Revenues from Payment System Services Other Revenues

BANK INDONESIA Notes to Financial Statements As at December 31, 2008 43

32. Open Market Operations Expenses

Open Market Operations Expenses consists of: 2008 2007 IDR million IDR million - Research for Base Money 5,337 8,510 - Policy Development, Endorsement and Execution for Base Money 26 2,213 - Operational Execution for Base Money 8,533 5,225 - Policy Execution for Base Money 20,823,399 24,447,281 20,837,295 24,463,229 Open market operations expenses is Bank Indonesia’s largest expense, amounted to IDR20,837,295 million 74.20 of total expenses in 2008 and amounted to IDR24,463,229 million 80.32 of total expenses in 2007. Included in Policy Execution Expenses are SBI and FASBI Discount amounted to IDR19,931,010 million, SWBI Bonus expenses amounted to IDR60,044 million, SBIS Bonus expenses amounted to IDR87,330 million, compensation for bank demand deposits amounted to IDR744,950 million, and other activities supporting policy execution amounted to IDR65 million.

33. Foreign Reserves Management Expenses

Foreign reserves management expenses consisted of: 2008 2007 IDR million IDR million - Research for Foreign Reserves Management 112 236 - Policy Development, Endorsement and Execution for Foreign Reserves Management 5,115 4,887 - Operational Execution for Foreign Reserves Management 31,086 20,501 36,313 25,624

34. Foreign Loan Management Expenses

Foreign loan management expenses for the year 2008 and 2007 were IDR260,808 million and IDR368,070 million respectively.

35. Payment System Operations Expenses

Included in the payment system services expenses amounted to IDR1,650,612 million for the year 2008 and IDR1,646,299 million for the year 2007, is currency procurement expenses and currency printing expenses amounted to IDR485,909 million and IDR1,035,460 million. Currency printing expenses are based on temporary Currency Printing Price Harga Cetak Uang – HCU. BANK INDONESIA Notes to Financial Statements As at December 31, 2008 44

36. General and Other Expenses

General and Other Expenses for the year 2008 and 2007 consisted of: 2008 2007 IDR million IDR million Human Resources 3,235,905 2,726,172 Logistics and Security Management 740,973 735,298 Information Technology System 128,168 80,109 Others: - Internal Finance 60,180 13,378 - Internal Control 5,026 6,252 - Legislature and Law 44,025 14,388 - Administration, Archive and Expedition 19,035 17,254 Withdrawal from accounts that have been inactive for more than 2 years and have been recognized as income 33,471 Addition of Allowance for Bad Debts 767,152 5,000,464 3,626,322 According to Act of the Republic of Indonesia Number 23 of 1999 concerning Bank Indonesia as amended by Act of the Republic of Indonesia Number 3 of 2004, salary, other income and facilities of the Governor, Senior Deputy Governor and Deputy Governor shall be prescribed by the Board of Governors. The amount of such salary and other income of the Governor shall be determined at the maximum of 2 two times the salary and other income of an employee of the highest rank in Bank Indonesia. Included in the General and Other expenses were salaries, incentives, holiday bonus tunjangan hari raya, and compensation on annual leaves uang penggantian cuti tahunan for the Board of Governors amounted to IDR15,872 million and IDR17,143 million for the year 2008 and 2007, respectively. The Board of Governors also receives other income in the form of grand leaves cuti besar, post retirement benefits, benefit payable to members of the Board of Governors due to expiration of terms of office, long service awards, benefit payable upon termination at normal retirement age, benefit payable upon termination due to the death of employee or hisher spouse or hisher children bantuan uang duka, and other facilities inluding housing, transportation, medicalhealth, telecommunication, insurance, credit card and memberships. Included in the Organization and Human Resource Management expenses were employee benefit expenses amounted to IDR830,123 million for the year 2008 see Notes C.24 – Other Liabilities.