PREMISES AND EQUIPMENT continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated 64

14. PREMISES AND EQUIPMENT continued

a. In accordance with the Decrees of the Minister of Finance KMK No. 211KMK.032003 dated May 14, 2003 and No. S-206MK.012003 dated May 21, 2003, Bank Mandiri engaged PT Vigers Hagai Sejahtera, a registered appraisal company, to revalue the premises and equipment of the merged banks, BBD, BDN, Bank Exim and Bapindo as of July 31, 1999, in relation to the transfer to Bank Mandiri of tax losses of these taxpayers which transferred assets to Bank Mandiri. Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated May 26, 2003, the value of premises and equipment of the Bank and the corresponding increment in value as of July 31, 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. In arriving at the market values, PT Vigers Hagai Sejahtera has taken into consideration the market data approach and cost approach valuation methodologies. The results of the revaluation have been approved by the Directorate General of Taxation through Kepala Kantor Pelayanan Pajak Perusahaan Negara dan Daerah through its Decision Letter No. Kep- 01WPJ.07KP.01052003 dated June 18, 2003. Bank Mandiri has recorded the results of the revaluation on June 18, 2003, the date of approval from the Directorate General of Taxation, after deducting the relevant accumulated depreciation for the period from August 1, 1999 to June 18, 2003. The net increment of premises and equipment of Rp3,046,936, involved land, buildings, vehicles, and office equipment. The recognition of the premises and equipment revaluation increment did not impact the Bank’s tax expense position, as the tax losses used to compensate the premises and equipment revaluation increment had not been recognized as deferred tax assets by the Bank. b. Bank Mandiri and Subsidiaries have insured their premises and equipment excluding land against physical loss; fire, theft and natural disaster with PT Staco Jasapratama, PT Asuransi Raya and PT Asuransi Dharma Bangsa for total coverage amounts of Rp2,481,272 and Rp3,342,230 as of December 31, 2005 and 2004, respectively. Management believes that the insurance coverage is adequate to cover the possibility of losses arising in relation to premises and equipment. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated 65

15. OTHER ASSETS

2005 2004 Receivables - 3,256,714 Accrued income 1,852,191 1,145,139 Others 2,107,418 3,378,047 3,959,609 7,779,900 Receivables Receivables from the accretion in realizable value of the zero coupon instruments and deposits placed with foreign institutions which serve as security for certain Subordinated Undated Floating Rate Notes SUFRNs which were issued by Bank Exim and BDN, and the effective reduction in the principal liability of the SUFRNs which were issued by Bapindo, are as follows: 2005 2004 SUFRNs classified as subordinated loans Note 29 Bapindo SUFRNs - 1,084,024 Bank Exim SUFRNs - 1,044,563 - 2,128,587 SUFRNs classified as loan capital Note 30 BDN SUFRNs - 1,128,127 - 3,256,714 On July 27, 2005, November 30, 2005 and December 21, 2005 the Bank executed the option to repurchase Bank Exim, Bapindo and BDN SUFRNs and the Bank has compensated the related receivables with the aggregate nominal amount of Bank Exim, Bapindo and BDN SUFRNs Note 29. Accrued Income Accrued income primarily comprises accrued interest receivable from placements, securities, Government Recapitalization Bonds, loans, and accrued fees and commissions. Others 2005 2004 Rupiah: Prepaid expenses 414,097 338,279 Interbranch account – net 265,400 216,145 Abandoned property – net of accumulated losses arising from difference in net realizable value of Rp31,064 and RpNil as of December 31, 2005 and 2004 238,236 255,738 Prepaid taxes 217,292 63 Repossessed assets – net of accumulated losses arising from difference in net realizable value of Rp10,451 and RpNil as of December 31, 2005 and 2004 188,703 200,040 Receivables from customer transactions 107,000 - Interest receivables from financial institutions 43,496 31,597 Prepaid dividends - 1,207,926 Interest receivables from government Note 48 - 866 Others 756,613 2,461,035 Total Rupiah 2,230,837 4,711,689 Foreign Currency: Interbranch account - net 39,306 258,433 Others 264,500 288,271 Total Foreign Currency 303,806 546,704