Bank Mandiri Embraces Ecosystem Approach to Become Indonesia’s Largest Corporate Entity by Assets

JAKARTA, investortrust.id - Bank Mandiri, a major Indonesian state-owned bank, has achieved remarkable success by adopting an ecosystem approach that drives both digital and wholesale growth. On Thursday, Mar 6, 2025, in Jakarta, the bank’s executives expressed optimism about surpassing the industry’s average performance, highlighting the significance of accessible banking services for business leaders, policymakers, and the wider public eager to see continued financial expansion.

In detail, PT Bank Mandiri (Persero) Tbk, listed under the ticker symbol BMRI on the Indonesian Stock Exchange, recorded higher credit growth than industry averages in the past year. The state-owned enterprise, supervised by Indonesia’s Ministry of State-Owned Enterprises, reached a net profit of Rp51.14 trillion bank only. According to President Director of Bank Mandiri Darmawan Junaidi, this accomplishment stemmed from robust credit distribution and increased third-party funds, reflecting strong financial fundamentals.

“We posted 20.7% credit growth for Bank Mandiri in 2024 [bank only], while the industry average was only 10.4%. Meanwhile, our saving product has seen four consecutive years of the highest growth in the market, at 13.4%, compared to the industry’s 6.8%. There is no other fund product that can exceed 13.4% growth for savings, which represents the lowest cost of funds,” Darmawan said during a gathering with top media leaders in Jakarta on Wednesday, Mar 5, 2025.

He added that if the national industry average of 10.5% were recalculated without Bank Mandiri’s contribution, overall credit growth in Indonesia would drop to about 8.4%. As of January this year, the bank’s credit still grew by 19.03%, higher than the 10.27% industry average. Darmawan explained that this strength was largely driven by Bank Mandiri’s wholesale ecosystem, which is the institution’s core competence, coupled with its expansion into the retail segment.

“We are indeed a wholesale bank. However, we also have the resources to grow in retail transactions and to serve lower segments by financing economic activities across Indonesia,” Darmawan said.

Instead of aggressively opening new branches in pursuit of the retail market, Bank Mandiri used technology, including low Earth orbit satellite communication, to reach individuals in rural and remote locations. This approach enabled communities to access Bank Mandiri’s products and services without the bank having to physically establish new offices.

Darmawan highlighted that Bank Mandiri also serves wholesale plantation clients through its head office, while directly supporting plantation workers in remote estates. He noted that hundreds, even close to a thousand, plantation employees in these regions can now conveniently access banking services.

Over the past two years, the bank has built nearly 80 points of service in areas with no internet access. Though smaller than a traditional branch, these points can provide essential banking services, even for those without smartphones. “At these points of service, we provide the necessary facilities. We see that Bank Mandiri’s business can grow across all regions of Indonesia,” Darmawan stated.

Buoyed by these expansion initiatives, Bank Mandiri’s management was confident that the 20% credit growth rate reached in 2024 could be further accelerated this year.

Speaking at the same gathering, Darmawan elaborated on the bank’s strong performance in specific regions. In Sumatra, Bank Mandiri recorded 13.9% credit growth compared to the regional average of around 10%. Kalimantan saw 22.4% growth versus an industry average of 11.7%, while Jakarta and Banten reached 15.9% compared to 12.1% industry-wide.

“In Java and Yogyakarta, the figures are even higher. Bali and Nusa Tenggara are almost triple the industry average,” he said.

However, Darmawan admitted that growth in Sulawesi was more modest due to a focus on downstream natural resource processing, which was also the case in Papua.

“Overall, throughout Indonesia, we are shaping the nation’s economic trajectory. That is our achievement in 2024,” he emphasized.

Despite acknowledging tougher conditions ahead, management remained determined to accelerate credit growth in 2025. Darmawan expressed confidence that Bank Mandiri could deliver a performance exceeding last year’s achievements.

Prudential banking practices remained a priority, as reflected in the bank-only non-performing loan (NPL) ratio of 0.97%. Darmawan remarked that the bank had once found it challenging to even approach the 1% mark, making the current NPL ratio a significant accomplishment.

“Alhamdulillah, we have achieved that, and with God’s will, we will continue to maintain it. Our growth is no longer a shotgun approach; it is based on an ecosystem approach that is healthier and easier to monitor,” he said.

Bank Mandiri has since evolved into a corporate entity with the largest assets in Indonesia. Darmawan reported that by the end of 2024, the bank’s assets stood at Rp2,427 trillion.

“So, we are not only the biggest bank in terms of total assets but also the largest company in Indonesia. No other company in the country has assets surpassing Rp2,427 trillion as of year-end 2024,” he concluded.