OTHER OPERATING INCOME - OTHERS

PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 114 -

46. COMMITMENTS AND CONTINGENCIES Continued

In 1996, the Bank BDN and Bank Exim and other syndicated banks entered into a syndicated loan agreement with PT Semen Bosowa Maros “SBM” to finance the construction of a cement factory. The loan draw down was executed through usance letters of credit paid at sight “UPAS LC” which were opened and paid by PT Bank Negara Indonesia’46 “BNI” Singapore Branch. On October 12, 1997, Bank Mandiri “BDN”, as syndicated agent, issued a “Debit Authorization” authorizing BNI’46 Singapore to claim irrevocably and unconditionally the payment as the UPAS LCs mature. Up to August 28, 2002 and as of December 31, 2001, the balance of UPAS LCs principal and interest opened and paid by BNI Singapore amounted to US271,394,176 full amount and US261,896,075 full amount, or equivalent to Rp2,456,118 and Rp2,723,719, respectively, of which US68,574,959 full amount was due as of June 30, 2002. During the year, the Bank has paid all the amount of the UPAS LCs issued by BNI Singapore, which included interest up to August 28, 2002 of US75,821,067 full amount. Effective August 28, 2002, the loan to SBM was restructured. The restructured loan to SBM consists of the total credit limit as stated in Loan Agreement No. PK 44 of Rp526,275 with an exchange rate of Rp2,339 per US1 plus 63 of the total foreign currency loss derived from the Agreement’s rate against the payment rate of Rp1,929,843. 37 of the foreign currency loss or equivalent to Rp715,584 was agreed to be borne by Bank Mandiri and Bank BNI amounting to Rp447,240 and Rp268,344, respectively. The portions of each of the other syndicated banks upon restructuring of the loan are based on the portions stated on the original loan agreement. The restructured loan portion of Bank Nusa and Bank Tugu of Rp23,390 and Rp11,695, respectively, were taken over by Bank Mandiri and Bank BNI with portions of 62.5 and 37.5, respectively. After the loan restructuring, the Bank’s loan to SBM consists of the original credit limit of BDN and Bank Exim of Rp156,713 and Rp77,187, respectively; 62.5 of the SBM’s portion against the foreign exchange loss and 62 of the Bank Nusa and Bank Tugu portions. In addition, the Bank also recorded a loss on foreign exchange differences of Rp447,240.

47. FOREIGN CURRENCY TRANSACTIONS

Effective January 1, 2001, forward and cross currency swap transactions are presented as derivatives receivables Note 11. Details of outstanding spot foreign currency bought and sold transactions as of December 31, 2002 are as follows: Spot-Bought Spot-Sold Foreign Currency Rupiah Foreign Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollars 49,438,329 442,473 58,195,949 520,854 Other - 13,931 3,190 456,404 524,044 Details of outstanding spot foreign currency bought and sold transactions as of December 31, 2001 are as follows: Spot-Bought Spot-Sold Foreign Currency Rupiah Foreign Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollars 21,652,303 225,184 55,297,449 575,093 Other 71,787 33,618 296,971 608,711