PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
44
8. SECURITIES continued
h. Movements of Allowance for Possible Losses on Securities:
Six-month Six-month Two-month
Four-month Period
ended Period ended Period ended Period
ended June 30, 2004
June 30, 2003 June 30, 2003
April 30, 2003
Balance at beginning of period 1,089,368
1,064,624 1,105,828
1,064,624 Provision during the period
30,714 8,203
2,953 5,250
Recoveries 15,263 36,000
- 36,000
Write off 17,120
- -
- Others
23,427 3,258
3,212 46
Balance at end of period 1,094,798 1,105,569
1,105,569 1,105,828
Includes foreign exchange translation effect.
Bank Mandiri invested Rp200,000 as seed capital in Dana Korporasi Mandiri DKM, a mutual fund, on March 19, 2003. In accordance with Bapepam regulations, the seed capital should be placed in
a mutual fund for a period of at least one year. The gain from the sale of securities amounted to Rp143,593, Rp201,702 and Rp12,670 for the six-
month periods ended June 30, 2004 and 2003, and the four-month period ended April 30, 2003, respectively.
Management believes that the allowance for possible losses on securities is adequate.
9. GOVERNMENT RECAPITALIZATION BONDS
Government Recapitalization Bonds consist of bonds issued by the Government in connection with its Recapitalization Program in 1999, acquired from primary and secondary markets with details as
follows:
June 30, 2004 June 30, 2003
April 30, 2003
Held-to-maturity, at cost 67,357,594
103,433,472 105,393,520
Available for sale, fair value 33,473,998
29,509,080 35,625,964
Trading, fair value 1,446,076
4,090,587 9,312,896
102,277,668 137,033,139
150,332,380
In the context of the Recapitalization Program as discussed in Note 3 to the consolidated financial statements, the Minister of Finance subscribed to additional paid-in capital in Bank Mandiri. The
subscription was paid by crediting Bank Mandiri’s account in Bank Indonesia, which was simultaneously used to purchase Government Recapitalization Bonds issued by the Government. This
recapitalization was carried out in two tranches, on October 13, 1999 for Rp103,000,000 and on December 28, 1999 for Rp75,000,000.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
45
9. GOVERNMENT RECAPITALIZATION BONDS continued
Based on maturities, the Government Recapitalization Bonds are as follows:
June 30, 2004 June 30, 2003
April 30, 2003
Held-to-maturity: Less than 1 year
6,262,995 6,786,405
8,472,511 1 - 5 years
- 7,466,387
7,740,329 5 - 10 years
1,350,000 15,082,392
15,082,392 More than 10 years
59,744,599 74,098,288
74,098,288 67,357,594
103,433,472 105,393,520
Available for sale: 1 - years
2,003,919 4,050,998
5,302,675 5 - 10 years
13,260,505 18,548,557
24,742,078 More than 10 years
18,209,574 6,909,525
5,581,211 33,473,998
29,509,080 35,625,964
Trading: Less than 1 year
- 996
- 1 - 5 years
1,362,388 2,747,143
4,932,011 5 - 10 years
83,688 1,342,448
4,380,885 1,446,076
4,090,587 9,312,896
102,277,668 137,033,139
150,332,380
The details of Government Recapitalization Bonds are as follows:
June 30, 2004
Held-to-maturity
Interest rates
Maturity Frequency
of Series
Nominal per annum
dates interest payment
Fixed rate bonds FR0010
1,350,000 13.15
03152010 6 month
1,350,000 Variable rate bonds
VR0019 59,744,599
SBI 3 month 12252014
3 month - VR0031
- 07252020 59,744,599
Hedge bonds HB0071
5,952,682 SIBOR + 2
07252004 3 month
- HB0082
- 07252020
Hedge bonds at
nominal value
5,952,682 Add: Increase in value of
indexation of Hedge bonds 310,313
Hedge bonds after
indexation 6,262,995
67,357,594
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
46
9. GOVERNMENT RECAPITALIZATION BONDS continued
