NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5101 30. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES
a. Commitment and contingent transactions in the ordinary course of business of Bank Mandiri and
its Subsidiaries activities that have credit risk are as follows:
2012 2011
Rupiah: Committed unused loan facilities granted Note 52
26,705,562 24,264,257
Bank guarantees issued Note 52 20,239,328
15,182,931 Outstanding irrevocable letters of credit Note 52
2,055,455 2,144,864
Standby letters of credit Note 52 2,302,326
1,637,463 Total Rupiah
51,302,671 43,229,515
Foreign currencies: Committed unused loan facilities granted Note 52
2,674,467 2,162,774
Bank guarantees issued Note 52 20,469,371
12,246,351 Outstanding irrevocable letters of credit Note 52
9,909,283 9,925,926
Standby letters of credit Note 52 5,588,537
3,648,066 Total foreign currencies
38,641,658 27,983,117
89,944,329 71,212,632
b. By Bank Indonesia’s collectibility:
2012 2011
Current 89,692,146
68,553,404 Special mention
218,654 2,633,119
Sub-standard 3,126
1 Doubtful
276 2,762
Loss 30,127
23,346 Total
89,944,329 71,212,632
Less: Allowance for impairment losses 189,085
234,364
Commitments and contingencies - net 89,755,244
70,978,268
c. Movements of allowance for impairment losses on commitments and contingencies:
2012 2011
Balance at beginning of year 234,364
371,665 Allowance during the year
43,937 127,257
Others 1,342
10,044
Balance at end of year 189,085
234,364
Includes effect of foreign currencies translation.
Management believes that the allowance for impairment losses on commitments and contingencies is adequate.
d. Information in respect of classification of “non-impaired” and“impaired” is disclosed in Note 60A. e. Deposits from customers and deposits from other banks pledged as collateral for bank guarantee
and irrevocable letters of credit as at 31 December 2012 and 2011 amounting to Rp1,215,980 and Rp738,609, respectively Notes 22c and 25c.
31. ACCRUED EXPENSES
2012 2011
- Fixed asset and software procurement 778,167
548,978 - Interest expenses
540,525 600,545
- Promotions 215,756
205,761 - Outsourcing expenses
129,468 59,889
- Employee related costs: uniform, recreation and others 107,674
103,902 - Others
573,172 748,092
2,344,762 2,267,167
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5102 31. ACCRUED EXPENSES continued
Included in the fixed asset and software procurement are payables to vendors related with operational and maintenance activities for buildings, equipments, software, ATM machines and Bank’s IT System.
32. TAXATION a. Prepaid Taxes
2012 2011
Bank Mandiri 853
851 Subsidiaries
27,321 20,689
28,174 21,540
b. Tax Payables
2012 2011
Current Income tax payables Bank Mandiri
Corporate Income Tax - Article 29 1,919,588
636,654
Subsidiaries
Corporate Income Tax - Article 29 191,241
125,083 2,110,829
761,737 Taxes Payables - Others
Bank Mandiri Income taxes
Article 25 185,437
160,081 Article 21
98,773 87,909
Article 4 2 155,275
179,722 Others
49,961 7,877
489,446 435,589
Subsidiaries
62,146 93,737
551,592 529,326
Total Taxes Payables 2,662,421
1,291,063
c. Tax BenefitExpense
2012 2011
Tax expense - current: Bank Mandiri
3,906,338 2,619,107
Subsidiaries 734,175
553,433 4,640,513
3,172,540 Tax benefitexpense - deferred:
Bank Mandiri 158,410
643,581 Subsidiaries
21,453 29
179,863 643,610
4,460,650 3,816,150
As explained in Note 2ad, income tax for Bank Mandiri and its subsidiaries is calculated as a separate legal entity.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5103 32. TAXATION continued
d. Tax Expense - Current
The reconciliation between income before tax benefitexpense as shown in the consolidated statements of income and income tax calculations and the related estimated current tax expense
for Bank Mandiri and its Subsidiaries are as follows:
2012 2011
Consolidated income before tax expense and non-controlling interests
20,504,268 16,512,035
Less: Income before tax expense of Subsidiaries -
after elimination 3,656,605
1,003,303 Impact of changes in presenting investment in Subsidiaries
by using cost method previously equity method 1,202,166
869,011 Income before tax expense and non-controlling interests -
Bank Mandiri only 18,049,829
14,639,721 Adddeduct permanent differences:
Non-deductible expensesnon-taxable income 661,014
1,675,490 Losses from overseas branches
13,385 632
Others 15,412
2,404 Adddeduct temporary differences:
Allowance for impairment losses on loans and write-offs 326,312
1,926,444 Allowance for impairment losses on financial assets other than loans
39,224 1,170,835
Provision for post-employment benefit expense, provisions for bonuses, leave and Holiday THR entitlements
904,464 194,806
Unrealised gain on BOT transactions 272,950
- Allowance for estimated losses arising from legal cases
11,948 251
Provision for estimated losses on commitments and contingencies 45,549
136,401 Allowance for possible losses of repossessed assets
1,489 108,451
Depreciation of fixed assets 74,631
1,097 Unrealised lossess on decreaseincrease in
fair value of marketable securities and Government Bonds - fair value through profit or loss
7,091 96,341
Difference in net realisable value of repossessed assets 22
258 Allowance for possible losses on other assets
- 161,460
Allowance for possible losses of abandoned properties -
6,049 Estimated taxable income
19,531,694 13,095,534
Estimated tax expense-current Bank Mandiri only
3,906,338 2,619,107
Subsidiaries 734,175
553,433
Estimated tax expense-current 4,640,513
3,172,540
The calculation of income tax for the year ended 31 December 2012 is a preliminary estimate made for accounting purposes and are subject to change at the time ot the Bank expressed its
annual tax return.
Tax calculation for the year ended 31 December 2011 in accordance with the income tax SPT Bank Mandiri.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5104 32. TAXATION continued
d. Tax Expense - Current continued
The tax on Bank Mandiri and Subsidiaries Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits on the
consolidated entities as follows:
2012 2011
Consolidated income before tax expense and minority interest 20,504,268
16,512,035 Tax calculated at applicable tax rates:
4,524,118 3,178,770
Tax effect of: Bank Mandiri
- Income not subject to tax and final tax
166,121 109,464
- Expense not deductible for tax purposes
304,083 444,207
137,962 334,743
Subsidiaries 201,430
302,637 Total tax effect
63,468 637,380
Income tax expense 4,460,650
3,816,150
Under the taxation laws of Indonesia, Bank Mandiri and Subsidiaries submit the annual corporate income tax returns to the tax office on the basis of self assessment. The Directorate General of
Taxation may assess or amend taxes within 5 five years from time when the tax becomes due.
Starting 2009, Bank Mandiri has recognised written-off loans as deduction of gross profit by fullfiling the three requirements stipulated in UU No. 36 Year 2008 and Regulation of the Minister
of Finance No. 105PMK.032009 dated 10 June 2009, which was amended by Regulation of the Minister of Finance No. 57PMK.032010 dated 9 March 2010.
Based on UU No. 36 Year 2008 regarding Income Tax, Government Regulation No. 81 Year 2007 dated 28 December 2007 regarding Reduction of Tax Rate of Income Tax Resident
Corporate Tax Payers and Regulation of the Minister of Finance No. 238PMK.032008 dated 30 December 2008 regarding Procedures for Implementing and Supervising the Granting of
Reduction of the Tax Rate of Income Tax Resident Corporate Taxpayers in the Form of Public Listed Company, a public listed company can obtain a reduction of income tax rate by 5 lower
than the highest income tax rate by fulfilling several requirements, which include public ownership of 40 or more of the total paid up shares and the shares are owned by at least 300 parties and
each party can only own less than 5 of the total paid up shares. The above requirements must be fulfilled by the taxpayer at the minimum 6 month in a period of one fiscal year.
Based on the Letter No. DEI13-0094 dated 3 January 2013 regarding Submission of Monthly Report of share ownership of Emiten or public listed company and recapitulation Form No.
No.X.H.I-6 from PT Datindo Entrycom Securities Administration Agency to the Bapepam and LK, it confirmed that the shares ownership of Bank Mandiri during 2012 Letter No. DEI12-0121
dated 9 January 2012 from PT Datindo Entrycom to the Bappepam-LK for year 2011, has fulfilled all requirements to obtain a tax rate reduction as mentioned above. In accordance with
PMK 238, Bapepam and LK reports the fulfilment of these requirements by Bank Mandiri to the Tax Office. Therefore the Bank’s Corporate Income Tax for fiscal year 2012 and 2011 is
calculated using the tax rate at 20.
