FIXED ASSETS Fund Borrowings
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 569 15. FIXED ASSETS continued
Construction in progress as at 31 December 2007 was comprised of:
Balance
Computers and other hardware that has not been installed 71,829
Product and license – Integrated Banking System 54,013
Buildings 15,464
Office equipment and inventory 2,602
Others 6,995
150,903
The estimated percentage of completion of construction in progress as at 31 December 2007 for Integrated Banking System agreement was ranging between 73.77 - 96.24.
The above deduction of fixed assets include sale of assets with detail as follows:
2009 2008
2007
Book value 2,716
770 3,958
Selling Price 62,978
2,195 7,402
Gain on sale of fixed assets Note 45 60,262
1,425 3,444
a. Based on Ministry of Finance Decree KMK No. 211KMK.032003 dated 14 May 2003 and No. S-
206MK.012003 dated 21 May 2003, Bank Mandiri has appointed PT Vigers Hagai Sejahtera, a registered appraisal company, to revalue fixed assets of the merged banks BBD, BDN, Bank Exim
and Bapindo as at 31 July 1999, in relation to the transfer of tax losses and its compensations from taxpayers who transferred their assets to Bank Mandiri.
Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated 26 May 2003, the value of the Bank’s fixed assets and the increase in value as at 31 July 1999 were as
follows:
Fixed Assets Market Value
Book Value Increment in Value
Land and buildings 4,427,510
843,414 3,584,096
Furniture, fixtures and equipment 438,086
275,370 162,716
Vehicles 19,604
355 19,249
4,885,200 1,119,139
3,766,061
PT Vigers Hagai Sejahtera’s opinion of the market value was based on “Indonesian Appraisal Standards” issued by the Indonesian Appraisal Companies Association GAPPI and the Indonesian
Society of Appraisers MAPPI.
To determine the market value of the revalued fixed assets, the valuation methodology used by PT Vigers Hagai Sejahtera were market data and cost approach.
The results of the revaluation have been approved by the Directorate General of Taxation Head of Tax Service Office through its Decision Letter No. Kep-01WPJ.07KP.01052003 dated 18 June
2003.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 570 15. FIXED ASSETS continued
For tax purpose, Bank Mandiri has accounted the results of the revaluation on 18 June 2003 the approval date from the Directorate General of Taxation, after deducting the fixed assets with the
relevant accumulated depreciation for the period of 1 August 1999 until 18 June 2003. The net increment of fixed assets was amounting to Rp3,046,936, which include land, buildings, vehicles,
and office equipment. As explained in Note 2s, the Bank adopted the cost model for measurement of fixed assets in accordance with SFAS No. 16 revised 2007, “Fixed Assets” and reclassified the
balance of revaluation increment of fixed assets amounted to Rp3,046,936 as presented in the shareholders’ equity in the 2007 consolidated balance sheets to consolidated retained earnings in
2008 Note 32c.
The recognition of the fixed assets revaluation increment did not have any impact on the Bank’s deferred tax balance, as the tax losses used to compensate the fixed assets revaluation increment
had never been recognised as deferred tax assets by the Bank.
b. On 22 February 1990, the Bank signed a Joint Operation agreement KSO with PT Pakuwon Jati,
where PT Pakuwon Jati will build a shopping center and office tower with 17 storeys and other supporting facilities on land owned by Bank Mandiri, which is located on Jalan Basuki Rachmat No.
2, 4, 6 Surabaya. PT Pakuwon Jati is entitled to use the building for 22 years and at the end of the KSO agreement on 22 March 2012, the ownership of building will be handed over to Bank Mandiri.
On 14 June 1991, the Bank signed a Joint Operation Agreement KSO with PT Duta Anggada Realty, in which PT Duta Anggada Realty will build 2 office towers with 32 storeys on the land
owned by Bank Mandiri which located at Jalan Jenderal Sudirman lot 53-56, Jakarta. The agreement became effective from 14 June 1991 up to 20 years from the date of the construction
was completed, but not longer than 23 years since the construction was completed the office building will be handed over in June 2014 for the first tower and in June 2016 for the second tower.
On the maturity date, PT Duta Anggada Realty will hand over the ownership of the building to Bank Mandiri.
c. Bank Mandiri and Subsidiaries have insured their fixed assets excluding land rights, construction in
progress and leased assets to cover potential losses from risk of fire, theft and natural disaster to PT Staco Jasapratama, PT Asuransi Raya, PT Asuransi Dharma Bangsa, PT Asuransi Takaful
Umum, PT Asuransi Jasindo Takaful, PT Asuransi Jasa Indonesia, PT Asuransi Tri Pakarta, PT Asuransi Ramayana, PT Asuransi Parolamas, PT Asuransi Wahana Tata, PT Asuransi Purna
Arthanugraha, PT Asuransi Bumida Bumiputera, PT Asuransi Raksa Pratikara, PT Asuransi Sinarmas, PT Asuransi Jasatania, PT Asuransi Central Asia, PT Asuransi Bosowa, PT Asuransi
Bina Dana Arta, PT Asuransi Dayin Mitra, PT Asuransi Puri Asih, MSIG Insurance S’pore Pte. Ltd., British Caymanian Insurance Co. Ltd., Tugu Insurance Co. Ltd., Bank of China Group
Insurance Co. Ltd. and HSBC Insurance Asia Ltd. with total sum insured of Rp3,448,575 and USD3,727,274.25 full amount as at 31 December 2009, Rp1,997,281, USD84,249,506.46 full
amount, SGD2,206,235 full amount and HKD3,745,000 full amount as at 31 December 2008 and Rp1,849,743 and USD140,874,300.65 full amount as at 31 December 2007. Management
believes that the above insurance coverage is adequate to cover possible losses that may arise on the assets insured.
Management also believes that there is no impairment as at 31 December 2009, 2008 and 2007. .
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 571 16. OTHER ASSETS
2009 2008
2007
Accrued income 1,615,086
2,052,859 1,672,638
Others - net 2,197,179
3,341,275 3,487,895
3,812,265 5,394,134
5,160,533
Accrued Income Accrued income mainly consist of accrued interest receivables from placements, marketable securities,
Government Bonds, loans, accrued fees and commissions. Others - net
2009 2008
2007
Rupiah: Prepaid expenses
472,973 354,908
274,418 Abandoned properties - net of allowance
arising from difference in net realisable value of Rp13,226, Rp21,295 and Rp29,248 as at
31 December 2009, 2008 and 2007 188,628
253,603 304,845
Receivables from customer transactions 459,829
702,656 1,051 ,707
Repossessed assets - net of allowance arising from difference in net realisable value of
Rp10,163, Rp10,451 and Rp10,451 as at 31 December 2009, 2008 and 2007
151,660 186,175
186,953 Prepaid taxes
29,079 9,843
7,043 Others
1,495,436 1,417,213
1,097,260 Total Rupiah
2,797,605 2,924,398
2,922,226 Foreign currencies:
Prepaid expenses 33,344
22,509 19,800
Receivables from customer transactions 19,585
17,274 15,152
Others 283,267
1,016,669 1,143,355
Total Foreign currencies 336,196
1,056,452 1,178,307
Total 3,133,801
3,980,850 4,100,533
Less: Allowance for possible losses 936,622
639,575 612,638
2,197,179 3,341,275
3,487,895
Prepaid expenses mostly consist of advance payments relating to housing rental and building maintenance.
Receivables from customer transactions mainly consist of receivable arising from PT Mandiri Sekuritas Subsidiary securities transactions.
Others mainly consist of various receivables from transaction with third parties, including clearing transactions, receivable from sale of marketable securities and others.
Movement of allowance for possible losses on other assets are as follows:
2009 2008
2007
Balance at beginning of year 639,575
612,638 994,703
Allowancereversal during the year Note 38 541,981
151,530 208,072
Settlement during the year 33,689
- 46,513
Reclassification during the year 192,343
166,521 133,290
Written -offs during the year -
- 5,076
Others 18,902
11,946 10,886
Balance at end of year 936,622
639,575 612,638
Includes effect of foreign currency translation.
Management believes that the allowance for possible losses is adequate to cover any potential losses from other assets.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 572 17. DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS
a. By Currency, Related Parties and Third Parties:
2009 2008
2007
Rupiah: Related parties Note 48a
205,442 110,273
122,420 Third parties
53,677,015 53,155,575
51,926,055 Total Rupiah
53,882,457 53,265,848
52,048,475 Foreign currencies:
Related parties Note 48a 48,997
5,584 8,102
Third parties 18,765,393
15,815,256 10,249,631
Total foreign currencies 18,814,390
15,820,840 10,257,733
72,696,847 69,086,688
62,306,208
Included in demand deposits were wadiah deposits amounting to Rp2,685,509, Rp1,454,837 and Rp1,631,330 as at 31 December 2009, 2008 and 2007, respectively.
b. Average Interest Rates Cost of Funds and Range of Profit Sharing per Annum:
Average interest rates cost of funds per annum:
2009 2008
2007
Rupiah 3.61
2.85 2.65
Foreign currencies 0.87
1.35 1.89
Range of profit sharing per annum on wadiah deposits:
2009 2008
2007
Rupiah 0.93 - 1.09
0.94 - 1.04 0.91 - 1.07
Foreign currencies 0.23 - 0.99
0.24 - 1.05 0.23 - 2.64
c. As at 31 December 2009, 2008 and 2007, demand deposits pledged as collateral for bank
guarantees, loans and trade finance facilities were amounting to Rp1,053,844, Rp813,755 and Rp575,005, respectively.
d. As at 31 December 2009, 2008 and 2007, total demand deposits from related parties were
amounting to Rp254,439, Rp115,857 and Rp130,522, respectively or 0.35, 0.17 and 0.21, from total demand deposits Note 48a.