SEGMENT INFORMATION continued CAPITAL ADEQUACY RATIO continued

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 148

52. NET OPEN POSITION Continued

The Net Open Position by currency of Bank Mandiri Bank only as of December 31, 2003 is as follows: Currency Assets Liabilities Absolute Open Position United States Dollar 66,453,280 67,030,133 576,853 Euro 444,648 425,908 18,740 Singapore Dollar 121,430 164,209 42,779 Japanase Yen 99,790 114,213 14,423 British Pound Sterling 33,830 35,299 1,469 Australian Dollar 24,640 30,205 5,565 New Zealand Dollar 11,546 - 11,546 Hong Kong Dollar 10,286 4,721 5,565 Malaysian Ringgit - 32,313 32,313 Others 31,249 14,501 16,748 Total Absolute Open Position 726,001 Total Tier I and II Capital less investments in subsidiaries Note 51 25,463,716 NOP Ratio 2.85 include hedge bonds of Rp8,986,456 Note 7. The Net Open Position by currency of Bank Mandiri Bank Mandiri only as of April 30, 2003 was as follows: Currency Assets Liabilities Absolute Open Position United States Dollar 68,073,824 67,911,758 162,066 Singapore Dollar 1,960,613 1,678,808 281,805 Japanese Yen 1,295,915 1,317,574 21,659 Euro 500,543 493,212 7,331 Australian Dollar 20,455 18,638 1,817 British Pound Sterling 34,897 23,162 11,735 Malaysian Ringgit - 32,993 32,993 Hong Kong Dollar 34,156 279 33,877 Others 23,420 10,595 12,825 Total Absolute Open Position 566,108 Total Tier I and II Capital less investments in subsidiaries Note 51 21,202,046 NOP Ratio 2.67 include hedge bonds of Rp14,262,027 Note 7. 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 149 53. NON-PERFORMING EARNING ASSETS RATIO, TOTAL ALLOWANCE FOR POSSIBLE LOSSES ON EARNING ASSETS RATIO AND SMALL-SCALE LOANS RATIO Non-performing earning assets to total earning assets were 3.61, 3.52 and 3.07 Bank Mandiri only: 3.65, 3.54 and 3.09 as of December 31, 2004 and 2003, and April 30, 2003, respectively. The Non-Performing Loans NPL ratio Bank Mandiri only before being deducted by the allowance for possible losses gross basis is 7.43, 8.84 and 8.95 as of December 31, 2004 and 2003, and April 30, 2003, respectively Note 11A.c. The total allowance for possible losses on earning assets provided by Bank Mandiri Bank Mandiri only compared to the minimum allowance for possible losses on earning assets under the guidelines prescribed by Bank Indonesia were 133, 141 and 149 as of December 31, 2004 and 2003, and April 30, 2003, respectively. The small-scale loans to total loans ratio Bank Mandiri only was 4.42, 4.40 and 4.07 as of December 31, 2004 and 2003, and April 30, 2003, respectively. 54. CUSTODIAL AND TRUST OPERATIONS Custodial Operations Bank Mandiri started rendering custodial services in 1995. The operating license for custodial services was renewed and re-issued based on Bapepam Decision Letter No. KEP.01PMKstd1999 dated October 4, 1999. On December 20, 2001, Bank Mandiri Custodial Services has received Quality Certification ISO 9001:2000. The Custodial Services Business CSB, which is part of the Securities Services Department SSD of Bank Mandiri, provides a full range of custodial services such as: a. Settlement and handling services for scrip and scripless trading transactions. b. Registration of securities with Biro Administrasi Efek, and splitting and merging of securities. c. Safekeeping and administration of securities and other valuable assets. d. Corporate action services related to the rights on the securities. e. Proxy services for its customers’ shareholders’ meetings and obligation holders’ meetings. f. International services i.e. American Depository Receipts ADRs and Global Depository Receipts GDRs, which are required by entities listed on the domestic and overseas exchanges dual listing. g. Sub-registry services for settlement of transactions of Indonesian recapitalization bonds “Government Recapitalization Bonds” as well as SBIs. h. Escrow agent. i. As sub-custody agent for Euroclear transactions. Bank Mandiri has 304, 266 and 269 custodial customers as of December 31, 2004 and 2003, and April 30, 2003, respectively. The customers are primarily pension funds, insurance companies, banks, securities companies, mutual funds and other private companies with a total portfolio value as of December 31, 2004 of Rp51,350,943 and US221,426,459 full amount. Bank Mandiri carries insurance on custodial services against safekeeping and transit loss under blanket policies amounting to approximately Rp205,000. Management is of the opinion that the insurance coverage is adequate to cover possible losses from safekeeping and transit risks. 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 150

54. CUSTODIAL AND TRUST OPERATIONS continued

Trust Operations Bank Mandiri had been rendering trustee services since 1983 legacy banks: Bank Exim, BDN, BBD and Bapindo. The operating license for trustee services was renewed and re-registered with Bapepam as stipulated in Decision Letter No. 17STTD-WAPM1999 dated October 27, 1999. The Trustee Services Business TSB, which is part of the Securities Services Department SSD of Bank Mandiri, provides a full range of the following services: a. Preparing documentation support to bond issuers in complying with required documents for issuance. b. Signing trustee agreements and other relevant documents together with bond issuers and other related institutions. c. Monitoring performance of issuers and compliance against required documentation as stipulated in trustee agreements on behalf of bondholders. d. Facilitating bondholder meetings and following up and executing the results of bondholder meetings, as required. e. Providing information on issuers’ performance as requested by Bapepam or bondholders. f. Managing the sinking fund and other collateral as required by a bond’s issuance and terms and conditions. g. Paying agent for bonds issue, shares, MTN and others. h. Escrow agent and security agent. Bank Mandiri had 34, 27 and 22 trustee customers as of December 31, 2004 and 2003, and April 30, 2003, respectively. The total value of bonds issued amounted to Rp9,703,487 and US100,000,000 full amount, while the sinking funds managed on behalf of bond issuers as of December 31, 2004 amounted to Rp19,000 and the escrow account amounted to Rp1,363,225 on behalf of seven customers.

55. CHANNELING LOANS

Channeling loans based on sources of funds and economic sectors are as follows: December 31, December 31, April 30, 2004 2003 2003 Government: Electricity, gas and water 9,414,882 9,722,709 9,564,015 Transportation and communications 5,335,880 6,604,057 7,089,813 Agriculture 1,737,072 1,694,085 1,692,122 Manufacturing 839,980 854,454 630,553 Mining 99,738 101,812 118,731 Construction 17,015 18,489 20,307 Others 122,847 128,342 138,378 17,567,414 19,123,948 19,253,919 Bank Mandiri has been appointed to administer channeling loans in various foreign currencies received by the Government of Indonesia from various bilateral and multilateral financing institutions, such as, The Export Import Bank of Japan, ASEAN Japan Development Fund, Overseas Economic Cooperation Fund, International Bank for Reconstruction and Development, Nordiska Investeringbanken, Kreditanstalt Fur Wiederaufbau, Sumitomo, US AID, Barclays Bank, Bank of China, CN Lyonnais, Unibank, Bank of Austria, Ryobhin Hong Kong, Export Finance and Insurance Cooperation - Australia, Mitsubishi Corporation, Chartered West LB, Banque Indosuez, Hitachi Zosen, NEC Corporation, Banque Francais du Comm, US Exim Bank, and Banque Paribas, for financing projects in Indonesia.