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
-
108
-
40. GENERAL AND ADMINISTRATIVE EXPENSES
2002 2001
Depreciation and amortization of premises and equipment Note 15
329,732 258,892
Rent 326,811
328,538 Communications
305,310 289,789
Promotions 267,496
169,309 Repairs
and maintenance
176,494 151,879
Electricity, water and gas 83,452
53,565 Professional fees
278,187 107,125
Office supplies
72,249 95,132
Rental of office equipment 39,837
80,097 Transportation
28,825 96,987
Research and
development 4,747
2,328 Others
147,002 112,898
2,060,142 1,746,539
Professional fees include audit and tax services amounting to Rp10,472 and Rp5,687 for the years ended December 31, 2002 and 2001, respectively.
In 2002, the Bank expensed all the cost of preparing for the Initial Public Offering incurred up to December 31, 2002.
41. SALARIES AND EMPLOYEE BENEFITS
2002 2001
Salaries, wages and pension expenses Note 42 904,883
797,498 Holidays, leave, vacations and related entitlements
288,505 157,127
Employee benefits in kind 97,825
81,829 Training
and development
86,754 48,968
Tax allowances
5,186 69,484
Employee service entitlements in accordance with the Decree of the Minister of Manpower
No. Kep-150Men2000 Note 42 -
239,780 Bonus and others
182,798 275,500
1,565,951 1,670,186
In accordance with the Decree of the Minister of Manpower No. Kep-150Men2000 dated June 20, 2000, regarding the Settlement of Labor Dismissal and the Stipulation of Severance Pay, Gratuity
and Compensation in Companies, Bank Mandiri has adopted an accounting policy to recognize a provision for employee service entitlements based on actuarial valuations. The liabilities recognized
as of December 31, 2002 and 2001 amounting to Rp674,062 and Rp793,631, respectively, were based on actuarial valuation reports issued by PT Dayamandiri Dharma Konsilindo and PT Jasa
Aktuaria Peniun dan Asuransi, respectively. The expense recognized in the statements of profit and loss amounted to RpNil and Rp239,780 for the years ended December 31, 2002 and 2001,
respectively.
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
-
109
-
41. SALARIES AND EMPLOYEE BENEFITS Continued
Total gross salaries, allowances and bonus of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp57,372 and Rp39,727 for the years ended December 31, 2002
and 2001, respectively. Details for 2002 are as follows:
Number of Members
Officers Salary
Allowances Bonus
Total Board of Commissioners
4 1,988
728 1,867
4,583 Board of Directors
3 4,491
1,639 4,047
10,177 Audit
Committee 3
459 92
185 736
EVP Coordinators
5 6,686
1,478 3,991 12,155
Group Heads and Assistants to the President Director
31 18,928
2,922 7,871
29,721 46
32,552 6,859
17,961 57,372
42. PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS
Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows: a. One defined contribution pension plan or the Bank Mandiri Pension Plan, Dana Pensiun
Pemberi Kerja-Program Pensiun Iuran Pasti “DPPK-PPIP” established on August 1, 1999. The members are active employees of Bank Mandiri. The Bank Mandiri Pension Plan Regulation
was legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14, 1999 and was included in the Addendum to
the State Gazette of the Republic of Indonesia No. 62 dated August 3, 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated April 26, 1999.
Bank Mandiri and the employees contribute 10 and 5 of the Base Pension Plan Employee Income, respectively.
The President Director and the members of the Supervisory Board of Dana Pensiun Bank Mandiri “DPBM” are active employees of Bank Mandiri; therefore, in substance Bank Mandiri
has control over DPBM. As a consequence, transactions between DPBM and Bank Mandiri are considered related party transactions. DPBM invests some of its financial resources in Bank
Mandiri time deposits, whose balancess as of December 31, 2002 and 2001 are Rp150,000 and Rp139,650, respectively. The interest rates on these time deposits are similar to those of arm’s-
length transactions.
The Bank paid pension contributions totaling Rp63,294 and Rp55,127 for the years ended December 31, 2002 and 2001, respectively.
b. Four employer defined benefit pension plans, Dana Pensiun Pemberi Kerja-Program Pensiun Manfaat Pasti “DPPK-PPMP” are derived from the respective pension plans of the Merged
Banks, namely Dana Pensiun Bank Mandiri Satu or DPBM I BBD, DPBM II BDN, DPBM III Bank Exim and DPBM IV Bapindo. The regulations of the respective pension plans were
legalized by the Minister of Finance of the Republic of Indonesia in decision letters No. KEP- 394KM.0171999, No. KEP-395KM.0171999, No. KEP-396KM.0171999 and No. KEP-
397KM.0171999 dated July 14, 1999. The assets of the respective pension plans were derived from the pension plan assets of the Merged Banks. The working period and the basic salary
used as the basis for the computation of pension benefits represents the working period of employees in the pension plans until July 31, 1999.
