FUND BORROWINGS 2004 12 Full Audited Financial Statements w Notes

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 91

25. FUND BORROWINGS continued

f Others December 31, December 31, April 30, 2004 2003 2003 Rupiah: Borrowing from the Government of the Republic of Indonesia 126,378 - - Bank Panin, Jakarta 50,000 100,000 - HSBC, Jakarta 90,000 - - DBS, Jakarta 50,000 - - Bank Niaga, Jakarta - 50,000 - 316,378 150,000 - Foreign Currency: HSBC, Jakarta 510,675 - - ABN Amro, Singapore 464,250 - - Bank of New York, Singapore 232,125 - - HSBC, Hong Kong 232,125 - - Indover Bank Limited, Hong Kong 278,668 - - ABN Amro, Jakarta 185,700 - - Indover Bank Limited, Germany 46,425 - - Others 6,165 5,968 182,663 1,956,133 5,968 182,663 Other fund borrowings in foreign currency represent short-term borrowings with tenors of less than 180 days and bear interest at SIBOR plus an applicable margin for Singapore and Jakarta branches, and LIBOR plus an applicable margin for Hong Kong and German branches.

26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES

a. Commitment and contingent transactions in the normal course of Bank Mandiri activities that have credit risk are as follows: December 31, December 31, April 30, 2004 2003 2003 Rupiah: Outstanding irrevocable letters of credit Note 46 369,425 959,364 393,314 B ank guarantees issued Note 46 3,185,858 2,508,293 2,042,590 Standby letters of credit Note 46 30,000 30,000 30,000 Others - - 963 3,585,283 3,497,657 2,466,867 Foreign Currency: Outstanding irrevocable letters of credit Note 46 6,117,130 4,213,145 4,849,354 Bank guarantees issued Note 46 4,307,596 2,655,835 2,647,886 Standby letters of credit Note 46 2,943,434 2,733,672 2,334,538 13,368,160 9,602,652 9,831,778 16,953,443 13,100,309 12,298,645 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 92

26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued

b. By Collectibility: December 31, December 31, April 30, 2004 2003 2003 Current 16,628,425 12,619,060 11,003,957 Special mention 315,787 375,113 1,262,938 Sub-standard 9,231 50,008 - Doubtful - 25,391 1,150 Loss - 30,737 30,600 Total 16,953,443 13,100,309 12,298,645 Le ss: Estimated losses on commitments and contingencies 565,898 572,267 1,488,315 Net commitments and contingencies 16,387,545 12,528,042 10,810,330 c. Movements of estimated losses on commitments and contingencies: Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Balance at beginning of period 572,267 1,211,211 1,488,315 1,211,211 Reversal ofaddition to provision during the period 37,923 641,113 846,430 205,317 Others 31,554 2,169 69,618 71,787 Balance at end of period 565,898 572,267 572,267 1,488,315 includes foreign currency translation effect. The minimum estimated losses on commitments and contingencies, under the guidelines prescribed by Bank Indonesia, as of December 31, 2004 and 2003, and April 30, 2003 were Rp371,470, Rp377,308 and Rp1,253,383, respectively. Management believes that the estimated losses on commitments and contingencies provided for is adequate.

27. TAXATION

a. Taxes payable December 31, December 31, April 30, 2004 2003 2003 Bank Mandiri Income Taxes: Employee income tax - Article 21 35,065 43,844 37,281 Withholding tax - Articles 2326 104,380 120,778 174,997 Corporate income tax - Articles 2529 242,330 423,146 865,398 Land and building tax 1 1 123 Others 56,379 205 2,816 438,155 587,974 1,080,615 Subsidiaries 57,969 13,330 10,394 496,124 601,304 1,091,009