Bank Mandiri Profile: History, Track, and Career in Indonesia

Transfez

6 min read
Bank Mandiri Profile

Who is not familiar with the Bank Mandiri profile. As one of the largest banks in Indonesia, Bank Mandiri has indeed received the attention of some customers in the country. So of course most people in Indonesia already know enough about Bank Mandiri.

About Bank Mandiri Profile

Bank Mandiri is the largest bank in Indonesia in terms of assets, loans, and deposits. It is headquartered in Jakarta. The bank was established on October 2, 1998, as part of the Indonesian government’s banking restructuring program.

On July 31, 1999, four government-owned banks merged into Bank Mandiri: Bank Bumi Daya (BBD), Bank Dagang Negara (BDN), Bank Ekspor Impor Indonesia (Bank Exim), and Bank Pembangunan Indonesia (Bapindo).

Before joining the Bank Mandiri profile, the four banks (BBD, BDN, Bank Exim, and Bapindo) had a long and illustrious history. Each of the four national banks has played an essential part in Indonesia’s economic growth and has helped form the history of the country’s financial industry.

Consolidation of Bank Mandiri Profile

Bank Mandiri profile succeeded in building a solid bank organization and implementing a new integrated core banking system, which replaced the core banking systems of the four previous legacy banks that were separated from each other, after going through a comprehensive process of consolidation and integration in all fields.

Bank Mandiri’s performance has constantly risen since its inception, as seen by its profit, which has increased from Rp1.18 trillion in 2000 to Rp5.3 trillion in 2004. On July 14, 2003, Bank Mandiri launched an initial public offering (IPO) worth 20% of the company’s stock, or 4 billion shares.

Bank Mandiri Profile Transformation

The year 2005 marked a watershed moment for Bank Mandiri when the bank chose to become a regional champion bank. It is a goal that was fulfilled through a transformation program that included four primary strategies:

• Implementation on a cultural level Restructuring performance-based organizations, reforming the performance-based evaluation system, developing leadership and abilities, and aligning human resources with strategic goals are all part of the process.
• NPL levels are being aggressively controlled. Bank Mandiri prioritizes the collection of bad debts and the improvement of the risk management system. For each sector, market growth is achieved through strategies and individual value propositions.
• Increase your company’s growth rate above the national average. For each sector, market growth is achieved through strategies and individual value propositions.
• Development and administration of alliance programs across Directorates or Commercial Units to maximize customer services and to further explore the business potential and value chain of existing clients.
Phases of Bank Mandiri Progressive Change
Bank Mandiri undergoes a progressive change via three (three) phases to reach its goal of becoming a Regional Champion Bank. The phases are consisting of the following items.
• 1st stage (2006-2007)
Back on track: Rebuild Bank Mandiri’s basis for future expansion.
• 2nd stage (2008-2009)
Outperform the Market: Concentrate on business expansion to assure considerable growth in diverse areas and profit levels that are higher than the market average.
• 3rd stage (2010)

Shaping the End Game: Bank Mandiri aims to become the leading regional bank by consolidating its financial services business and focusing on non-organic growth strategies such as improving the performance of subsidiaries and acquiring banks or other financial companies that can add value to the company.

See Video How To Easily Send Money International with Transfez

Result of Bank Mandiri Profile Transformation

The transformation project, which lasted from 2005 to 2010, was successful in increasing the performance of the Bank Mandiri profile. Mainly the performance constantly. This is reflected in a rise in some financial indicators, including:

• The consolidated net NPL ratio declined from 15.34 percent in 2005 to 0.62 percent in 2010, indicating a significant reduction in non-performing loans.
• The net profit of Bank Mandiri increased dramatically from Rp 0.6 trillion in 2005 to Rp 9.2 trillion in 2010.

To sustain and improve its performance, Bank Mandiri underwent another transition from 2010 to 2014, which included reviving its mission to “Become the most admired and always innovative Indonesian Financial Institution.”

With this vision, Bank Mandiri set out to achieve financial milestones in 2014, including a market capitalization value of over Rp225 trillion, an income market shares of close to 16 percent, a return on assets of around 2.5 percent, and a return on equity of close to 25 percent, while maintaining asset quality as measured by a gross nonperforming loan ratio of less than 4%.

Conclusion and Closing

In the end, the transformation of the Bank Mandiri profile from time to time gave positive results. Thus making this bank survive among many other banks in Indonesia. Even Bank Mandiri managed to expand by establishing branches not only in Indonesia. Instead, it is available and cooperates in several other countries including Malaysia and Singapore.

Download Transfez App

Transfez App can help you transfer money abroad more quickly and efficiently. Transfez Business can also help your business in making transactions abroad. For those of you who want to send money to relatives who are abroad because they are studying, working, or traveling, Transfez will be ready to help. This app is available on Android as well as iOS.

Those are some interesting things about the Bank Mandiri profile, which of course can provide insight into the community. So from here, not only get to know Bank Mandiri but know what the story and history behind the bank are like. Through this interesting information, it can naturally attract the attention of a large number of customers to become part of the state-owned enterprise.