POLICYHOLDERS’ INVESTMENT AND LIABILITY TO UNIT-LINKED HOLDERS
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 587 16. FIXED ASSETS continued
Movements from 1 January 2009 Beginning
Ending to 31 December 2009
Balance Additions
Deductions Reclassifications
Balance
CostRevalued Amount Direct ownership
Land 2,761,131
92 192
28,487 2,789,518
Buildings 1,637,465
148,140 422
46,843 1,832,026
Furnitures, fixtures, office equipment and computer
equipmentsoftware 4,167,285
168,031 3,779
365,154 4,696,691
Vehicles 79,069
12,013 5,812
3,678 88,948
Construction in progress 416,690
454,833 -
449,045 422,478
Leased assets 3,267
- -
- 3,267
9,064,907 783,109
10,205 4,883
9,832,928 Accumulated Depreciation
and Amortisation Note 43 Direct ownership
Buildings 925,316
82,793 403
4,843 1,012,549
Furnitures, fixtures, office equipment and computer
equipmentsoftware 3,478,309
355,936 1,305
34,849 3,798,091
Vehicles 57,069
6,697 5,781
309 57,676
Leased assets 653
653 -
- 1,306
4,461,347 446,079
7,489 30,315
4,869,622 Net book value
Direct ownership Land
2,789,518 Buildings
819,477 Furniture, fixtures, office equipment and computer equipmentsoftware
898,600 Vehicles
31,272 4,538,867
Construction in progress 422,478
Leased assets 1,961
4,963,306
The fixed assets were revalued in 1979, 1987 and 2003. The amount include 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 at 31 July 1999. The revaluation increments were recorded prospectively on 18 June 2003 Note 16a. Reclassified from Abandoned Property and Construction In Progress.
Construction in progress as at 31 December 2009 was comprised of:
Balance
Computers and other hardware that have not been installed 161,017
Product development and license - Integrated Banking System 106,049
Office equipment and i nventory 102,105
Buildings 49,287
Others 4,020
422,478
The estimated percentage of completion of construction in progress as at 31 December 2009 for Integrated Banking System agreement was ranging between 97.22 - 98.98.
Included in the addition of fixed assets during 2009 is a building which was transferred by the Subsidiary PT Usaha Gedung BDN or UG BDN in accordance with the Joint Operation agreement
KSO, which states that at the end of KSO agreement, UG BDN will transfer the building to Bank Mandiri. Bank Mandiri recorded the building at fair value of Rp131,640 Note 46 and depreciate it for
20 years.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 588 16. FIXED ASSETS continued
Movements from 1 January 2008 Beginning
Ending to 31 December 2008
Balance Additions
Deductions Reclassifications
Balance
CostRevalued Amount Direct ownership
Land 2,710,520
20,817 -
29,794 2,761,131
Buildings 1,607,835
14,477 45,577
60,730 1,637,465
Furnitures, fixtures, office equipment and computer
equipmentsoftware 3,956,361
136,129 35,697
110,492 4,167,285
Vehicles 77,025
4,407 2,363
- 79,069
Construction in progress 150,903
434,410 -
168,623 416,690
Leased assets -
3,267 -
- 3,267
8,502,644 613,507
83,637 32,393
9,064,907 Accumulated Depreciation
and Amortisation Note 43 Direct ownership
Buildings 887,272
83,297 45,295
42 925,316
Furnitures, fixtures, office equipment and computer
equipmentsoftware 3,035,079
478,530 35,300
- 3,478,309
Vehicles 48,716
10,625 2,272
- 57,069
Leased assets -
653 -
- 653
3,971,067 573,105
82,867 42
4,461,347 Net book value
Direct ownership Land
2,761,131 Buildings
712,149 Furniture, fixtures, office equipment and computer equipmentsoftware
688,976 Vehicles
22,000 4,184,256
Construction in progress 416,690
Leased assets 2,614
4,603,560
The fixed assets were revalued in 1979, 1987 and 2003. The amount include increment in value of fixed assets base d on revaluation of fixed assets of the merged banks performed by an Independent Appraiser, PT Vigers Hagai Sejahtera, using
market values as at 31 July 1999. The revaluation increments were recorded prospectively on 18 June 2003 Note 16a. Reclassified from Abandoned Property and Construction In Progress.
Construction in progress as at 31 December 2008 was comprised of:
Balance
Computers and other hardware that has not been installed 297,136
Product development and license - Integrated Banking System 78,567
Office equipment and inventory 24,175
Buildings 10,864
Others 5,948
416,690
The estimated percentage of completion of construction in progress as at 31 December 2008 for Integrated Banking System agreement was ranging between 74.95 - 96.24.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 589 16. FIXED ASSETS continued
a. Based on Minister of Finance Decree KMK No. 211KMK.032003 dated 14 May 2003 and
No. S-206MK.012003 dated 21 May 2003, Bank Mandiri has appointed PT Vigers Hagai Sejahtera, a registered appraisal company, to perform fixed assets valuation revaluation of the
merged banks BBD, BDN, Bank Exim and Bapindo as at 31 July 1999, in relation to the transfer of tax losses and its compensations from taxpayers who transferred their assets to Bank Mandiri.
Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated 26 May 2003, the value of the Bank’s fixed assets and the increase in value as at 31 July 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.
To determine the market value PT Vigers Hagai Sejahtera had used market data and the cost approach in its valuation methodology.
The results of the revaluation have been approved by the Directorate General of Taxation Head of Tax Service Office through its Decision Letter No. Kep-01WPJ.07KP.01052003 dated
18 June 2003.
For tax purpose, Bank Mandiri recorded the results of the revaluation on 18 June 2003 the approval date from the Directorate General of Taxation. After deducting the fixed assets with the
relevant accumulated depreciation from the period of 1 August 1999 until 18 June 2003, the net increase of fixed assets was amounting to Rp3,046,936. As explained in Note 2p, the Bank has
adopted the cost model for measurement of fixed assets in accordance with SFAS No. 16 Revised 2007, “Fixed Assets” and thus reclassified the revaluation increase of fixed assets
amounting to Rp3,046,936 to the shareholders’ equity in the 2007 consolidated balance sheets to consolidated retained earnings in 2008.
The recognition of the fixed assets revaluation increase did not have any impact on the Bank’s deferred tax balance, since the tax losses used to compensate the fixed assets revaluation
increment had never been recognised as deferred tax assets by the Bank.
b. On 22 February 1990, the Bank signed a Joint Operation agreement KSO with PT Pakuwon
Jati, where PT Pakuwon Jati will build a shopping center and office tower with 17 storeys and other supporting facilities on land owned by Bank Mandiri, which located on Jalan Basuki
Rachmat No. 2, 4, 6 Surabaya. PT Pakuwon Jati is entitled to use the building for 22 years. By the end of the KSO agreement on 22 March 2012, the ownership of building will be handed over
to Bank Mandiri.
On 14 June 1991, the Bank signed an Amendment I of Joint Operation agreement KSO with PT Duta Anggada Realty Tbk., in which PT Duta Anggada Realty Tbk. will build 2 office towers
with 32 storeys on the land owned by Bank Mandiri which located on Jalan Jenderal Sudirman lot 53-56, Jakarta. The agreement became effective from 14 June 1991 up to 20 years from the date
of the construction was completed, but not longer than 23 years since the construction was completed the office building will be handed over in June 2014 for the first tower and in June
2016 for the second tower. On the maturity date, PT Duta Anggada Realty Tbk. will hand over the ownership of the building to Bank Mandiri.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 590 16. FIXED ASSETS continued
c. Bank Mandiri and Subsidiaries have insured their fixed assets excluding land rights, construction in
progress and leased assets to cover potential losses from risk of fire, theft and natural disaster with PT Asuransi Dharma Bangsa, PT Staco Jasapratama, PT Asuransi Raya, PT Asuransi Jasa
Indonesia, PT Asuransi Ramayana Tbk., PT Asuransi Wahana Tata, PT Asuransi Tri Pakarta, PT Asuransi Parolamas, PT Asuransi Bumida Bumiputera, PT Asuransi Jasa Tania Tbk.,
PT Asuransi Central Asia, PT Asuransi Bosowa, PT Asuransi Sinarmas, PT Asuransi Purna Arthanugraha, PT Asuransi Bina Dana Arta Tbk., PT Asuransi Dayin Mitra Tbk., PT Asuransi Puri
Asih, PT Asuransi Raksa Pratikara, PT Asuransi Jasaraharja Putera, PT Asuransi Takaful Umum, PT Asuransi Jasindo Takaful, MSIG Insurance S’pore Pte, Ltd., British Caymanian Insurance Co.
Ltd., Tugu Insurance Co. Ltd., Bank of China Group Insurance Co. Ltd. and HSBC Insurance Asia Ltd. with total sum insured of Rp2,512,683 and USD147,973,294.07 full amount as at
31 December 2010 Rp3,448,575 and USD3,727,274.25 full amount as at 31 December 2009, Rp1,997,281, USD84,249,506.46 full amount, SGD2,206,235 full amount and HKD3,745,000
full amount and as at 31 December 2008. Management believes that the above insurance coverage is adequate to cover possible losses that may arise on the assets insured.
Management also believes that there is no impairment of fixed assets as at 31 December 2010, 2009 and 2008.