PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
153
56. RISK MANAGEMENT continued
Operational Risk continued Consistent with the above measures, Bank Mandiri is continuing to enhance its risk management by
using the Enterprise Wide-Risk Management concept which consists of 7 seven main components: corporate governance, line management, portfolio management, risk transfer, risk analytics,
integrated data source and technology and stakeholders management. These enhancements are in line with the efforts of the Bank to comply with the 3 Pillars - capital requirements, supervisory review
process and market discipline of the Basel II New Accord, as well as Bank Indonesia regulations on risk management.
57. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
a. Management Contract On April 8, 2000, a Management Contract was signed between the Government and Bank Mandiri
in connection with the recapitalization of Bank Mandiri as described in Note 1c. The Management Contract provides several requirements and milestones to be fulfilled by Bank Mandiri in
accordance with its Business Plan through the end of 2001. The Management Contract LOI was ended in 2001 or upon the completion of the Bank’s IPO. The Bank’s IPO was effective on June
27, 2003. As of December 31, 2004, Bank Mandiri and the Monitoring Team on the Recapitalization of the
Finance Department are in process of amending the LOI.
b. Integrated Banking System Agreement with PT Silverlake Informatikama and Silverlake Corporation
On July 20, 2001, Bank Mandiri entered into an agreement with PT Silverlake Informatikama for the procurement of software and installation services for a total integrated banking system which
is called e-MAS, for a total contract value of US43,213,657 full amount. Additional projects have been contracted involving a value of US18,606,562 full amount on April 23, 2002, of
US420,000 full amount on August 28, 2003 and US922,131 full amount on April 12, 2004; these projects will be completed in 2005. As of December 31, 2004, the implementation of e-MAS
had been completed as planned and US59,503,476 full amount had been recognized as premises and equipment.
c. Agreements on Procurement and Installation of Automatic Teller Machines ATMs From May 2003 to December 2004, Bank Mandiri has entered into various agreements with
PT Multipolar Corporation Tbk., PT NCR Indonesia, PT Mitra Integrasi Komputido, PT Diebold Indonesia and PT Wincor Nixdorf for the procurement and installation of 1,080 ATM units for a
total contract value of US17,409,839 full amount and Rp6,864. As of December 31, 2004, 95 ATM units are still in the process of installation.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
154
57. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
d. Agreement on Development and Operation of a National Development Information System SIPNAS
On December 24, 2002, Bank Mandiri entered into an agreement with the Indonesian State Secretariat, to develop and operate a national development information system SIPNAS for an
initial period of one year. SIPNAS is a system developed by the Indonesian Government to collect data and information for the Government’s decisions for integrated planning and national
development.
Based on the agreement, the State Secretariat will utilize the existing Bank’s communication network to develop and operate SIPNAS. Bank Mandiri has the potential benefit under this
arrangement of being well placed to receive placements of funds from the Government Dana Alokasi Umum. Currently, a pilot project of the SIPNAS system has been implemented.
e. Agreement with PT Sunprima Nusantara SNP On December 16, 2004, Bank Mandiri has entered into a joint financing agreement with SNP,
a multi-finance company. Based on such agreement Bank Mandiri andor its affiliated companies have an option to become shareholders of SNP if Bank Mandiri disbursed a financing facility to
SNP andor its consumers, either directly or indirectly, of up to Rp1,000,000 or effective 1 one year after the signing date of such agreement, whichever is earlier.
The agreement was notarized under deed No. 37 by N.M. Dipo Nusantara Pua Upa, S.H., dated December 16, 2004.
f. Agreement on Implementation of e-Learning In order to support Bank Mandiri’s plan to focus on strategic excellence and operational
excellence, the training infrastructure for an e-Learning program was established by the Bank. Bank Mandiri signed a three-year contract agreement with PT Mitra Integrasi Komputindo as a
representative of Intralearn Asia Pte. Ltd. Singapore involving a total contract value of US7,213,200 full amount as stipulated in contract letter No. CHC.TRNTPD.PK.00282003
dated July 30, 2003.
