ACCEPTANCES RECEIVABLE Continued INVESTMENTS IN SHARES OF STOCK

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 - 58 -

14. INVESTMENTS IN SHARES OF STOCK Continued

a. The details of investments in shares of stock as of December 31, 2001 are as follows: Accumulated Equity in Percentage Retained Earnings Carrying Investee Company Nature of Business of Ownership Cost Accumulated Losses Value Equity Method of Accounting: PT Sarana Bersama Pembiayaan Indonesia Holding company 34.00 2,278 2,881 5,159 PT Bapindo Bumi Sekuritas Securities trading 26.19 2,750 197 2,947 PT Exim SB Leasing Financing 50.00 25,000 25,000 - 8,106 Cost Method of Accounting: PT Semen Kupang a Manufacturing 59.70 45,023 45,023 PT Sri Thai a Manufacturing 23,055 23,055 PT Kertas Padalarang a Pulp and paper 51.50 9,530 9,530 PT Kustodian Sentral Efek Indonesia Security custodian 16.00 4,800 4,800 PT Pisita Wisata a Tourism 16.00 658 658 PT Mega Guna Concrete a Construction 24.00 200 200 Maskapai Pelayaran Laut Shipping 8.50 95 95 PT Bursa Efek Surabaya Stock exchange 2.22 75 75 PT Bursa Efek Jakarta Stock exchange 0.50 60 60 PT Pemeringkat Efek Indonesia Security rating 4.29 429 429 Others 3,622 3,622 87,547 Total 95,653 Less: Allowance for possible losses 26,377 69,276 a These investments, regardless of percentage of ownership, represent restructured loans through debt to equity participations Note 12. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001. 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 - 59 -

14. INVESTMENTS IN SHARES OF STOCK Continued

b. Classification of investments in shares of stock by collectibility is as follows: 2002 2001 Current 88,171 69,951 Loss 61,732 25,702 Total 149,903 95,653 Less: Allowance for possible losses 62,807 26,377 87,096 69,276 c. Movements of allowance for possible losses on investments in shares of stocks: 2002 2001 Balance at beginning of year 26,377 363,093 Provisionreversal during the year 8,682 27,743 Write-offs - 312,479 Others 27,748 3,506 Balance at end of year 62,807 26,377 The minimum allowance for possible losses on investments in shares of stock, under the guidelines prescribed by Bank Indonesia, as of December 31, 2002 and 2001 are Rp62,807, and Rp26,377, respectively. Management believes that the allowance for possible losses on investments in shares of stock is adequate.

15. PREMISES AND EQUIPMENT

2002 2001 Costrevaluation 3,510,602 2,947,859 Less: Accumulated depreciation and amortization 1,551,820 1,220,381 Net book value 1,958,782 1,727,478 revalued in 1979 and 1982 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 - 60 -

15. PREMISES AND EQUIPMENT Continued

Movements in 2002Beginning Additions Deductions Reclassi- Adjustments Ending Balance fications Balance Cost Revaluation Land 328,145 498 - - 16,874 345,517 Buildings 1,019,269 4,372 - - 39,575 1,063,216 Furniture, fixtures and office equipment 1,409,364 217,268 1,071 16,369 9,513 1,632,417 Vehicles 30,388 6,574 643 - 337 36,656 Construction in progress 160,693 284,702 - 16,369 3,770 432,796 Total cost 2,947,859 513,414 1,714 - 51,043 3,510,602 Accumulated Depreciation and Amortization Buildings 452,657 58,177 - - 12,849 523,683 Furniture, fixtures and office equipment 745,131 267,328 705 - 5,788 1,005,966 Vehicles 22,593 4,227 467 - 4,182 22,171 Total accumulated depreciation and amortization 1,220,381 329,732 1,172 - 2,879 1,551,820 Ending 2002 Balance Net Book Value Land 345,517 Buildings 539,533 Furniture, fixtures and office equipment 626,451 Vehicles 14,485 Construction in progress 432,796 1,958,782 Construction in progress as of December 31, 2002 is comprised of: License and development cost – Core Banking 361,471 Buildings 8,367 Others 62,958 432,796 The construction in progress is approximately 61 completed as of December 31, 2002.