PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
161
62. GOVERNMENT GUARANTEE OF OBLIGATIONS OF LOCALLY INCORPORATED BANKS continued
The Head of IBRA issued Decree No. SK-1036BPPN0401 in 2001 that provides for specific operational guidance in respect of the Government of the Republic of Indonesia’s Guarantee of obligations of locally
incorporated banks. The Government charges a premium in respect of its guarantee program in accordance with prevailing
regulations Note 46.
Based on Presidential Decree No.152004 dated February 27, 2004 in relation to the termination of IBRA’s duties and its dissolution, and Minister of Finance Decree No. 84KMK.062004 dated February 27, 2004,
the Government of Republic of Indonesia established Unit Pelaksana Penjaminan Pemerintah, a new institution replacing IBRA, to continue the Government guarantee program for obligations of locally
incorporated banks.
63. IMPLEMENTATION OF QUASI-REORGANIZATION
For three consecutive years from 2000 to 2002, Bank Mandiri reported accumulated net profits of Rp7,512,786 million. However, the Bank still had accumulated losses amounting to Rp161,874,901
million as of April 30, 2003 before quasi-reorganization. In order for Bank Mandiri to eliminate the negative consequences of being burdened by accumulated
losses, the Bank undertook a quasi-reorganization as approved in the Shareholder’s Extraordinary General Meeting RUPSLB on May 29, 2003.
On October 30, 2003, an Extraordinary Shareholders’ General Meeting RUPSLB approved the Quasi-Reorganization as at April 30, 2003. The minutes of the RUPSLB were notarized by Notary
Sutjipto S.H. in Notarial Deed No. 165 dated October 30, 2003. In relation to the quasi-reorganization, the Bank determined that the fair value of all assets and
liabilities was higher than the historical net book value as at April 30, 2003, the date of the quasi- reorganization. Therefore, the Bank eliminated the accumulated losses against the additional paid-in
capitalagio without adjusting the asset and liability accounts to their fair values. Moreover, the net profit during the four-month period ended April 30, 2003 had been closed to the accumulated losses
account prior to the elimination against additional paid-in capitalagio. The quasi-reorganization adjustments resulted in the accumulated losses of Rp162,874,901 million as
at April 30, 2003 being eliminated against additional paid-in capitalagio.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated
162
63. IMPLEMENTATION OF QUASI-REORGANIZATION continued
