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
-
102
-
32. MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES
This account represents minority interests in net assets of subsidiaries as follows:
2002 2001
Yayasan Dana Pensiun Bank Dagang Negara
773 676
Dana Pensiun Bank Bumi Daya
2,723 2,192
3,496 2,868
33. SHAREHOLDER’S EQUITY
2002 2001
Share capital 4,251,000
4,251,000 Additional paid-in capital
173,550,319 174,962,319
Differences arising from translation of foreign currency financial statements
64,164 83,745
Unrealized losses on securities and Government Bonds available for sale
2,138,186 5,047,162
Premises and equipment revaluation increment 9,788
9,788 Accumulated
losses 161,302,575
163,482,905 14,434,510 10,776,785
Authorized and Share Capital Based on notarial deed No. 10 of Sutjipto, S.H., dated October 2, 1998, the authorized capital of
Bank Mandiri amounts to Rp16,000,000 with a par value of Rp1,000,000 full amount per share. The share capital, which is comprised of issued and fully paid-up capital amounting to Rp4,251,000
as of December 31, 2002 and 2001, is wholly-owned by the Government of the Republic of Indonesia.
The establishment of issued and paid-up capital amounting to Rp4,000,000 by the Republic of Indonesia at the date of establishment of Bank Mandiri was carried out as follows:
a. Cash payment through Bank Indonesia amounting to Rp1,600,004. b. Placements in shares of stocks recorded as investments in shares of the Merged Banks
amounting to Rp599,999 each or totaling Rp2,399,996, through the transfer of shares of the Republic of Indonesia in each of the Merged Banks to Bank Mandiri, as resolved during the
respective Extraordinary General Meetings of the Merged Banks. Based on the agreement “inbreng” notarized by deed No. 9 of Sutjipto, S.H., dated October 2, 1998, Bank Mandiri and
the Republic of Indonesia, agreed to transfer those shares inbreng as payment for new shares to be issued by Bank Mandiri.
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
-
103
-
33. SHAREHOLDER’S EQUITY Continued
Authorized and Share Capital Continued Based on the amendments to the Articles of Association of Bank Mandiri covered by notarial deed
No. 98 of Sutjipto, S.H., dated July 24, 1999, the shareholder resolved to increase the paid-up capital share capital of Bank Mandiri from Rp4,000,000 to Rp4,251,000 to be entirely paid for by
the Republic of Indonesia. The increase of Rp251,000 was effected through the conversion of additional paid-in capital to share capital and resulted from the excess of recapitalization bonds
under the 1
st
Recapitalization Program per Government Regulation No. 521999. The increase in paid-up capital share capital had not been supported by an approval from the Ministry of Finance.
The Ministry of State-Owned Enterprise as the Bank’s shareholder, through its decision letter No. KEP-154M-MBU2002 dated October 29, 2002 has approved to return to the Government, the
excess of recapitalization bonds amounting to Rp1,412,000 which includes part of the paid-up capital in the amount of Rp251,000. The Bank through its letter No, DIR.IPO2932002 dated
November 14, 2002 has requested The Ministry of Finance to confirm the returning of the excess recap bonds. Currently, the Bank is awaiting a decision from the Ministry of finance.
Based on Government Regulation No. 601998 dated May 7, 1998, the Government injected funds amounting to Rp20,000,000 to Bank Exim in the form of Government equity participation. The funds
were needed to cover the foreign exchange losses incurred by Bank Exim, through the conversion of liquidity credit from Bank Indonesia KLBI into the Government’s equity participation. This was
reflected as additional paid-in capital in Bank Exim’s audited financial statements as of July 31, 1999 before merger. In view of the merger, this additional paid-in capital was eliminated against the Bank’s
accumulated losses as of August 1, 1999 effective date of the merger. The elimination of the additional paid-in capital against the accumulated losses as of August 1, 1999 raised a concern by the
Government as the related interest and principal obligations Government debentures to BI continue to be paid by the Government. The Bank, through its letter No. DIR.IPO1152002 dated April 17,
2002, has requested the Ministry of State-Owned Enterprises, as the Bank’s Shareholder, to assist the Bank in clarifying and obtaining a decision letter from the Ministry of Finance regarding the treatment
of the Rp20,000,000 equity participation of the Government in Bank Exim. Currently, the Bank is awaiting a decision from the Ministry of Finance.
Prior to the merger, the Government had placements in the four ex-legacy banks in the form of Government equity participations totaling Rp3,461,513. This was primarily from the conversion to
equity participations of cash obtained from the state budget, liquidity credits from Bank Indonesia KLBI, two-step loans and dividends. The conversion was not covered by the issuance of a
Government Regulation. The equity participation of the Government was reflected in the ex-legacy banks’ audited financial statements as of July 31, 1999 before merger as additional paid-in capital.
On August 1, 1999 effective date of the merger, the additional paid-in capital was eliminated against the Bank’s accumulated losses. The Government had raised a concern as to the
elimination of the additional paid-in capital as the related interest and principal obligations Government debentures to BI continue to be paid by the Government. The Bank through its letter
No. DIR.IPO1152002 dated April 17, 2002, has requested the Ministry of State-Owned Enterprises, as the Bank’s Shareholder, to assist the Bank in obtaining a Decision Letter andor a
Government Regulation from the Ministry of Finance regarding the elimination issues.
