These financial statements are originally issued in Indonesian language
PT BANK DKI
NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005
In Full Rupiah
26
DRAFT
For Discussion Purpose Only April 26, 2007
To be Finalized Agreed by
: Date
:
Other significant information related to loans are as follows: a.
Loans as of December 31, 2006 and 2005 are in Rupiah denomination. b.
Loans are secured by collaterals such as deposits, collaterals that are notarized by deed of encumbrance of power of attorney to sell or to encumber or other collaterals that are acceptable by the Bank.
c. Fixed loans consists of working capital, investments and consumer loans. Loans for working capital and
investments include long term, fixed, revolving, and discounted loans, while consumer loans include housing, car, and other consumer loans.
d. Loans to Directors and Employees, substantially represent loans with annual interest rates up to 5 for
purchase of cars, houses and other personal necessities, with maturity periods ranging from 1 one to 15 fifteen years. The payments are deducted from monthly salary.
e. Loans to the related parties before allowance for possible losses amounted to Rp 5,580,216,176 as of December 31, 2006 2005: Rp 4,777,881,331; after allowance for possible losses amounted to
Rp 5,524,414,010 as of December 31, 2006 2005: Rp 4,730,102,518 see Note 31. f.
In 2006 and 2005, there is no loan restructuring. The last loan restructuring was in year 2004. g.
As of December 31, 2006 and 2005, the Bank did not violate or exceed the Legal Leading Limit LLL requirement.
h. The Bank’s Non Performing Loans NPL Ratio-Net as of December 31, 2006 is 1.08 2005: 1.20,
meanwhile Bank’s NPL-Gross as of December 31, 2006 is 4.55 2005: 5.33. i.
The changes in the allowance for posible losses are as follows:
2006 2005
Rp Rp
Balance at the Beginning of the Year 147,040,565,427
94,293,666,368 Provision Reversal During the Year
214,479,657,270 113,281,821,906
Recovery of Written-off Loans During the Year 3,948,303,871
6,505,337,514 Written-off for the Year
62,770,731,398 --
Adjustment 140,181,558,927
67,040,260,361
Balance at the End of the Year 162,516,236,243
147,040,565,427
Management believes that the above allowance for possible losses is adequate to cover possible losses, which might arise from uncollectible loans.
These financial statements are originally issued in Indonesian language
PT BANK DKI
NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005
In Full Rupiah
27
DRAFT
For Discussion Purpose Only April 26, 2007
To be Finalized Agreed by
: Date
:
j. The changes in the balance of loans that have been written-off are as follows:
2006 2005
Rp Rp
Balance at the Beginning of the Year 256,703,734,779
288,197,558,161 Recovery of Written-off Loans
31,213,063,317 31,493,823,382
Additions During the Year 60,850,291,734
--
Balance at the End of the Year 286,340,963,196
256,703,734,779
10. Investments in Shares of Stocks
Business Percentage of
Nominal Percentage of
Nominal Type
Ownership Value
Ownership Value
Rp Rp
Third Parties Cost Method
PT Asuransi Bangun Askrida General and Loss Insurance
3.55 926,600,000
3.55 926,600,000
Less: Provision for Possible Losses 9,266,000
9,266,000
Net 917,334,000
917,334,000 2006
2005
The Bank has investments in shares of stocks in PT Asuransi Bangun Askrida in the amount of Rp 926,600,000 since year 1998 with percentage ownership less than 20. These investments in shares of stocks is recorded
using cost method, that is, acquisition cost minus allowance for possible losses in the amount of Rp 9,266,000 in 2006 2005: Rp 9,266,000.
The collectibility of investments in shares of stocks is current in year 2006 and 2005. The allowance for possible losses consists of 1 general reserve on accounts in accordance with Bank Indonesia’s regulation for investments
in shares of stocks.
Management believes that the above allowance for possible losses is adequate to cover possible losses, which might arise from uncollectible investments in shares of stocks.
These financial statements are originally issued in Indonesian language
PT BANK DKI
NOTES TO THE FINANCIAL STATEMENTS Continued For the Years Ended December 31, 2006 and 2005
In Full Rupiah
28
DRAFT
For Discussion Purpose Only April 26, 2007
To be Finalized Agreed by
: Date
:
11. Fixed Assets
Beginning Balance Additions
Deductions Reclasification
Ending Balance Rp
Rp Rp
Rp Rp
Carrying Value
Land 106,499,734,481
-- --
2,302,020,350 104,197,714,131
Buildings 19,356,066,068
8,970,486,928 --
18,737 28,326,534,259
Vehicles 13,043,487,994
3,832,900,000 --
-- 16,876,387,994
Office Furnitures and Equipments 87,803,716,520
23,921,671,661 --
-- 111,725,388,181
226,703,005,063 36,725,058,589
-- 2,302,039,087
261,126,024,565
Accumulated Depreciation
Buildings 4,158,535,961
3,689,698,519 --
18,734 7,848,215,746
Vehicles 9,044,356,923
1,285,663,043 --
-- 10,330,019,966
Office Furnitures and Equipments 44,524,721,081
23,155,849,911 --
-- 67,680,570,992
57,727,613,965 28,131,211,473
-- 18,734
85,858,806,704
Net Book Value 168,975,391,098
175,267,217,861 2006
Beginning Balance Additions
Deductions Reclasification
Ending Balance Rp
Rp Rp
Rp Rp
Carrying Value
Land 103,560,934,481
2,938,800,000 --
-- 106,499,734,481
Buildings 10,143,033,517
9,213,032,551 --
-- 19,356,066,068
Vehicles 12,829,116,894
214,371,100 --
-- 13,043,487,994
Office Furnitures and Equipments 74,050,333,844
13,753,382,676 --
-- 87,803,716,520
200,583,418,736 26,119,586,327
-- --
226,703,005,063
Accumulated Depreciation
Buildings 3,181,927,161
976,608,800 --
-- 4,158,535,961
Vehicles 10,927,363,606
35,457,817 1,918,464,500
-- 9,044,356,923
Office Furnitures and Equipments 31,524,373,096
13,000,347,985 --
-- 44,524,721,081
45,633,663,863 14,012,414,602
1,918,464,500 --
57,727,613,965
Net Book Value 154,949,754,873
168,975,391,098 2005
Based on PBI No.72PBI2005 dated January 20, 2005 and its Circular Letter No.73DPNP dated January 31, 2005, the Bank has identified and determined its abandoned properties. On the financial statementsas
of December 31, 2006, the balance of abandoned properties have been reclassified from the fixed assets account, which consists of landrights and buildings, to other assets account with the carrying value of Rp 2,302,020,350 and
Rp 18,737, with accumulated depreciation of Rp 18,734 and recorded with book value of Rp 3, respectively see Note 13.
The landrights HGB are under the Bank’s name and have expiry dates ranging between August 2006 until Mei 2027. Management believes that the landrights will be renewed by the Government when they expire. The
landrights that ended on August 2006 are in renewal process at this time.
The fixed assets per December 31, 2006 have been insured with PT Sarana Lindung Upaya, PT Asuransi Astra Buana, and PT Bangun Askrida for a total insurance coverage of Rp 67,659,248,963, Rp 2,484,500,000 and
Rp 1,265,800,000, respectively. Management believes that the insurance coverage is adequate to cover any possible losses.