The Boeing 737-200 aircraft, registered PK-RIL, operated by Mandala Airlines as flight 260 on a scheduled passenger flight from Jakarta Soekarno-Hatta International Airport, was substantially damaged as a result of a severe hard landing sequence on runway 35 at Malang-Abdurrachman Saleh Airport, East Java. The investigation determined that the crew did not refer to the aircraft rate of descent when it exceeded 1,000 feet/minute during the landing approach, and was therefore an unstabilized approach condition. The investigation also determined that the captain did not respond appropriately to the any of ground proximity warning system voice aural warnings that were initiated during the latter stages of the approach as a result of the high rate of descent of the aircraft. The derived FDR data revealed that the aircraft bounced to a height of about 20 feet after the initial severe hard landing. However, there was no attempt by the crew to recover from the high bounce by initiating a go-around. CAUSES: The flight crew did not appear to have an awareness that the aircraft was above the desired approach path to runway 35 at Malang until they sighted the visual approach slope indication lighting system. The pilot in command continued the approach in reduced visibility and heavy rain; marginal visual meteorological conditions. Non-adherence by the flight crew to stabilized approach procedures, which resulted in the initial severe hard landing at Malang, together with the omission of a high bounced landing recovery, resulted in substantial damage to the aircraft.