PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
157
57. RELATED PARTY TRANSACTIONS continued
a. Banking Activities in the Ordinary Course of Business continued
December 31, April 30, December 31,
2003 2003
2002
Securities Note 7a 420,549
260,421 511,317
Government Recapitalization Bonds Note 8 122,906,853
150,332,380 148,845,927
Loans Note 11B.g 1,024,044
1,023,251 849,259
Deposit made to State Treasury Note 15 -
1,124,194 1,124,194
Interest refundable by the Government Note 15 25,267
25,267 25,267
Total assets involving related parties 124,376,713
152,765,513 151,355,964
Total consolidated assets 249,435,554
261,285,909 250,394,689
Percentage of assets involving related parties to total consolidated assets
49.86 58.47
60.44
=
Percentages of securities, Government Recapitalization Bonds, loans, Deposit made to State Treasury for tax appeal and interest receivable from the Government compared to the total
consolidated assets are as follows:
December 31, April 30, December 31,
2003 2003
2002
Securities Note 7a 0.17
0.10 0.20
Government Recapitalization Bonds Note 8 49.27
57.54 59.44
Loans Note 11B.g 0.41
0.39 0.34
Deposit made to State Treasury Note 15 -
0.43 0.45
Interest refundable by the Government Note 15 0.01
0.01 0.01
Total 49.86
58.47 60.44
Demand Deposits Note 16a 11,854
27,545 29,580
Saving Deposits Note 17b 8,769
2,406 32,823
Time Deposits Note 18f 354,490
3,698,710 1,332,690
Due to the Government arising from the return of additional paid-in capital Note 28
- -
1,412,000 Total liabilities involving related parties
375,113 3,728,661
2,807,093 Total consolidated liabilities
229,036,856 243,998,291
235,956,683 Percentage of liabilities involving related
parties to total consolidated liabilities 0.16
1.53 1.19
Salary, allowances and bonuses of the Boards of Directors and Commissioners and
Executive Officers Note 41 54,604
18,196 57,372
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
158
57. RELATED PARTY TRANSACTIONS continued
a. Banking Activities in the Ordinary Course of Business continued Percentages of current accounts, savings accounts, time deposits and liabilities to the Government
arising from the return of additional paid-in capital compared to the total consolidated liabilities are as follows:
December 31, April 30,
December 31, 2003
2003 2002
Demand Deposits Note 16a 0.01
0.01 0.01
Saving Deposits Note 17b -
- 0.01
Time Deposits Note 18f 0.15
1.52 0.57
Due to the Government arising from the return of additional paid-in capital Note 28
- -
0.60 Total
0.16 1.53
1.19
b. Significant transactions with the Government of the Republic of Indonesia In May 1999, the Government implemented a recapitalization program for Bank Mandiri by issuing
Government Recapitalization Bonds Notes 3 and 8. In connection with the recapitalization, Bank Mandiri entered into a management contract with the
Government in April 2000 Note 58a. The Committee on Financial Sector Policy KKSK and the Minister of Finance approved and
guaranteed the issuance of standby letters of credit and conversion of loans of PT Garuda Indonesia to Mandatory Convertible Bonds Notes 48 and 11B.f.
Government Recapitalization Bonds held by the Bank amounting to Rp103,849,017 and Rp16,783,376 were reprofiled by the Government on November 20, 2002 and February 25, 2003,
respectively Note 8. The Bank paid Rp1,124,194 to the State Treasury representing a 50 deposit in relation to an
objection regarding the Bank’s 2000 corporate income tax assessment Note 15. The Bank returned additional paid-in capital of Rp1,412,000 representing a portion of the excess
recapitalization Note 32. Based on the Minister of Finance’s Decision Letter No. No.227KMK.022003 dated May 23,
2003, and Decree of the Minister of State-Owned Enterprises, as the Bank’s shareholder, No. KEP-154M-MBU2002 dated October 29, 2002, the Government converted recapitalization fund
amounting to Rp5,000,000 with 5,000,000 shares with nominal value of Rp1,000,000 full amount per share, and the remaining recapitalization fund amounting to Rp168,801,315 was recorded as
Agio.
Based on Government Regulation PP No. 26 dated May 29, 2003, the Government of the Republic of Indonesia converted Rp1,000,000 of appropriated retained earnings to issued and
fully paid-up capital. c. Transfer of Certain Investments and Non-core Premises and Equipment
In 1999 certain investments in shares of stock and certain non-core premises and equipment of Bank Mandiri were transferred to PT PIM and PT PHTM, related companies, respectively Notes 14 and
15. In 2002, the premises and equipment of PHTM were transferred back to the Bank based on the shareholder’s resolution of PHTM dated June 14, 2002.
