PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
117
48. RELATED PARTY TRANSACTIONS continued
a. Banking Activities in the Ordinary Course of Business continued
2005 2004
Percentage of assets involving related parties to total consolidated assets
35.67 38.05
The percentages of Government Recapitalization Bonds, Loans, securities, other receivables – trade transaction, acceptance receivable, current account with other bank, and interest receivable from the
Government compared to the total consolidated assets are as follows:
2005 2004
Government Recapitalization Bonds 34.95
37.50 Loans
0.47 0.38
Securities 0.23
0.16 Other Receivables – Trade transaction
0.02 -
Acceptance Receivable
- -
Current account with other bank -
- Interest refundable by the Government
- -
Total 35.67
38.05 2005
2004
Time Deposits Note 18f 1,080,031
35,997 Fund Borrowings Note 25
350,000 126,378
Demand Deposits Note 16a 314,961
62,412 Savings Deposits Note 17b
23,276 15,467
Deposits From Other Banks – Demand Deposits Note 19c 287
- Total liabilities involving related parties
1,768,555 240,254
Total consolidated liabilities 240,164,244
223,217,577 Percentage of liabilities involving related
parties to total consolidated liabilities 0.74
0.11
Percentages of time deposits, fund borrowings, demand deposits, saving deposits and deposits from other banks - demand deposits compared to the total consolidated liabilities are as follows:
2005 2004
Time Deposits
0.45 0.01
Fund Borrowings 0.15
0.06 Demand
Deposits 0.13
0.03 Savings
Deposits 0.01
0.01 Deposits From Other Banks – Demand Deposits
- -
Total 0.74
0.11
Salary, allowances and bonuses of the Boards of Directors and Commissioners and Executive Officers Note 42 for the years ended December 31, 2005 and 2004 amount to Rp107,086 and Rp96,168,
respectively.
b. Significant transactions with the Government of the Republic of Indonesia • In May 1999, the Government implemented a recapitalization program for Bank Mandiri by issuing
Government Recapitalization Bonds Notes 1c and 7.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
118
48. RELATED PARTY TRANSACTIONS continued
b. Significant transactions with the Government of the Republic of Indonesia continued • The Committee on Financial Sector Policy KKSK and the Minister of Finance approved and
guaranteed the issuance of standby letters of credit and conversion of loans of PT Garuda Indonesia to Mandatory Convertible Bonds.
• The Bank returned additional paid-in capital of Rp1,412,000 representing a portion of the excess
recapitalization Note 32b.
• Based on the Minister of Finance’s Decision Letter No. 227KMK.022003 dated May 23, 2003, and Decree of the Minister of State-Owned Enterprises, as the Bank’s shareholder, No. KEP-154M-
MBU2002 dated October 29, 2002, the Government converted recapitalization funds amounting to Rp5,000,000 into 5,000,000 shares with a nominal value of Rp1,000,000 full amount per share, and
the remaining recapitalization funds amounting to Rp168,801,315 were recorded as agio.
• Based on Government Regulation PP No. 26 dated May 29, 2003, the Government of the Republic of Indonesia converted Rp1,000,000 of appropriated retained earnings to issued and fully paid-up
capital.
49. MATURITY PROFILE
This profile as of December 31, 2005 and 2004 is based on the remaining maturity period since those dates. Historically, a significant proportion of deposits are rolled-over on maturity. Also, Government
recapitalization bonds trading and available for sale could be liquidated through sale or used as collateral in the inter-bank market should the need for liquidity arise. The Bank’s policy with regards to the maturity gap
between the monetary assets and liabilities is to determine a gap limit which is adjusted to the Bank’s ability to obtain immediate liquidity.
The maturity profile of the Bank’s assets and liabilities is as follows:
2005
No Maturity
Description Total
Contract 1 mth
1 mth - 3 mth 3 mth 6 mth 6 mth 12 mth 12 mth
Assets Cash 2,522,764
- 2,522,764
- -
- -
Current accounts with Bank
Indonesia 20,304,705
- 20,304,705
- -
- -
Current accounts with other banks - net
697,603 -
697,603 -
- -
- Placements with
Bank Indonesia and other banks - net
23,617,054 -
23,355,312 176,616
38,671 46,455
- Securities - net
10,504,269 55,530
7,488,147 355,044
232,059 261,000
2,112,489 Government Recapitalization
Bonds 92,055,964 - -
57,568 - 1,332,602
90,665,794 Other receivables-trade
transactions - net 2,724,729
- 834,141
867,759 999,742
23,087 -
Securities bought with agreements to resell - net
317,043 -
215,513 101,530
- -
- Derivative receivables - net
315,243 -
19,545 18,795
5,673 -
271,230 Loans - net
94,869,474 -
15,469,798 9,987,343
6,415,058 8,718,649
54,278,626 Acceptances receivable - net
3,890,010 -
906,352 1,757,492
1,194,869 26,901
4,396 Investments in shares of
stock - net 68,066
68,066 -
- -
- -
Premises and equipment - net 5,305,413
5,305,413 -
- -
- -
Deferred tax assets - net 2,231,402
2,231,402 -
- -
- -
Accrued income
1,852,191 1,852,191 -
- - -
- Others - net
2,107,418 238,236
107,000 -
- 631,389
1,130,793
Total Assets 263,383,348
9,750,838 71,920,880
13,322,147 8,886,072
11,040,083 148,463,328
