PT. BANK RAKYAT INDONESIA (PERSERO) Tbk. Full Year 2004 Financial Result

PT. BANK RAKYAT INDONESIA (PERSERO) Tbk. Full Year 2004 Financial Result

BRI in the Year 2004

Commitment in MSME Business Commitment and consistent focus on MSME (micro, small and medium enterprise) business: Maintaining MSME portfolio to 80% of total loan portfolio Maintaining micro segment at minimum 30% of total loan portfolio % Total Loans 2001*) 2002 2003 2004 Micro 29.4% 30.5% 30.6% 30.8% Small Business 41.5% 48.4% 50.2% 51.1% - Consumer Fixed Income 23.1% 25.5% 23.5% 23.1% - Small Commercial 18.4% 22.9% 26.7% 28.0% Medium 3.7% 3.7% 4.6% 4.6% Corporate 22.9% 17.4% 14.7% 13.6% 86. 4% Agribusiness 20.0% 29.7% 30.7% 27.7% Non-Agribusiness 80.0% 70.3% 69.4% 72.3% *) 2001 : consolidated figures except figures of medium and corporate loan 1

Full Year 2004 Outstanding Results IDR billion Full Year Growth 2001*) 2002 2003 2004 YoY Loan 33,529 39,373 47,599 62,368 31.0% Government Recap Bond 28,436 28,394 27,579 23,950-13.2% Total Assets 76,195 86,345 94,710 107,040 13.0% Customer Deposits 57,759 69,627 76,316 82,400 8.0% Equity 4,814 5,794 8,994 12,450 38.4% Net Interest Income 4,962 6,080 8,027 10,706 33.4% Profit before Tax & Minor Int. 1,141 1,470 3,712 5,731 54.4% Net Profit 1,072 1,525 2,579 3,633 40.9% Earnings per share (Rp)**) 129.62 251.68 306.60 21.8% Book Value per share (Rp)***) 492.49 546.82 1,050.65 92.1% *) 2001 are consolidated figures comprising BRI and one subsidiary, PT Bank Inter-Pasific Tbk **) 2004 : EPS = Net Profit : amount of shares outstanding as of 30/12/2004 (11,849,019) ***) 2004:BVS = Equity : amount of shares outstanding as of 30/12/2004 (11,849,019) 2

Business Overview

Sound and Improving Loan Book Loans Trend by Business Segment 70.00 60.00 54.97 62.37 58.38 IDR Trillio n 39.37 39.69 43.51 45.62 47.60 49.96 50.00 40.00 30.00 20.00 10.00-12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 Corporate 6.86 6.44 6.31 6.27 6.99 6.88 7.27 7.75 8.46 Medium 1.45 1.50 1.49 1.49 2.17 2.20 2.46 2.60 2.86 Small 19.05 19.43 22.54 23.99 23.90 25.36 28.31 29.88 31.85 Micro 12.01 12.32 13.17 13.87 14.54 15.51 16.93 18.15 19.19 Total 39.37 39.69 43.51 45.62 47.60 49.96 54.97 58.38 62.37 Loan Composition by Business Segment 100% 80% 60% 40% 20% 0% 12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 Corporate 17.4% 16.2% 14.5% 13.8% 14.7% 13.8% 13.2% 13.3% 13.6% Medium 3.7% 3.8% 3.4% 3.3% 4.6% 4.4% 4.5% 4.4% 4.6% Small 48.4% 49.0% 51.8% 52.6% 50.2% 50.8% 51.5% 51.2% 51.1% Micro 30.5% 31.0% 30.3% 30.4% 30.5% 31.0% 30.8% 31.1% 30.8% 3

Sound and Improving Loan Book Agribusiness Loan vs Non Agribusinsess Loan 70.00 62.37 Agribusiness Loan Distribution By Business Segments (Dec 2004) 60.00 50.00 43.51 39.37 39.69 45.62 47.60 49.96 54.97 58.38 Corporate 22.32% Micro 25.82% IDR Trillions 40.00 30.00 20.00 Medium 4.45% 10.00-12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 Non Agribusiness Loan 27.68 28.48 30.81 31.63 33.01 35.61 38.57 42.07 45.07 Agribusiness Loan 11.70 11.21 12.71 13.99 14.59 14.35 16.40 16.31 17.29 Total Loan 39.37 39.69 43.51 45.62 47.60 49.96 54.97 58.38 62.37 Small 47.40% 70.0 Loans by Currency 62.37 60.0 50.0 47.60 IDR trillions 40.0 30.0 20.0 31.97 27.8 39.37 35.2 44.1 58.1 10.0-4.2 4.2 3.5 4.2 Dec 2001 Dec 2002 Dec 2003 Dec 2004 US Dollar IDR Total 4

Sound and Improving Loan Book Classified Loan Trend 8.0 250.0 100% 15.3 15.4 13.98 13.94 13.19 13.49 12.98 12.08 12.23 7.0 6.0 NPL Coverage, NPL Gross and NPL Nett 6.91 6.74 6.7 6.72 6.46 6.3 6.03 5.75 196.00 200.0 75% 5.0 153 147.53 143.02 150.39 153.04 141.44 151.59 156.54 150.0 4.19 50% 84.7 84.6 86.02 86.06 86.81 86.51 87.02 87.92 87.8 4.0 3.0 % 3.15 3.21 3.14 3.4 3.12 3.12 3.11 3.07 100.0 % 25% 2.0 1.93 50.0 0% 12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 1.0 Current(%) Classified Loan (%) 0.0 12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 0.0 NPL Gross NPL Nett NPL Coverage (RHS) NPL Trend by Business Segment 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% NPL Composition 12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 Loss 20.9% 21.8% 32.6% 31.8% 29.9% 33.2% 33.7% 29.9% 36.8% Doubtfull 58.4% 57.1% 29.6% 21.3% 22.5% 20.7% 23.5% 17.8% 21.8% Sub Standard 20.7% 21.1% 37.8% 47.0% 47.6% 46.1% 42.8% 52.3% 41.4% % 30 25 20 15 10 6.74 6.91 6.7 6.65 6.03 6.3 6.46 5.75 5 4.19 0 12M02 03M03 06M03 09M03 12M03 03M04 06M04 09M04 12M04 Micro 1.55 2.14 2.52 2.72 2.79 2.89 2.65 2.38 2.1 Small 2.17 2.44 3.03 3.28 2.16 3.02 3.67 3.27 2.32 Medium 15.75 15.33 18.92 18.48 14.17 13.76 14.26 8.29 6.85 Corporate 26.59 27.56 25.66 25.39 23.43 23.71 23.56 22.3 15.08 Total 6.74 6.91 6.7 6.65 6.03 6.3 6.46 5.75 4.19 5

Funding mix : aiming for low cost of fund structure Customer Deposits Trend by Product 90.0 80.0 69.62 74.33 73.49 70.0 60.0 IDR Trillion 50.0 40.0 30.0 20.0 10.0 79.65 82.40 76.32 75.71 78.57 Dec 03 0.0 12M02 06M03 09M03 12M03 03M04 06M04 09M04 12M04 Time Deposits 29.49 31.43 29.77 26.40 24.41 25.15 24.45 24.47 Saving Deposits 28.67 31.10 31.92 35.80 37.94 39.87 41.14 44.57 Demand Deposits 11.46 11.81 11.81 14.11 13.36 14.63 12.98 13.36 69.62 74.33 73.49 76.32 75.71 79.65 78.57 82.40 Customer Deposits : Funding Mix Trend 100% 80% 60% 40% 20% 0% 12M02 06M03 09M03 12M03 03M04 06M04 09M04 12M04 High Cost 42.4% 42.3% 40.5% 34.6% 32.2% 31.6% 31.1% 29.7% Low Cost 57.6% 57.7% 59.5% 65.4% 67.8% 68.4% 68.9% 70.3% 6

Portfolio of Recap. Bonds Recap Bonds Portfolio by Type of Rate Recap Bonds by Type of Holding ID R Billion 30,000 20,000 10,000-28,436-28,394 27,578 6,591 7,173 23,950 6,667 28,436 21,803 20,405 17,283 Dec 01 Dec 02 Dec 03 Dec 04 IDR Billion 30000 20000 10000 0 28,436 28,394 27,579 2,218 0 2,222 0 2,535 0 23,950 9,823 26,218 26,172 25,044 2,788 11,339 Dec 01 Dec 02 Dec 03 Dec 04 Fixed Rate Variable Rate Total Hold to Maturity Trading Available for sale Total 16,000 Recap Bond by Maturity 14,042 100.00% Recap Bond to Ttl Assets, Ttl Earning Assets and Ttl Loans 87.9% 12,000 80.00% 72.1% IDR billio n 8,000 4,000 6,799 60.00% 40.00% 20.00% 40.5% 37.3% 32.9% 35.4% 32.7% 29.1% 57.9% 22.4% 24.4% 38.4% 0 1,670 906 1,270 1,480 772 1,125 1,100 500 500 89 99 24 375 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2020 0.00% Dec 2001 Dec 2002 Dec 2003 Dec 2004 Recap Bond to Ttl Assets Recap Bonds to Ttl Earning Assets Recap Bond to Ttl Loans year of maturity 7

Potential Recap Bond Recovery 2000 2001 2002 2003 2004 1 Government Burden - Recap Bond 28,982 28,436 28,393 27,579 23,950 29,063 Total Government Burden 29,063 2 Return of Investment a. Potential Unrealized Capital Gain * - - - - - 14,000 b. Government Shares ** 6,125 c. Dividen 168 532 762 589 1073 3,124 d. Proceed from Divestment - - - 2,510-2,510 e. Proceed from Asset Transfer to IBRA - - - - - 1,757 Total Return of Investment 27,516 Recovery Rate (before Corp Tax) 94.68% Corporate Tax 63 7 436 1,098 2,098 3,702 Total Return of Investment with Corp Tax 31,219 Recovery rate 107.42% * ammount of remaining govt shares x (share price(close price) as of 30-12-2004 = Rp 2.875) ** Capital from the Govt at IPO price of Rp 875 8

Financial Highlights

Balance Sheet Highlights IDR Billions Description Full Year Growth 2001*) 2002 2003 2004 YoY Total Assets 76,195 86,345 94,710 107,040 13.0% - Gross Loans (Incl. syariah) 33,529 39,373 47,599 62,368 31.0% - Government Bonds 28,436 28,394 27,579 23,950-13.2% Total Earning Assets 70,126 80,139 84,255 97,962 16.3% Provision (4,034) (4,189) (4,403) (5,172) 17.5% Total Non Earning Assets 10,104 10,342 14,857 14,250 # /0-4.1% Total Liabilities 76,195 86,345 94,710 107,040 13.0% Total Customer Deposits 57,759 69,627 76,316 82,400 8.0% - Demand Deposits 7,516 11,459 14,112 13,364-5.3% - Savings 26,529 28,673 35,803 44,569 24.5% - Time and Certificate Deposits 23,714 29,495 26,401 24,467-7.3% Other Interest Bearing Liabilities 9,174 5,807 4,474 6,384 42.7% Non Interest Bearing Liabilities 4,448 5,116 5,465 5,806 6.2% Tier I Capital 3,446 4,133 7,532 9,826 30.5% Total Shareholders' Equity 4,814 5,794 8,454 12,450 47.3% *) 2001 are consolidated figures comprising BRI and one subsidiary, PT Bank Inter-Pasific Tbk 9

Income Statement Highlights IDR Billion Descriptions Full Year Growth 2001*) 2002 2003 2004 YoY Interest Income 10,968 13,454 15,069 15,475 2.7% Interest Expenses (6,006) (7,373) (7,043) (4,769) -32.3% NII 4,962 6,080 8,027 10,706 33.4% Other Operating Income 1,153 1,045 939 1,503 60.1% Gross Operating Income 6,115 7,125 8,965 12,209 36.2% Operating Expenses (3,396) (3,908) (5,734) (5,283) -7.9% Pre Provision Operating Profit 2,719 3,217 3,231 6,926 114.3% Provisions (1,603) (1,755) 75 (1,328) -1870.7% Non Operating Profit/(Loss) 25 8 406 134-67.0% Profit Before Tax and Minor.Int. 1,141 1,470 3,712 5,731 54.4% Net Profit 1,072 1,525 2,579 3,633 40.9% *) 2001 are consolidated figures comprising BRI and one subsidiary, PT Bank Inter-Pasific Tbk 10

Income : Trend and Composition IDR Billion 20,000 15,000 10,000 5,000 Total Income Trend 16,413 17,111 14,506 12,146 - Non Operating Income (net) 25 8 406 134 Other Operating Income 1,153 1,045 939 1,503 Interest and Invesment Income Dec 2001 Dec 2002 Dec 2003 Dec 2004 10,968 13,454 15,069 15,475 Total Income 12,146 14,506 16,413 17,111 Other Operating Income : Trend (IDR billions) Dec 2001 Dec 2002 Dec 2003 Dec 2004 Gain fr Incr in Secr&Govt Bonds - 384 187 189 Gain on Sales of Secr.& Govr Bonds - 28 30 523 Other Fees and Commission 102 290 288 502 Gain on Foreign Exc.(net) 150-92 130 Others 901 343 342 158 Total 1,153 1,045 939 1,502 11

Overhead Expenses 7,000 IDR Billion 6,000 5,000 4,000 3,000 2,000 1,000 3,395 483 950 1,962 3,907 181 1,082 2,644 5,734 5,283 738 217 1,330 1,349 3,666 3,717 0 2001 2002 2003 2004 Others 483 181 738 217 General and Administration 950 1,082 1,330 1,349 Personnel 1,962 2,644 3,666 3,717 Total 3,395 3,907 5,734 5,283 The increase of personnel expense in 2003 mainly due to one time salary adjustment and ESOP cost. The increase of other expenses in 2003 was due to tax payment related to 2002. 12

Financial Ratios Description Full Year Growth 2001 2002 2003 2004 YoY Classified Loan Ratio 21.21% 15.31% 13.19% 12.23% -12.27% NPL ratio - Gross 7.30% 6.74% 6.03% 4.19% -37.65% NPL ratio - Net 2.72% 3.15% 3.12% 1.93% -43.24% NPL Coverage ratio - Gross 162.30% 147.50% 150.39% 196.00% 36.96% Tier I CAR 10.60% 10.20% 16.18% 15.72% 22.62% Total CAR 13.32% 12.62% 19.64% 19.86% 13.10% Loan to Deposit Ratio 56.08% 56.55% 62.37% 75.69% 21.94% Net Interest Margin (NIM) 7.60% 8.12% 9.54% 11.56% 25.93% Return on Assets (ROA) - b.t 1.62% 1.83% 4.11% 5.77% 42.82% Return on Assets (ROA) - a.t 1.52% 1.90% 2.85% 3.66% 34.56% Return on Equity (ROE) - Tier I 30.36% 38.81% 44.73% 42.20% -6.70% Return on Equity (ROE) - B/S 21.27% 26.99% 37.01% 32.61% -11.96% Cost of Fund (COF) 9.14% 10.04% 7.86% 4.60% -42.07% Minimum Reserve Requirement 7.82% 5.82% 10.92% 9.39% 84.84% Net Open Position 11.40% 7.80% 13.24% 9.61% 21.65% Opr. Expense to Opr. Income 90.81% 89.92% 79.19% 67.03% -16.74% Cost Efficiency Ratio (CER)*) 50.13% 57.48% 64.45% 46.48% -26.96% *) CER : (Employee expense+ G&A+Other Op. Expense)/(NII+Fee&Commision+Other Op. Income) *) 2001 are consolidated figures comprising BRI and one subsidiary, PT Bank Inter-Pasific Tbk 13

Policy and Strategy

Dividend Policy Dividend Payment History Year Net Profit (IDR Billion) Dividend % 2000 339.0 167.69 49.5% 2001 1,064.0 531.95 50.0% 2002 1,525.0 762.47 50.0% 2003 2,579.0 990.47 75.0% *) *) based on the net income of the second semester of 2003 Dividend Policy for 2004 : As stipulated in the prospectus, subject to Annual General Meeting of Shareholders, BRI plans to maintain a dividend payout ratio of about 50% 14

Business Plan and Strategy 2005 Continue to focus on Micro, Small and Medium Business (minimum 80% of Total Loan Portfolio) Maintain Strong Loan Growth at 22% - 25% Maintain existing funding mix to achieve low cost fund structure Increase Fee Based Income, utilizing IT capabilities and other banks services Despite continue to grow organically, considering unorganic growth through acquisition of other viable financial institutions Managing government bonds to support business growth and business development Maintaining operation efficiency at optimum level 15

Thank You Investor Relation Team Boyke Budiono Dwi Agus Pramudya (Head of Investor Relation) e mail : dwipram@bri.co.id e mail : boyke_budiono@bri.co.id phone : 62 21 5752008 Phone : 62 21 5752006 Listiarini Dewajanti Andarini e mail : listd@bri.co.id e mail : andarini@bri.co.id Phone : 62 21 5752009 phone : 62 21 5751951