PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
61
13. INVESTMENTS IN SHARES OF STOCK continued
b. Investments in shares of stocks by Collectibility:
2005 2004
Current 68,739
4,922 Sub-standard
- 1,955
Loss 72,625
80,117 Total
141,364 86,994
Less: Allowance for possible losses 73,298
78,145 68,066
8,849
c. Movements of allowance for possible losses on investments in shares of stocks:
2005 2004
Balance at beginning of year 78,145
89,693 Reversal during the year Note 37
4,847 1,922
Write-offs -
9,530 Others
- 96
Balance at end of year 73,298
78,145
Management believes that the allowance for possible losses on investments in shares of stock is adequate.
14. PREMISES AND EQUIPMENT
2005 2004
CostValuation 8,142,270
7,825,578 Less: Accumulated depreciation and amortization
2,836,857 2,341,950
Net book value 5,305,413
5,483,628
Certain premises and equipment were revalued in 1979, 1987 and 2003.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
62
14. PREMISES AND EQUIPMENT continued
Movements from January 1, 2005 Beginning
Ending to December 31, 2005
Balance Additions
Deductions Reclassifications Balance
Cost Valuation
Direct ownership
Land 2,829,613
301 4,989
- 2,824,925
Buildings 1,460,171
20,147 30,623
13,790 1,463,485
Furniture, fixtures, office equipment and
computer equipmentsoftware 3,125,558
140,569 11,506
256,317 3,510,938
Vehicles 63,157
11,299 3,719
- 70,737
Construction in
progress 265,551 239,191
- 232,557 272,185
Leased assets
81,528 -
43,978 37,550
- 7,825,578 411,507
94,815 -
8,142,270 Accumulated Depreciation
and Amortization Direct
ownership Buildings
695,344 76,580
34,810 -
737,114 Furniture,
fixtures, office equipment and
computer equipmentsoftware 1,580,906
474,020 9,229
20,027 2,065, 724 Vehicles
32,963 4,602
3,546 -
34,019 Leased
assets 32,737
2,504 15,214
20,027 -
2,341,950 557,706
62,799 -
2,836,857 Net
book value
Direct ownership
Land 2,824,925
Buildings 726,371
Furniture, fixtures, office equipment and computer equipmentsoftware 1,445,214
Vehicles 36,718
5,033,228 Construction
in progress
272,185 5,305,413
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 December 31, 2005 is comprised of:
Product and license - Core Banking System 164,554
Buildings 44,229
Others 63,402
272,185
The construction in progress was approximately 95.78 complete as of December 31, 2005. Certain premises and equipment of BSM, a subsidiary, with net book value as of December 31, 2005
amounting to Rp 33,648, 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.
