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NILAI-NILAI DASAR BFI

1

BFI Core Values

IKHTISAR KEUANGAN

2

Financial Highlights

PERGERAKAN HARGA SAHAM

5

Share Price Movements

LAPORAN DEWAN KOMISARIS DAN DIREKSI

7

Message from the Board of Commissioners and Directors

15

Statement of Corporate Governance

PROFIL MANAJEMEN

21

Management Profile

PERSONEL UTAMA

24

Key Personnel

JARINGAN BFI

25

BFI Network

LAPORAN AUDITOR INDEPENDEN

26

Independent Auditor’s Report

PERNYATAAN PELAKSANAAN CORPORATE GOVERNANCE



Administrasi

Expense

Laba (Rugi) Sebelum Selisih Kurs, Pajak

77.300

9.614

17.890

(1.351.546)

34.275 Income (Loss) Before Foreign Exchange, Tax

Laba (Rugi) Sebelum Taksiran Pajak Penghasilan

84.704

(273.709)

71.599

(1.438.179)

14.932 Income (Loss) Before Provision For Income Tax

Laba (Rugi) Bersih

385.571

(190.223)

63.188

(1.000.524)

Laba (Rugi) Bersih Per Saham

1.115

(550)

183

(2.892)

-

1

-

-

Dividen Tunai Per Saham

3.175 Net Income (Loss) 14 Net Income (Loss) Per Share 125 Cash Dividend Per Share

* Di luar laba selisih kurs dan pos luar biasa Excluding gain on foreign exchange and extraordinary item

NERACA (dalam jutaan rupiah kecuali jumlah saham yang beredar)

2001

2000

BALANCE SHEET (in million rupiah except for the number of shares outstanding)

1999

1998

1997

822.015

1.304.439

* 1.477.531

2.090.705 Total Assets

Jumlah Aktiva

738.913

Jumlah Aktiva Produktif

398.046

307.457

1.272.979

1.628.078

Investasi Bersih dalam Sewa Guna Usaha

57.318

101.502

306.091

466.552

673.413 Net Investment in Financial Lease

Investasi Bersih dalam Pembiayaan Konsumen

340.728

205.955

75.574

197.206

422.863 Net Investment in Consumer Financing

Investasi Bersih dalam Anjak Piutang

-

-

891.314

964.320

387.438 Net Investment in Factoring

39.608

53.428

1.194.594

1.221.313

52.437 Allowance for Doubtful Accounts

* * 26.000

1.671.831

1.889.480

2.213.491

1.796.159 Total Fund Borrowings

* * * (494.910)

(880.481)

(689.912)

* (753.100)

Akumulasi Penyisihan Piutang yang Diragukan Jumlah Pinjaman Jumlah Modal Sendiri (Defisit)

Jumlah Saham yang Beredar 345.954.696

1.483.713 Total Earning Assets

238.028 Total Stockholders’ Equity (Deficit)

345.954.696 345.954.696 345.954.696 345.954.696 Number of Shares Outstanding

*

Setelah penerapan PSAK No. 46 “Akuntansi Pajak Penghasilan” After adoption of Statement of Financial Accounting Standards (PSAK) No. 46 “Accounting for Income Taxes” * * Diluar obligasi wajib konversi Excluding mandatory convertible bonds * * * Jika seluruh obligasi wajib konversi dikonversi menjadi saham maka jumlahnya menjadi Rp 679.465 juta Should all of the mandatory convertible bonds is converted into shares, the amount becomes Rp 679.465 million

2 LAPORAN TAHUNAN ANNUAL REPORT 2001


Sewa Guna Usaha Pembiayaan Konsumen Nilai Pembiayaan Baru Sewa Guna Usaha Pembiayaan Konsumen

177

211

492

1.913

12.848

9.954

28.125

55.535

370.891

327.557

1.650

5.221

19.440

90.288

1.650

-

351.451

237.269

-

5.221

2.592 Leasing 67.318 Consumer Financing 729.801 Value of New Bookings 216.411 Leasing 513.390 Consumer Financing

Rata-rata Nilai Kontrak Baru Sewa Guna Usaha

Average Value of New Booking 463

627

550

-

279 Leasing

Pembiayaan Konsumen

35

40

-

5

8 Consumer Financing

Jumlah Cabang

16

19

25

36

53 Number of Branches

405

484

715

1.224

Jumlah Karyawan

NISBAH KEUANGAN

2.188 Number of Employees

FINANCIAL RATIO

2001

2000

1999

1998

1997

Pengembalian terhadap rata-rata Aktiva

15,04%

(17.89%)

4,54%

(56,08%)

0,22%

Return on Average Assets

Pengembalian terhadap rata-rata Modal Sendiri

17,79%

na

na

na

1,74%

Return on Average Equity

Nisbah Hutang terhadap Modal Sendiri

0,08X

(1.93 X)

(2,89 X)

(2,96 X)

7,41 X

Debt to Equity Ratio

Catatan : Nisbah Keuangan tahun 1997 di atas dihitung setelah dilakukan offset antara deposito kas yang terbatas penggunaannya dengan pinjaman yang diterima seperti dijelaskan pada catatan atas laporan keuangan pada tahuntahun tersebut.

Note : The above 1997 financial ratio is calculated after offsetting restricted cash deposit to fund borrowing as explained in Notes to Financial Statement for respective years.

The above 2001 financial ratio is calculated on the return from net income before extraordinary item, excluding the deferred tax assets and after considering the conversion of mandatory convertible bonds to company’s shares, therefore the calculation does not based on the average total assets and average equity due to comparability.

Nisbah Keuangan tahun 2001 di atas dihitung dengan tingkat pengembalian dari laba bersih sebelum pendapatan luar biasa, dan mengeluarkan efek dari aktiva pajak tangguhan serta mempertimbangkan konversi dari seluruh obligasi wajib konversi menjadi saham, sehingga tahun 2001 tidak



Investasi Bersih Dalam Sewa Guna Usaha Net Investment In Financial Lease (Rp 000.000.-)

Investasi Bersih Dalam Pembiayaan Konsumen Net Investment In Consumer Financing (Rp 000.000.-)

1.000.000

500.000 422.863

800.000 673.413

400.000

466.552

600.000

340.728

300.000

205.955

197.206 306.091

400.000

200.000 75.574

101.502 57.318

200.000 0

1997

1998

1999

2000

100.000 0

2001

1997

1998

1999

2000

2001

Kontrak Baru Yang Dibukukan New Contracts Booked (Rp 000.000.-) 70.000

60.572

60.000 50.000

Sewa Guna Usaha Leasing Pembiayaan Konsumen Consumer Financing

40.000 30.000 20.000 10.000 0

776 1997

0 1.046

3 0

5.903 144

1998

1999

2000

Komposisi Aktiva Produktif Composition of Earning Assets

9.915 42 2001

Distribusi Aktiva Produktif Distribution of Earning Assets

Pembiayaan Kendaraan Roda dua (Motorcycle Financing) 2% Empat Pembiayaan Kendaraan Roda (Car Financing) Sewa Guna Usaha 84% (Leasing) 14%

Sumatera 23%

Kalimantan 27%



Jabotabek 9%

West Java 23%

East Indonesia 18%

*)

Period

(Rp)

(Rp)

(Rp)

Period

(Rp)

(Rp)

(Rp)

I Jan’01-Mar’01

310

125

125

I Jan’00-Mar’00

950

325

350

II Apr’01-Jun’01

205

115

140

II Apr’00-Jun’00

350

175

200

III Jul’01-Sep’01

320

110

210

III Jul’00-Sep’00

340

150

275

IV Oct’01-Dec’01

220

105

170

IV Oct’00-Dec’00 *)

230

225

230

Perdagangan saham dihentikan oleh Bursa Efek Jakarta sejak tanggal 12 Oktober 2000 sampai dengan 23 Januari 2001

*)

Suspended by Jakarta Stock Exchange from October 12, 2000 to January 23, 2001

HARGA SAHAM PERUSAHAAN 2001 Company Historical Share Price 2001 350

300

250

200

Tertinggi High Penutupan Closing

150

Terendah Low

100

50

0

Jan

Feb

Mar

April

May

June

July



Aug

Sep

Oct

Nov

Dec

V i s i V

I

S

Menjadi acuan kualitas dan unggul dalam industri multi finance di Indonesia


I

O

N

To be the benchmark for quality and excellence in the multi-finance industry in Indonesia

mobil. Jumlah tersebut naik sebesar 13% dari tahun sebelumnya.

previous year.

Meskipun terjadi ketidakstabilan politik dan masalah ekonomi yang berat yang dihadapi oleh negara ini, permintaan akan barangbarang konsumsi tetap tinggi. Aktifitas bisnis yang dimulai kembali oleh BFI telah berlangsung selama 2 tahun pasca restrukturisasi dan selama periode ini BFI melakukan upaya yang konsisten dan terfokus pada pengembangan bisnis baru, memotivasi dan meningkatkan kemampuan sumber daya manusia, mencari relasi baru untuk memperoleh sumber pendanaan baru dan melakukan berbagai inisiatif untuk meningkatkan efisiensi operasional.

Despite political instability and severe economic difficulties, faced by the country, demand for consumer goods remained strong. It has been 2 years since BFI recommenced business activities, post restructuring and during this period through a consistent and focused approach to developing new business, continued motivation, and upgrading of human resources, cultivation of relationships to obtain new funding sources, along with initiatives adopted to increase operational efficiencies satisfactory results were achieved by the company. 91% of BFI’s business and 93% of revenue was generated outside Jabotabek (Metropolitan Jakarta). Presently BFI revenue streams were contributed primarily from 3 regions, namely Kalimantan, Sumatra and Java. East Indonesia, where BFI have branches in Makassar and Bali contributed the remaining 18% of business. 84% of the business is in 4 wheel motor vehicles, 14% in leasing and the remaining 2% in motorcycles.

Sejumlah 91% dari pembiayaan BFI dan 93% dari pendapatan BFI dihasilkan dari luar Jabotabek (Metropolitan Jakarta). Saat ini pendapatan BFI yang dihasilkan hampir sama besarnya di 3 wilayah yaitu Kalimantan, Sumatera dan Jawa. Di wilayah Indonesia Timur di mana BFI mempunyai cabang di Makassar dan Bali memiliki kontribusi sebesar sisanya yaitu 18% dari seluruh pembiayaan. Sejumlah 84% dari pembiayaan adalah kendaraan roda empat, 14% sewa guna usaha dan sisanya sebesar 2% untuk kendaraan roda dua. Penekanan lebih difokuskan pada pembiayaan mobil bekas yang merupakan 74% dari total piutang kendaraan roda empat. Sebanyak 77% dari kendaraan yang dibiayai dipergunakan


Greater emphasis is being placed on second hand car financing, which makes up 74% of total car receivables. 77% of vehicles financed are for passenger use, with the

7

resiko dan pendanaan. Permintaan akan mobil baru dan bekas masih tinggi sepanjang tahun 2001 sebagaimana terlihat pada jumlah penjualan nasional untuk kendaraan baru yang mencapai puncaknya sebanyak 299.629 unit yang mana jumlah ini juga pernah dicapai pada tahun 1997 sebelum krisis keuangan. Gambaran yang kuat ini terkait dengan tingkat mobilitas dan peningkatan permintaan alat transportasi barang meskipun saat ini terjadi krisis keuangan.

cars remained strong throughout the year, as shown in the national sales figure of new vehicles topping the 299.629 unit mark, which is the figure achieved also in 1997 prior to the financial crisis. This strong showing is attributed to the high mobility rate and increasing demand for the transportation of goods, despite the current financial crisis.

Di masa yang akan datang aktifitas sewa guna usaha tidak akan menjadi fokus dari Perusahaan. Meskipun demikian prospek dan permintaan masih relatif tinggi khususnya di sektor agribisnis dan pertambangan. Selama tahun 2001 nilai pembiayaan BFI untuk sewa guna usaha mencapai Rp 19 milliar. Sementara pembiayaan kendaraan roda dua yang berjumlah Rp 7 milliar dipakai untuk membiayai 881 unit kendaraan roda dua dan hanya dilakukan beberapa cabang BFI. Aktifitas ini hanya menambah aktifitas cabang dan tidak akan menjadi komponen yang penting dalam strategi pertumbuhan Perusahaan di masa yang akan datang. Bagaimanapun ini adalah strategi yang penting bagi BFI untuk menjaga keberadaan BFI pada tingkat tertentu dalam tiga aktifitas utama sebagai sebuah Perusahaan pembiayaan untuk tetap mengikuti tingkat persaingan di dalam industri.

Leasing activities for the time being will continue to be a non-core activity of the company; nonetheless the prospects and demand remain relatively strong in this area, especially in the agriculture and mining sector. BFI financed Rp 19 billion of equipment under leasing activities during the year. As for motorcycle financing Rp 7 billion was disbursed to finance 881 motorcycle in just a handful of BFI branches. This activity supplements the branches operations and will not become an important component of the Company’s growth strategy in the near future. It is however of strategic importance for BFI to maintain a certain level of involvement in all three main activities as a finance Company in order to keep abreast of the level of competition within the industry.



potensi pertumbuhan perusahaan pembiayaan secara umum. Sebagai alternatif BFI saat ini bekerja mencari dana melalui kerjasama pembiayaan dengan Bank dan sekuritisasi piutang untuk dijual kepada institusi keuangan non bank.

potential of finance company in general. Alternatively BFI is currently working to raise funding through loan chanelling with Banks and securitization of its receivables to be sold to non-bank financial institutions.

Meskipun kebutuhan dana BFI selama tahun 2001 mencukupi, tantangan yang sebenarnya adalah kemampuan meraih sumber dana non tradisional yang akan mendorong pertumbuhan di masa yang akan datang dan membantu memperoleh dana tersebut dengan tingkat bunga yang lebih rendah dibandingkan dengan jumlah yang dibayar oleh BFI saat ini kepada pihak bank.

Whilst BFI’s funds requirements was adequately met during the year, the real challenge will be the ability to access non traditional funding sources, that will fuel future growth and assist in achieving funding at a lower cost compared to what BFI is currently paying from the bank.

Human resources alignment was one of the major tasks accomplished during the year. New hires were made to fill strategic positions and in house training with new curriculum, were re-commenced, to motivate and enhance the technical skills of the employees. Currently the Company employs 405 personnel.

Pengembangan sumber daya manusia merupakan salah satu tugas utama yang telah diselesaikan pada tahun lalu. Perekrutan karyawan baru dilakukan untuk mengisi posisi-posisi strategis dan pelatihan internal dengan kurikulum baru telah dimulai kembali untuk memotivasi dan memperbaiki kemampuan teknis para karyawan. Saat ini Perusahaan mempekerjakan 405 karyawan.

BFI core values on providing high level of customer service, teamwork and mutual respect are continuously being applied when recruiting and training these employees.

Nilai-nilai dasar BFI untuk memberikan tingkat kepuasan pelanggan yang tinggi, kerjasama dan saling percaya dan menghormati diterapkan secara terusmenerus pada saat perekrutan dan pelatihan para karyawan.



pemrosesan karena jumlah kontrak akan meningkat beberapa tahun ke depan. Sistem ini diharapkan dapat dipakai pada akhir tahun 2002.

of 2002.

KINERJA KEUANGAN

FINANCIAL RESULTS

Laba operasi sebelum pajak dan selisih kurs untuk tahun 2001 berjumlah Rp 77,3 milliar. Jumlah tersebut mengalami kenaikan lebih dari 8 kali dibandingkan dengan tahun 2000.

Operating profit before foreign exchange gain/loss and tax for the year was Rp 77.3 billion, which represents an increase over 8 times over year 2000.

Pendapatan dari portfolio pembiayaan meningkat 103% menjadi Rp 122 milliar, 64% berasal dari aktifitas pembiayaan mobil, 12% dan 3% dari sewa guna usaha dan pembiayaan kendaraan roda dua. Sejumlah 21% dari total pendapatan berasal dari pendapatan “fee based”.

Revenue from financing portfolio increased by 103% to Rp 122 billion with 64% generated from car financing activities, 12% and 3% by leasing and motorcycle financing respectively. 21% of total revenue was generated from fee income.

Total aktiva adalah sejumlah Rp 739 milliar, turun 10% dibandingkan dengan tahun lalu karena penurunan aktiva pajak tangguhan. Total aktiva produktif meningkat 29% menjadi Rp 398 milliar yang menggambarkan adanya kemajuan tingkat aktifitas.

Total assets were Rp 739 billion, a decrease of 10% over the previous year due to the reduction of deferred tax asset. Total risk asset increased by 29% to Rp 398 billion reflecting the heightened pace of activities.

Kemampuan menghasilkan laba mulai bergerak menuju arah yang baik demikian pula dengan pengembalian terhadap ratarata aktiva. Rasio biaya overhead terhadap pendapatan adalah 30%, suatu penurunan yang signifikan dari sebesar 70% pada tahun 2000, namun masih tetap relatif tinggi jika

Profitability and return on average assets are beginning to move in the right direction. Overhead cost to revenue is at 30%, a significant reduction from 70% in 2000 but still a relatively high figure compared to the industry, as the company is still



milliar mewakili 5,4% dari total aktiva produktif dengan jumlah yang macet sebesar Rp 14,9 milliar. Sebagian besar dari piutang macet tersebut berasal dari aktiva lama sebelum restrukturisasi. Dilihat dari segi kualitas, penagihan piutang mobil mencapai 90%, kendaraan roda dua sebesar 83% dan sewa guna usaha sebesar 77%.

23 billion representing 5.4% of total risk assets, with non-performing loan comprising of Rp 14.9 billion. The majority of nonperforming loan are from old prerestructuring assets. From an asset quality point of view car receivables collection is at 90%, motorcycle 83% and leasing 77% respectively.

Saat ini cadangan piutang tertunggak tetap berjumlah Rp 39,6 milliar. Angka ini mewakili 9,95% dari total aktiva produktif. Gambaran resiko kredit ini jika dikaitkan dengan piutang lancar tetap baik dan dapat dikendalikan. Manajemen selalu memantau kualitas aktiva melalui rasio uang muka, lama kontrak dan tipe aktiva yang dibiayai.

Reserves for bad debt currently stands at Rp 39.6 billion. This represents 9.95% of total risk asset. The risk profile associated with the current receivables remain good and under control. Management continues to monitor the asset quality through down payment ratios, length of contract and type of assets.

Ekuitas BFI tetap negatif Rp 494 milliar. Terdapat perbaikan sebesar Rp 386 milliar selama tahun 2001 yaitu kenaikan pada laba operasi dan laba dari restrukturisasi hutang. Tidak ada obligasi wajib konversi yang dikonversi menjadi saham sepanjang tahun 2001.

BFI’s equity remains negative at Rp 494 billion. There was an improvement of Rp 386 billion during the year due to an increase in operating profit and gain on debt restructuring. No MCBs were converted throughout 2001.

TAHUN MENDATANG

THE YEAR BEYOND

Dua tahun terakhir merupakan periode konsolidasi berdasarkan sebuah landasan yang kuat untuk mencapai pertumbuhan pada situasi ketidakpastian.

The last two years have been a period of consolidation, based on a strong foundation to achieve growth at uncertain time.



ketidakpastian politik dan ekonomi yang dihadapi oleh negara ini adalah masalah yang serius dan manajemen harus mempunyai sikap atas jumlah resiko yang akan diambil oleh Perusahaan.

in a position to take.

Beberapa tugas utama yang harus dilakukan pada tahun yang akan datang adalah:

There are several major task that need to be accomplished during the coming year 2002, and these are: • Obtaining funding lines from bank and non-bank financial institution through securitisation of receivable to support the projected asset growth of the Company is a priority. There are several impediments in this area that still need to be resolved, such as taxation and legal aspects for securitization.

•

•

•

•

Pencarian sumber pendanaan dari bank dan institusi keuangan non bank melalui kerjasama penyaluran kredit dan sekuritisasi piutang dalam rangka mendukung proyeksi pertumbuhan aktiva Perusahaan adalah sebuah prioritas. Ada beberapa hambatan dalam hal ini, yang masih perlu diselesaikan seperti aspek perpajakan dan hukum untuk sekuritisasi. Pencanangan program pengembangan quality service untuk mencapai kualitas pelayanan yang lebih baik dan kualitas beberapa proses utama di seluruh cabang BFI harus diselesaikan pada tahun yang akan datang. Kesuksesan peluncuran sistem ELoan akan menjadi sebuah upaya penting yang harus diselesaikan tahun depan. Secara terus-menerus mencari pemegang saham strategis yang potensial menjadi rekanan pertumbuhan Perusahan ke masa depan.

•

•

•



The roll out of the company’s Quality Service Development (QSD) program, in order to enhance higher quality service and several key processes in all BFI branches, will be a priority to be accomplished during the year. The successful launching of the ELoan system will also be a priority project for completion during the year 2002. A continuing search for potential strategic shareholder, to partner the Company’s growth into the future.

Tujuan jangka panjang manajemen adalah membawa BFI ke jenjang kinerja dan memberikan nilai tambah bagi para pihak yang berkepentingan dengan Perusahaan, yang pernah diraih oleh Perusahaan di masa lalu dalam kategori ranking industri untuk ROA dan ROE.

It is management’s long-term objective to bring BFI to the level of financial performance and value to stakeholders that the Company achieved in the past, in term of industry ranking on RoA and RoE.

BFI akan merayakan ulang tahunnya yang ke-20 pada tahun 2002 dan akan menjadi hadiah yang tepat bagi para pihak yang berkepentingan dengan Perusahaan jika Perusahaan mampu mencapai hasil yang sebanding dengan yang pernah diraih 5 tahun yang lalu.

BFI will be celebrating its 20th anniversary in 2002 and it would be a fitting reward, for all stakeholders, if the Company can achieve, in year 2002, a comparable result to what it did 5 years ago.

JOHANES SUTRISNO Presiden Komisaris - President Commissioner

A. H. HAMAMI

E. JOHN MCLEOD

Komisaris - Commissioner

Komisaris - Commissioner

FRANCIS LAY SIOE HO Presiden Direktur - President Director

YAN PETER WANGKAR

CORNELLIUS HENRY KHO

Direktur - Director

Direktur - Director



M

I

S

Menjadi penyedia jasa keuangan utama pada pasar tertentu di Indonesia, yang memiliki komitmen untuk memberikan pelayanan konsumen yang baik, memberikan nilai bagi pemegang saham secara berkesinambungan dan secara konsisten unggul dan kompetitif pada area di mana kami beroperasi.


S

I

O

N

To provide selected core financial services to chosen Indonesian markets, with a commitment to deliver high quality customer service, continuously create value to our shareholders and consistently excel and be competitive in the areas where we operate.

corporate governance, BFI telah menyusun prosedur dan kebijakan yang sesuai dengan best practice di dunia internasional serta untuk memenuhi ketentuan-ketentuan baru yang baku di Indonesia dan memenuhi standard good corporate governance yang berlaku di lingkungan Internasional.

governance implementation, BFI developed procedures and policies in accordance with world best practice to comply with new statutory requirements within Indonesia and in recognition of good corporate governance standards being adopted in the International arena.

Dengan didukung oleh kepemimpinan dan budaya perusahaan yang baik, maka tujuan BFI adalah untuk dapat melakukan implementasi, pencapaian dan pelaksanaan standard yang tinggi di bidang corporate governance.

Supported by good corporate leadership and culture, BFI’s aim is to implement, achieve and practice high standards in the area of corporate governance.

Dewan dan Komite

Boards and Committee

Sebagaimana diatur dalam Undang-Undang Perseroan Terbatas, Perusahaan diurus oleh sistem dua dewan, Dewan Pengawas yang dinamakan Komisaris, dan Dewan Eksekutif, disebut juga Direksi.

As stipulated by Indonesian Corporate Law, the Company is governed by a system of two-boards, the Supervisory Board, which is called Board of Commissioner’s (BOC) and the Executive Board, also called Board of Directors (BOD).

Direksi terdiri dari para profesional yang mengelola bisnis setiap hari. Direksi bertanggung jawab kepada para pemegang saham untuk bisnis dan kegiatan Perusahaan melalui Rapat Umum Tahunan Pemegang Saham.

The BOD comprises professionals who run the day-to-day business. The Board is accountable to shareholders for the business and affairs of the Company via the Annual General Meeting of Shareholder’s. The BOC is responsible and has the authority to supervise the actions of the BOD, and provide advice to the BOD when required. To assist in doing so, the BOC has established an Audit Committee to monitor compliance and the Company’s overall performance, on an ongoing basis.

Komisaris bertanggung jawab dan mempunyai hak mengawasi tindakan-tindakan Direksi, dan memberikan saran kepada Direksi jika diperlukan. Untuk mendukung pelaksanaan pengawasan tersebut, Komisaris telah membentuk Komite Audit untuk memantau kepatuhan Perusahaan terhadap peraturan yang berlaku dan evaluasi kinerja Perusahaan secara berkesinambungan.



Pada tahun 2001, atas permintaan Direksi dan Dewan Komisaris, Komite Audit telah melaksanakan evaluasi menyeluruh atas implementasi Good Corporate Governance oleh Perusahaan dan dibandingkan dengan best practice serta Code for Good Corporate Governance yang disusun oleh Komite Nasional Kebijakan Corporate Governance. Hasil evaluasi tersebut juga mengeluarkan sejumlah rekomendasi untuk perbaikan lebih lanjut. Seluruh rekomendasi untuk perbaikan corporate governance tersebut telah diimplementasikan oleh BFI.

In the year 2001, at the request of the Boards of Directors and Commissioners, the Audit Committee conducted a comprehensive evaluation on the implementation of Good Corporate Governance (GCG), benchmarked to world best practice and the Code for Good Corporate Governance of the National Committee for Corporate Governance. The aforementioned evaluation also conveys some recommendations for continue improvement. All the recommendations for the improvement in corporate governance have been subsequently implemented by BFI.

Anggota Komite Audit yang ada saat ini terdiri dari tiga orang, yang diketuai oleh Bapak Johanes Sutrisno, komisaris independen Perusahaan. Anggota lainnya adalah Bapak A.T. Prastowo dan Mr. Pieter H.T. Evers, keduanya profesional independen dari luar Perusahaan.

The existing Company’s Audit Committee comprises of three members, chaired by Mr. Johanes Sutrisno, an independent commissioner. The other members are namely Mr. A.T. Prastowo and Mr. Pieter H.T. Evers, who are independent professional outside of the Company.

Aktifitas Komite Audit selama tahun 2001 adalah: • menelaah informasi keuangan yang akan dikeluarkan oleh Perusahaan • mengevaluasi independensi auditor eksternal • mengevaluasi kecukupan lingkup audit yang dilakukan oleh auditor eksternal dan memastikan bahwa seluruh faktor-faktor resiko yang penting telah dimasukkan ke dalam lingkup audit tersebut • menelaah penemuan auditor internal untuk memastikan kepatuhan terhadap standar prosedur operasi dan menelaah

The Audit Committees activities during the year 2001 were to: • review the financial information to be released by the Company • evaluate the independency of the external auditor • evaluate the adequacy of scope of audit by the external auditor and ensuring that all the important risk factors have been taken in to consideration • review the internal auditor’s findings to ensure compliance with the standard operating procedures and effectiveness



Komite Audit Rapat rutin Direksi dengan Komisaris dijadwalkan setiap bulan, namun demikian bilamana diperlukan dapat diadakan rapat tambahan sehubungan dengan hal-hal tertentu yang memerlukan perhatian di luar rapat yang telah dijadwalkan. Agenda rutin rapat Direksi dan Komisaris meliputi: • Laporan Keuangan dan analisa variance terhadap anggaran • Pengembangan bisnis dan langkahlangkah strategis • Pengelolaan dan kepatuhan Komite Audit mengeluarkan laporan kwartal kepada Dewan Komisaris yang berkaitan dengan aktifitas Komite selama periode dilakukannya pelaporan. Rapat Komite Audit dijadwalkan setiap kwartal, yaitu sebelum dikeluarkannya Laporan Komite Audit. Cakupan kerja dan aktifitas Komite Audit mengikuti pedoman dan ketentuan sebagaimana telah diputuskan oleh Dewan Komisaris. Panduan Remunerasi Dalam rangka mendapatkan komitmen, mempertahankan dan menghargai orang yang berkualifikasi baik tetap berada di Perusahaan, maka remunerasi dan tunjangan kepada Komisaris dan Direksi ditetapkan dengan mempertimbangkan kondisi yang kompetitif yang berlaku di pasar. Dari waktu ke waktu, jumlah remunerasi ditelaah untuk memastikan jumlah tersebut berada pada tingkat yang cukup kompetitif. Kebijakan remunerasi tersebut disesuai dengan Pedoman Remunerasi yang telah diputuskan oleh Dewan Komisaris.

A monthly meeting is scheduled for BOD to meet with the Commissioner and on other occasions to deal with specific matters that require attention between meeting that have been scheduled. The regular agenda for Board meetings include: • Financial reports and variance analysis against budget • Business development and strategic matters • Governance and compliance The Audit Committee submits quarterly reports to the Board of Commissioner’s, with respect to the activities of the committee during the period under review. Audit Committee meetings are scheduled quarterly, prior to the release of the Audit Committee Report. The scope of work and activities of the Audit Committee are in accordance with the Company’s charter, as approved by the Board of Commissioner’s.

Remuneration Guidelines In order to attract, retain and reward wellqualified people to serve the Company, remuneration and benefits for the BOD and BOC are pegged at competitive market rates. From time to time, the amount of remuneration is reviewed to ensure they are at sufficient competitive level. The remuneration policy is in accordance with the Charter of Remuneration Guidelines approved by the BOC.



dan menerima tanggung jawab atas proses risk management. Dengan jalur pelaporan yang jelas dan kerangka kerja yang terintegrasi antar divisi dari bisnis unit, Divisi Risk Management mengkoordinasikan aktifitas risk management. Divisi Risk Management melapor secara langsung kepada Presiden Direktur.

accepts responsibility for the risk management process. With clear reporting lines and an integrated framework across divisions of business units, the Risk Management Division coordinates the risk management activities. The Risk Management Division reports directly to the President Director.

Bisnis Perusahaan berkaitan dengan resiko dan peluang. Aktifitas bisnis risk management adalah melakukan integrasi antar bisnis unit secara komprehensif untuk menciptakan kewaspadaan yang akan memudahkan dalam mengantisipasi resiko secara dini. Risk management sebagai suatu process merupakan bagian yang integral dari strategi Perusahaan. Filosofi resiko Perusahaan didasarkan pada praktek pengelolaan resiko yang dapat diterima dan dipandu oleh beberapa prinsip-prinsip risk management yang utama, diantaranya: • Komitmen terhadap risk management, meliputi tanggung jawab risk management pada tingkat Direksi dan pelibatan manajemen senior di seluruh tingkat operasional. • Pengawasan resiko yang sifatnya independen terhadap bisnis unit, merupakan pengawasan resiko menyeluruh antar divisi dan segmen bisnis. • Kesadaran dan pemahaman resiko yang berhubungan dengan aktifitas Perusahaan, serta kebutuhan pengelolaan resiko secara efektif dengan cara mematuhi kebijakan dan prosedur Perusahaan serta aturanaturan dan peraturan-peraturan lain yang terkait.

The Company’s business is dealing with risks and opportunities. Formal business risk management activities are integrated and comprehensive to create deeper awareness that will facilitate early risk anticipation. Sound risk management forms an integral part of the Company’s strategy. The Company’s risk philosophy is based on accepted risk governance practices and is guided by several key risk management principles. These are:

•

•

•



Commitment to risk management, encompassing Board level risk management responsibility and involvement of senior management at all operational levels. Risk oversight that is independent of the business unit, overseeing aggregated risk across division and business segments. Recognizing and understanding the risks associated with the Company’s activities, and the need to effectively manage the risk through compliance with the Company’s policies and procedures, and all other related rules and regulations.

Kode Etik

Code of Conduct

Kode Etik Perusahaan tercakup di dalam buku pedoman karyawan mengenai “Peraturan Perusahaan”. Unsur-unsur etika tersebut berkaitan dengan pedoman bagi karyawan berperilaku dalam hal-hal sebagai berikut: • mengikuti jam kerja • menjaga kerahasiaan Perusahaan • menghindari suap dan benturan kepentingan • cara berpakaian selama jam kerja • cara penggunaan aktiva Perusahaan • tidak terlibat dalam tindakan politik selama jam kantor dan di setiap kantor cabang. Benturan Kepentingan

The Company’s Code of Ethics is included in the employee’s guideline book on “Rules and Regulations”. These ethical factors deal with the code on how the employees are to behave in the following matters: • follow the working time • maintenance of Company confidentiality • avoid any bribery and conflict of interest • proper dress code during office hours • proper usage of Company assets • no involvement in any political acts during office hours and in any office location.

Setiap anggota Direksi dan Komisaris, yang mempunyai potensi benturan kepentingan, oleh karena sifat pekerjaannya, diminta untuk mengisi dan menandatangani Formulir Pernyataan Benturan Kepentingan. Sebagai bagian dari kebijakan, setiap anggota Direksi dan Komisaris yang memiliki potensi benturan kepentingan tidak dilibatkan dalam setiap keputusan atau tindakan yang mungkin berkaitan dengan potensi benturan kepentingan.

Any Board member, who has a potential conflict of interest, by nature of their job, is required to complete and sign a Conflict of Interest Declaration Form. As a matter of policy, any Board member with a potential conflict of interest is not be involved in any decision or action that may have relevance with the potential conflict.

Definisi benturan kepentingan mengacu kepada Peraturan Bapepam No: Kep-84/PM/ 1996 dan diperbaharui dengan No: Kep-12/ PM/1997 tanggal 30 April 1997.

The definition of a conflict of interest is referred to in Bapepam Rule No: Kep-84/ PM/1996 and updated under No: Kep-12/ PM/1997 dated April 30, 1997.

Conflict of Interest



OUR GOALS

Memberikan dan menjaga kualitas pelayanan yang tinggi Menghasilkan sumber-sumber pendapatan yang stabil dan kompetitif Memiliki struktur permodalan yang kuat

To deliver and maintain high quality service To generate quality earnings that are stable and competitive

To have a strong capital structure

Mengembangkan strategi pertumbuhan yang terpadu

To develop a disciplined growth strategy

Menjadi pelopor dalam hal efisiensi dan produktifitas

To be a leader in efficiency and productivity

Menciptakan nilai bagi pemegang saham Menjaga standar etika dan profesional yang tinggi dalam pengelolaan bisnis


To create shareholder wealth

To maintain high ethical and professional standards in business operations

Sarjana Ekonomi dari Universitas Indonesia pada tahun 1980. Jenjang Karir: Menjabat sebagai Staf Auditor di SGV, Utomo, Mulia And Co. dari tahun 1973 hingga 1976; sebagai Financial and Accounting Officer pada PT Union Carbide lndonesia dari tahun 1976 hingga 1982; bergabung dengan Perusahaan pada tahun 1982 di Departemen Kredit dan menjabat sebagai Direktur Perusahaan pada tahun 1991 hingga tahun 1999. Setelah itu jabatannya adalah Komisaris perusahaan dan sejak bulan April 2000 memangku jabatan sebagai Presiden Komisaris Perusahaan hingga sekarang.

the Economics Faculty, University of Indonesia in 1980. Career: From 1973 to 1976 as Auditor Staff in SGV, Utomo, Mulia & Co.;- Financial and Accounting Officer in PT Union Carbide Indonesia from 1976 to 1982; joined the Company in 1982 in the Credit Department and elected as Director in 1991 until 1999. Since then he was elected as a member of the Board of Commissioners of the Company and Chairman in April 2000.

A.H. HAMAMI, Komisaris

A.H. HAMAMI, Commissioner

Warga Negara Indonesia, lahir di Jakarta pada tahun 1930. Latar Belakang Pendidikan: Menyelesaikan pendidikan pada akademi berikut ini: Royal Dutch Naval Academy, Royal Dutch Air Navigator, Belanda; The Royal Air Force Pilot Training School di Inggris. Pada tahun 1970 lulus dari Fakultas Ekonomi Universitas Krisnadwipayana. Jenjang Karir: Memangku berbagai jabatan pada Angkatan Laut dan Angkatan Udara Republik Indonesia sebelum pensiun pada tahun 1970. Sejak tahun 1970 diangkat sebagai Presiden Direktur PT Trakindo Utama hingga sekarang. Sejak tahun 1986 memangku jabatan sebagai Komisaris Perusahaan hingga sekarang.

Indonesian citizen, born in Jakarta in 1930. Educational Background: Graduated from the following academies: The Royal Dutch Navigator in the Netherlands, The Royal Air Force Staff and Command School in the United Kingdom. In 1970 he graduated from Krisnadwipayana University, Faculty of Economics. Career: Joined the Indonesian Armed Forces and held various positions with the Navy and Air Force until his retirement from active duty in 1970. From 1970, until now he is President Director of PT Trakindo Utama. Since 1986, he has been Commissioner of the Company.



cabang dan perusahaan subsidiary di Australia, London, New York, Hong Kong, Singapore dan Indonesia. Mr. McLeod pensiun dari National Australia Bank di bulan September 2000. Saat ini Mr. McLeod bekerja di kantor akuntan RSM Bird Cameron, Melbourne, sebagai Konsultan-International Client Services.

subsidiaries, with assignments in Australia, London, New York, Hong Kong, Singapore and Indonesia. Mr. McLeod retired from National Australia Group in September 2000. Presently Mr. McLeod is working with RSM Bird Cameron, Melbourne, a major International accounting firm, as a Consultant-International Client Services.

FRANCIS LAY SIOE HO, Presiden Direktur

FRANCIS LAY SIOE HO, President Director

Warga Negara Indonesia, lahir di Jakarta pada tahun 1948. Latar Belakang Pendidikan : Menyelesaikan pendidikan di University of Singapore pada tahun 1972 and Asian Institute of Management, Philipina tahun 1975. Jenjang Karir: Memulai karir sebagai Executive Officer pada Kementrian Keuangan Singapura dan kemudian bergabung dengan PT Indovest dengan jabatan terakhir sebagai Kepala Bagian Marketing dan Kredit. Merupakan Direktur Pendiri dari Perusahaan pendahulu Bunas Finance pada tahun 1983 dan menjabat sebagai Presiden Direktur Perusahaan sejak tahun 1986 hingga sekarang.

Indonesian citizen, born in Jakarta in 1948. Educational Background: Graduated from the University of Singapore in 1972 and the Asian Institute of Management, Philippines in 1975. Career: Started out as an Executive Officer with the Ministry of Finance in Singapore and continued thereafter in Indonesia with PT Indovest, his last position being head of the Marketing and Credit Department. He was founder Director of the predecessor of Bunas Finance in 1983 and was appointed as President Director in 1986 until now.



Jenjang Karir : Memulai karir di Bangkok Bank Limited, Jakarta sebagai Account Officer Marketing and Credit Department pada tahun 1988. Bergabung dengan Perusahaan pada tahun 1988 dan pada tahun 1994 diangkat sebagai Direktur Perusahaan hingga sekarang.

Career: Started as an Account Officer with the Marketing and Credit Department of Bangkok Bank Limited, Jakarta in 1988. Joined the Company in 1988 and was elected as Director from 1994.

CORNELLIUS HENRY KHO, Direktur

CORNELLIUS HENRY KHO, Director

Warga Negara Indonesia, lahir di Palembang pada tahun 1966. Latar Belakang Pendidikan: Meraih gelar Sarjana Ekonomi di bidang Akuntansi dari Universitas Trisakti tahun 1990. Jenjang karir: Memulai karir sebagai Auditor pada Prasetio, Utomo and Co. tahun 1989 sampai 1992. Bergabung dengan Perusahaan pada tahun 1992 sebagai Pengawas Keuangan. Kemudian menjabat Kepala divisi Pengawas Keuangan dan Treasury pada tahun 1996. Ditunjuk untuk menduduki jabatan Direktur pada bulan Juni tahun 1997.

Indonesian citizen, born in Palembang in 1966. Educational Background: Graduated from the Economics Faculty, Trisakti University in 1990. Career: Started as Auditor with Prasetio, Utomo and Co. in 1989 up to 1992. Joined the Company in 1992 as Financial Controller. He was later assigned as Division Head for Financial Control and Treasury in 1996. He was appointed Director in June 1997.



Internal Audit & Risk Management

-

Sudjono

Product Management - Corporate - Retail

-

Yoga Aryanto Angtawan Anggadiwirja

Information Technology

-

Indraiti Mulja

-

Sudibyo

Human Resources

-

Priyambodo

Corporate Services

-

Tonny Widjaja

Quality Service

-

Donie Prayogo

Insurance

-

Urip Setiarso

Legal & Litigation

-

Lusito Krisyati

Branch Manager - Palembang - Pekanbaru - Medan - Jambi - Padang - Jakarta - Tangerang - Bandung - Semarang - Surabaya - Malang - Banjarmasin - Balikpapan - Samarinda - Denpasar - Makassar

-

Andrew Adiwijanto Lukman Nelam Filip Sudi Hartono Herizal Welli Stanley Darisang Djani Setiadi Rudy Eddy Wijaya Julijanto Danusubroto Sugiarto Handoko Kuarso Iwan E. Aryanto D.S. Hernandi Kusno Susinto Tenggono Petrus Denny



Bandung Malang

Denpasar

KANTOR PUSAT / HEAD OFFICE Graha Atrium Lt. 8 Jl. Senen Raya No. 135 Jakarta 10410 Phone: (021) 3856663, 3862255, 3500218 Fax: (021) 3856601, 3856602 Http://www.bfi.co.id KANTOR CABANG / BRANCHES JABOTABEK

WILAYAH KALIMANTAN / KALIMANTAN REGIONAL

Ruko Sentra Arteri Mas 10-10A Jl. Sultan Iskandar Muda Arteri Pondok Indah, Jakarta Selatan Ph: (021) 7293308-09 Fax: (021) 7293305

Jl. A. Yani Km 2,5 No. 88 C Banjarmasin 70233 Ph: (0511) 256398, 253172 Fax: (0511) 253194 Jl. Pulau Sulawesi No. 2 Samarinda 75111 Ph: (0541) 736773, 736775, 7432477 Fax: (0541) 737083

Jl. A. Damyati No. 18-19, Sukasari Tangerang 15118 Ph: (021) 5522287, 5527041 Fax: (021) 5566542

Komp. Pertokoan Balikpapan Permai Blok A1/1, Jl. Jend. Sudirman No. 80 Balikpapan 76114 Ph: (0542) 732323, 732333 Fax: (0542) 424711

JAWA BARAT / WEST JAVA Jl. Lengkong Kecil No. 12 B Bandung 40261 Ph: (022) 4210031 Fax: (022) 4231517

WILAYAH SUMATERA / SUMATERA REGIONAL Jl. Veteran No. 433 No. 20 Ilir 1 Palembang 30126 Ph: (0711) 370808 Fax: (0711) 370909

Ruko Mataram Plaza Blok D/3 Jl. M.T. Haryono, Semarang Ph: (024) 3560072-73 Fax: (024) 3563740 INDONESIA TIMUR / EAST INDONESIA

Jl. Setiabudi No. 89-89A Pekanbaru 28141 Ph: (0761) 33833, 44921, 44925 Fax: (0761) 33828

Jl. Raya Kertajaya Indah 70 (H 111) Surabaya 60115 Ph: (031) 5911098 Fax: (031) 5911096

Jl. Hayam Wuruk No. 81 - Jelutung Jambi Ph: (0741) 55000, 34528 Fax: (0741) 52048

Komp. Pertokoan Sudirman Agung Blok C-8 Jl. PB. Sudirman - Denpasar 80225 Ph: (0361) 241388 Fax: (0361) 241098

Jl. Prof. K.H. Moch. Yamin No. 25 L Medan Ph.: (061) 4550280 Fax: (061) 530734 Jl. Belakang Pondok No. 12A Padang Ph: (0751) 30391-93 Fax: (0751) 35159

Komp. Pertokoan Jesper II/41 Jl. Panakkukang Boulevard Makassar 90222 Ph: (0411) 455528 Fax: (0411) 457179 Jl. Letjen Sutoyo No. 148 Malang 65125 Ph: (0341) 475400-02 Fax: (0341) 475403



INDEPENDENT AUDITOR’S REPORT

PT BFI FINANCE INDONESIA Tbk

PT BFI FINANCE INDONESIA Tbk

Laporan Keuangan Untuk Tahun Yang Berakhir Pada Tanggal-tanggal 31 Desember 2001 dan 2000 dan Laporan Auditor Independen


Financial Statements For The Year Ended December 2001 and 2000 and Independent Auditors’ Report

Financial Statements For The Year Ended December 31, 2001 And Consolidated Financial Statements For The Year Ended December 31, 2000 And Independent Auditors’ Report (Indonesian Currency)


The Stockholders, and the Boards of Commissioners and Directors PT BFI Finance Indonesia Tbk (Formerly PT Bunas Finance Indonesia Tbk)

We have audited the balance sheet of PT BFI Finance Indonesia Tbk (formerly PT Bun Indonesia Tbk) as of December 31, 2001 and the consolidated balance sheet of PT BFI Finance Tbk (formerly PT Bunas Finance Indonesia Tbk) and Subsidiary as of December 31, 2000, and statements of income, changes in capital deficiency and cash flows for the year ended Dec 2001, and the related consolidated statements of income, changes in capital deficiency and cash the year ended December 31, 2000. These financial statements are the responsibility of the C management. Our responsibility is to express an opinion on these financial statements based on o

We conducted our audits in accordance with auditing standards established by the Indonesian Accountants. Those standards require that we plan and perform the audit to obtain reasonable about whether the financial statements are free of material misstatement. An audit includes exa a test basis, evidence supporting the amounts and disclosures in the financial statements. An includes assessing the accounting principles used and significant estimates made by manageme as evaluating the overall financial statement presentation. We believe that our audits provide a basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material re financial position of PT BFI Finance Indonesia Tbk as of December 31, 2001 and the co financial position of PT BFI Finance Indonesia Tbk and Subsidiary as of December 31, 200 results of its operations, changes in capital deficiency and cash flows for the year ended Dec 2001 and the consolidated results of their operations, changes in capital deficiency and cash flo year ended December 31, 2000 in conformity with generally accepted accounting principles in In

Note 22 to the financial statements includes certain information relating to the economic co Indonesia, as well as the measures that the Company has implemented and plans to implement the effects of these economic events. As further discussed in Note 8, on February 23, 2000 (the Date), the majority of the Company’s creditors gave their consent in favor of the Comp restructuring framework representing more than 50% of the total number of creditors or more the Company’s debt restructured amount. With the support of the majority creditors who gave consent in favor of the debt restructuring framework, the Company has proposed a suspensi repayment as well as facilitated the submission of the Settlement Plan to the Commercial ratification. On December 19, 2000, the Commercial Court has ratified the said Settlemen ceased the suspension of debt repayment as proposed by the Company. Furthermore, on severa



ASSETS CASH AND CASH EQUIVALENTS (Notes 2d, 2f, 4 and 8) NET INVESTMENT IN DIRECT FINANCING LEASE (Notes 2e, 2f, 2g, 5 and 8) Third parties Related parties Residual value Unearned lease income Security deposits Allowance for doubtful accounts

Rp

9,117,803,033

Rp

31,111

( (

64,567,915,447 58,149,532,500 7,249,673,535 ) ( 58,149,532,500 ) (

120,022 238 84,832 18,758 84,832

(

57,318,241,912 14,560,596,716 ) (

101,501 22,884

Net

42,757,645,196

78,617

CONSUMER FINANCING RECEIVABLE (Notes 2e, 2h and 6) Net of allowance for doubtful accounts of Rp 25,046,976,155 and Rp 30,543,359,102 in 2001 and 2000, respectively

315,681,258,450

175,411

DEFERRED TAX ASSETS - NET (Notes 2r and 10)

354,724,454,981

522,126

PROPERTY AND EQUIPMENT (Notes 2g, 2k and 7) Cost Accumulated depreciation (

30,672,300,453 19,055,249,769 ) (

30,669 19,556

Net Book Value

11,617,050,684

11,113

OTHER ASSETS Prepaid expense (Note 2j) Loan to employee Restricted cash deposits (Notes 2d, 4 and 21b) Others (Notes 2o and 10)

2,114,937,259 1,574,316,196 542,251,096 783,286,338

981 931 552 1,169

Total Other Assets

5,014,790,889

3,635

TOTAL ASSETS

Rp

738,913,003,233

*) The 2000 financial statements include the accounts of PT Bunas Finance Limited (see Notes 2b and 3)


Rp

822,015

LIABILITIES Fund borrowings (Notes 2o, 2p, 5 and 8) Taxes payable (Notes 2r and 10) Accrued expenses (Note 11) Other payables (Notes 2g and 2h) Mandatory convertible bonds (Notes 8 and 9)

Rp

Total Liabilities CAPITAL DEFICIENCY Capital stock - Rp 500 par value per share Authorized - 1,000,000,000 shares Issued and fully paid - 345,954,696 shares (Notes 1 and 12) Capital paid in excess of par value (Note 12) Deficit Capital Deficiency - Net TOTAL LIABILITIES AND CAPITAL DEFICIENCY

26,000,000,000 3,118,497,654 23,208,387,659 7,121,566,197 1,174,374,300,000

Rp 1,671,831 1,677 19,685 9,301

1,233,822,751,510

1,702,495

(

172,977,348,000 14,573,861,000 682,460,957,277 ) (

172,977 14,573 1,068,032

(

494,909,748,277 ) (

880,480

Rp

738,913,003,233


See accompanying Notes to Financial Statements which are an integral part of the financial statements.


Rp

822,015

REVENUE Consumer financing income (Notes 2h and 2n) Lease income earned (Notes 2f, 2g and 2n) Gain on foreign exchange - net (Notes 2q and 15) Interest income (Note 13) Others(Note 15)

Rp

Total Revenue

82,027,771,017 15,191,753,734 7,403,498,900 1,585,927,106 27,333,842,713

Rp

29,591 18,365

15,247 101,323

133,542,793,470

164,526

39,852,885,479 8,986,387,213 -

56,566 1,061 283,322

-

97,285

Total Expenses

48,839,272,692

438,236

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX

84,703,520,778

(

273,709

PROVISION FOR INCOME TAX (TAX BENEFIT) Current Deferred (Notes 2r and 10)

26,920,953,398

(

83,486

NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEM

57,782,567,380

(

190,222

EXTRAORDINARY ITEM Gain on restructuring of borrowing - net of tax effects (Notes 2p, 8 and 10)

327,788,559,931

190,222

EXPENSES General and administrative (Notes 2m, 2n, 16 and 18) Financing cost (Notes 2n, 2o and 14) Loss on foreign exchange - net (Notes 2q and 15) Provision for doubtful accounts on financing receivables portfolio and cash and cash equivalents (Notes 2d, 2e, 2f, 2n, 4, 5, and 6)

NET INCOME (LOSS)

Rp

385,571,127,311

(Rp

BASIC EARNINGS (LOSS) PER SHARE (Notes 2s and 19)

Rp

1,115

(Rp

DILUTED EARNINGS PER SHARE (Notes 2s and 19)

Rp

515




Rp 172,977,348,000



Balance as of December 31, 2001

Net income during the year

172,977,348,000

-

Net loss during the year Balance as of December 31, 2000

-

Rp 172,977,348,000

Capital Stock Issued and Fully Paid

Rp

Rp

14,573,861,000

-

14,573,861,000

-

-

14,573,861,000

Capital Paid-in Excess of Par Value

-5-

Cash dividends declared (Note 17)

Balance as of January 1, 2000

(In Rupiah)

PT BFI FINANCE INDONESIA Tbk (FORMERLY PT BUNAS FINANCE INDONESIA Tbk) STATEMENTS OF CHANGES IN CAPITAL DEFICIENCY

These Financial Statements are Originally Issued in Indonesian Language.

Rp

Rp

2,0

2,0

2,0

Appro

For The Ye

Collection from financing transactions: - Consumer financing - Leasing - Factoring Proceeds from interest income Net proceeds from other operating activities Payment for general and administrative expense Disbursements for new financing transactions: - Consumer financing - Leasing

Rp

(

290,474,994,574 Rp 72,948,563,376 1,675,206,776 25,223,518,866 41,150,716,794 ) (

105,555 86,706 166 18,140 17,264 35,657

( (

351,451,026,127 ) ( 19,440,052,240 ) (

212,560 88,662

Net Cash Used in Operating Activities

(

21,719,511,569 ) (

109,046

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property and equipment Acquisition of property and equipment

(

3,118,365,000 3,218,416,717 ) (

2,500 435

Net Cash Provided by (Used in) Investing Activities

(

100,051,717 )

2,064

CASH FLOWS FROM FINANCING ACTIVITIES Payment of interest expense ( Payment of obligation under capital lease ( Restricted cash deposits for borrowings repayments Payment of swap transactions Payment of cash dividends ( Payment of fund borrowings

1,626,897,933 ) 1,030,986,198 ) ( 605,578,803 4,743,287 510 ) ( - (

921 270,715 230 99 763,405

Net Cash Used in Financing Activities

(

2,047,562,551 ) (

493,479

NET DECREASE IN CASH AND CASH EQUIVALENTS

(

23,867,125,837 ) (

600,462

31,111,149,402

488,615

1,873,779,468

142,957

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR NET EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES ON FOREIGN CURRENCY DENOMINATED CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT END OF YEAR

Rp

9,117,803,033

Rp




31,111

PT BFI Finance Indonesia Tbk (formerly PT Bunas Finance Indonesia Tbk) (the Com established on April 7, 1982 based on the notarial deed No. 57 of Kartini Muljadi, S.H. Th establishment was approved by the Ministry of Justice and Human Rights (formerly kno Ministry of Justice) in its Decision Letter No. C2-2091-HT.01.01.TH.82 dated October 28 was published in Supplement No. 1390 of State Gazette No. 102 dated December 21, 1 articles of association has been amended from time to time, most recently by the not No. 116 dated June 27, 2001 of Aulia Taufani, S.H., a substitute notary of Sutjipto, S.H., c the change of the Company’s name from PT Bunas Finance Indonesia Tbk to PT BF Indonesia Tbk. This latest amendment was approved by the Ministry of Justice and Huma its Decision Letter No. C-03668.HT.01.04.TH.2001 dated July 24, 2001.

According to Article 3 of the Company’s articles of association, the scope of activities of the comprises financing activities in the form of funds or capital goods covering the following a a. b. c. d.

Leasing Consumer financing Factoring of accounts receivable Credit card

The Company obtained its license to operate as a financing company from the Ministry based on its Decision Letter No. 493/KMK.013/1990 dated April 23, 1990.

Currently, the Company is engaged in leasing and consumer financing activities. The C th registered office is located at the Graha Atrium, 8 Floor, Jl. Senen Raya No. 135, Jakarta a branches which are located in, among others, Palembang, Banjarmasin, Surabaya, S Bandung, Pekanbaru, Medan, Jambi, Makassar and Tangerang. The Company commercial operations in 1982.

In 1990, the Company made a public offering of its 2,125,000 shares with a nomina Rp 1,000 per share through the stock exchanges in Indonesia at the offering price of Rp share. In 1993, the Company listed an additional of 8,500,000 shares with the same nom per share through the stock exchanges in Indonesia. All of the Company’s outstanding listed in the stock exchanges in Indonesia.

The Capital Market Supervisory Agency (BAPEPAM) in its letter No. S-639/PM/1994 date 1994 approved the first rights issue of the Company’s shares on a one (1) for one (1) basis 28,829,558 shares at an offering price of Rp 1,500 per share. Further, in its letter No. S-7 dated January 17, 1997, BAPEPAM approved the second rights issue of the Company’s s one (1) for two (2) basis totaling to 115,318,232 shares at an offering price of Rp 1,000 per

As of December 31, 2001, the members of the Company’s boards of commissioners and di as follows:


3. 4.

John Goeffrey Motlow *) Edward John Mc Leod

- Commissioner - Commissioner

3. Cornellius Henry Kho - Director

*)

On October 8, 2001, Mr. John Goeffrey Motlow submitted his resignation letter to the management.

Salaries and other compensation benefits incurred for the Company’s directors and com totaled to Rp 10,343,102,594 and Rp 5,199,006,882 in 2001 and 2000, respectively.

As of December 31, 2001, the Company has a total of 405 permanent employees (unaudite 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Basis of Financial Statements

The accompanying financial statements have been prepared in accordance with accepted accounting principles and practices in Indonesia.

The financial statements have been prepared on the historical cost basis of accountin financial statements are prepared using accrual basis, except for the statements of cas

The statements of cash flows present the receipts and payments of cash and cash e classified into operating, investing and financing activities. Effective January 1, Company presented the cash flows from operating activities in compliance with t Market Supervisory Agency (BAPEPAM) Decision Letter No. KEP-06/PM/2000 dated 2000 on the Amendment of Rule No. VIII.G.7 “Guidelines in the Presentation o Statements”. The reporting currency used in the financial statements is Indonesian Rupiah. b. Deconsolidation of PT Bunas Finance Limited The 2000 consolidated financial statements include the accounts of the Company and Finance Limited (the Subsidiary), a wholly-owned foreign subsidiary, which was incor May 24, 1995.

Based on the general stockholders’ extraordinary meeting which was covered by t deed No. 115 dated June 27, 2001 of Aulia Taufani, S.H., a substitute notary of Sutjipto stockholders have given their approval to the Company to liquidate the Subsidiary (se The Subsidiary was a dormant company and it has neither significant impact to the C operations nor assets and liabilities in the Company’s consolidated financial s Accordingly, the Subsidiary was deconsolidated from the 2001 financial statemen restatements were made to the 2000 consolidated financial statements with referen deconsolidation and/or liquidation.


Balance sheet accounts

-

Middle rate as of balance sheet date (US$ 1 to R 2000)

Profit and loss accounts

-

Average rates of exchange during the year Rp 8,535 in 2000)

In 2000, all significant intercompany accounts and transactions have been eliminated. c.

Investment in Shares of Stock

Investments in which the Company has an ownership interest of at least 20% but not 50% (associated companies) are accounted for using the equity method whereby t investment is increased or decreased by the Company’s share in the net earnings (los associated companies and dividends received since date of acquisition.

Investment in shares of stock represents the cost of the Company’s 20% - equity inv PT Bunas Multi Finance (BMF). Based on the general stockholders’ extraordinary mee was covered by the notarial deed No. 115 dated June 27, 2001 of Aulia Taufani, S.H., a notary of Sutjipto, S.H., the stockholders have given their approval to divest the C investment in BMF, since currently BMF is in significant financial difficulties and has a capital deficiency. Moreover, the Company does not expect any recoveries from investment. Nevertheless, as of December 31, 2001 and up to the date of the in auditors’ report, the Company has not yet sold and/or disposed such investment to party, and accordingly, such investment was still reflected in the Company’s 2001 bala

As of December 31, 2001 and 2000, the Company’s share in the net losses of BMF exc carrying value of the related investments. The Company does not guarantee any indeb BMF and has decided not to make any further investment in such entity. Accordi investment was written down to zero. All other investments, if any, are carried at cost. d. Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand and in banks and time dep maturities of three months or less at the time of placement and not pledged as collatera and not restricted. e. Allowance for Doubtful Accounts

Allowance for doubtful accounts is determined based on a periodic review of the sta individual receivable accounts at the end of year. Percentage of the allowance fo accounts on net receivables amounted to 9.95% and 17.38% as of December 31, 2001 respectively.


defined as follows: (1)

enterprises that, through one or more intermediaries, control, or are controlled under common control with, the reporting enterprise (including holding c subsidiaries and fellow subsidiaries);

(2)

associated companies;

(3)

individuals owning, directly or indirectly, an interest in the voting power of the enterprise that gives them significant influence over the enterprise, and close m the family of any such individuals (close members of a family are defined as those who are able to exercise influence or can be influenced by such individuals, in c with their transactions with the reporting enterprise);

(4)

key management personnel, that is, those persons having authority and respo planning, directing, and controlling the activities of the reporting enterprise commissioners, directors and managers of the enterprise and close members of t of such individuals; and

(5)

enterprises in which a substantial interest in the voting power is owned, directly o by any person described in (3) or (4), above or over which such a person is able significant influence. This definition includes enterprises owned by the comm directors or major stockholders of the reporting enterprise and enterprises th member of key management in common with the reporting enterprise.

The extent of transactions with related parties relate to some accounts in the financial s including cash and cash equivalents, net investment in direct financing lease, consume receivable, lease income earned and consumer financing income.

All significant transactions with related parties, whether or not conducted under similar conditions as those with third parties, are disclosed in the related notes to th statements. g. Accounting for Leases

The Company accounts for its lease transactions following the provisions of Sta Financial Accounting Standards (PSAK) No. 30, “Accounting for Leases” which se criteria for accounting treatment of lease transactions. Under this Statement, lease tr meeting all the following criteria are to be reported using the direct financing lease met

1. The lessee has the option to purchase the leased asset at the end of the lease p price mutually agreed upon at the commencement of the lease agreement.

2. Total periodic payments paid by a lessee plus residual value shall fully cover the cost of leased capital goods plus interest thereon which is the lessor’s profit ( lease). 3. The lease period shall be a minimum of 2 (two) years.


Under the direct financing lease method, the excess of aggregate lease rentals and g residual value over the cost of leased assets constitutes unearned lease income wh recognized as income over the terms of the respective leases at a constant periodic ra on the net investment in the lease and shown as deduction from the lease contracts re the balance sheets. Early terminations are treated as cancellations of existing lease and the resulting gain or loss is recognized in current operations. Security deposits represent option price at the end of the lease period.

The Company has leased assets (presented as part of “Property and Equipment”) ar based on the present value of the lease payments at the beginning of the lease term pl value (option price) to be paid at the end of the lease period (i.e., capital leas Depreciation is computed using the straight-line method over the estimated useful l leased assets ranging from three (3) to five (5) years. h. Accounting for Consumer Financing

Consumer financing receivables are stated net of unearned consumer financing incom

Unearned income on consumer financing, which is the excess of aggregate installment collectible from the customers over the cost of the financed assets, is recognized as in the terms of the respective agreements at a constant periodic rate of return on the net financing receivables. Early terminations are treated as cancellation of existing consum contracts and the resulting gains or losses are credited or charged to current operations i.

Accounting for Factoring

Factoring receivable represents receivables arising from purchasing and/or transf handling of short-term receivables of companies with recourse. Factoring receiv recorded based on the amount advanced by the Company, which is computed based o percentage of the accounts receivable value. Administration income is recognized up factoring income is accrued as earned.

As of December 31, 2001 and 2000, there was no outstanding factoring receivables Company has written off all of the outstanding factoring receivables in 2000 in rela finalization of the restructuring of its borrowings.

The change of the balances of the related allowance for doubtful accounts in 2000 is a

2000 Beginning balance Provision for doubtful accounts Reversal of allowance for doubtful accounts Write-offs Ending balance


Rp ( ( Rp

891,313 56,917 166 948,065

method. k.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Landrights i cost and not amortized. Depreciation is computed using the straight-line method estimated useful lives of the assets ranging from five (5) to twenty (20) years.

In accordance with the provisions of the PSAK No. 47, “Accounting for Land”, starting 1999, incidental costs and expenses incurred in connection with the acquisitions o landrights, such as legal fees, land measurement fees, notarial fees, taxes and other are deferred and amortized using the straight-line method over the legal term of t landrights or economic life of the landrights, whichever is lower.

The cost of maintenance and repairs is charged to income as incurred; significant ren betterment, as defined under PSAK No. 16, “Property, Plant and Equipment”, are c When assets are retired or otherwise disposed of, their cost and the related ac depreciation are removed from the accounts and any resulting gain or loss is reflected for the year.

The cost of construction in progress represents all costs attributable to bringing the c asset to its working condition and getting it ready for its intended use. The accumulate be reclassified to the appropriate property and equipment accounts when cons completed and the assets is ready for its intended use. l.

Deferred Shares and Bonds Issuance Costs

In its Decision Letter No. KEP-06/PM/2000 dated March 13, 2000 on the Amendme No. VIII.G.7 “Guidelines in the Presentation of Financial Statements”, BAPEPAM requir deferred balances and current addition in shares issuance costs are recorded as dedu the capital paid in excess of par value in the balance sheets. Likewise, the deferred ba current addition in bonds issuance costs are recorded as deduction from the nominal v bonds payable in the balance sheets as discount or premium which should be amortize period of the bonds.

As of December 31, 2000, the above-mentioned BAPEPAM decree was not adop Company since the net effect of such non-adoption is considered immaterial to consolidated financial statements.

Prior to 2000, costs incurred in connection with the issuance of bonds as well as those relation to the first and second rights’ offering (presented as part of “Other Assets-Oth deferred and amortized over five (5) years using the straight-line method. m. Retirement Benefits

The Company has a defined contributory retirement plan covering substantially all of i permanent employees. Contributions are funded and consist of the Company’s and e contributions computed at 6% and 3%, respectively, of the employees’ basic monthly s


Notes 2g, 2h and 2i. Expenses are recognized when these are incurred. o. Financial Instruments

PSAK No. 55, “Accounting for Derivative Instruments and Hedging Activities” which re recognition of all derivative instruments (including certain derivatives embedded contracts) as either asset or liability in the balance sheet and measurement of such at This PSAK requires that changes in the fair value of the derivatives be recognized c earning unless specific hedges allow a derivative’s gains and losses to offset related the hedged item in the statement of income, and requires that an entity must formally designate and assess the effectiveness of transactions that receives hedge accounting This PSAK also provides for the accounting treatment of hedge of exposure to changes value of a recognized assets or liability or an unrecognized firm commitment; variable of a forecasted transaction; and foreign currency exposure of a net investment in operation, unrecognized firm commitment, available-for-sale security, or foreign denominated forecasted transaction, provided certain conditions are met.

As of January 1, 2001, there was no transition adjustment for the Company as adopting PSAK No. 55 as cumulative adjustment to net income since there was no o derivative contract as of that date.

Previously, gains or losses arising from swap forward transactions resulting from the between the exchange rate prevailing at the time the swap and forward transactions we into and the exchange rate prevailing at balance sheet date are credited or charged operations. Cost incurred in entering into swap and forward contracts (premium) is amo the period covered by the contract. Hedging Objective

The Company entered into derivative instrument agreements to hedge the exposure arise from foreign currency and interest rate fluctuations on the Company’s fund borrow Company does not engage in any speculative derivative transaction. Authorized instruments include freestanding forward and swap contract and cross currency Company does not apply hedge accounting based on PSAK No. 55 but instead takes adjustments on derivatives to net income. p. Accounting for Troubled Debt Restructuring

In accordance with PSAK No. 54, “Accounting for Troubled Debt Restructurings”, the recognizes gains on restructuring of its borrowings for the excess of the carrying amo borrowings restructured (the principle amount) over the amount of the term loan and convertible bonds as a result of the restructuring scheme. The gains on restru borrowings, which are classified as an extraordinary item in the 2001 statement of in presented net of the related income tax effects.


exchange prevailing at the time the transactions are made. At balance sheet date assets and liabilities denominated in foreign currencies are adjusted to reflect the last prevailing rate of exchange by Bank Indonesia for the year. Any resulting gains or credited or charged to current operations.

The rates of exchange used were Rp 10,400 to US$ 1 as of December 31, 2001 and R US$ 1 and Rp 4,556.67 to DM 1 as of December 31, 2000, computed by taking the the last published buying and selling rates for transaction exchange rate by Bank Indo December 31, 2001 and 2000, respectively. r.

Provision for Income Tax

The Company applied PSAK No. 46, “Accounting for Income Taxes”, which requir accounting of tax effects of the recovery of assets and settlement of liabilities at the amounts, and the recognition and measurement of deferred tax assets and liabilit expected future tax consequences of events recognized in the financial statements, in loss carry forwards.

The above-mentioned PSAK No. 46 was not adopted for purposes of the equity accounting for investment in shares of stock of an associated company. The net effe non-adoption is considered immaterial to the financial statements. s.

Earnings Per Share

Basic earnings per share is calculated by dividing the residual net income (loss) fo attributable to ordinary shareholders (net income (loss) for the year less preference div the weighted average number of ordinary shares outstanding during the year. Weighte number of shares outstanding amounted to 345,954,696 shares in 2001 and 2000.

Diluted earnings per share is calculated by adjusting the residual net income (loss) attr ordinary shareholders and the weighted average number of shares outstanding for the all dilutive potential ordinary shares from conversion of mandatory convertible b Note 19). Net income (loss) for the year attributable to ordinary shareholders is adjus after-tax effect of interest recognized in the year for the mandatory convertible b number of ordinary shares represents the weighted average number of ordinary share weighted average number of ordinary shares which would be issued on the conversio dilutive potential ordinary shares into ordinary shares. The mandatory convertible deemed to have been converted into ordinary shares at the date of the issue of the convertible bonds (February 9, 2001). Weighted average number of shares outstan diluted basis amounted to 760,339,991 shares in 2001.


No. 115 dated June 27, 2001 of Aulia Taufani, S.H., a substitute notary of Sutjipto, stockholders have given their approval to the Company to liquidate the Subsidiary. This liq also evidenced by Certificate of Dissolution No. 133253, which was issued by the R Companies of the British Virgin Islands, which stated that the Subsidiary was dis September 3, 2001. Accordingly, the Subsidiary was deconsolidated from the 200 statements. The Subsidiary was a dormant company and it has neither significant imp Company’s operations nor assets and liabilities in the Company’s 2000 consolidate statements. Furthermore, the Subsidiary’s loan, which has been taken over by the Com already been restructured, and this liquidation is to meet the requirement of the Decree of t of Finance No. 448/KMK.017/2000 dated October 27, 2000, that finance companies may capital participation in financial sector companies, and such capital participation in each must not exceed 25% of its paid up capital. As of December 31, 2000, the Company has the capital participation requirement in relation to its investment in the Subsidiary. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of the following: 2001 Cash on hand Rp Cash in banks Third parties Rupiah accounts PT Bank Central Asia Tbk PT Bank Mandiri (Persero) PT Bank Buana Indonesia Tbk PT Bank Global International Tbk PT Bank Danamon IndonesiaTbk Others (each below Rp 100 million) US Dollar accounts Citibank N.A., Jakarta (US$ 65,356 in 2001 and US$ 200,130 in 2000) The Chase Manhattan Bank N.A., Jakarta (US$ 65 in 2001 and US$ 70 in 2000) Rabobank Asia Ltd., Singapore (US$ 1.6) Total Cash on Hand and in Banks Cash equivalents Time deposits Third parties Rupiah accounts PT Bank Mega Tbk PT Bank NISP The Chase Manhattan Bank N.A., Jakarta (Forward)


2000

216,183,397

Rp

265

3,504,439,792 558,179,557 536,152,056 514,801,500 225,456,345 81,367,052

2,872 160 117

679,703,149

1,920

138 84

679,536 16,640 6,316,979,024

5,559

2,800,000,000 824,009

16,167

-

18

(US$ 870,475) The Chase Manhattan Bank N.A., Jakarta (US$ 105,563)

Rp

Total Cash Equivalents Total Cash and Cash Equivalents

Rp

-

Rp

8,352

-

1,012

2,800,824,009

25,551

9,117,803,033

Rp

31,111

Time deposits bear annual interest at rates ranging from 13.00% to 15.50% in 2001 and f to 11.82% in 2000 for Rupiah balances and from 1.60% to 6.25% in 2001 and from 5.00% t 2000 for US Dollar balances.

On August 21, 1998, the Government suspended the operations of PT Bank Umum Na (BUN - BBO), a related party (see Note 12), which caused the Company’s funds placed w BBO, to be non-withdrawable for an indefinite or undeterminable period. As of December and 2000, these cash in bank and time deposits totaling to approximately Rp 22.4 billion, provided with allowance for doubtful accounts due to their uncollectibility. Such deposits assigned to the creditors as part of the restructuring framework as stipulated in the “Settle dated December 7, 2000 (see Note 8).

On December 22, 1999, the Company entered into an escrow agreement with The Chase Bank, Singapore branch (the Escrow Agent) and The Royal Bank of Scotland plc., Singapo Bank Boston, N.A., Singapore branch, Caterpillar Financial Services Corporation an Australia Bank, Ltd., Singapore branch (the Escrow Creditors), whereby the Company, in the approved restructuring framework (see Note 8), agreed to establish an escrow accumulate funds for the cash payment representing 33% of the restructured debt a December 1999, the Company has made an initial deposit to the said escrow account in t time deposits amounting to US$ 29,478,330, DM 2,640,000 and Rp 51,771,426,110. Thes are presented as Restricted Cash Deposits under Other Assets of the 2000 consolidate sheet. In 2000, most of the time deposit placements in such escrow account were use repayment in accordance with the restructuring framework. As of December 31, 2001, the outstanding balance of these escrow accounts. As of December 31, 2000, the outstanding such escrow accounts amounted to US$ 46,334, DM 1,365 and Rp 101,875,216.

As of December 31, 2001, the restricted cash deposits represent cash in bank and tim placed with BUN - BBO, which has been fully provided with allowance for doubtful ac proceeds from sale of the shares and property of PT Danamon Usaha Gedung am approximately Rp 292 million, which will be distributed pro rata to the creditors bas Assignment of Additional Cash Inflows dated February 7, 2001 between the Compa Assignor, and the Law Debenture Trust Corporation, plc., as the Assignee.


with the due dates of the leases as of December 31, 2001: Due in the year ending December 31,

Amoun

Past due 2002 2003 2004

Rp

15,380 29,844 16,018 3,325

Total

Rp

64,567

The changes of the balances of the related allowance for doubtful accounts are as follows: 2001 Beginning balance Additional provision during the year Write-offs

Rp

22,884,518,066 Rp 8,323,921,350 ) (

Rp

14,560,596,716

(

Ending balance

2000

268,944 40,533 286,593

Rp

22,884

The detailed aging of installment portion of direct financing lease receivables are as follow

Percentage to 2001 Current Past Due: 1-30 days 31-60 days 61-90 days Over 90 days Non Accrual

Rp

Total

Rp

49,187,710,700

2000 Rp

913,215,000 225,429,500 148,302,000 944,128,288 13,149,129,959 64,567,915,447

Rp

104,201,673,020

2001 76.18%

2,065,655,156 446,650,588 365,093,017 1,376,037,591 11,805,222,928

1.41 0.35 0.23 1.46 20.37

120,260,332,300

100.00%

Effective interest rates per annum ranged from 19.95% to 33.86% for Rupiah balances and 14.00% for US Dollar balances in 2001, and from 22.00% to 31.80% for Rupiah balances a to 14.00% for US Dollar balances in 2000.


the Company’s former shareholder, and PT Ongko Dinamika (OD), each of which is indirectly controlled by the Ongko Family. In the opinion of the Company’s manage corporate guarantees from OM and OD would not provide meaningful recovery on the C receivables from the Lessee, accordingly, the Company decided to ask for additional sec form of pledged shares owned by OM and PT Aryaputra Teguharta (APT). Accor June 1, 1999, the Company entered into the Pledge of Shares Agreement with OM whereby OM and APT have agreed to pledge the 98,388,180 shares and 111,804,732 sh Company owned by OM and APT, respectively, to the Company as security for the obligations of companies affiliated to OM and APT under the Financial Leasing A (see Notes 8 and 12).

On December 19, 2000, the Commercial Court has ratified the Settlement Plan as submi Company and ceased the suspension of debt repayment as proposed by the Company. A in accordance with the restructuring framework, the Company’s receivables from its form parties were written off against the related allowance for doubtful accounts, as approv stockholders at their extraordinary meeting held on January 27, 2000 (see Note 8). receivables from its former related parties which were written-off totaled to US$ 9,20 Rp 19,988,840,310. Furthermore, in 2000 the Company’s management has decided to wr the outstanding of lease receivables from the Admajaja (Danamon) group of debtors am US$ 20,877,614.35 in relation to the assignment of such receivables to the creditors as st the Settlement Plan dated December 7, 2000 (see Note 8). These write offs of lease r from the related parties and this third party were reflected as a deduction of the Company’s for doubtful accounts in the 2000 consolidated balance sheet. In the opinion of the Company’s management, the allowance for doubtful accounts is a cover the possible losses that may arise from non-collection of lease receivable accounts. 6. CONSUMER FINANCING RECEIVABLE

This account represents interest bearing receivables arising from financing activities in t providing goods to end users with periodic installment payment schedule. The details of this account are as follows: 2001 Consumer financing receivables Third parties Related parties Unearned consumer financing income Total Allowance for doubtful accounts Net


Rp

2000

262,446

(

430,971,949,540 Rp 2,333,063,334 92,576,778,269 ) (

(

340,728,234,605 25,046,976,155 ) (

205,954 30,543

Rp

315,681,258,450

Rp

56,491

175,411

Due in the year ending December 31,

Amoun

Past due 2002 2003 2004 2005 and thereafter

Rp

7,546 275,832 123,118 25,993 812

Total

Rp

433,305

The changes of the balances of the related allowance for doubtful accounts are as follows: 2001 Beginning balance Write-offs

Rp

30,543,359,102 Rp 5,496,382,947 ) (

34,335 3,792

Rp

25,046,976,155

30,543

(

Ending balance

2000

Rp

The detailed aging of installment portion of consumer financing receivables are as follows:

Percentage to 2001 Current Past Due: 1-30 days 31-60 days 61-90 days Over 90 days Non Accrual

Rp

Total

Rp

425,758,165,525

2000 Rp

4,403,240,500 650,672,500 181,821,000 260,411,001 2,050,702,348 433,305,012,874

246,344,437,999 6,952,441,500 335,547,500 89,270,500 680,774,200 8,044,124,918

Rp

262,446,596,617

2001 98.26% 1.02 0.15 0.04 0.06 0.47 100.00%

Effective interest rates per annum range from 19.00% to 34.00% in 2001 and from 18.18% in 2000. In the opinion of the Company’s management, the allowance for doubtful accounts is a cover the possible losses that may arise from non-collection of consumer financing accounts.

Consumer financing receivable to related parties represents the Company’s loans to its which are used to finance the purchase of vehicles. The effective interest rates on this finan employees are not the same as those with third parties.


2001 Cost Direct Ownership Landrights Building Office equipment Transportation equipment Furniture and fixtures Leasehold improvements

Beginning Balance

Rp

5,313,302,420 5,335,799,234 12,796,299,856 3,263,141,900 587,105,321 2,113,642,719

Capital Leases Office equipment Leasehold improvements Sub-total

Rp

999,656,921 1,475,429,780 27,570,500 853,352,784

Rp

Endin

248,500,000 402,286,760 523,411,897 1,353,105,079 50,120,883 168,912,363

29,409,291,450

3,356,009,985

2,746,336,982

-

653,336,000

-

29,409,291,450

4,009,345,985

2,746,336,982

623,843,769 636,453,603

-

623,843,769 636,453,603

Construction in Progress Office equipment in progress Sub-total

Disposals/ Reclassifications

Additions

Rp

5 4 13 3

2

30

30

1,260,297,372

-

1,260,297,372

Total Cost

30,669,588,822

4,009,345,985

4,006,634,354

30

Accumulated Depreciation Direct Ownership Building Office equipment Transportation equipment Furniture and fixtures Leasehold improvements

2,689,899,655 11,469,377,045 2,209,417,230 500,064,852 1,427,232,156

242,028,009 1,287,738,457 492,481,387 49,603,927 797,608,655

322,525,237 461,932,870 1,135,650,599 43,043,282 147,049,616

2 12 1

Sub-total

18,295,990,938

2,869,460,435

2,110,201,604

19

623,843,655 636,453,580

-

623,843,655 636,453,580

1,260,297,235

-

1,260,297,235

19,556,288,173

2,869,460,435

3,370,498,839

Capital Leases Office equipment Leasehold improvements Sub-total Total Accumulated Depreciation Net Book Value

2000 Cost Direct Ownership Landrights Building Office equipment Transportation equipment Furniture and fixtures Leasehold improvements Sub-total

(Forward)


Rp

11,113,300,649

5,736,662,420 6,265,099,884 14,946,231,422 3,455,427,455 1,230,766,448 3,074,274,271 34,708,461,900

19 Rp

Beginning Balance

Rp

2

Disposals/ Reclassifications

Additions

Rp

36,865,000 122,000,000 24,374,000 252,478,500 435,717,500

Rp

423,360,000 929,300,650 2,186,796,566 314,285,555 668,035,127 1,213,110,052 5,734,887,950

11

Endin

Rp

5 5 12 3

2

29

Office equipment Leasehold improvements

Rp

623,843,769 636,453,603

Rp

Rp

Rp

-

-

1,260,297,372

-

-

1

Total Cost

35,968,759,272

435,717,500

5,734,887,950

30

Accumulated Depreciation Direct Ownership Building Office equipment Transportation equipment Furniture and fixtures Leasehold improvements

2,786,185,706 10,949,281,464 1,788,717,880 893,822,635 1,701,429,667

569,232,734 2,183,874,309 615,303,868 128,935,375 592,282,376

665,518,785 1,663,778,728 194,604,518 522,693,158 866,479,887

2 11 2

Sub-total

18,119,437,352

4,089,628,662

3,913,075,076

18

623,843,655 636,453,580

-

-

1,260,297,235

-

-

1

19,379,734,587

4,089,628,662

3,913,075,076

19

Sub-total

Capital Leases Office equipment Leasehold improvements Sub-total Total Accumulated Depreciation Net Book Value

Rp

16,589,024,685

1

Rp

11

Depreciation charged to operations amounted to Rp 2,078,531,240 and Rp 4,089,628,6 years ended December 31, 2001 and 2000, respectively.

As of December 31, 2001, the percentage of completion from the financial aspect of equipment in progress is approximately 54% of the contract value and is estimated to be co November 2002.

The additions during 2001 included reclassification from office equipment and improvements under capital lease to office equipment and leasehold improvements un ownerships with total carrying cost and accumulated depreciation amounted to Rp 790,92 Rp 790,929,195, respectively. While disposals during 2001 included sale of property and with total cost and accumulated depreciation amounted to Rp 3,127,555,206 and Rp 2,49 respectively. Net gain on sale of property and equipment for the year ended Decembe amounted to Rp 2,489,379,680.

The titles of ownership on the Company’s landrights are all in the form of “Hak Guna Bangu building rights with limited duration) which have remaining legal terms ranging from 11 y years as of December 31, 2001. The management is of the opinion that the terms o landrights can be renewed/extended upon expiration.

Property and equipment are covered by insurance against losses from fire, flood and othe risks) with a total coverage of approximately Rp 22.6 billion as of December 31, 2001, wh management’s opinion, is adequate to cover the possible losses that may arise from the ins

The Company has lease commitments covering certain property and equipment with le ranging from three (3) to five (5) years and expiring on different dates in 2001.


Fund borrowings consist of the following: 2001 Term loans (a) Revolving credit facility (b) Fixed loans (c) Bonds payable (e) Other borrowings (d)

Rp

Total

Rp

2000

26,000,000,000 -

Rp

26,000,000,000

Rp 1,671,831

1,015,044 495,429 91,589 69,768

In 1998, the lenders had established a steering committee to facilitate the restructur Company’s and Subsidiary’s borrowings. Starting June 12, 1999, the Company and suspended the loan interest payments due in connection with the restructuring of their b The debts being restructured consist of borrowings in the following currencies: DM US$ 160,739,524 and Rp 105,111,683,323, including bonds payable amo Rp 91,589,000,000, as of December 31, 2000. As of December 31, 2000, the bond represent 5% of the Company’s total borrowings, which are being restructured.

At the stockholders’ extraordinary meeting on January 27, 2000, covered by notarial de dated January 27, 2000 of Ny. Lia Muliani, S.H., substitute of Sutjipto, S.H., the st approved the Company’s debt restructuring proposal as follows: −

Execution of the pledged shares provided to guarantee the Company’s receivables fr parties (see Note 5) and the writing-off of the Company’s receivables from related par

−

Restructuring of all the Company’s debts to the lenders, including the bonds p bondholders;

−

Issuance of the Mandatory Convertible Bonds to the lenders whose debts were restr private placement in accordance with the procedures provided in Rule No. IX.D.4, Atta the Decision Letter of the Chairman of BAPEPAM No. Kep-44/PM/1998 dated Augus relating to the Increase in Capital without Pre-emptive Rights.

At the third Bondholders’ General Meeting of Straight Bond I on February 10, 2000, c notarial deed No. 43 dated February 10, 2000 of Ny. Lia Muliani, S.H., substitute of Sutjipto majority bondholders disapproved the Company’s debt restructuring proposal.

On February 23, 2000 (the Approval Date), majority of the creditors gave their consent in f Company’s debt restructuring framework representing more than 50% of the total number o or equivalent to approximately more than 2/3 of the Company’s debt restructured amoun support of the majority creditors who gave their initial consent in favor of the debt re framework, the Company proposed a suspension of debt repayment as well as fac submission of the Settlement Plan to the Commercial Court for ratification.


in connection with the restructuring of the Company’s borrowings.

On November 2, 2000, the Company proposed a suspension of debt repayment (P Kewajiban Pembayaran Utang or PKPU) and facilitated the submission of the Settlement Commercial Court for ratification. Based on the vote taken by the creditors on the Settleme December 7, 2000, the majority of the creditors (92.50%) which represents 81.13% borrowings have given their consent in favor of the Settlement Plan.

On December 19, 2000, the Commercial Court has ratified the Settlement Plan as submi Company vide the decision No. 004/PKPU/2000/PN.NIAGA.JKT.PST and ceased the sus debt repayment as proposed by the Company. The borrowings are restructured as follows: −

33% of the total restructured borrowings will be paid in cash to each of the creditors (w been fully paid as of December 31, 2000).

−

US$ 2,500,000 or 0.94% of the total restructured borrowings will be converted into a T which will mature in six (6) years after the Effective Date and will bear interest at the per annum (effective May 3, 2001).

−

The remainder of the restructured borrowings amount will be converted into Convertible Bonds to be issued by the Company to the creditors bearing interest at 0.5% per annum. The Mandatory Convertible Bonds will mature on the fifth yea Issuance Date. Further, the Mandatory Convertible Bonds will be converted into 414,38 shares or representing approximately 54.5% of the Company’s total paid-up capital afte Mandatory Convertible Bonds have been converted into shares (effective May 10, 200

−

6.65% of the restructured borrowings will be exchanged with 41,818,700 shares repres of the Company’s Pledged Shares by APT and OM (see Note 5) or representing app 5.5% of the Company’s total paid-up capital after all of the Mandatory Convertible B been converted into shares (effective May 11, 2001).

−

90% of any additional cash inflows, if received, by the Company from leasing and receivables of the Admajaja (Danamon) group of debtors and from current account deposits with PT Bank Umum Nasional Tbk (BUN-BBO), will be distributed proport each of the creditors (see Notes 4 and 5). The remaining balance of 10% of collected r will be retained by the Company.

Following the ratification by the Commercial Court on December 19, 2000, the bondhold bondholders’ general meeting accepted the Commercial Court’s decision without the need Further, in accordance with the restructuring framework, since February up to December Company has made the 33% cash payment to the creditors totaling to US$ 7 DM 2,640,000 and Rp 51,771,426,114.

Based on the restructuring framework, the last interest payment date was on June 12, 199 the intention that the interest payment dates and interest rates thereunder will be harmoniz the execution of the restructuring documentation. Provided that the completion of the restructuring has occurred no later than the restructuring termination date, as defin Settlement Plan, no further interest, fees and charges shall be accrued on the existing


for interest expense of fund borrowings in order to recognize this contingent liability. Bu aforementioned ratification of the Settlement Plan by the Commercial Court on December such accrual were reversed by the Company and the related gain on reversal of accru expense, amounting to approximately Rp 84.6 billion, were presented as part of “Revenu in the 2000 consolidated statement of income.

On February 6, 7, 9 and 22, 2001, the Company and its creditors have finalized the re agreements with respect to the restructuring framework. On May 14, 2001, the Compan the finalization of the restructuring of its borrowings to BAPEPAM following the ratifica Settlement Plan by the Commercial Court on December 19, 2000.

The resulted gain on restructuring of the Company’s borrowings in 2001 am Rp 468,269,371,330 was recorded as “Extraordinary Item” in the 2001 statement of in presented net of the related income tax effect. a. Term loan

On February 6, 2001, the Company entered into Deed Pool relating to US$ 2,500,000 Facility with The Chase Manhattan Bank, Jakarta branch, as the paying agent, and Bank of Scotland plc., Singapore branch, as the facility agent. This term loan facility 0.96% of the total borrowings and bonds payable restructured and bears annual inter 6%. This loan facility will mature in six (6) years from the date of the restructuring agre As of December 31, 2000, this account consists of borrowings to the following creditors: b. Revolving credit facility

In May 1995, PT Bunas Finance Limited (the Subsidiary) entered into a revolving l agreement with several foreign banks and non-bank financial institutions (the Lende principal amount of US$ 35,000,000 with the Korea Merchant Banking Corporation ( the arranger and agent. The credit facility, which bears interest at rates ranging from 7 7.9375% in 2000 and with original maturity in May 1998, was unconditionally and guaranteed by the Company. The Subsidiary was in default on the loan from KM matured in May 1998. In August 1999, KMBC has formally issued its notice of def Subsidiary in regard to non-compliance of the terms and conditions specified unde agreement. Consequently, pursuant to the Guaranty Agreement made between the Co the guarantor, and KMBC, the Company is obliged to undertake the transfer of lia related transactions from the Subsidiary. The outstanding drawdown amo US$ 12,730,000 as of December 31, 2000.

In 1996, the Company also obtained syndicated loans from several foreign banks and financial institutions (the Lenders) with The Fuji Bank, Limited, Singapore branch, National Bank of Boston, Singapore branch, The Royal Bank of Scotland plc., Singap and Korea Merchant Banking Corporation as the Arrangers and Agents. The Lende a maximum amount of US$ 138,000,000, bearing interest at rates ranging from 7 8.9000% in 2000 and maturing at certain dates through December 2000. The o drawdown aggregated to US$ 78,988,926 as of December 31, 2000.


Outstanding drawdown amounted to US$ 14,070,000 as of December 31, 2000. c.

Fixed loans

The Company’s fixed loans from Nederlandse Financierings Maatscha Ontwikkelingslanden NV (FMO) amounting to US$ 7,000,000 were obtained in 1994 interest at rates ranging from 8.6250% to 9.3125% in 2000. The loans are repayab annual installments of US$ 700,000 up to 2001. Outstanding drawdown from FMO am US$ 3,283,000 as of December 31, 2000.

The Company obtained loans from the International Finance Corporation (IFC) a Indonesische Overzeese Bank (INDOVER) in 1995 for the principal amount of US$ 1 (consisting of Type A and B facilities) and US$ 5,000,000, respectively. The loans fro repayable in semi-annual installments of US$ 1,450,000 from March 15, 19 September 15, 1999 and US$ 1,300,000 on March 15, 2000 for Type A, and US$ 1,50 March 15, 1997 up to September 15, 1998 for Type B, while the loans from IND repayable in semi-annual installments of US$ 1,250,000 through September Outstanding drawdown as of December 31, 2000 amounted to US$ 4,790,500 for the IFC, and US$ 837,500 for the loans from INDOVER, and bear interest at rate from 8.375% to 9.120% in 2000.

In January 1997, the Company obtained loans from Caterpillar Financial Services C (CFSC) with a maximum amount of US$ 35,000,000, whereby CFSC agreed to provid the Company for financing of Caterpillar’s equipment up to 64% of the equipment acqu The loans amounted to US$ 15,923,098 as of December 31, 2000, and bear intere ranging from 8.00% to 8.50%.

The Company obtained loans from Nederlandse Financierings Maatscha Ontwikkelingslanden NV (FMO) facilities in 1997 for the principal amount of US$ 4 (consisting of Type A, B and C). The loans from FMO are repayable in quarterly insta US$ 1,250,000 from August 15, 2000 up to May 15, 2002 for Type A, US$ 6,250 August 15, 1999 up to May 15, 2000 for Type B and US$ 625,000 from August 15, 2 May 15, 2002 for Type C. The loans bear interest at rates ranging from 7.875% to 2000. The outstanding drawdown as of December 31, 2000 amounted to US$ 26,800,0 d. Other borrowings

Other borrowings represent short-term borrowings which are sourced from the money m borrowings used for financing small scale businesses and bear interest at rates ran 6.34% to 8.27% for the foreign currency loans. As of December 31, 2000, the amounting to DM 5,360,000 or equivalent to Rp 24,423,751,200, are supported by comfort issued by certain of the Company’s stockholders.

As of December 31, 2000, the Company’s borrowings from PT Bank Negara Indo (Persero) and PT Bank Mandiri (originally from PT Bank Dagang Negara (Persero)), w used for financing small scale businesses, amounted to Rp 6,594,596,734 and Rp 6,92 These borrowings bear annual interest at rates ranging from 26% to 28%.


May 28, 1997, the Company offered Bunas Finance Indonesia Tbk I Year 1997 bonds t Surabaya Stock Exchange with a total face value of Rp 250,000,000,000 which bear fix rate at 15.50% per annum and will mature on June 12, 2002. The interest is payabl annual basis starting from December 12, 1997. Under the related Trustee Agreement bonds are still outstanding, the Company is not allowed, directly or indirectly, among collateralize, mortgage and dispose a portion or all of the Company’s assets either in t or in the future; merge with or acquire other companies, or take any actions which in will have a negative effect to the Company’s operations, except for complying to g requirement; and enter into any kind of profit sharing cooperation or any agreement change the Company’s controlling stockholder.

Based on the Decree of the Minister of Finance No. 448/KMK.017/2000 dated October 27 maximum amount of loans received by a financing company shall be at fifteen (15) times a its networth after being reduced by investments made. Of the said total loans received, the amount of foreign loans shall be at five (5) times as much as its networth after being r investments made. Networth consists of paid-up capital, retained earnings, net income, cap excess of par value and subordinated loans, which should be based on the amounts repo audited financial statements. As of December 31, 2001, the Company was not in complianc regulation since the Company was still in capital deficiency position. If the mandatory bonds (see Note 9) were considered in the calculation, the Company would be in comp such requirement. As of December 31, 2000, the Company exceeded the maximum deb ratio as required under such decree. This violation was due mainly to the sharp deprecia Rupiah against US Dollar currency.

9. MANDATORY CONVERTIBLE BONDS

Following the result of the ratification of the Settlement Plan by the Commercial December 19, 2000 (as further discussed in Note 8), on February 9, 2001, the Company e Trust Deed relating to US$ 157,740,000 0.5% Mandatory Convertible Bonds due in 2006 w Manhattan Trustees Limited, London, as the Trustee. The Company, as the Issuer, ha authorization of the conversion of the Mandatory Convertible Bonds (the MCB) into 414,38 paid new ordinary shares of the Company with a par value of Rp 500 per share, represen of the enlarged shares of the Company. The MCB is convertible to equity anytime prior to th date in 2006 at the option of the creditors. The MCB bears annual interest rate of 0.5% wh paid on annual basis. Other terms are that the MCB cannot be redeemed by the Comp transferable. The conversion rate for MCB into USD is set at fixed rate of Rp 7,445 to U accordingly, the MCB is recorded in Rupiah amount and no gain or loss from foreign ex charged/credited to current operations.


2001

2000

Income taxes Article 21 Article 23/26

Rp

3,082,900,672 35,596,982

Rp

1,665 11

Total

Rp

3,118,497,654

Rp

1,677

A reconciliation between income (loss) before provision for income tax, as shown in the sta income, and estimated fiscal loss for the years ended December 31, 2001 and 2000 is as f 2001 Income (loss) before provision for income tax per statements of income

Rp

Positive corrections: Accrued expense - interest Depreciation of property and equipment Tax expense Insurance and rent expenses Gain on sale of property and equipment Accrued expense - others Amortization of deferred shares and bonds issuance costs Negative corrections: Provision for doubtful accounts Accrued expense - others Accrued expense - interest Amortization of deferred share and bonds issuance cost Reversal of allowance for doubtful accounts Interest income already subjected to final tax Lease expenses - net Gain on sale of property and equipment Estimated fiscal loss of the Company Estimated fiscal loss of the Company in previous year Correction of estimated fiscal loss based on tax audit during the year Extraordinary item - gain on restructuring of borrowings Estimated accumulated fiscal loss of the Company


2000

84,703,520,778

(Rp

7,629,172,748 606,653,459 275,234,589 125,829,821 46,941,936 ( (

(

794,322,748,913 ) ( 1,350,587,600 ) - (

273,709

2,264

9,053

3,067

354,685

84,558

650,895,760 ) - (

166

( (

1,585,927,105 ) ( 988,574,708 ) ( -

3,011 794 25

(

705,511,380,755 ) (

702,512

(

862,039,250,171 ) (

166,084

9,580,773,057

6,558

468,269,371,330 (Rp 1,089,700,486,539 ) (Rp

862,039

Fiscal loss carried forward Provision for doubtful accounts Correction of estimated fiscal loss from previous year Lease expenses - net Gain on sale of property and equipment Accrued expenses Depreciation of property and equipment Amortization of deferred shares and bonds issuance costs Provision for income tax (tax benefit) - deferred

(Rp

( ( (

211,653,414,227 ) (Rp 237,205,860,316

210,753 106,455

2,874,231,917 296,572,412 ( 30,603,217 ) ( 1,883,575,544 ) 83,386,987 ) (

1,967 272 7 22,651 2,606

195,268,728 Rp

26,920,953,398

(

920

(Rp

83,486

On November 13, 2001, the Tax Office issued tax assessment letter No. 00041.406.00.054 corrected the Company’s 2000 estimated fiscal loss from the reported amount of Rp 702,51 to become Rp 692,932,195,031. In the same letter, the Tax Office also approved to refun of the Company claims for tax refund of Rp 266,809,328, including the outstanding cla refund amounted to Rp 190,299,328 as of December 31, 2000 which was recorded un Assets” in the 2000 consolidated balance sheet. The Company made cash payment for ta amounted Rp 8,424,261 on December 3, 2001 after offsetting the Company’s outstanding payables for fiscal year 2000 totaling to Rp 275,233,589.

The amounts of estimated fiscal losses for 2001 and 2000 as stated above conform with amounts to be reported in 2001 and the amount that was reported in 2000, respective Company to the Tax Office.

No provision for income tax was made by the Subsidiary in 2000. As a company establis the International Business Companies Act No. 8 of 1984 of the British Virgin Islands Subsidiary is not subject to BVI’s income taxes.

The deferred tax effects of the significant timing differences between commercial and fisca are as follows: 2001 2000 Deferred Tax Assets: Fiscal loss carried forward - net of tax effect of an extraordinary item Allowance for doubtful accounts Accrued expenses Property and equipment Amortization of deferred charges

Rp

Sub-total Deferred Tax Liabilities: Leasing transactions Sub-total Deferred Tax Assets - Net


Rp

326,910,145,962 19,452,904,468 6,991,095,477 1,453,528,277 585,806,185

Rp

258,611 256,658 5,107 1,339 781

355,393,480,369

522,498

669,025,388

372

669,025,388

372

354,724,454,981

Rp

522,126

Under the existing tax regulations, the prescription period for tax loss carry forward is five from the year the tax loss is incurred.

11. ACCRUED EXPENSES This account consists of accrual on the following: 2001

2000

Severance cost Interest Bonus and THR Professional fees Others

Rp

8,928,416,460 7,320,558,648 5,520,557,284 1,153,410,898 285,444,369

Rp

10,279 14 2,533 6,746 112

Total

Rp

23,208,387,659

Rp

19,685

In 2001 and 2000, the Company recorded an accrual for termination, gratuity and com expenses amounting to approximately Rp 9 billion and Rp 10 billion, respectively, as prov the Ministry of Manpower Decree No. Kep-150/Men/2000 dated June 20, 2000 reg “Settlement of Work Dismissal and Determination of Separation, Gratuity and Com Payments by Companies”. This accrual has been determined based on the internal calcula by the Company’s management. Such accrual is presented as salaries and employee expenses under the general and administrative expenses in the statements of income. 12. CAPITAL STOCK The details of the Company’s share ownership are as follows: December 31, 2001

Stockholders The Law Debenture Trust Corporation, plc., London Bank of Bermuda, Hong Kong PT Bank Umum Nasional Tbk (BUN - BBO) Indosuez Singapore Noms Cooperatives Others Total


Number of Shares Issued and Fully Paid 168,374,212 34,569,000

Percentage of Ownership 48.67% 9.99

27,906,756 25,800,000 942,424 88,362,304

8.07 7.46 0.27 25.54

345,954,696

100.00%

Amoun Rp

84,187 17,284

13,953 12,900 471 44,181 Rp

172,977

Stockholders

Shares Issued and Fully Paid

Percentage of Ownership

PT Aryaputra Teguharta *) PT Ongko Multicorpora *) Bermuda Trust Limited, Singapore PT Bank Umum Nasional Tbk (BUN - BBO) Indosuez Singapore Noms Cooperatives Others

111,804,732 98,388,180 40,233,500

32.32% 28.44 11.63

27,906,756 25,800,000 992,424 40,829,104

8.07 7.46 0.28 11.80

Total

345,954,696

100.00%

Amoun Rp

55,902 49,194 20,116

13,953 12,900 496 20,414 Rp

172,977

*) see Note 5

The number of shares owned by the Company’s commissioners and directors based on t of the share registrar, PT Sirca Datapro Perdana, totaled to 5,709,048 shares and 5,715,7 which represent 1.65% of the total outstanding shares of the Company as of December 31 2000, respectively.

Based on the Settlement Plan which has been ratified by the Commercial Court on Dec 2000, the total of 210,192,912 shares ex PT Aryaputra Teguharta and PT Ongko Multicorpo Group) will be dealt as follows: -

41,818,700 shares will be distributed to all creditors after the restructuring agreements executed; 84,736,813 shares will be set aside to be sold to new investors at a fair price appro majority of creditors; and 83,637,399 shares will be sold to the management and employees under Employee Inc Remuneration Scheme as stipulated in the Share Sale and Purchase Agreem February 9, 2001 between the Company and The Law Debenture Trust Corporation, p buyer.

As of December 31, 2001, the 41,818,700 shares has been distributed to all the creditor the finalization of the restructuring agreements in February 2001.

On August 21, 1998, the Government, through the Indonesian Bank Restructuring Agen suspended the operations of PT Bank Umum Nasional Tbk (BUN-BBO), a stockholder. Capital paid in excess of par value represents the difference between the proceeds from issued and the par value of the shares.


2001

2000

Time deposits Current account

Rp

964,913,726 621,013,380

Rp

14,869 378

Total

Rp

1,585,927,106

Rp

15,247

14. FINANCING COST The details of financing cost are as follows: 2001 Interest expense Fund borrowings Obligation under capital lease Swap and forward foreign exchange contract costs

Rp

Rp

547 127

37,438,026

Bank administration charges Total

8,678,418,033 42,411,496

2000

Rp

8,758,267,555

674

228,119,658

387

8,986,387,213

Rp

1,061

15. GAIN (LOSS) ON FOREIGN EXCHANGE - NET AND OTHER REVENUE

The gain on foreign exchange in 2001, represents mainly from receivables denominated currencies, net of loss on foreign exchange from fund borrowings. The loss on foreign ex 2000 represents mainly loss on foreign exchange from fund borrowings, reduced by th foreign exchange from receivables denominated in foreign currencies.

Other revenue mostly consists of proceeds from insurance premium, penalties on late pa customers, early terminations and administration fees. 16. GENERAL AND ADMINISTRATIVE EXPENSES The details of general and administrative expenses are as follows: 2001 Salaries and employees’ benefits Professional fees Depreciation (see Note 7) Repairs and maintenance (Forward)


Rp

22,969,335,891 5,935,612,338 2,078,531,240 1,417,542,100

2000 Rp

24,242 16,126 4,089 1,627

Communications Insurance Share registration Pension cost (see Note 18) Travel and entertainment Office supplies Training and education Advertising Subscriptions and membership fees Amortization of deferred shares and bonds issuance costs Miscellaneous (see Note 25) Total

Rp

688,498,516 621,544,881 509,196,692 416,385,762 403,649,771 397,018,186 305,158,703 261,234,392 30,198,600

931 576 223 395 530 283 127 194 40

2,498,306,289

3,935 2,130

39,852,885,479

Rp

56,566

17. CASH DIVIDENDS At the stockholders’ annual meeting held on June 27, 2001, the Company’s stockholders to declare dividends from the 2000 operations.

During the stockholders’ annual general meeting held on June 28, 2000, the Company’s st ratified the declarations of cash dividend of Rp 345,954,696, or Rp 1 per share to the stock record as of August 10, 2000, out of the Company’s 1999 net income, which was p August 25, 2000.

18. RETIREMENT BENEFITS

Effective June 1, 1997, the Company has a defined contributory retirement plan coverin qualified permanent employees. Benefits are payable following the employees’ retiremen or death.

The pension fund is managed by Dana Pensiun Lembaga Keuangan Manulife the establishment of which was approved by the Ministry of Finance in i No. KEP-231/KM.17/1994 dated August 5, 1994.

Contributions to the above retirement plan charged to operations amounted to Rp 416,38 Rp 395,976,752 in 2001 and 2000, respectively, which are presented as part of “Ge Administrative Expense” in the statements of income (see Note 16).


computations of basic and diluted EPS:

For the Year Ended December 31, 200 Net Income Rp Basic Earnings per Share Net income available to common stockholders Add: Assumed conversion of mandatory convertible bonds Add: Elimination of after-tax effect of interest expense on mandatory convertible bonds Diluted Earnings per Share Net income available to common stockholders after assumed conversion

Weighted Average Number of Shares

Earn Shar

385,571,127,311

345,954,696

-

414,385,295

6,140,070,608

-

391,711,197,919

760,339,991

For the Year Ended December 31, 200 Net Loss Rp

Weighted Average Number of Shares

Loss A

Basic Earnings per Share Net loss available to common stockholders Add: Assumed conversion of mandatory convertible bonds Add: Elimination of after-tax effect of interest expense on mandatory convertible bonds Diluted Earnings per Share Net loss available to common stockholders after assumed conversion


190,222,783,458

345,954,696

-

-

-

-

190,222,783,458

-

As of December 31, 2001, the Company have monetary assets and liabilities denominated currencies as follows: In Foreign Currencies US$

Equiva Ru

Assets Cash and cash equivalents Net investment in direct financing leases

65,423.01 1,325,197.91

13,

Total

1,390,620.92

14,4

Liabilities Fund borrowings Accrued expenses

2,500,000.00 801,703.80

26, 8,

Total

3,301,703.80

34,

1,911,082.88 ) (

19,

Net Liabilities

(

The Rupiah currency has depreciated in value from Rp 9,595 to US$ 1, as of December 3 Rp 10,400 to US$ 1 as of December 31, 2001 (but appreciated to Rp 10,189, as of Februar (date of this independent auditors’ report), based on the middle rate of exchange publishe Indonesia. If the net position of assets and liabilities in foreign currencies as of December reflected using the middle rate of exchange as of February 28, 2002, the net liabilities w decreased by approximately Rp 403 million.

21. SIGNIFICANT AGREEMENT AND COMMITMENT

a. As of December 31, 2001, the Company has an outstanding swap contract with PT B Tbk to buy US$ 267,414.47 and sell Rp 2,751,694,896. The contract will b January 9, 2002. As of the date of independent auditors’ report, this contract has been

b. On August 15, 2001, the Company entered into a cooperation agreement with PT B International Tbk (Global), whereby Global appointed the Company as the channelin the distribution of Small Scale Business Loans (KUK) with a total maximum fund of Rp of which such facility must be fully withdrawn within one (1) year since the effective d the said cooperation agreement, the Company’s responsibilities include, among others of accounts, maintenance of adequate records, and safekeeping of documents. As com the Company is allowed to set certain interest rates to the customers and earn the exc interest received from customers over the interest paid to Global. The outstanding loa by Global to the Company amounted to Rp 25,050,523,817 as of December 31 accordance with the cooperation agreement, the Company agreed to open a restrict account in Global’s account equivalent to 1% of total outstanding balance am Rp 250,505,238 and was presented as restricted cash deposits under “Other As agreement is valid for one (1) year from the date of the agreement and will be au renewed for another year unless written notice of termination is given thirty (30) days by either party.


Since mid 1997 up to mid 1999, Indonesia and the Asia Pacific Region have experience economic conditions brought about by the currency devaluation in the region, w characterized by extreme lack of liquidity and highly volatile exchange and interest rat economic conditions have also involved, among others, tightening of available credits, ge increases of commodities and services, and reduced economic activities. The volatility in and interest rates had adversely affected the Company’s cost of fund as well as its capacity its debts. Furthermore, these economic conditions had also affected the Company’s cost of had increased the foreign exchange risk which have resulted into non-compliance with th debt-to-equity ratio as required for a financing company, the consequence of which is th revocation of the Company’s operating license. The economic conditions had also caused with respect to the ability of the Company’s customers to settle their financing obligations, mature, thereby significantly increasing credit risk in the Company’s financing receivables

As also discussed in Note 8, at the end of 1999, the Company and the steering comm finalized the debt restructuring framework, but which was subject to the necessary appro creditors and the Commercial Court. Thereafter, in January 2000, the Company distribute debt restructuring framework, together with the voting sheet, to all the creditors for their ap February 23, 2000 (the Approval Date), the majority of the creditors gave their consent in f Company’s debt restructuring framework representing more than 50% of the total number o or more than 2/3 of the Company’s debt restructured amount. With the support of th creditors who gave their initial consent in favor of the debt restructuring framework, the Co proposed a suspension of debt repayment as well as facilitated the submission of the Settle to the Commercial Court for ratification. On December 19, 2000, the Commercial Court h the said Settlement Plan and ceased the suspension of debt repayment as propos Company. Furthermore, on several dated in February 2001, the Company and its cred finalized the restructuring agreements. Accordingly, as also indicated in its letter to BAPE Company has concluded its borrowings’ restructuring in May 2001.

The Indonesian economy is still faced with uncertainties brought about by the domestic political instabilities. The exchange rate of Indonesian Rupiah against the major foreign (most notably the US Dollar) has remained sensitive to the domestic social and political well as regional factors. In response to the economic conditions, the management has implemented and/or plans following actions:

a. Commencing the quality service development program in order to achieve a better qual b. Focus on car financing in regions, which have beneficial economic activities and stab conditions, and at the same time, seek prospective business through motorcycle fina lease financing. c. Focus on the successful implementation of the E-Loan system to replace the existing o to enhance effective operations and quality service. d. Seek new funding from either banks or non-bank financial institutions to support its development. e. Expand its business through optimal resources in the existing branches and addition potential cities into the Company’s networks. f. Provide accurate and qualitative information regarding the Company’s performance an in order to increase the investor and public’s confidences.


realization of the Company’s financing receivables portfolio, including the effects flowing th the Company’s customers, creditors, investors and stockholders. 23. SUBSEQUENT EVENTS

a. On January 11, 2002, PT Bank Global International Tbk (Global) has given its ap additional facility of Rp 30 billion in relation to the cooperation agreement with the Com distribution of Small Scale Business Loans (KUK) (see Note 21b). In addition, G approved the amendment of maximum amount of monthly withdrawal from Rp 5 Rp 10 billion.

b. On January 24, 2002, the Company entered into lease agreement with PT Sase Finance (Saseka), whereas Saseka, as the lessor, will provide finance lease facility at t of Rp 4,237,148,080 to the Company for the financing of certain transportation eq relation to the Company’s operations. This lease facility bears annual interest rate o covering 36 monthly installments of Rp 117,698,558 from February 28, 2002 to January c.

On February 25, 2002, the Company entered into a cooperation agreement with PT Ba Manunggal (Bima), whereby Bima appointed the Company as the channeling ag distribution of Small Scale Business Loans (KUK) with a total maximum fund of Rp Under the said cooperation agreement, the Company’s responsibilities include, amo collection of accounts, maintenance of adequate records, and safekeeping of docu compensation, the Company is allowed to set certain interest rates to the customers an excess of the interest received from customers over the interest paid to Bima. In accor the cooperation agreement, the Company agreed to open a restricted savings accoun account equivalent to 1% of total outstanding balance. This agreement is valid for on from the date of the agreement and will be automatically renewed for another year unl notice of termination is given thirty (30) days in advance by either party.

24. NEW ACCOUNTING PRONOUNCEMENTS

a. On October 6, 2000, the Indonesian Institute of Accountants issued the Statement o Accounting Standards (PSAK) No. 5 (Revised 2000), “Segment Reporting” whi effectively applied for financial statements with periods beginning on or after Januar This standard provides more detailed guidance for identifying reportable business seg geographical segments, significantly expands the obligatory disclosure requirements f segments, and provides a detailed guidance on allocation of revenues and expe particular segment.

b. In November 2000, IAI issued PSAK No. 58, “Discontinuing Operations” which presentation and disclosures relating to discontinuing operations and will be effectively financial statements with periods beginning on or after January 1, 2002. The objecti PSAK are to establish a basis for segregating information about a major operatio enterprise is discontinuing from information about its continuing operations and minimum disclosures about a discontinuing operation. This PSAK is applicable for amo the disposal, spin-off, abandonment and de-merger of segments, divisions, bran subsidiaries.


25. RECLASSIFICATION OF ACCOUNT

The account “Repossession Expense” under “Miscellaneous” (see Note 16) as part of th and Administrative Expenses in the 2000 consolidated statement of income has been rec “Gain (Loss) on Sale of Repossessed Asset” under “Others Revenue” in the 2001 sta income to conform with the presentation of the financial statements as of and for the y December 31, 2001. Repossession expense for the years ended December 31, 2001 and Rp 90,054,780 and Rp 180,841,119, respectively.


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