PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
74
16. PREMISES AND EQUIPMENT continued
Management believes that there is no permanent impairment in the value of fixed assets as of June 30, 2004 and 2003, and April 30, 2003.
a. In accordance with the Decrees of the Minister of Finance KMK No. 211KMK.032003 dated May 14, 2003 and No. S-206MK.012003 dated May 21, 2003, Bank Mandiri engaged PT Vigers
Hagai Sejahtera, a registered appraisal company, to revalue the premises and equipment of the merged banks, BBD, BDN, Bank Exim and Bapindo as of July 31, 1999, in relation to the transfer
of tax losses and utilization of tax losses by these taxpayers which transferred assets to Bank Mandiri Note 29.
Based on PT Vigers Hagai Sejahtera’s Valuation Report No. Ref-020-IVHSV03 dated May 26, 2003, the value of premises and equipment of the Bank, and the corresponding increment in value
as of July 31, 1999 are were follows:
Fixed Assets Market Value
Book Value Increment in Value
Land and buildings 4,427,510
843,414 3,584,096
Furniture, fixtures and equipment 438,086
275,370 162,716
Vehicles 19,604
355 19,249
4,885,200 1,119,139
3,766,061
PT Vigers Hagai Sejahtera’s opinion of the market value was based on “Indonesian Appraisal Standards” issued by the Indonesian Appraisal Companies Association GAAPI and the
Indonesian Society of Appraisers MAPPI.
In arriving at the market values, PT Vigers Hagai Sejahtera has taken into consideration the market data approach and cost approach valuation methodologies.
The results of the revaluation have been approved by the Directorate General of Taxation through Kepala Kantor Pelayanan Pajak Perusahaan Negara and Daerah through its Decision Letter
No. Kep-01WPJ.07KP.01052003 dated June 18, 2003.
Bank Mandiri has recorded the results of the revaluation on June 18, 2003, the date of approval from the Directorate General of Taxation, after deducting the relevant accumulated depreciation
for the period from August 1, 1999 to June 18, 2003. The net increment of premises and equipment of Rp3,046,936 involves land and buildings and was booked on June 18, 2003.
The recognition of the premises and equipment revaluation increment did not impact the Bank’s tax position, as the tax losses used to compensate the premises and equipment revaluation
increment had not been recognized as deferred tax assets by the Bank.
b. Bank Mandiri and Subsidiaries have insured their premises and equipment excluding landrights against physical lossdamage with PT Staco Jasapratama, PT Asuransi Raya and PT Asuransi
Dharma Bangsa for total coverage amounts of Rp3,394,033, Rp3,870,257 and Rp3,930,253 as of June 30, 2004 and 2003, and April 30, 2003, respectively. Management believes that the
insurance coverage is adequate to cover the possibility of losses arising in relation to premises and equipment.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
75
17. OTHER ASSETS
