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
138
48. RELATED PARTY TRANSACTIONS continued
a. Banking Activities in the Ordinary Course of Business continued Related by management andor key personnel Bank Mandiri’s employees:
December 31, December 31,
April 30, 2004
2003 2003
Securities Note 6a 399,084
420,549 260,421
Government Recapitalization Bonds Note 7 93,081,021
122,906,853 150,332,380
Loans Note 11B.g 952,277
1,019,902 1,018,631
Interest refundable by the Government Note 15 866
25,267 25,267
Deposit made to the State Treasury Note 15 -
- 1,124,194
Total assets involving related parties 94,433,248
124,372,571 152,760,893
Total consolidated assets 248,155,827
249,435,554 261,285,909
Percentage of assets involving related parties to total consolidated assets
38.05 49.86
58.47
The percentages of securities, Government Recapitalization Bonds, Loans, and Deposits made to the State Treasury in relation to a tax appeal and interest receivable from the Government
compared to the total consolidated assets are as follows:
December 31, December 31,
April 30, 2004
2003 2003
Securities 0.16
0.17 0.10
Government Recapitalization Bonds 37.50
49.27 57.54
Loans 0.38
0.41 0.39
Interest refundable by the Government 0.01
0.01 0.01
Deposit made to the State Treasury -
- 0.43
38.05 49.86
58.47 Demand Deposits Note 16a
62,412 11,854
27,545 Savings Deposits Note 17b
15,467 8,769
2,406 Time Deposits Note 18f
35,997 354,490
1,813,676 Total liabilities involving related parties
113,876 375,113
1,843,627 Total consolidated liabilities
223,217,577 229,036,856
243,998,291 Percentage of liabilities involving related
parties to total consolidated liabilities 0.05
0.16 0.76
Percentages of current accounts, savings accounts, time deposits and liabilities to the Government arising from the return of additional paid-in capital compared to the total consolidated
liabilities are as follows:
December 31, December 31,
April 30, 2004
2003 2003
Demand Deposits 0.03
0.01 0.01
Savings Deposits 0.01
- 0.01
Time Deposits 0.01
0.15 0.74
0.05 0.16
0.76
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.
