PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
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54. CUSTODIAL AND TRUST OPERATIONS
Custodial Operations Bank Mandiri started rendering custodial services in 1995. The operating license for custodial services
was renewed and re-issued based on Bapepam Decision Letter No. KEP.01PMKstd1999 dated October 4, 1999. Bank Mandiri’s Custodial, which is part of the Securities Services Department SSD of Bank
Mandiri, provides a full range of custodial services such as: a. Settlement and handling services for script and scriptless trading transactions.
b. Safekeeping and administration of securities and other valuable assets. c. Corporate action services related to the rights on the securities.
d. Proxy services for its customers’ shareholders’ meetings and obligation holders’ meetings. In order to fulfill the investors needs in investing in various securities instruments, Bank Mandiri’s
Custodial facilitates by acting as:
a. General custodial which provides services for the investors in investing in the Indonesia capital market; b. Local custodial for American Depository Receipts ADRs and Global Depository Receipts GDR
which is needed by the investors in converting the companies’ shares listed in local and overseas stock exchange dual listing;
c. Sub-registry services for settlement of transactions of Indonesian recapitalization bonds “Government Recapitalization Bonds” as well as SBIs;
d. As direct participant of Euroclear; e. Custodial for mutual fund managed by investment manager.
Bank Mandiri has 326 and 319 custodial customers as of June 30, 2006 and 2005, respectively. The customers are primarily pension funds, insurance companies, banks, securities companies, mutual funds
and other private companies with a total portfolio value as of June 30, 2006 of Rp66,736,947 and US275,842,232.72 full amount.
Bank Mandiri carries insurance on custodial services against safekeeping and transit loss under blanket policies amounting to approximately Rp201,000. Management is of the opinion that the insurance
coverage is adequate to cover possible losses from safekeeping and transit risks.
Trust Operations Bank Mandiri had been rendering trustee services since 1983 legacy banks: Bank Exim, BDN, BBD and
Bapindo. The operating license for trustee services was renewed and re-registered with Bapepam as stipulated in Decision Letter No. 17STTD-WAPM1999 dated October 27, 1999. The Trustee Services
Business TSB, which is part of the Securities Services Department SSD of Bank Mandiri, provides a full range of the following services:
a. Preparing documentation support to bond issuers in complying with required documents for issuance. b. Signing trustee agreements and other relevant documents together with bond issuers and other
related institutions. c. Monitoring performance of issuers and compliance against required documentation as stipulated in
trustee agreements on behalf of bondholders. d. Facilitating bondholder meetings and following up and executing the results of bondholder meetings,
as required. e. Providing information on issuers’ performance as requested by Bapepam or bondholders.
f. Managing the sinking fund and other collateral as required by a bond’s issuance and terms and conditions.
g. Paying agent for bonds issue, shares, MTN and others. h. Escrow agent and security agent.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
127
54. CUSTODIAL AND TRUST OPERATIONS continued
