EMPLOYEE ALLOWANCES AND BENEFITS continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 136

46. COMMITMENTS AND CONTINGENCIES

December 31, April 30, December 31, 2003 2003 2002 COMMITMENTS Commitment Receivables: Unused fund borrowing facilities - 4,638 - Unrealized spot foreign currencies bought Note 47 323,042 312,667 456,404 Others 34,399 28,688 40,483 Total Commitment Receivables 357,441 345,993 496,887 Commitment Payables: Unused loan facilities granted 17,025,825 10,247,192 10,403,180 Outstanding irrevocable letters of credit Note 26a 5,172,509 5,242,668 6,371,228 Unrealized spot foreign currencies sold Note 47 585,998 379,739 524,044 Others - 108,302 43,119 Total Commitment Payables 22,784,332 15,977,901 17,341,571 Commitment Payables - Net 22,426,891 15,631,908 16,844,684 CONTINGENCIES Contingent Receivables: Guarantees received from other banks Note 48 1,428,091 1,217,055 1,299,216 Interest receivable on non-performing assets 2,104,460 2,750,989 2,596,205 Others 37,430 29,910 13,192 Total Contingent Receivables 3,569,981 3,997,954 3,908,613 Contingent Payables: Guarantees issued in the form of: Bank guarantees issued Notes 26a and 48 5,164,128 4,690,476 4,886,416 Standby letters of credit Notes 26a and 48 2,763,672 2,364,538 3,235,189 Others - 963 - Outstanding revocable letters of credit - 1,580 - Others 57,498 163,219 - Total Contingent Payables 7,985,298 7,220,776 8,121,605 Contingent Payables - Net 4,415,317 3,222,822 4,212,992 COMMITMENTS AND CONTINGENCIES PAYABLE - NET 26,842,208 18,854,730 21,057,676 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 137

47. FOREIGN CURRENCY TRANSACTIONS

Forward and cross currency swap transactions are presented as derivative receivablespayables in the balance sheet Note 10. Details of outstanding spot foreign currency bought and sold transactions as of December 31, 2003 are as follows: Spot-Bought Spot-Sold Foreign Currency Rupiah Foreign Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollars 37,033,099 312,004 67,135,616 565,618 Other 11,038 20,380 323,042 585,998 Details of outstanding spot foreign currency bought and sold transactions as of April 30, 2003 are as follows: Spot-Bought Spot-Sold Foreign Currency Rupiah Foreign Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollars 25,924,155 224,905 35,647,844 309,263 Other 87,762 70,476 312,667 379,739 Details of outstanding spot foreign currency bought and sold transactions as of December 31, 2002 are as follows: Spot-Bought Spot-Sold Foreign Currency Rupiah Foreign Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollars 49,438,329 442,473 58,195,949 520,854 Other 13,931 3,190 456,404 524,044

48. BANK GUARANTEES RECEIVED AND ISSUED AND STANDBY LETTERS OF CREDIT

Bank Guarantees Received Bank guarantees received from other banks amounting to Rp1,428,091, Rp1,217,055 and Rp1,299,216, as of December 31, 2003, April 30, 2003 and December 31, 2002, respectively, are obtained from foreign banks to serve as collateral for loans, letters of credit or counter guarantees issued by Bank Mandiri. Bank Guarantees Issued Bank guarantees issued as of December 31, 2003, April 30, 2003 and December 31, 2002, consist of the following: December 31, April 30, December 31, 2003 2003 2002 Issued on behalf of: PT Dirgantara Indonesia 242,582 259,939 209,717 PT Wijaya Karya 212,449 167,022 128,497 PT Pembangunan Perumahan Persero 176,633 160,405 174,719 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 138

48. BANK GUARANTEES RECEIVED AND ISSUED AND STANDBY LETTERS OF CREDIT continued

Bank Guarantees Issued continued December 31, April 30, December 31, 2003 2003 2002 PT Perusahaan Listrik Negara Persero 168,452 173,460 178,460 PT Adhi Karya 152,533 117,223 129,840 PT PELNI 123,503 127,144 141,768 PT Telekomunikasi Indonesia Tbk. 114,024 - - PT Waskita Karya 84,639 57,405 - PT Brantas Abipraya Persero 83,475 57,400 58,884 PT SAC Nusantara 65,288 48,561 - PT Gunanusa Utama Fabricator 60,810 - 64,960 Others each below Rp60,000 3,679,740 3,521,917 3,799,571 5,164,128 4,690,476 4,886,416 There is no bank guarantees issued to related parties as of December 31, 2003, April 30, 2003 and December 31, 2002. The bank guarantees issued on behalf of PT Dirgantara Indonesia DI mostly represent Advance Payment Bank Guarantees and Performance Bonds. The bank guarantees of US7,782,600 full amount and US9,912,850 full amount were issued to guarantee the advances paid by the Ministry of National Defense Republic of Korea - Republic of Korea Air Force ROKAF of US7,630,000 full amount for the conversion of two of eight units of CN235-220M Aircraft as stated in FCE Contract No. KFX-DPA-73AA59080 to one VIP Aircraft VIP Conversion Aircraft No. 7 and on VVIP Aircraft VVIP Conversion Aircraft No. 8 and to guarantee advances paid by the President of Islamic Republic of Pakistan - Pakistan Air Force PAF of US9,912,860 full amount for the purchase of four CN235 aircraft. The Performance Bonds amounting to US545,000 full amount and US2,912,500 full amount are respectively related to the purchase of two aircraft by ROKAF and four aircraft by PAF. VIP Conversion Aircraft No. 7 and VVIP Conversion Aircraft No. 8 have been delivered on December 26, 2002. The advance payment guarantees continue to be valid until 180 days after the date of delivery and the related performance bond continues to be valid until 365 days after the date of delivery. On June 23, 2003, two Advance Payment Guarantees issued for the ROKAF amounting US7,782,600 full amount that had already expired and four Repayment Guarantees issued for ROKAF, that had been transferred to IBRA amounting to US100,379,999 full amount in accordance with the purchase of eight CN235 aircraft that have already been delivered, were recognized as no longer being in effect by the Bank. On November 21, 2003, DI requested the Bank to reinstate the two Advance Payment Guarantees and one Repayment Guarantee amounting to US1,003,800 full amount and to amend one Performance Guarantee amounting to US7,715,000 full amount including a Performance Guarantee amounting to US7,170,000 full amount transferred to IBRA and an increase of US545,000 full amount in the related Performance Guarantee and one Advance Payment Guarantee issued in favour of PAF amounting to US9,912,860 full amount. As of December 31, 2003, these guarantees continue in effect. Counter guarantees were issued on January 31, 2003 in relation to the Advance Payment and Performance Bonds on behalf of DI amounting to MYR19,511,814 full amount and MYR6,893,200 full amount issued by Affin Bank Berhad. The Advance Payment and Performance Bonds were issued to support sales of two VIP CN235 aircraft to the Government of Malaysia. The bank guarantees issued on behalf of PT Wijaya Karya WK represent Bid Bond Guarantees, Performance Bonds, Advance Payment Guarantees, and Payment Surety Bonds to support construction projects won by WK. The projects include road construction, bridge construction, industry and building construction mostly involving projects owned by the Government.