PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
78
25. FUND BORROWINGS continued f Direct Off-shore Loans continued
Syndication loan from OCBC, Natixis, Intesa San Paolo SPA, DZ Bank AG, Bank Muscat S.A.O.G bear interest at six-month LIBOR plus an applicable margin. Borrowing from Sumitomo Mitsui
Banking Corporation, Singapore bear interest at three-month SIBOR plus an applicable margin. Borrowing from Deutsche Bank AG, Singapore bear interest at three-month LIBOR plus an
applicable margin. Borrowing from Bayerische Hypo-Und Vereinsbank AG, Singapore bear interest at six-month LIBOR plus an applicable margin. Borrowing from Natixis and Overseas Chinese
Banking Corp., Singapore bear interest at three-month LIBOR plus an applicable margin and borrowing from Bank of New York, Singapore bear interest at three-month SIBOR plus an applicable
margin. These borrowings will be fully paid on maturity date.
g Others
2007 2006
Rupiah PT Bank Permata Tbk.
170,000 50,000
PT Bank Lippo Tbk. 150,000
25,000 PT Bank Internasional Indonesia Tbk.
150,000 -
The Hongkong and Shanghai Banking Corporation Ltd. 130,000
- PT Bank Panin Tbk.
20,000 -
Bank Indonesia 5,743
-
Total 625,743
75,000
26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES
a. Commitment and contingent transactions in the normal course of Bank Mandiri activities that have credit risk are as follows:
2007 2006
Rupiah: Bank guarantees issued Note 45
6,422,641 3,746,502
Outstanding irrevocable letters of credit Note 45 1,251,848
892,418 Standby letters of Ccredit Note 45
469,000 -
Total Rupiah 8,143,489
4,638,920 Foreign Currency:
Bank guarantees issued Note 45 5,571,489
4,535,248 Outstanding irrevocable letters of credit Note 45
6,174,146 3,024,142
Standby letters of credit Note 45 2,522,294
2,866,448 Total Foreign Currency
14,267,929 10,425,838
22,411,418 15,064,758
b. By Collectibility:
2007 2006
Current 21,606,838
14,456,257 Special mention
709,154 469,192
Sub-standard 6,783
911 Doubtful
- 12,425
Loss 88,643
125,973 Total
22,411,418 15,064,758
Less: Estimated losses 469,508
514,399
Commitments and Contingencies - net 21,941,910
14,550,359
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
79
26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued
c. Movements of estimated losses on commitments and contingencies:
2007 2006
Balance at beginning of year 514,399
594,084 Reversal during the year
61,409 37,670
Others 16,518
42,015
Balance at end of year 469,508
514,399
includes effect of foreign currency translation.
Management believes that the estimated losses on commitments and contingencies provided for is adequate.
27. TAXATION a. Taxes payable
2007 2006
Bank Mandiri Income Taxes:
Employee income tax - Article 21 43,921
21,824 Corporate income tax - Article 2529
1,022,689 1,345,436
Withholding tax - Article 4 2 145,591
175,985 Others
7,204 13,756
1,219,405 1,557,001
Subsidiaries 60,993
25,799 1,280,398
1,582,800
b. Tax expense
2007 2006
Tax expense - current: Bank Mandiri only
2,552,750 1,609,549
Subsidiaries 133,404
65,461 2,686,154
1,675,010
Tax benefitexpense - deferred: Bank Mandiri only
700,116 1,266,454
Subsidiaries 146
168
700,262 1,266,286
1,985,892 408,724
As explained in Note 2u, income tax for Bank Mandiri and its Subsidiaries is computed for each company as a separate legal entity consolidation is not permitted for corporate income tax filing
purposes.
