SECURITIES ISSUED Continued FUND BORROWINGS

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 - 76 -

26. FUND BORROWINGS Continued

d Others - Foreign currency 2002 2001 Direct off-shore loans 268,500 1,412,575 Others 10,776 581,294 279,276 1,993,869

27. ALLOWANCE FOR POSSIBLE LOSSES ON COMMITMENTS AND CONTINGENCIES

a. Commitment and contingent transactions in the normal course of Bank Mandiri activities that have credit risk are as follows: 2002 2001 ___________ Rupiah: Outstanding irrevocable letters of credit Notes 46 895,933 185,269 Bank guarantees issued Notes 46 and 48 2,227,633 1,693,760 Standby letters of credit Notes 46 and 48 30,000 30,000 ___________ 3,153,566 1,909,029 Foreign currency: Outstanding irrevocable letters of credit Notes 46 5,475,295 5,358,803 Bank guarantees issued Notes 46 and 48 2,658,783 2,902,977 Standby letters of credit Notes 46 and 48 3,205,189 3,780,309 Commitment and contingent payables to a foreign branch of a local bank Note 46 - 2,908,049 ___________ 11,339,267 14,950,138 ___________ 14,492,833 16,859,167 b. By Collectibility: 2002 2001 Current 13,671,409 11,918,846 Special mention 780,360 796,851 Sub-standard 1,064 1,168,710 Doubtful 10,000 - Loss 30,000 2,974,760 Total 14,492,833 16,859,167 Less: Allowance for possible losses 1,211,211 5,284,345 Net commitmentsand contingencies 13,281,622 11,574,822 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 - 77 -

27. ALLOWANCE FOR POSSIBLE ON COMMITMENTS AND CONTINGENCIES Continued

c. Movements of allowance for possible losses on commitments and contingencies: 2002 2001 Balance at beginning of year 5,284,425 7,010,271 Reversal during the year 3,364,433 1,913,412 Others 708,781 187,486 Balance at end of year 1,211,211 5,284,345 Includes foreign currency translation. The minimum allowance for possible losses on commitments and contingencies, under the guidelines prescribed by Bank Indonesia, as of December 31, 2002 and 2001 are Rp993,468 and Rp4,826,716, respectively. Management believes that the allowance for possible losses on commitments and contingencies is adequate.

28. TAXATION a. Taxes payable

2002 2001 Bank Mandiri Income Taxes: Employee income tax - Article 21 35,432 26,859 Withholding tax - Article 2326 214,937 313,147 Land and building tax 79 40 Others 36,304 2,250 286,752 342,296 Subsidiaries 9,197 3,913 295,949 346,209

b. Corporate income tax expense

2002 2001 Corporate income tax expense - current: Bank Mandiri only - - Subsidiaries 824 - 824 - Corporate income tax expense - deferred: Bank Mandiri only 2,187,484 1,104,475 Subsidiaries 35,445 - 2,222,929 1,104,475 2,223,753 1,104,475 As discussed in Note 2w, corporate income tax for Bank Mandiri and its Subsidiaries is computed for each company as a separate legal entity consolidation is not permitted for corporate income tax filing purposes.