FOREIGN CURRENCY TRANSACTIONS 2004 12 Full Audited Financial Statements w Notes

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 139

48. RELATED PARTY TRANSACTIONS continued

a. Banking Activities in the Ordinary Course of Business continued Eight-Month Year Ended Period Ended Four-Month December 31, December 31, Period Ended 2004 2003 April 30, 2003 Salary, allowances and bonuses of the Boards of Directors and Commissioners and Executive Officers Note 42 96,168 54,604 17,487 b. Significant transactions with the Government of the Republic of Indonesia • In May 1999, the Government implemented a recapitalization program for Bank Mandiri by issuing Government Recapitalization Bonds Notes 1 and 7. • In connection with the recapitalization, Bank Mandiri entered into a management contract with the Government in April 8, 2000 Note 57a. • The Committee on Financial Sector Policy KKSK and the Minister of Finance approved and guaranteed the issuance of standby letters of credit and conversion of loans of PT Garuda Indonesia to Mandatory Convertible Bonds. • The Bank paid Rp1,124,194 to the State Treasury representing a 50 deposit in relation to an objection regarding the Bank’s 2000 corporate income tax assessment Note 15. • The Bank returned additional paid-in capital of Rp1,412,000 representing a portion of the excess recapitalization Note 32b. • Based on the Minister of Finance’s Decision Letter No. 227KMK.022003 dated May 23, 2003, and Decree of the Minister of State-Owned Enterprises, as the Bank’s shareholder, No. KEP-154M-MBU2002 dated October 29, 2002, the Government converted recapitalization funds amounting to Rp5,000,000 into 5,000,000 shares with a nominal value of Rp1,000,000 full amount per share, and the remaining recapitalization funds amounting to Rp168,801,315 were recorded as agio. • Based on Government Regulation PP No. 26 dated May 29, 2003, the Government of the Republic of Indonesia converted Rp1,000,000 of appropriated retained earnings to issued and fully paid-up capital.

49. MATURITY PROFILE

The maturity profile of the Bank’s assets and liabilities is as follows: This profile as of December 31, 2004 and 2003, and April 30, 2003 is based on contractual terms. Historically, a significant proportion of deposits are rolled-over on maturity. Also, Government recapitalization bonds trading and available-for-sale could be liquidated through sale or used as collateral in the inter-bank market should the need for liquidity arise. The Bank’s policy with regards to the maturity gap between the monetary assets and liabilities is to determine a gap limit which is adjusted to the Bank’s ability to obtain immediate liquidity. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 140

49. MATURITY PROFILE continued

The maturity profile of the Bank’s assets and liabilities is as follows continued: December 31, 2004 No Maturity Description Total Contract 1 mth 1 mth - 3 mth 3 mth 6 mth 6 mth 12 mth 12 mth Assets Cash 2,439,465 - 2,439,465 - - - - Current accounts with Bank Indonesia 15,986,630 - 15,986,630 - - - - Current accounts with other banks - net 650,631 - 650,631 - - - - Placements with Bank Indonesia and other banks - net 14,180,058 - 13,403,697 58,677 717,684 - - Securities - net 12,504,729 - 9,149,299 206,490 228,344 139,015 2,781,581 Government Recapitalization Bonds 93,081,021 - 470,472 940,943 1,411,137 1,891 90,256,578 Other receivables - trade transactions - net 1,939,179 - 361,548 744,759 824,913 7,843 116 Securities bought with agreements to resell 703,334 - 475,200 - - 228,134 - Derivative receivables - net 285,256 - 17,398 31,306 107,925 - 128,627 Loans - net 85,766,901 - 4,771,966 9,656,276 5,906,408 10,230,606 55,201,645 Acceptances receivable - net 5,094,102 - 1,241,876 2,113,459 1,222,348 510,913 5,506 Investments in shares of stock - net 8,849 8,849 - - - - - Premises and equipment - net 5,483,628 5,483,628 - - - - - Deferred tax assets - net 2,252,144 2,252,144 - - - - - Accrued income 1,145,139 - 1,145,139 - - - - Receivables 3,256,714 - - - - 3,256,714 - Others - net 3,378,047 1,800,182 31,597 - 1,207,926 338,342 - Total Assets 248,155,827 9,544,803 50,144,918 13,751,910 11,626,685 14,713,458 148,374,053 Liabilities Liabilities immediately payable 546,277 - 546,277 - - - - Demand deposits 41,083,330 - 41,083,330 - - - - Savings deposits 53,533,402 - 53,533,402 - - - - Time deposits 81,221,614 - 59,035,196 13,299,590 4,219,384 2,588,009 2,079,435 Certificates of deposit 25 - 25 - - - - Deposits from other banks - Demand deposits 970,816 - 970,816 - - - - - Inter-bank call money 1,964,360 - 1,964,360 - - - - - Time deposits 9,104,019 - 8,879,559 179,666 745 20,809 23,240 Securities sold with agreements to repurchase 2,913,632 - 2,010 - 1,037,500 - 1,874,122 Derivative payables 66,968 - 22,092 20,650 11 - 24,215 Acceptances payable 5,241,388 - 1,277,471 2,174,675 1,261,764 521,920 5,558 Securities issued 3,993,980 - 906,572 83,003 - 157,845 2,846,560 Fund borrowings 7,066,493 - 1,059,858 853,716 3,511,081 314,167 1,327,671 Estimated losses on commitments and contingencies 565,898 565,898 - - - - - Accrued expenses 729,753 - 729,753 - - - - Taxes payable 496,124 - 160,760 335,364 - - - Other liabilities 5,649,817 5,156,708 - - - 493,109 - Subordinated loans 6,816,206 - 10,197 - 14,096 2,383,944 4,407,969 Loan capital 1,253,475 - - - - 1,253,475 - Total Liabilitiies 223,217,577 5,722,606 170,181,678 16,946,664 10,044,581 7,733,278 12,588,770 Net AssetsLiabilities 24,938,250 3,822,197 120,036,760 3,194,754 1,582,104 6,980,180 135,785,283