PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
62
13. INVESTMENTS IN SHARES OF STOCK continued
a. The details of investments in shares of stock are as follows: continued The details of investments in shares of stock as of December 31, 2006 are as follows:
Accumulated Equity Investee
Nature of Percentage of
in Retained Earnings Companies
Business Ownership
Cost Accumulated Losses
Carrying Value Equity Method of Accounting:
PT AXA Mandiri Financial Services
Insurance 49.00
16,761 62,744
79,505 PT Sarana Bersama
Pembiayaan Indonesia Holding company
34.00 2,278
2,278 -
79,505
Cost Method of Accounting: PT Semen Kupang
a
Manufacturing 59.70
45,023 45,023
PT Sri Thai
a
Manufacturing 21.60
23,055 23,055
Others each less than Rp3,889
Various 10,912
10,912 78,990
Total 158,495
Less: Allowance for possible losses 73,625
84,870
a These investments represent restructured loans through debt to equity participations Note 11B.g. Such investments are temporary investments for up to a maximum of five 5 years based on Bank Indonesia regulations. Accordingly, such
investments are accounted for using the cost method regardless of the percentage of ownership, effective January 1, 2001.
b. Investments in shares of stocks by collectibility:
2007 2006
Current 126,168
85,815 Loss
72,680 72,680
Total 198,848
158,495 Less: Allowance for possible losses
73,943 73,625
124,905 84,870
c. Movements of allowance for possible losses on investments in shares of stocks:
2007 2006
Balance at beginning of year 73,625
73,298 Provision during the year Note 36
318 327
Balance at end of year 73,943
73,625
Management believes that the allowance for possible losses on investments in shares of stock is adequate.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
63
14. PREMISES AND EQUIPMENT
The details of premises and equipment are as follows:
Movements from January 1, 2007 Beginning
Ending to December 31, 2007
Balance Additions
Deductions Reclassifications
Balance CostValuation
Direct ownership Land
2,604,103 -
628 107,045
2,710,520 Buildings
1,540,552 14,926
3,572 55,929
1,607,835 Furnitures, fixtures, office
equipment and computer equipmentsoftware
3,717,510 107,876
3,037 134,012
3,956,361 Vehicles
73,178 6,957
2,548 562
77,025 Construction in progress
166,570 168,608
3,722 180,553
150,903 8,101,913
298,367 13,507
115,871 8,502,644
Accumulated Depreciation and Amortization Note 40
Direct ownership Buildings
800,243 86,341
3,381 4,069
887,272 Furnitures, fixtures, office
equipment and computer equipmentsoftware
2,550,474 487,802
3,197 -
3,035,079 Vehicles
41,953 9,734
2,971 -
48,716 3,392,670
583,877 9,549
4,069 3,971,067
Net book value Direct ownership
Land 2,710,520
Buildings 720,563
Furniture, fixtures, office equipment and computer equipmentsoftware 921,282
Vehicles 28,309
4,380,674 Construction in progress
150,903 4,531,577
Construction in progress as of December 31, 2007 is comprised of:
Product and license - Core Banking System 54,013
Buildings 15,464
Others 81,426
150,903
The construction in progress for Integrated Banking System agreement with PT Silverlake Informatikatama was approximately 96.24 complete whilst with Silverlake Corporation was
approximately 73.77 complete as of December 31, 2007. Certain premises and equipment of Bank Syariah Mandiri, a subsidiary, with net book value as of
December 31, 2007 amounting to Rp23,882 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.
