

13. INVESTMENTS IN SHARES OF STOCK continued

b. Classification of investments in shares of stock by collectibility is as follows: December 31, April 30, December 31, 2003 2003 2002 Current 12,851 129,042 88,171 Loss 89,564 20,862 61,732 Total 102,415 149,904 149,903 Less: Allowance for possible losses 89,693 27,633 62,807 12,722 122,271 87,096 c. Movements of allowance for possible losses on investments in shares of stocks: December 31, April 30, December 31, 2003 2003 2002 Balance at beginning of period 27,633 62,807 26,377 Provisionreversal during the period 70,823 35,197 8,682 Others 8,763 23 27,748 Balance at end of period 89,693 27,633 62,807 includes foreign currency translation effect. The minimum allowance for possible losses on investments in shares of stock, under the guidelines prescribed by Bank Indonesia, as of December 31, 2003, April 30, 2003 and December 31, 2002 are Rp89,693, Rp22,152 and Rp62,807, respectively. Management believes that the allowance for possible losses on investments in shares of stock is adequate.

14. PREMISES AND EQUIPMENT

December 31, April 30, December 31, 2003 2003 2002 Costrevaluation 7,245,644 3,685,787 3,510,602 Less: Accumulated depreciation and amortization 1,861,272 1,642,699 1,551,820 Net book value 5,384,372 2,043,088 1,958,782 Certain assets were revalued in 1979, 1987 and 2003. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 74

14. PREMISES AND EQUIPMENT continued

Movements from May 1, 2003 Beginning Reclassi- Ending to December 31, 2003 Balance Additions Deductions fications Revaluation Balance Cost or Valuation Direct ownership Land 345,517 9,243 7,638 - 2,556,648 2,903,770 Buildings 1,069,810 14,022 3,908 39,071 272,510 1,391,505 Furniture, fixtures, office equipment and computersoftware 1,674,374 174,028 27,288 664,243 743 2,484,614 Vehicles 39,367 11,725 3,646 - - 47,446 Construction in progress 556,719 527,354 - 703,314 - 380,759 Leased assets - 37,550 - - - 37,550 Total cost or valuation 3,685,787 773,922 42,480 - 2,828,415 7,245,644 Accumulated Depreciation and Amortization Direct ownership Buildings 539,234 40,561 4,541 - 23,989 599,243 Furniture, fixtures, office equipment and computersoftware 1,079,557 172,502 25,265 - - 1,226,794 Vehicles 23,908 3,059 1,745 - - 25,222 Leased assets - 10,013 - - - 10,013 Total Accumulated Depreciation and Amortization 1,642,699 226,135 31,551 - 23,989 1,861,272 Net Book Value Direct ownership Land 2,903,770 Buildings 792,262 Furniture, fixtures, office equipment and computersoftware 1,257,820 Vehicles 22,224 4,976,076 Construction in progress 380,759 Leased assets 27,537 5,384,372 The amount represents 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 prices as of July 30, 1999. The increment was recorded prospectively on June 18, 2003 Note 14c. Construction in progress as of December 31, 2003 is comprised of: Product and license - Core Banking System 103,411 Buildings 6,351 Others 270,997 380,759 The construction in progress is approximately 84.17 completed as of December 31, 2003.