PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
61
13. INVESTMENTS IN SHARES OF STOCK continued
b. Investments in shares of stocks by Collectibility:
2006 2005
Current 77,258
56,667 Loss
72,626 77,784
Total 149,884 134,451
Less: Allowance for possible losses 73,384
78,599 76,500
55,852
c. Movements of allowance for possible losses on investments in shares of stocks:
2006 2005
Balance at beginning of period 73,298
78,145 Provision during the period Note 37
86 454
Balance at end of period 73,384
78,599
Management believes that the allowance for possible losses on investments in shares of stock is adequate.
14. PREMISES AND EQUIPMENT
2006 2005
CostValuation 7,942,142
7,888,523 Less: Accumulated depreciation and amortization
3,114,031 2,572,737
Net book value 4,828,111
5,315,786
Certain premises and equipment were revalued in 1979, 1987 and 2003.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
62
14. PREMISES AND EQUIPMENT continued
Movements from January 1, 2006 Beginning
Ending to June 30, 2006
Balance Additions
Deductions Reclassifications Balance
Cost Valuation
Direct ownership Land
2,824,925 82,678
300,098 -
2,607,505 Buildings
1,463,485 63,704
55,898 28,674
1,499,965 Furnitures, fixtures, office
equipment and computer equipmentsoftware
3,510,938 111,583
85,507 92,484
3,629,498 Vehicles
70,737 2,929
589 7,746
65,331 Construction
in progress
272,185 22,680
41,610 113,412
139,843 8,142,270
283,574 483,702
- 7,942,142
Accumulated Depreciation and Amortization
Direct ownership
Buildings 737,114
36,635 27,136
- 749,613
Furnitures, fixtures, office equipment and computer
equipmentsoftware 2,065,724
260,400 658
- 2,325,466
Vehicles 34,019
5,587 654
- 38,952
2,836,857 305,622
28,448 -
3,114,031 Net
book value
Direct ownership
Land 2,607,505
Buildings 750,352
Furniture, fixtures, office equipment and computer equipmentsoftware 1,304,032
Vehicles 26,379
4,688,268 Construction
in progress
139,843 4,828,111
The amount includes an increment in value of premises and equipment based on revaluation of fixed assets of the merged banks performed by an Independent Appraiser, PT Vigers Hagai Sejahtera, using market values as of July 31, 1999. The
revaluation increment was recorded prospectively on June 18, 2003 Note 14a.
Construction in progress as of June 30, 2006 is comprised of:
Product and license - Core Banking System 90,665
Buildings 27,717
Others 21,461
139,843
The construction in progress was approximately 95,81 complete as of June 30, 2006. Certain premises and equipment of BSM, a subsidiary, with net book value as of June 30, 2006
amounting to Rp24,534 have been pledged as collateral to Bank Indonesia in relation to BSM’s proposal for the settlement of its Rp32,000 subordinated loan from BI Note 29.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
63
14. PREMISES AND EQUIPMENT continued
