PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
14
1. GENERAL continued
c. Recapitalization continued Based on Bank Indonesia Letter No. 11GBIDPIP dated October 11, 1999, concerning the
issuance of Government BondsDebentures in connection with the Government of the Republic of Indonesia’s investment in Bank Mandiri, Bank Indonesia agreed that the above receivable be
included in Bank Mandiri’s core capital “Tier 1” for purposes of calculating its capital adequacy ratio CAR as of July 31, 1999 through September 30, 1999, subject to the condition that not later
than October 15, 1999 the Government BondsDebentures should have been received by Bank Indonesia.
Based on Government Regulation No. 97 of 1999 dated December 24, 1999 concerning the increase in capital of the Government of the Republic of Indonesia in Bank Mandiri within the
framework of the Recapitalization Program, the Government of the Republic of Indonesia increased its investment to a maximum of Rp42,200,000, such that the total maximum investment
would amount to Rp180,000,000.
In connection with the implementation of the above Government Regulations No. 52 and No. 97 of 1999, in accordance with the Interim Recapitalization Agreement between the Government and
Bank Mandiri and its amendment, the Government issued Government Recapitalization Bonds “Recap Bonds” in two tranches of Rp103,000,000 on October 13, 1999 and Rp75,000,000 on
December 28, 1999 so that as of December 31, 1999 the total Recapitalization Bonds issued in accordance with the aforementioned Agreements amounted to Rp178,000,000 Note 7.
Based on the Management Contract dated April 8, 2000, between Bank Mandiri and the Government, the total amount of recapitalization required by Bank Mandiri was Rp173,931,000, or
less than the amount of the Recapitalization Bonds. Of such excess, Rp1,412,000 is to be retained as additional paid-in capital, and the balance of Rp2,657,000 was returned to the Government on
July 7, 2000 in the form of Recapitalization Bonds equivalent to 2,657,000 two million six hundred and fifty seven thousand units.
Based on the decision letter of the Minister of Finance No. S-174MK.012003 dated April 24, 2003
regarding the return of the excess Government Recapitalization Bonds, which was previously retained as additional paid-in capital, Government Recapitalization Bonds amounting to
Rp1,412,000 were returned to the Government on April 25, 2003 Note 32.
On May 23, 2003, the Minister of Finance issued decrees KMK-RI No. 227KMK.022003 and No. 420KMK-022003 dated September 30, 2003 confirming among others the final amount of the
Government’s participation in Bank Mandiri in the amount of Rp173,801,315 Note 32.
d. Initial Public Offering of the Bank’s Shares Bank Mandiri submitted its registration for an Initial Public Offering IPO to the Capital Market
Supervisory Board Bapepam on June 2, 2003. The Registration Statement became effective based on the decision letter of the Chairman of Bapepam No. S-1551PM2003 dated June 27,
2003.
On July 14, 2003, Bank Mandiri made an IPO of its 4,000,000,000 shares, with a nominal value of Rp500 full amount per share with an initial selling price of Rp675 full amount per share. The
offering of 4,000,000,000 shares of the Bank represents a divestment of 20 of the ownership of the Government of the Republic of Indonesia in Bank Mandiri Note 32a.
On July 14, 2003, 19,800,000,000 of Bank Mandiri’s shares were listed on the Jakarta Stock Exchange and Surabaya Stock Exchange based on Jakarta Stock Exchange’s Approval Letter
No. S-1187BEJ.PSJ07-2003 dated July 8, 2003 and Bursa Efek Surabaya’s Approval Letter No. JKT-028LISTBESVII2003 dated July 10, 2003.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
15
1. GENERAL continued
