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
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58
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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
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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
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60
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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.