PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
69
14. PREMISES AND EQUIPMENT continued
b. On November 30, 2008, the Joint Operation Transaction KSO between Bank Mandiri and a Subsidiary, PT Usaha Gedung BDN UG BDN has expired. With the expiration of the KSO
transaction, the premises and equipment that have been returned by UG BDN was revalued, and resulted in the increase in the value of the premises and equipment recognized as Non-Operating
Income NOI. As disclosed in Notes 2p and 14a, Bank Mandiri has chosen the cost model as the accounting policy
for its premises and equipment. In addition, the KSO transaction was a transaction with the Subsidiary. In accordance with PSAK No. 4 regarding Consolidated Financial Statements, the unrealized income
and loss from intercompany transactions should be eliminated. Therefore, the Bank has eliminated the Non Operating Income and the increase in value of the above mentioned premises and equipment.
Bank Mandiri and Subsidiaries have insured their premises and equipment excluding land rights, construction in progress and leased assets against physical loss; fire, theft and natural disaster with
PT Staco Jasapratama, PT Asuransi Raya, PT Asuransi Dharma Bangsa, PT Asuransi Takaful Umum, PT Asuransi Jasindo Takaful, PT Asuransi Jasa Indonesia, PT Asuransi Tri Pakarta, PT Asuransi
Ramayana, PT Asuransi Parolamas, PT Asuransi Wahana Tata, MSIG Insurance S’pore Pte. Ltd., British Caymanian Insurance Co. Ltd., Tugu Insurance Co. Ltd., Bank of China Group Insurance Co.
Ltd. and HSBC Insurance Asia Ltd. for total coverage amounts of Rp1,997,281, US84,249,506.46 full amount, SG2,206,235 full amount and HK3,745,000 full amount as of December 31, 2008
and Rp1,849,743 and US140,874,300.65 full amount as of December 31, 2007. Management believes that the above insurance coverage is adequate to cover possible losses that may arise on the
premises and equipment insured. Management also believes that there are no assets impairment as of December 31, 2008 and 2007.
. 15. OTHER ASSETS
2008 2007
Accrued income 2,052,859
1,672,638 Others - net
3,341,275 3,487,895
5,394,134 5,160,533
Accrued Income Accrued income primarily comprises accrued interest receivable from placements, securities, Government
Bonds, loans, and accrued fees and commissions. Others - net
2008 2007
Rupiah: Receivables from customer transactions
702,656 1,050,521
Prepaid expenses 354,908
274,418 Abandoned properties - net of accumulated losses arising from difference
in net realizable value of Rp21,295 and Rp29,248 as of December 31, 2008 and 2007 253,603
304,845 Repossessed assets - net of accumulated losses arising from difference
in net realizable value of Rp10,451 and Rp10,451 as of December 31, 2008 and 2007 186,175
186,953 Prepaid taxes
9,843 7,043
Interbranch account - net -
125,141 Receivables from financial institutions
- 1,186
Others 1,417,213
972,119 Total Rupiah
2,924,398 2,922,226
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
70
15. OTHER ASSETS continued
Others - net continued
2008 2007
Foreign Currency: Interbranch account - net
260,968 -
Prepaid expenses 22,509
19,800 Receivables from customer transactions
17,274 15,152
Others 755,701
1,143,355 Total Foreign Currency
1,056,452 1,178,307
Total 3,980,850
4,100,533 Less: Allowance for possible losses
639,575 612,638
3,341,275 3,487,895
Receivables from customer transactions primarily consist of securities transactions from PT Mandiri Sekuritas a subsidiary.
Prepaid expenses consist of payments made in advance mostly relating to housing rental, building maintenance and prepayment for customer guarantee program to Lembaga Penjamin Simpanan LPS.
Movement of allowance for possible losses on other assets are as follows:
2008 2007
Balance at beginning of year 612,638
994,703 Reclassification during the year
166,521 133,290
Reversal during the year Note 37 151,530
208,072 Settlement during the year
- 46,513
Write-offs during the year -
5,076 Others
11,946 10,886
Balance at end of year 639,575
612,638 Includes effect of foreign currency translation.
Management believes that the allowance for possible losses is adequate to cover possible losses from other assets.
16. DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS
a. By Currency and Related Parties and Third Parties:
2008 2007
Rupiah: Related parties Note 47a
110,273 122,420
Third parties 53,155,575
51,926,055 Total Rupiah
53,265,848 52,048,475
Foreign Currency: Related parties Note 47a
5,584 8,102
Third parties 15,815,256
10,249,631 Total Foreign Currency
15,820,840 10,257,733
69,086,688 62,306,208
Included in demand deposits are wadiah deposits amounting to Rp1,454,837 and Rp1,631,330 as of December 31, 2008 and 2007, respectively.
