These consolidated financial statements are originally issued in Indonesian language.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
12
1. GENERAL continued
b. Merger
continued Based on the Merger Deed No. 100 of Sutjipto, S.H. dated July 24, 1999 the Merged Banks were
legally merged into Bank Mandiri. The merger deed was legalized by the Minister of Justice in its decision letter No. C-13.781.HT.01.04.TH.99 dated July 29, 1999 and approved by the Governor of
Bank Indonesia in his decision letter No. 19KEP.GBI1999 dated July 29, 1999. The merger was declared effective by the Chief of the South Jakarta Office of the Minister of Industry and Trade in his
decision letter No. 09031827089 dated July 31, 1999.
Effective from the date of the merger: x All of the assets and liabilities of the Merged Banks were transferred to Bank Mandiri, the surviving
bank. x All operations and business activities of the Merged Banks were transferred to and continued by
Bank Mandiri. x Bank Mandiri received additional paid-in capital amounting to Rp1,000,000 one million Rupiah
full amount or equivalent to one share for each Merged Bank representing the remaining shares of the Government in the Merged Banks Notes 31a and 31b.
Effective on the same date, the Merged Banks were legally dissolved without the process of liquidation and Bank Mandiri, as the surviving bank, received the rights and obligations of the Merged Banks.
c. Recapitalization
In response to the effects of the adverse economic conditions in Indonesia on the banking sector Note 58, on December 31, 1998, the Government issued Regulation No. 84 of 1998 concerning its
Recapitalization Program for Commercial Banks, which was designed to increase the paid-up capital of commercial banks to enable them to meet the minimum required capital adequacy ratio CAR. The
eligibility of commercial banks for inclusion in the Recapitalization Program is based on requirements and procedures set forth in the Joint Decrees No. 53KMK.0171999 and No. 3112KEPGBI dated
February 8, 1999 of the Minister of Finance and the Governor of Bank Indonesia. Under the Joint Decrees, the Government, among others, shall implement the Recapitalization Program for
Commercial Banks with respect to all State-Owned Banks, Regional Development Banks and Commercial Banks that have been taken over by the Indonesian Bank Restructuring Agency IBRA.
On May 28, 1999 the Government issued Government Regulation PP No. 521999 that provided for the increase in the Government of the Republic of Indonesia’s capital participation in Bank Mandiri
through Government Recapitalization Bonds to be issued by the Minister of Finance with a value of up to Rp137,800,000. The implementation of PP No. 521999 is set forth in Joint Decrees No.
389KMK.0171999 and No. 110KEPGBI dated July 29, 1999 of the Minister of Finance and the Governor of Bank Indonesia.
During the period the above mentioned bonds were not yet issued, Bank Mandiri accounted for such bonds as “Due from the Government” in the amount of Rp137,800,000 in accordance with the
Government’s commitment through the Minister of Finance’s letter No. S-360MK.0171999 dated September 29, 1999 and the approval of the Minister of State-Owned Enterprises in letter No. S-510M-
PBUMN1999 dated September 29, 1999.
These consolidated financial statements are originally issued in Indonesian language.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
13
1. GENERAL continued
