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					Analyst Meeting
Third Quarter 2008 Result


Intercontinental Jakarta Midplaza
Wednesday, 29 October 2008
Today’s Presentation
• Business Overview
• Financial Highlights
• Earning Assets
• Non Performing Loans
• Subsidiaries
• Capital Adequacy




                         2
Business Overview
Key Updates
•     Change of Ownership. As at 30 Sep 2008, Mayban Offshore Corporate Service (Labuan) Sdn. Bhd, a wholly
      owned subsidiary of Malayan Banking Berhad (Maybank) completed the acquisition of 100% of Sorak
      Financial Holdings Pte. Ltd who owned 55.51% shares of BII
•     Market Condition. Global economic crisis and turbulence in the banking industry


Scorecard – Summary
                                    •   NII grew 12% YoY and NIM improved to 5.65% from 5.20% a year ago

        Net NPLs improved           •   ROE reduced from 13.98% in 2Q08 to 11.65% in 3Q08
                                    •   Net NPLs improved to 1.77% in Sep’08 from 2.76% a year ago, while Provision
                                        Coverage Ratio up from 53.05% to 78.53% in Sep’08

     Achieve LDR > 80% and          •   LDR improved to 89.09% in Sep’08 from 86.32% a year ago
     Loan Growth of > 20%           •   Loans grew 25% YoY with focus on SME/Commercial and Consumer Loans

    Ratio of Non Time Deposits
    to Total Deposits should be     •   Funding mix with 41% of low cost funds (47% a year ago)
           at least 49%

           Cost Growth              •   Cost grew by 9%



                                                                                                      4
      Key Events

     Service/
     Channel
   development


                           Bii – ATM Prima         SP3K Linkage Program BPR      Bii – KC Manado          Bii – KCP Puri Indah Mall       Bii – KCP Batu Tulis          Bii – KCP Tabanan Bali




Products innovation



                      Bii – Putra Pratama Sukses         Bii – OPSICO         Bii – Acer & Distributors
                                                                                                             Bii – Trikomsel Oke           Bii – F1 Singapore       Super Grand Prize Biingkisan
                            Loan Syndication           Loan Syndication        Cash Mgmt Solution
                                                                                                              Loan Syndication




 Sector expertise


                                                                                                              CSR - Bank Visit        Bii – Asia Pacific Regional
                         Bii – Kuningan City             Bii – St Moritz        CSR – Build School                                                                      Bii – Products Gathering
                                                                                                           Children National Day      Microcredit Summit 2008




                                                                                                                                                                    5
Financial Highlights
Income Statement – Consolidated
     Quarter on Quarter (QoQ)                                                                          Year on Year (YoY)

 1Q08       2Q08       3Q08              in billion Rupiah                                          Sep '07    Sep '08

 1,412     1,396       1,481       6%    Interest Income                                             4,164      4,289          3%

  (697)     (707)       (789)    12%     Interest Expense                                           (2,301)    (2,193)        (5%)

  715        689        692        0%    Net Interest Income                                         1,863      2,096        12%

  287        300        348      16%     Non Interest Income                                          904         935          3%

   (31)       (22)        (5)    77%     Gain (Loss) on Marketable Securities                           92        (58)      (100%)

  972        967      1,034        7%    Gross Operating Income                                      2,859      2,973          4%

  (623)     (646)       (639)     (1%)   Operating Expenses (excl. provision)                       (1,747)    (1,909)         9%
  348        321        395      23%     Operating Income before Provision                           1,112      1,064        (4%)

  (213)     (249)       (294)    18%     Provisions                                                   (637)      (756)       19%

   63         47         (25)   (153%)   Non operating income (expense) / Tax / Minority Interest      (37)        85       327%

  198        119         76     (36%)    Net Profit                                                   439        392        (11%)




                                                                                                                   7
Net Interest Income
• Loan/Deposit spreads in 2008 higher compared to 2007 amid margin pressure in
  rising interest rate environment in 3Q08

       14%
                12.01%
       12%
                            10.19%         9.88%        9.75%        9.78%                                   9.54%
                                                                                  9.31%        9.33%
       10%


        8%                                                       3.97%
                                                                                                        4.24%         4.19% Spread
                7.53%
        6%
                             6.34%         6.04%        5.79%        5.63%                                   5.35%
        4%                                                                        5.01%        5.09%

        2%

        0%
                Dec-06       Mar-07        Jun-07       Sep-07       Dec-07      Mar-08        Jun-08        Sep-08

                                 Average yield of Earning Asset - Total       Average cost of fund - Total

     Note: Parent company only



                                                                                                                             8
Changing loan asset mix
• SME/Commercial, Corporate and Consumer : encouraging growth trend while closely
  managing margin and risks                  Loan Growth (YoY)
                                                                                      Rp. billion     Sep’07       Sep’08
Loan Composition                                                                      Corporate            7,711    9,462   23%
Rp Trillion
                                                                                      SMEC                 9,801   13,044   33%
 14.0                                           12.7
                                                          13.0
                                                                                      Consumer             7,797   11,883   52%
                                    1 .5
                                     1                     1 .9
                                                            1
                                                                        SME/C,
 12.0
                        10.8                     10.9
                                                                        Corporate &   Syariah               170       283   66%
               9.8                                                      Consumer
 10.0                      8.9           9.7                            growth        Subsidiaries         4,938    3,382   -32%
               7.8
                                                         9.5
  8.0
                          8.7      8.6         8.4                                    Total               30,418   38,054   25%
               7.7
  6.0


  4.0           4.9
                                                                                      Loan Growth (QoQ)
                          4.5        4.1
  2.0
                                                3.6       3.4                         Rp. billion         2Q08      3Q08
               0.2        0.2        0.2        0.2       0.3

  0.0
                                                                                      Corporate            8,432    9,462   12%
              Sep-07    Dec-07     M ar-08     Jun-08    Sep-08
                                                                                      SMEC                12,720   13,044    3%
        Co rpo rate    SM EC     Co nsumer     Syariah   Subsidiaries
                                                                                      Consumer            10,877   11,883    9%
                                                                                      Syariah               247       283   14%
                                                                                      Subsidiaries         3,600    3,382    -6%
                                                                                      Total               35,877   38,054    6%



                                                                                                                       9
Marketable Securities and Government Bonds – as of Sep ‘08
By Classification                                                      Rp Billion     By Interest Rate

  9,000                                                                                 12%

  8,000                                                            7,645
                                                                                        11%
  7,000           6,339
  6,000                                                                                 10%

  5,000
                                                                                        9%
  4,000
                                                                                        8%
  3,000

  2,000
                                        1,306                                           7%
  1,000
             -            101       -           42           -
                                                                            143
                                                                                        6%
    -
            Government Bonds        Corporate Bonds                 Total
                                                                                              Sep-07       Dec-07         Mar-08   J un-08       Sep-08

                                                                                                  IDR - Corporate Bonds            USD - Corporate Bonds
                 Held to Maturity       Available for Sale            Trading
                                                                                                  IDR - Gov ernment Bonds          USD - Gov ernment Bonds



 By Type                                                                Rp Billion


                                                                                     • As of Sep ‘08, AFS portfolios accounted for 98% of our
                                                                                       total marketable securities portfolio
          1,348 (17%)
                                                                                     • Government bonds is 83% of total. Recap bonds
                                                                                       amounted to Rp5.4 trillion
                                                                                     • Losses of Rp.58 bio was taken to P&L (both realized and
                                                                                       unrealized). AFS is MTM against equity
                                                                 6,439 (83%)


                   Government Bonds                   Corporate Bonds




                                                                                                                                                             10
Government Bond
• Reduce Variable Rate Bonds
                  8,000,000                                                                   16.00%

                  7,000,000                                                                   14.00%

                              11.4%        11.1%          11.1%      11.1%     11.0%
                  6,000,000                                                                   12.00%
                                                                                                       Next Repricing
                  5,000,000                                                                   10.00%
                                                                                                            Amount             Repricing
  in Rp Million




                                                                                                          (in Rp Bio)              Date
                  4,000,000                                                      9.0%         8.00%
                              7.8%         7.8%          7.9%      8.1%                                           1,872           Oct’08
                  3,000,000                                                                   6.00%
                                                                                                                  2,776          Nov’08
                  2,000,000                                                                   4.00%
                                                                                                                    744          Dec’08
                  1,000,000                                                                   2.00%      Total    5,392

                       -                                                                      0.00%
                                Sep-07      Dec-07        Mar-08     J un-08       Sep-08

                                      F ixed Rate - RI Bond        V ariable Rate - RI Bond
                                      WAIR F ixed Rate             WAIR V ariable Rate

Note: Parent company only



                                                                                                                          11
Depositor Base
• Continue to raise new deposits through specific campaigns
• With higher rates some shift from CASA to TD
Rp billion

  45,000                                                          41,676            42,166
  40,000                           37,006         38,073                                           Deposit Rate Rising
                    34,840
  35,000
                                                                                                                                     SBI 1          SBI 3
  30,000                                                          23,234            24,861         Period            BI Rate
                                   20,216         20,004                                                                            month          month
  25,000            18,614
                                            55%            53%             56%               59%
  20,000                     53%
                                                                                                   Dec ’07            8.00%          8.00%         7.83%
  15,000                                             6,716 47%    6,836 44%                  41%
                    6,649    47%   7,164 45%                                        10,045
  10,000
                                                                                                   Mar ’08            8.00%          7.96%         8.04%
    5,000           9,576          9,626          11,353          11,606
                                                                                    7,260
      -                                                                                            Jun ‘08            8.50%          8.73%         9.20%
                    Sep'07         Dec'07         Mar'08          Jun'08            Sep'08

                         Current Accounts     Saving Accounts       Time Deposits
                                                                                                   Sep ‘08            9.25%          9.71%         9.90%

                                                                                                   15 Oct ‘08         9.50%        10.39%         10.94%
   Type Of Deposits            Sep'07       Dec'07       Mar'08         Jun'08         Sep'08
                                                                                                   Note : Reclassification of Rp 3,530 billion from Current
  Individual                   63.14%        61.13%        60.30%          59.45%        58.16%    Account to Savings in 3Q08 (according to PBI No. 10/26/DPNP)


  Non Indiv idual              36.86%        38.87%        39.70%          40.55%        41.84%


Note: Parent company only


                                                                                                                                        12
Cost of Funds
SBI vs Time Deposit & Saving Account Rates
• Time Deposits cost of funds maintained but stiffer competition for deposits

               14%
                     11.84%
               12%

                              9.00%                                                        9.25%
               10%                                                               8.73%
                                        8.50%      8.25%     8.00%     7.95%
                     9.75%
                8%            9.29%
                                        8.81%
                                                   8.40%     8.17%                         8.08%
                                                                       7.37%     7.57%
                6%

                4%   4.77%
                              3.97%     3.82%      3.78%     3.72%
                                                                       3.29%     3.30%     3.40%
                2%

                0%
                     Dec'06   Mar'07    J un'07    Sep'07    Dec'07    Mar'08    J un'08   Sep'08

                                       SBI        Time Deposits       Saving Accounts




                                                                                                    13
  Fee Income to Total Income
 Securities market impacted income. While fee income improved, mainly in trade finance, wealth
 management, bancassurance and consumer transactions


Breakdown of Fees (YoY)                                       Breakdown of Fees (Q0Q)
Rp Billion                         Sep’07   Sep’08            Rp Billion                    2Q08     3Q08
Provisions, Commissions and                                   Provisions, Commissions and
                                      187      216     16%                                     67         76    13%
Fees                                                          Fees
Foreign Exchange                                              Foreign Exchange
                                       78       34    -56%                                     10          8    -23%
Transactions                                                  Transactions
Gain (loss) on Marketable                                     Gain (loss) on Marketable
                                       92      (58)   -163%                                   (22)        (5)   77%
Securities *)                                                 Securities *)

Others                                639      685      7%    Others                          223         264   18%

Total                                 996      877    -12%    Total                           278         342   23%

% to Total Income                  34.8%    29.5%     -5.3%   % to Total Income             28.8%    33.1%      4.3%
Note: *) realized and unrealized




                                                                                                     14
Cost to Income Ratio - Normalized
                                           Year on Year
70%                                        Rp. billion      Sep’07     Sep’08
                                           NII               1,863         2,096    12%
      64.1%             63.8%
65%                               63.0%    Fee-based           903           935     4%
               62.2%
                                           Gross Income      2,767         3,031    10%
60%                                        Overhead          1,747         1,909     9%
                                           Cost-to-Income   63.1%          63.0%   -0.1%
55%
                                           Quarter on Quarter
50%                                        Rp. billion       2Q08          3Q08
                                           NII                  689          692     0%
45%                                        Fee-based            300          348    16%
                                           Gross Income         989        1,039     5%
40%                                        Overhead             646          639    -1%
      Dec'07   Mar'08   J un'08   Sep'08
                                           Cost-to-Income   65.3%          61.5%   -3.8%




                                                                      15
  Financial Position
  Balance Sheet - Consolidated
                 Quarter on Quarter (QoQ)                                                                                Year on Year (YoY)

         1Q08             2Q08            3Q08                       in billion Rupiah                            Sep '07        Sep '08

       34,163          35,877           38,054               6%      Loans                                        30,418         38,054         25%

        7,547            7,394            6,439            (13%)     Government Bonds                               9,795         6,439         (34%)

        6,571            6,608            6,208             (6%)     Other Earning Assets                           7,449         6,208         (17%)

       54,709          56,843           57,974               2%      Total Assets                                 53,814         57,974           8%

       37,960          41,470           41,989               1%      Deposits from Customer                       34,823         41,989         21%

       11,279          11,546             7,221            (37%)     - Current Account                              9,554         7,221         (24%)

        6,716            6,836          10,045              47%      - Saving Account                               6,649        10,045         51%

       19,964          23,087           24,722               7%      - Time Deposit                               18,620         24,722         33%

        1,580              749            1,029             37%      Deposits from Other Banks                      2,473         1,029         (58%)

        1,355            1,358            1,390              2%      Subordinated Loans                             1,344         1,390           3%

        8,502            7,923            8,191              3%      Other Liabilities                              9,469         8,191         (13%)

       49,397          51,500           52,599               2%      Total Liabilities                            48,109         52,599           9%

          183              187              189              1%      Minority Interest                                  264         189         (28%)

        5,128            5,157           5,186               1%      Total Equity                                   5,441         5,186         (5%)
Note : Reclassification of Rp 3,530 billion from Current Account to Savings in 3Q08 (according to PBI No. 10/26/DPNP)



                                                                                                                                           16
Financial Ratio
  Quarter by Quarter (QoQ)                                                   Year on Year (YoY)
       1Q08        2Q08       3Q08                    Consolidated (%)     Sep'07      Sep'08
         5.89%        5.62%     5.54%   NIM                                   5.20%       5.65%
         1.83%        1.33%     1.11%   ROA                                   1.34%       1.25%
        19.85%       13.98%    11.65%   ROE                                  15.75%      13.11%
         2.19%        1.91%     1.77%   Net NPLs                              2.76%       1.77%
        64.16%       66.84%    61.81%   Cost to Income Ratio                 61.09%      64.21%
        79.08%       88.41%    78.53%   Provision Coverage                   53.05%      78.53%
        88.88%       85.25%    89.09%   LDR                                  86.32%      89.09%
        20.52%       19.35%    18.47%   CAR (without market risk charge)     22.13%      18.47%
        19.65%       18.61%    17.79%   CAR (with market risk charge)        20.62%      17.79%

                                                    Parent Company (%)
         5.27%        5.09%     5.10%   NIM                                   4.98%       5.17%
         2.24%        1.50%     1.25%   ROA                                   1.66%       1.43%
        19.85%       13.98%    11.65%   ROE                                  15.75%      13.11%
         2.20%        1.95%     1.85%   Net NPLs                              2.94%       1.85%
        71.30%       72.00%    68.99%   Cost to Income Ratio                 65.50%      70.74%
        70.30%       78.11%    82.34%   Provision Coverage                   54.23%      82.34%
        77.77%       76.14%    80.64%   LDR                                  72.01%      80.64%
        20.52%       19.35%    18.47%   CAR (without market risk charge)     22.13%      18.47%
        19.65%       18.61%    17.79%   CAR (with market risk charge)        20.62%      17.79%




                                                                                         17
Earning Assets
Asset Mix: 3Q 2008 – Consolidated
Earning Assets                                                                               Loans: Rupiah and Foreign Currency Mix
Improving assets mix to higher yielding loan portfolio
Rp Trillion                                                                                  Rp Trillion

                                                                                                                                                                 38.1
                                                                                                                                                   35.9
                                                                                                                33.1            34.2
                        48.7                                 49.9               50.7
     47.7                                 48.3                                                        30.4                                                       8.3
                                                                                                                                                   7.0
                                                                                                                 6.7            7.0
                                                                                                       5.8
     30.4               33.1              34.2               35.9               38.1


                                                                                                                                                   28.9          29.8
      9.8                                                                                                       26.4            27.2
                        8.9               7.5                7.4                                      24.6
                                                                                6.4
      4.6               5.2               3.6                2.5                2.4
      2.9               1.5               3.0                4.1                3.8
    Sep'07             Dec'07            Mar'08             Jun'08          Sep'08

                                                                                                     Sep-07    Dec-07          Mar-08             Jun-08     Sep-08
      Placements with BI & other banks                  Marketable Securities                                  Rupiah          Foreign Currency
      Government Bonds                                  Loans




LDR & Total Loans                                                                            LDR by Currencies
LDR YoY increased from 86.3% to 89.1%
 Rp billion
    60,000                                                                            90%             94.3%     94.3%          94.6%
                                88.3%      88.9%                       89.1%                                                                      91.0%      91.5%
               86.3%                                      85.3%

                                                                                      60%                       88.3%          88.9%                         89.1%
                                                                       38,054                         86.3%                                       85.3%
    40,000                                                35,877
                                33,056     34,163                                                                                                            81.7%
              30,418
                                                                                      30%                                      72.3%
                                                                                                                70.9%
                                                                                                                                                  67.9%
    20,000                                                                                            63.9%
                                                                                      0%



       -                                                                              -30%            Sep'07    Dec'07         Mar'08             Jun'08     Sep'08
              Sep'07            Dec'07     Mar'08         Jun'08       Sep'08
                         Total Loans              LDR                                                                    LDR    LDR IDR           LDR FCY




                                                                                                                                                            19
Asset Composition
                                 80,000                                                                     80.4%      90%
                                                                                      78.7%     79.7%

                                                             69.8%           71.4%
                                               66.5%
    Total Assets (Rp. billion)



                                 60,000
                                                                                                                       60%


                                 40,000

                                                27.7%
                                                             25.5%           24.3%                                     30%
                                                                                      18.6%
                                 20,000                                                          17.5%      16.6%



                                    -                                                                                  0%
                                               Dec-06        Sep-07          Dec-07   Mar-08    J un-08     Sep-08

                                        Gov ernment Bond                                 Loans
                                        Marketable Securities                            Other Assets
                                        Int from loan (incl. Subsidiaries)               Int from GOI Bonds & Marketable Sec.




                                                                                                                                20
Well Diversified Loan Portfolio
 Loans by Customer Segment                                                        Loans by Economic Sector
 Rp billion
                                                                                  as of 30 Sep 08
      30,418              33,056        34,163       35,877          38,054

                          13.5%         12.0%        10.0%            8.7%
      16.2%                                                   0.7%    3.4% 0.7%
                            3.3% 0.6%   3.2% 0.6%     3.2%
       3.4% 0.6%

                                        25.2%        27.1%            27.9%                                        Services
      22.2%               23.7%                                                      Consumer &
                                                                                       Others                       10%            Manufacturing
                                                                                        48%                                           15%


      32.2%               32.7%         33.6%        35.5%            34.5%




      25.4%               26.3%         25.3%        23.5%            24.9%                                                               Trading
                                                                                                                                           13%
                                                                                                                          Agriculture &
                                                                                                    Construction
      Sep-07              Dec-07        Mar-08       Jun-08          Sep-08                                              Transportation
                                                                                                        4%
                                                                                                                              10%
              Corporate             SME/Commercial       Consumer
              Credit Card           Syariah              Subsidiaries



• Our strategy to focus loan growth towards                                        Low concentration risk with sufficient
  SME/Commercial and Consumer sectors                                              diversification with respect to economic sector
  remains valid without credit quality compromises
• Syndication loan opportunities




                                                                                                                                           21
Non Performing Loan
NPL & Loan Loss Provision Expenses
                      6%       5.43%         5.43%

                      5%                                        4.35%
                                                                              3.75%
                      4%
                                                                                          3.12%        3.00%
                                             3.89%                                                                    2.83%          2.77%
                               3.85%
                      3%                                        3.46%
                                                                              2.94%
                      2%
                                                                                          2.37%        2.20%
                                                                                                                      1.95%          1.85%
                      1%

                      0%
                               4Q06           1Q07              2Q07          3Q07        4Q07         1Q08             2Q08         3Q08

                                                    NPL Gross - Parent Company                  NPL Net - Parent Company


Loan Loss Provision Expenses                                                                                                                  Variance
                                       YTD (2006)    1Q07         2Q07        3Q07       4Q07       1Q08       2Q08       3Q08
in Rp Billion                                                                                                                         3Q08 - 2Q08     3Q08 - 3Q07

Credit Card                                  359        71              50        40        33          27        25           23               (2)            (17)

Automotive                                   107            4           48        30        27          27        79           81               2              51

Others                                        62            7            7           7      60          48        33           50              16              43

Total                                        527        82              104       77       121         102        137          153             16              76

  Note: Parent company only



                                                                                                                                               23
NPL by Segment
                                 Sep'07                          Dec'07                        Mar'08                       Jun'08                    Sep'08
             Gross NPL
                          Nominal           %           Nominal            %          Nominal           %           Nominal               %      Nominal       %
   Corporate                    407              5.3%         361          4.2%             323          3.7%             246             2.9%       251        2.7%

   Commercial/SME               283              2.9%         263          2.4%             305          2.7%             322             2.5%       349        2.7%
   SME                          123              4.5%         105          3.8%             108          3.8%             109             3.7%       110        3.7%

   Commercial                   154              2.3%         152          2.0%             193          2.3%             209             2.2%       238        2.4%
   KKPA                             6            2.0%             6        2.1%                 5        1.8%                 4           1.5%         2        0.8%

   Consumer                     244              3.1%         243          2.7%             248          2.5%             320             2.9%       330        2.8%

   Mortgage                     121              3.7%         114          3.4%             112          3.2%             110             3.0%       107        2.8%
   Auto                          48              1.8%            61        1.7%                70        1.6%             149             2.9%       166        2.8%

   Credit Card                   50              4.8%            43        3.9%                40        3.7%              38             3.3%        33        2.6%

   Home Equity                  25               5.0%            25        5.0%                25        5.1%              22             4.4%        22        4.4%
   Syariah                          7            3.9%            12        6.1%                13        6.1%              12             4.8%        12        4.3%
   Total                        941              3.7%         880          3.1%             889          3.0%             899             2.8%       942        2.8%


                                                                                                                          82.43%
                                                                                                      78.1%
                                                                                 65.5%
                                          55.8%             54.2%


                                        5.43%
                                                         3.75%
                                                                           3.12%                    2.83%                2.77%
                                                3.85%
                                                                 2.94%              2.37%                   1.95%                 1.85%
                                          Dec-06            Sep-07               Dec-07                Jun-08              Sep-08

                                                         Gross NPL Ratio       Net NPL Ratio        Provision Coverage

    Note: Parent company only


                                                                                                                                                           24
NPL - Consumer Loans
 Rp billion
 500
                 416
 400            4.1%

                24.2%                                                320          330
                                                                    10.3%        6.9%
 300                                                                             12.0%
                                           244          243         16.2%
                                          10.3%        10.4%
                41.3%
 200                                      20.3%        17.5%        28.4%        46.7%
                                          19.7%        25.3%
 100
                30.4%                     49.6%        46.8%        45.1%        34.4%

   0
               Dec-06                     Sep-07      Dec-07        Jun-08       Sep-08

                        Mortgage              Auto   Credit Card   Home Equity




              Note: Parent company only


                                                                                          25
Credit Card
Credit Card Outstanding                                                                           Credit Card NPL Ratio
                                                                                          1,500
 Rp billion
                                                                                 1,279

       1,155                                                    1,159
                                              1,079
                           1,040

                                                                                          1,000
                                                                    59                              8.71%
                                                  53
             49
                               43                                                    44

                                                                                                             4.76%
                                                                                          500                                  3.94%
                                                                                                    5.30%                                       3.31%
                                                                                                                                                           2.60%
  15
                      12                                   11               10
                                          9                                                                  2.93%
                                                                                                                               2.44%
         8                                                         7                6                                                           2.07%
                              6                  6                                                                                                         1.59%
                                                                                          -
    Dec-06              Sep-07                Dec-07         Jun-08           Sep-08                Dec-06   Sep-07            Dec-07           Jun-08     Sep-08

               Income - Acquiring (MTD)                Income - Issuing (MTD)                                     NPL Ratio - Gross     NPL Ratio - Net
               Credit Card Receivable                  No. of Merchant (thousand)




• Credit Card NPL continues to show declining trends
• Heavy promotion to boost cards balances



                                                                                                                                                      26
Auto Loans
Auto Loan Outstanding                                                            Auto Loan NPL Ratio


  Rp. Billion
                                                                        5,833      6.97%
500                                                5,225


400
                                        3,653

300                         2,715
           2,466                                                                                                             2.85%         2.85%
                                                                                            1.76%                  1.68%
200     172                                                         166
                137                               149

                                                                            82                                               1.53%
100                                   61                  69                       1.42%                                                 1.45%
                        48
                                29           32                                             0.70%           0.80%
 0
          Dec-06            Sep-07     Dec-07      J un-08              Sep-08     Dec-06   Sep-07          Dec-07           Jun-08      Sep-08

                      NPL            Provision          O/S Auto Loan                          NPL Ratio - Gross       NPL Ratio - Net




                                                                                                                                   27
Mortgage Loans
 Mortgage Loan Outstanding                                                              Mortgage Loan NPL Ratio


      Rp. Billion

                                                                              3,894
400
                                                            3,647                        4.29%


300                                            3,369
                               3,246                                                              3.72%

                                                                                                                    3.38%
              2,951                                                                      3.71%
200
                                                                                                  3.47%                              3.02%
            127           121                                                                                                                   2.76%
                                            114          110                 107                                    3.13%
100

                                                                                                                                     2.64%
                    17              8                9          14                 14
                                                                                                                                                2.39%
 0
              Dec-06           Sep-07         Dec-07       J un-08            Sep-08     Dec-06   Sep-07            Dec-07           J un-08    Sep-08

                         NPL            Prov ision       O/S Mortgage Loan                             NPL Ratio - Gross     NPL Ratio - Net




                                                                                                                                           28
Capital Adequacy
Sufficient CAR to Support Expansion
CAR and Risk Weighted Assets

   in Rp. Billion
                    24.08%
    70,000                                                                                          25%
                                   22.13%
                                                   21.35%
                    23.32%                                   20.52%
    60,000                                                                19.35%
                                                                                         18.47%     20%
                                   20.62%          20.21%
    50,000                                                   19.65%
                                                                          18.61%
                                                                                         17.79%
                                                                                                    15%
    40,000                                                                              35,967
                                                                         33,782
                                                   29,034    31,334
    30,000                         27,117
                                                             CAR Minimum 8%                         10%
                    22,962
    20,000
                                                                                                    5%
    10,000             5,530         6,000           6,198     6,430          6,536         6,643


       -                                                                                            0%
                     Dec-06         Sep-07          Dec-07   Mar-08       Jun-08         Sep-08

                               Risk Weighted Assets                      Total Capital
                               CAR (credit risk charge)                  CAR (market risk charge)



                                                                                                          30
WOM Finance
WOM Updates
Key Senior         Changes in the BOC and BOD
Management

                   • Implementation of the Product Program
                   • Implementation of SOD (Segregation of Duties) policy in Jan ‘08
                   • Establishment of Fraud team in Jan ‘08
                   • Establishment of improved MIS Risk Management package
Risk               • Reduced Repossessed inventory stock
Management         • Improve quality of portfolio and tighten credit criteria. Approval rate from 95% to
                     85%
                   • Revise collection incentive scheme to reflect performance based incentives
                   • NBD reduced from 12.8% at end ’07 to 8.0% as at Aug ‘08 (total portfolio
                     managed)

Strategic Cost     • Negotiation with key vendors for reducing expenses
Efficiency         • Optimize fee based income by obtaining higher insurance discount

Distribution       Opened 13 new branches particularly in the Eastern part of Indonesia where the
Channel            business is growing

                   • Migration of IT has been in the process since May ‘08
IT Online System
                   • As of end of Sep’ 08 all branches are online


                                                                                           32
 WOM - Financial Statement
WOM Financial Highlights
(Rp billion unless stated)
                                                                                                             Unit Financing
                                 3Q07            3Q08              ∆                   500

 Consumer Financing                                                                                                                   390
                                     4,812           3,317          -31%               400
   Receivables (net)                                                                                                           332
                                                                                                     278




                                                                               U 000
                                                                                       300
 Total Assets                        5,223           3,925          -25%                      224                                            3Q 07




                                                                                nit
 Total Liabilities                   4,695           3,548          -24%               200                                                   3Q 08
                                                                                                                       113
 Equity                                 528              378        -28%               100
                                                                                                                 108



                                                                                         0
 Total Revenue                          893          1,016             14%                      New                Used          Total


 Total Expenses                         762              774           2%
 Profit Before Provision                131              242           85%
 Provision Expenses                     225              206         -8%                                    Financing Amount
                                                                                       5000
 Profit Before Tax                      (93)              35        138%
                                                                                                                                      4034
 Tax Expense                             28               (9)      -132%               4000
                                                                                                                               3342
 Net Profit                           (65)                26        140%                             3176
                                                                                       3000




                                                                             IDR bn
                                                                                              2523
                                                                                                                                             3Q 07
                                                                                       2000
 By the                                                                                                                                      3Q 08
                      Dec 06     Dec 07        June 08          Sept 08
 Numbers                                                                                                         819 858
                                                                                       1000

 Customers           809,000     913,000        964,813           996,659                0
                                                                                                New               Used           Total
 Branches                  100       102            115                124



                                                                                                                                 33
Accounting Policy Interest Income Accrual Method in WOM –
Finding 1
• The issue was identified when the Clipper application system was converted to an Oracle application
  which calculates interest income based on a daily accrual methodology (accepted practice)

• The legacy Clipper system calculates interest income accrual as follows:

          The full 1 month interest income is recognized in the month of loan disbursement and monthly
          going forward
          Also includes the accounts that are past between 91 to 120 days whilst as per WOM’s
          accounting policy income should not be accrued for past due beyond 90 days

• At the end of the month, this results in an overstatement of interest income accrued by WOM

• This practice has been consistently in use since at least 2003

• There is a financial impact as a result of WOM applying the accepted daily interest income accrual
  method




                                                                                           34
Reconciliation with BII on Joint Financing Accounts – Finding 2

• In the joint financing scheme between BII and WOM, WOM as the agent is required to administer the
  loans on behalf of BII

• As the Clipper system is not online, payment’s from WOM’s branches are sent manually to WOM’s
  head office daily for onward transmission to BII

• The consolidation and processing of these manual payments system results in delays and incomplete
  information in the administrative process as the system is not fully compatible with the BII system




                                                                                          35
Action Plan
• Develop reconciliation system to perform the following amongst others by Oct’08:

     •   Account by account

     •   Outstanding amount

     •   Collectibility status

     •   Maturity date

     •   Restructured status

     •   Repossessed status




                                                                                     36
Disclaimer
Please note that some of the statements in this document may constitute “forward-looking statements” that do not directly or exclusively relate to historical
facts. Some of the statements in this document (including but not limited to the forward-looking statements) are derived from or are based upon information
from public or external sources and/or reflect BII’s own internal projections, current intentions, plans, expectations, assumptions and beliefs about future events
and are subject to risks and uncertainties that may cause actual events and BII’s future results to be materially different than expected or indicated by such
statements. To the extent that such statements in this document (including but not limited to the forward-looking statements) are derived from or are based on
public or external sources of information, BII’s has not undertaken any independent verification of such information. No assurance can be given that the results
anticipated by BII, or indicated by any such statements in this document (including but not limited to the forward-looking statements), will be achieved. You are
urged to view the statements contained in this document (including but not limited to the forward-looking statements) with caution.




                                                                                                                                                37
Thank You