Fixed assets, Financial-Leased Assets and Intangible Assets

BANK INDONESIA Notes to Financial Statements As at December 31, 2008 32

b. Other Assets in Indo Plus BV IPBV

Other Assets in IPBV consists of the non-performing loans NPL of ex-Indover Bank that has been transferred to IPBV. The balance of the NPL is stated in a Floating Principal Note FPN. IPBV issues FPN quarterly to reflect the selling value of the NPL at a certain position. The First FPN was issued on January 26, 2004 and amounted to USD294,232,949.00. The latest FPN based on IPBV Report was dated September 30, 2008 and amounted to USD38,598,104.78 or equivalent to IDR422,649 million. Other than the FPN value, there were also other claims to IPBV amounting USD1,398,024.92 or equivalent to IDR15,308 million that was being used as allowance for IPBV’s operational expenses and amounting to EUR4,751.16 or equivalent to IDR73 million which are Bank Indonesia’s receivables from recovery that has not been received by Bank Indonesia, maintained by IPBV in Indover Bank.

c. Others

Included in Others is the placement of funds in Indover Bank Amsterdam and Indover Bank Hongkong amounted to USD128,797,259.98 or equivalent to IDR1,410,330 million and EUR4,983,376.69 or equivalent to IDR76,905 million at December 31, 2008, and Other Assets amounted to IDR263,531 million. Indover Bank has been declared bankrupt Note C.12 – Equity Participation.

14. Allowance for Bad Debts

Total allowance for bad debts as at December 31, 2008 and December 31, 2007 were IDR16,474,382 million and IDR17,710,243 million respectively, with details as follows: December 31, 2008 December 31, 2007 IDR million IDR million - Beginning Balance 17,710,243 31,214,833 - Assets recovery 48 56 - Assets write-off 2,003,061 13,451,262 - Additiondecrease of allowance for bad debt 767,152 53,384 - Ending Balance 16,474,382 17,710,243 Use of Allowance for Bad Debts was among others for write-off of claims on banks ex- BBO-BBKU as explained in Note. C.11 – Claims on Others. BANK INDONESIA Notes to Financial Statements As at December 31, 2008 33

15. Currency in Circulation

Currency in Circulation is valid payment instrument not under possession of Bank Indonesia with a position as at December 31, 2008 and December 31, 2007 amounted to IDR264,399,922 million and IDR220,794,779 million respectively with details as follows: December 31, 2008 December 31, 2007 IDR million IDR million Printed Money: 319,010,796 279,158,691 - Bank Notes - Coins 316,004,689 2,995,614 276,312,782 2,835,416 - Special edition 10,493 10,493 Currency withdrawn from circulation 920,998 1,834 Currency inventory 53,673,281 58,361,352 Others 16,595 726 Currency in circulation 264,399,922 220,794,779

16. Government Demand Deposits

In performing its function as the account holder of the Government, Bank Indonesia manages Government demand deposits, with details as follows: December 31, 2008 December 31, 2007 IDR million IDR million In Rupiah 32,053,286 11,012,224 In Foreign Currency 65,175,264 10,906,136 97,228,550 21,918,360 a. Government demand deposits in Rupiah as at December 31, 2008 included as follows: 1 General State Treasury Bendaharawan Umum Negara - BUN account amounted to IDR26,714,560 million, including sub BUN account for the purpose of guarantee program amounted to IDR83,443 million raised from the issuance of SUP Number SU-004MK1999. 2 Government account for accrued interest on subsidy of credit program amounted to IDR1,203,327 million. b. Government demand deposits in foreign currency as at December 31, 2008 included State Cash Account amounted to USD3,822,775,722.45 or equivalent to IDR41,859,394 million and IMF account for SDR allocation amounted to SDR238,956,000.00 or equivalent to IDR4,049,951 million.