SECURITIES PURCHASED WITH AGREEMENTS TO RESELL

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 - 44 -

11. DERIVATIVE RECEIVABLES AND PAYABLES Continued

Interest Rate Swap Bank Mandiri entered into an interest rate swap agreement with a notional amount of US125 million with Standard Chartered Bank, Singapore in August 2002. The underlying transaction is the Bank’s US125 million fixed interest subordinated loan issued in 2002 Note 30. Under the transaction, the Bank receives semi-annual fixed interest at the rate of 10.625 per annum and pays semi-annual floating interest at the rate of LIBOR 6 months + 6.19 per annum for a 5-year period. The LIBOR 6 months’ interest is stated in arrears. While the transaction is for the purpose of hedging the fixed rate coupon payments of the subordinated loan with floating coupon payment, it does not qualify as a hedging transaction for accounting purposes. Cross Currency Swap Bank Mandiri entered into a swap transaction forward contract with Deutsche Bank, Jakarta on January 31, 2002. The contract was initiated when Bank Mandiri sold Government Bonds nominal Rp980,000 to Deutsche Bank at Rp735,000. The proceeds of the sales were used in a cross currency swap contract. On the contract date, the Bank received US50,000,000 full amount and paid Rp735,000. The contract matures on January 31, 2004 and on settlement date, the Bank will pay US50,000,000 full amount and receive Rp735,000. Bank Mandiri is then obliged to use the Rp735,000 it receives from Deutsche Bank to repurchase the Government Bonds it previously sold to Deutsche Bank Notes 8 and 23. As of December 31, 2001, a summary of derivative transactions is as follows: Transactions Notional Amount Value Derivative Derivative Contract at spot Receivables Payables Note 2l Bank only Non-related parties Cross currency: 1. Forward - buy US Dollar 225,018 217,657 587 7,948 2. Forward - sell US Dollar 78,502 77,257 1,807 562 3. Swap - buy US Dollar 186,382 187,200 1,580 762 4. Swap - sell US Dollar 186,469 187,200 834 1,565 4,808 10,837 Subsidiary Related parties 1. Forward - buy US Dollar 613 613 - - Non-related parties Cross currency: 1. Forward - buy US Dollar 146,762 147,849 1,774 687 2. Swap - buy US Dollar 93,093 92,641 - 452 1,774 1,139 Total 6,582 11,976 Less: Allowance for possible losses 48 - 6,534 11,976 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 - 45 -

11. DERIVATIVE RECEIVABLES AND PAYABLES Continued