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
130
44. PENSION AND SEVERANCE continued
Labor Law No. 132003 dated March 25, 2003. As of June 30, 2004, the Bank has evaluated the effect of Labor Law No. 132003 UU No.132003 on
its consolidated financial statements and has amended its policy related to employee benefits and service entitlements under Kep-150Men2000 dated June 20, 2000, which was implemented for April
30, 2003 and June 30, 2003 accounts, to reflect the requirement of UU No. 132003 Note 43. The Bank engaged an actuarial company, PT Dayamandiri Dharmakonsilindo, to calculate its liability for
the provision of employee service entitlements based on UU No. 132003. The assumptions used by the actuary were as follows:
a. Actuarial date is December 31, 2003. b. Frequency of actuarial valuation is annually.
c. Discount rate is 11 per annum. d. Expected rate of annual salary increase is 10.
e. Mortality rate table is US 1980 Commissioners’ Standard Ordinary Table of Mortality. f. Early retirement rate is 5 from age 25 decreasing linearly at 0.25 per year up to 0 at age 45.
g. Actuarial method is projected unit credit method. h. Normal pension age is 56 years.
i. Disability rate is 10 of mortality rate.
Bank Mandiri has benefit obligations and recognized a provision for employee service entitlements amounting to Rp393,020 as of June 30, 2004.
45. OTHER OPERATING INCOME - OTHERS
For the 6-month For the 6-month
For the 2-month For the 4-month
period ended period ended
period ended period ended
June 30, 2004 June 30, 2003
June 30, 2003 April 30, 2003
Accretion in the realizable value of the security and effective reduction of principal related
to SUFRNs Notes 17, 31 and 32 83,193
34,093 10,235
23,858 Others
219,579 259,388
112,824 146,564
302,772 293,481 123,059 170,422
46. OTHER OPERATING EXPENSES - OTHERS
For the 6-month For the 6-month
For the 2-month For the 4-month
period ended period ended
period ended period ended
June 30, 2004 June 30, 2003
June 30, 2003 April 30, 2003
Insurance premiums on customer guarantees 272,426
298,969 99,656
199,313 Reversalprovision for legal expenses Note 30
- 112,854
5,606 118,460
Others 44,073 122,322 16,840 105,482
316,499 308,437 122,102 186,335
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
131
47. NON-OPERATING INCOME - NET EXPENSE
For the 6-month For the 6-month
For the 2-month For the 4-month
period ended period ended
period ended period ended
June 30, 2004 June 30, 2003
June 30, 2003 April 30, 2003
Gain on sale of premises and equipment 8,208
7,153 7,153
- Penalties
397 7,457
189 7,268
Others - net 22,816
89,930 692
89,238 30,627 89,626 7,656 81,970
48. COMMITMENTS AND CONTINGENCIES
June 30, 2004 June 30, 2003
April 30, 2003 COMMITMENTS
Commitment Receivables: Unused fund borrowing facilities
- 2,066
4,638 Unrealized spot foreign currencies bought Note 49
309,392 302,377
312,667 Others
- 20,387
28,688 Total Commitment Receivables
309,392 324,830
345,993 Commitment
Payables: Unused loan facilities granted
18,577,988 12,894,275
10,247,192 Outstanding irrevocable letters of credit Note 28a
6,135,898 5,278,159
5,242,668 Unrealized spot foreign currencies sold Note 49
291,365 497,368
379,739 Others
- 91,547 108,302
Total Commitment Payables 25,005,251
18,761,349 15,977,901
Commitment Payables - Net 24,695,859
18,436,519 15,631,908
CONTINGENCIES
Contingent Receivables: Guarantees received from other banks
1,997,618 1,359,989
1,217,055 Interest receivable on non-performing assets
2,215,053 3,124,989
2,750,989 Others
34,282 37,667
29,910 Total
Contingent Receivables
4,246,953 4,522,645
3,997,954 Contingent Payables:
Guarantees issued in the form of: Bank guarantees issued Notes 28a and 50
6,463,980 4,700,703
4,690,476 Standby letters of credit Notes 28a and 50
2,924,598 2,274,733
2,364,538 Others
19,494 -
963 Outstanding revocable letters of credit
- -
1,580 Others
36,519 30,738 163,219
Total Contingent
Payables 9,444,591
7,006,174 7,220,776
Contingent Payables - Net 5,197,638
2,483,529 3,222,822
COMMITMENTS AND CONTINGENCIES PAYABLE - NET 29,893,497
20,920,048 18,854,730
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
132
49. FOREIGN CURRENCY TRANSACTIONS
