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
71
13. INVESTMENTS IN SHARES OF STOCK continued
b. By Collectibility:
December 31, December 31,
April 30, 2004
2003 2003
Current 4,922
12,851 129,042
Sub-standard 1,955
- -
Loss 80,117
89,564 20,862
Total 86,994
102,415 149,904
Less: Allowance for possible losses 78,145
89,693 27,633
8,849 12,722
122,271
c. Movements of allowance for possible losses on investments in shares of stocks:
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 89,693
62,807 27,633
62,807 Reversalprovision during the period
1,922 35,626
70,823 35,197
Write-offs 9,530
- -
- Others
96 8,740
8,763 23
Balance at end of period 78,145
89,693 89,693
27,633
The minimum allowance for possible losses on investments in shares of stock, under the guidelines prescribed by Bank Indonesia, as of December 31, 2004 and 2003, and April 30, 2003
was Rp78,145, Rp89,693 and Rp27,633, respectively. Management believes that the allowance for possible losses on investments in shares of stock is
adequate.
14. PREMISES AND EQUIPMENT
December 31, December 31,
April 30, 2004
2003 2003
CostValuation 7,825,578
7,245,644 3,685,787
Less: Accumulated depreciation and amortization 2,341,950
1,861,272 1,642,699
Net book value 5,483,628
5,384,372 2,043,088
Certain premises and equipment were revalued in 1979, 1987 and 2003.
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
72
14. PREMISES AND EQUIPMENT continued
Movements from Jan 1, 2004 Beginning
Ending to December 31, 2004
Balance Additions
Deductions Reclassifications Balance
Cost or Valuation Direct ownership
Land 2,903,770
185 74,342
- 2,829,613
Buildings 1,391,505
28,226 2,817
43,257 1,460,171
Furniture, fixtures, office equipment and
computer equipmentsoftware 2,484,614
175,345 45,761
511,360 3,125,558
Vehicles 47,446
21,379 5,668
- 63,157
Construction in progress 380,759
439,409 -
554,617 265,551
Leased assets 37,550
43,978 -
- 81,528
Total Cost or Valuation 7,245,644
708,522 128,588
- 7,825,578
Accumulated Depreciation and Amortization
Direct ownership Buildings
599,243 98,725
2,624 -
695,344 Furniture, fixtures,
office equipment and computer equipmentsoftware
1,226,794 399,499
45,387 -
1,580,906 Vehicles
25,222 12,611
4,870 -
32,963 Leased assets
10,013 22,724
- -
32,737 Total Accumulated Depreciation
and Amortization 1,861,272
533,559 52,881
- 2,341,950
Net book value Direct ownership
Land 2,829,613
Buildings 764,827
Furniture, fixtures, office equipment and computer equipmentsoftware 1,544,652
Vehicles 30,194
5,169,286 Construction in progress
265,551 Leased assets
48,791 5,483,628
The amount includes an increment in value of premises and equipment based on revaluation of fixed assets of the merged banks performed by an Independent Appraiser, PT Vigers Hagai Sejahtera, using market values as of July 30, 1999. The
revaluation increment was recorded prospectively on June 18, 2003 Note 14a.
Construction in progress as of December 31, 2004 is comprised of: Product and license - Core Banking System
146,960 Buildings
9,996 Others
108,595 265,551
The construction in progress was approximately 92.79 complete as of December 31, 2004. Certain premises and equipment of BSM, a subsidiary, with net book value as of December 31, 2004, have
been pledged as collateral to Bank Indonesia in relation to BSM’s proposal for the settlement of its Rp32,000 subordinated loan from BI Note 29g.
