MICROCAPITAL BRIEF: Bank Mandiri, Pos Indonesia Open Joint Microcredit-Postal Branch in East Java

Bank Mandiri, a government-owned provider of financial services to private and state-owned businesses as well as individuals and microentrepreneurs, recently opened its first office in Sidoarjo, East Java, as part of its partnership with Pos Indonesia, the national postal service.The partnership was launched in 2010 as Mandiri Mitra Usaha Pos, and, by 2011, 29 post offices offering microfinance services were established. The province of East Java was chosen for the location of the latest branch due to its economic growth level of 7.2 percent, which compares favorably with the national growth rate of 6.4 percent.

The joint offices allow customers to access a maximum of IDR 100 million (USD 10,370) through Kredit Usaha Mikro (KUM) and IDR 50 million (USD 5,185) from Kredit Serbaguna Mikro (KSM), two microcredit products offered to microenterprises. Zulkifli Zaini, CEO of Bank Mandiri, reportedly stated that both firms “plan to extend the program to the whole of Indonesia in 2013″ through 300 integrated offices.

Bank Mandiri reports net loans at IDR 299 trillion (USD 30.8 billion) serving 789,000 customers. Mandiri intends to reach IDR 46.1 trillion (USD 4.78 billion) in loans outstanding by year end. As of December 31, 2011, Bank Mandiri reported total assets of IDR 552 trillion (USD 57.2 billion), return on assets (ROA) of 2.7 percent, return on equity (ROE) of 21.97 percent and 1,548 domestic branches.

By Sarah Benali, Research Associate

About Bank Mandiri                                                                   Bank Mandiri was formed in 1998 as part of a restructuring of the financial system of Indonesia by the national government. In 1999, four state-owned banks – Bank Bumi Daya, Bank Dagang Negara, Bank Exim and Bapindo – were amalgamated into Bank Mandiri. Bank Mandiri provides financial services to private and state-owned businesses and individuals, including microentrepreneurs. As of December 31, 2011, Bank Mandiri reported total assets of IDR 552 trillion (USD 57.2 billion), return on assets (ROA) of 2.7 percent, return on equity (ROE) of 21.97 percent and 1,548 domestic branches.

Sources and Additional Resources

Bank Mandiri Press Release: “Bank Mandiri Partners with Pos Indonesia to Strengthen Services to Micro Sector,” October 2012, http://ir.bankmandiri.co.id/phoenix.zhtml?c=146157&p=irol-newsArticle&ID=1749105&highlight

MicroCapital.org story: “MICROCAPITAL BRIEF: The Wall Street Journal Reports on Expansion of Indonesian Banks into Microfinance Sector, $30b in Microloans Are Distributed in 5 Years,” June 7, 2011, https://www.microcapital.org/microcapital-brief-the-wall-street-journal-reports-on-expansion-of-indonesian-banks-into-microfinance-sector-30b-in-microloans-are-distributed-in-5-years/

MicroCapital Universe Profile: Bank Mandiri https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Mandiri

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