PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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132
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57. RELATED PARTY
TRANSACTIONS
a. Banking Activities in the Ordinary Course of Business In the ordinary course of its business, Bank Mandiri engages in significant transactions with
related parties as follows:
2002 2001
Securities Note 7.g 511,317
129,410 Government Bonds Note 8
148,845,927 153,493,218
Loans Note
12.B.f 899,232
926,833 Deposit for tax appeal Note 16
1,124,194 -
Interest refundable by the Government Note 16 25,267
24,702 Total assets from related parties
151,405,937 154,574,163
Total assets
250,394,689 262,290,995 Percentage of assets from related
parties to total assets 60.47
58.93 2002
2001 Deposits - demand deposits Note 17.a
29,580 23,805
Deposits - savings deposits Note 18.b 32,823
38,172 Deposits - time deposits Note 19.e
1,332,690 1,753,118
Due to the Government arising from the return of additional paid-in capital Note 29
1,412,000 129,685
Total liabilities to related parties 2,807,093
1,944,780 Total liabilities
235,956,683 251,511,342
Percentage of liabilities to related parties to total liabilities
1.19 0.77
Salary, allowances and bonuses of the Boards of Directors and Commissioners and
Executive Officers Note 41 57,372
39,727
PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
-
133
-
57. RELATED PARTY TRANSACTIONS Continued
b. Significant transactions with the Government of the Republic of Indonesia • 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 Notes 48 and 12B.g.
• Government bonds held by the Bank amounting to Rp103,849,017 were reprofiled by the Government on November 20, 2002 Note 8.
• The Bank paid Rp1,124,194 to the State Treasury representing 50 deposit in relation to an objection regarding the Bank’s 2000 corporate income tax assessment Notes 16 and 28c.
• Return of additional paid-in capital of Rp129,685 Notes 8 and proposed return of Rp1,412,000 representing a portion of the excess of recapitalization Notes 33.
c. Transfer of Certain Investments and Non-core Fixed Assets In 1999 certain investments in shares of stock and certain non-core fixed assets of Bank
Mandiri were transferred to PT PIM and PT PHTM, related companies, respectively Notes 14 and 15. In 2002, the fixed assets of PHTM were transferred back to the Bank based on the
shareholder’s resolution of PHTM dated June 14, 2002.
58. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
a. Management
Contract On April 8, 2000, a Management Contract was signed between the Government and Bank Mandiri
in connection with the recapitalization of Bank Mandiri as described in Note 3. The Management Contract provides for, among others, the requirements and milestones to be fulfilled by Bank
Mandiri in accordance with its Business Plan for the period to end of 2001, which include, the following:
1. Obligations to be fulfilled by Bank Mandiri, among others: • To use the Government Bonds to settle liabilities only and not for use in acquiring assets,
except for Government Bonds classified as trading based on prevailing regulations. • To reduce overhead costs.
• To settle unreconciledopen items and reconcile inter-branch transactions derived from the Merged Banks.
• To conduct special audit of high risk and material un-reconciled open items. • To implement an automated monitoring system over the use of funds and liquidity of
Bank Mandiri. • To implement a policy of reporting according to Bank Indonesia regulations.
