Source file signed link, expires in 15 minutes
Extracted text 63
Page 1
SUSTAINABLE BANKING
Sustainable Banking Sustainable Financing Sustainable Financing Products Sustainable
Sustainable Funding Responsible Financing Approach
Investment
Procedure Standards., including:
CREDIT POLICY RELATED TO ENVIRONMENTAL, SOCIAL, AND SECTORAL CREDIT POLICY RELATED TO ENVIRONMENTAL,
GOVERNANCE (ESG) ASPECTS SOCIAL, AND GOVERNANCE ASPECTS
Bank Mandiri requires prospective debtors to meet the Bank Mandiri also remains committed to not providing
AGRICULTURE SECTOR
following general criteria: credit financing to business activities that have a
a. Have environmental management documents negative impact on the environment (exclusion/
based on the industrial sector and the provisions negative list) as follows: Bank Mandiri has established a binding credit policy for customers in this sector to:
of applicable laws and regulations, including a. Illegal logging; 1. Having at least a minimum Blue PROPER assessment and/or at least having an Environmental Impact Assessment
Environmental Impact Analysis* documents for b. Plantation o peatlands; (AMDAL) or Environmental Management Effort (UKL-UPL) report approved by the Environmental Agency (BLH).
required business/activity plans or Environmental 2. Financing will not be extended to companies planning to open new land.
c. Violations of human rights according to the
Management Efforts - Environmental Monitoring
Manpower Law and ILO Convention**; 3. Having a Waste Treatment Installation (IPL) with a assessment related to the availability of operating IPL and water
Efforts documents;
d. Drug abuse; quality standard parameters within specified limits.
b. Have the outcomes of the PROPER assessment 4. For public companies, it is mandatory to have a sustainability report.
e. Business activities that endanger the environment,
(Company Performance Rating Assessment Program
including disturbing protected areas such as 5. Having a commitment to No Deforestation, No Peat, No Exploitation (NDPE), including land clearance & opening,
in Environmental Management) in accordance with
UNESCO World Heritage Sites, wetland sites as preservation of High Conservation Value (HCV)/High Carbon Stock (HCS) areas, and peatlands.
applicable provisions;
listed in the Ramsar Convention*** criteria, and 6. For the Palm Oil Plantation subsector, it is mandatory to have ISPO and/or RSPO certification or at least proof of
c. Other related environmental management permits/ high biodiversity sites as well as sites listed in the registration in the form of an acknowledgment from the Certification Institution.
certifications and other related environmental criteria IUCN Cat-1 & Cat-2**** protected area categories
7. The Palm Oil Plantation subsector lacking ISPO and/or RSPO certification must fulfill the following criteria::
in accordance with applicable laws and regulations. as outlined in the Convention on Biological
Diversity; • Having a Code of Conduct, Environmental & Labor Policies (including OHS).
f. Other business activities that do not comply with • Having Environmental Management certification such as ISO 14001/ISO 45001 or other similar documents
applicable laws and regulations, including but acceptable to the Bank.
not limited to: Pornography; Gambling; Money • Having fire prevention and land fire handling Standard Operating Procedures (SOP), having standard fire
laundering; Corruption, Collusion, and Nepotism handling equipment according to land criteria, having fire watchtowers, and having a specialized fire
activities; and Goods and services that do not handling team trained according to the Directorate General of Plantation's standards.
comply with applicable laws. • Companies must have Plantation Business Permits (IUP) as stated in the location permit.
* Referring to the Regulation of the Minister of Environment and Forestry of the Republic of Indonesia Number P.38 / MENLHK / SETJEN / KUM.1 / 7/2019
concerning Types of Business Plans and/or Activities that are Required to Have an Environmental Impact Analysis, and obliging debtors to comply with the
conclusions and recommendations of the Environmental Impact Analysis (AMDAL) as required by the Ministry of Environment and Forestry. The environmental
ENERGY SECTOR
impacts considered in the AMDAL include, but are not limited to: (1) the forestry sector: avoiding disturbances to forest ecosystems, hydrology, biodiversity,
pests, landscape, and social conflicts; (2) the agricultural sector: soil erosion, changes in water availability and quality due to land clearing, spread of pests,
diseases, and weeds during operations, changes in soil fertility due to the use of pesticides/herbicides. Bank Mandiri has established a binding credit policy for customers in this sector to:
** The applicable labor laws in accordance with the International Labour Organization (ILO) include: Law No. 21 of 2000 on Labor Unions; Law No. 13 of 2003 on 1. Have a PROPER assessment and/or at least have an AMDAL or UKL-UPL report approved by the Environmental Agency.
Manpower as amended by Law No. 11 of 2020 on Job Creation; Law No. 2 of 2004 on Settlement of Industrial Relations Disputes, and related laws regarding the
ratification of ILO conventions. 2. Specifically for financing new coal-fired power plants with PLN as the offtaker, consideration has been given to the
*** The Ramsar Convention on Wetlands as ratified by Presidential Regulation No. 48 of 1991. suitability of the financing period with the coal phase-out strategy according to the applicable PLN’s Electricity
**** The Convention on Biological Diversity (CBD) as ratified by Law No. 5 of 1994 and referring to the guidelines for the use of IUCN protected area categories in the Procurement Plan.
CBD Convention.
3. Operating Power Plants must have Environmental Management certification like ISO 14001/ISO 45001 or similar
documents acceptable to the Bank.
4. Operating Power Plants must have a code of conduct, policies related to the Environment (carbon emissions, coal ash,
water, and waste management), and labor.
120 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 121
Page 2
SUSTAINABLE BANKING
Sustainable Banking Sustainable Financing Sustainable Financing Products Sustainable
Sustainable Funding Responsible Financing Approach
Investment
COAL SECTOR FAST MOVING CONSUMER GOODS (FMCG) SECTOR
Bank Mandiri has established a binding credit policy for customers in this sector to: 1. Have a minimum Blue PROPER assessment and/or at least have an AMDAL or UKL-UPL report approved by the
1. Have a minimum Green PROPER assessment and/or at least have an AMDAL or UKL-UPL report (including reclamation Environmental Agency.
and post-mining guarantees) approved by the Environmental Agency. 2. Have a code of conduct, Environmental Policy (such as chemical usage and water & waste treatment), and Labor
2. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the Policy (including OHS).
Bank. 3. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the
3. Specifically for mining financing as a supplier to PLTU, consideration has been given to the financing period with the Bank. Have certification from the Food and Drug Monitoring Agency (BPOM).
coal phase-out strategy according to the applicable PLN’s Electricity Procurement Plan. 4. Make endeavors to achieve energy efficiency and emission reduction, evidenced by documents acceptable to the
Bank.
5. Distributors are required to have packaging recycling provisions or clear targets to reduce plastic waste with eco-
friendly materials.
CONSTRUCTION SECTOR 6. For bottled water industries:
a. Have packaging recycling provisions or clear targets to reduce plastic waste with eco-friendly materials.
Bank Mandiri has established a binding credit policy for customers in this sector to: b. Use of spring water in accordance with applicable regulations, including maintaining water sources for
1. Have Environmental Management certification such as ISO 14001/ISO 45001/OHSAS 18001 or similar documents sustainability and availability for the surrounding environment.
acceptable to the Bank. 7. Prioritize labor aspects such as minimum wage and the prohibition of employing underage workers.
2. Have internal policies (code of conduct) related to the Environment and Labor.
3. Have internal policies and standard procedures (SOP) related to accident handling for toll road operators.
OIL AND GAS SECTOR
MINING SECTOR
Bank Mandiri has established a binding credit policy for customers in this sector to:
1. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the
Bank Mandiri has established a binding credit policy for customers in this sector to:
Bank.
1. Have a minimum Green PROPER assessment and/or at least have an AMDAL or UKL-UPL report (including reclamation
2. Make endeavors to improve energy efficiency and reduce emissions, in accordance with regulatory provisions at the
and post-mining guarantees) approved by the Environmental Agency.
business location. Public companies are required to have a Sustainability Report or similar document.
2. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the
3. Have an Environmental Impact Assessment (AMDAL) or Environmental Management Effort (UKL-UPL) approved by
Bank.
the Environmental Agency.
3. The company implements Good Mining Practice in accordance with applicable regulations, including the inclusion
4. Oil and Gas Business activities are required to have documents stating the fulfillment of all Oil and Gas Safety
of the Company Work Plan & Budget (CWPB) for the respective year approved by the Ministry of Energy and Mineral
requirements (Installations and Equipment, Workers, Public and Environment), with supporting evidence provided
Resources, and/or other documents related to Good Mining Practice.
by Supporting Business Certificate.
4. Have internal policies (code of conduct) related to the Environment and Labor.
BIODIVERSITY SECTOR
TRANSPORT EQUIPMENT INDUSTRY (SHIPYARD)
In the industrial forest sector, Bank Mandiri has established a binding credit policy for customers in this sector to:
Bank Mandiri has established a binding credit policy for customers in this sector to:
1. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the 1. Have documents for the management of industrial forest permits such as Business Permit for Forest Timber Product
Bank. Utilization and/or Business Permit for Non-Timber Forest Product Utilization, and an approved Business Work Plan
(RKU) from the Ministry of Environment and Forestry.
2. Make endeavors to achieve energy efficiency and emission reduction, evidenced by documents acceptable to the
Bank. 2. Not engage in business activities in areas declared to have high biodiversity, including RAMSAR land material sites
and IUCN Cat.1&2 sites.
3. Have a Financial Sustainability Action Plan (SFAP) and Sustainability Report for public companies
122 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 123
Page 3
SUSTAINABLE BANKING
Sustainable Banking Sustainable Financing Sustainable Financing Products Sustainable
Sustainable Funding Responsible Financing Approach
Investment
HEALTHCARE SECTOR METAL SECTOR
Bank Mandiri has established a binding credit policy for customers in this sector to: Bank Mandiri has established a binding credit policy for customers in this sector to:
1. Have documents for the management of industrial forest permits such as Business Permit for Forest Timber Product 1. Have at least a Blue PROPER assessment and/or an approved AMDAL or UKL-UPL report by the Environmental Agency.
Utilization and/or Business Permit for Non-Timber Forest Product Utilization, and an approved Business Work Plan 2. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the
(RKU) from the Ministry of Environment and Forestry. Bank.
2. Have internal policies regarding Environmental Management and Occupational Health and Safety Management
System (OHSMS) acceptable to the Bank.
TELECOMMUNICATIONS SECTOR
PHARMACEUTICAL SECTOR
Bank Mandiri has established a binding credit policy for customers in this sector to:
1. Have Environmental Management certification such as ISO 14001/ISO 45001/OHSAS 18001 or similar documents
Bank Mandiri has established a binding credit policy for customers in this sector to: acceptable to the Bank.
1. Pharmaceutical producers have environmental permits/certifications (adjusted to the risk of their waste hazards, in 2. Make endeavors to improve energy efficiency and reduce emissions, evidenced by documents acceptable to the
accordance with the provisions of the Ministry of Environment). Bank (if available).
2. Have Environmental Management certification such as ISO 14001/ISO 45001 or similar documents acceptable to the 3. For public companies, it is mandatory to have a sustainability report.
Bank. 4. Have internal policies related to data privacy in accordance with applicable regulations, and have high capabilities
3. Make endeavors to improve energy efficiency and reduce emissions, evidenced by documents acceptable to the and systems related to cybersecurity.
Bank.
4. For public companies, it is mandatory to have a sustainability report.
TRANSPORTATION SECTOR
PULP & PAPER SECTOR Bank Mandiri has established a binding credit policy for customers in this sector to:
1. Have Environmental Management certification such as ISO 14001/ISO 45001/OHSAS 18001 or similar documents
Bank Mandiri has established a binding credit policy for customers in this sector to: acceptable to the Bank.
1. Have Environmental Management certification such as ISO 14001 or other documents acceptable to the Bank. 2. Make endeavors to improve energy efficiency and reduce emissions, evidenced by documents acceptable to the
2. Have at least a Blue PROPER assessment and/or an approved AMDAL or UKL-UPL report by the Environmental Agency. Bank.
3. For public companies, it is mandatory to have a sustainability report. 3. Have a Sustainable Financial Action Plan (SFAP) and a Sustainability Report for public companies.
4. Make endeavors to improve energy efficiency and reduce emissions, with adequate electricity and water supply.
5. Have a Wastewater Treatment Plant (IPAL)/Waste Treatment Plant (IPL)/Liquid Waste Disposal Permit (IPLC)/and B3
waste treatment facility, evidenced by documents acceptable to the Bank. SECTORS SENSITIVE TO ESG ASPECTS
6. For pulp & paper trading, have endeavors/declaration letters to fulfill principles/commitments including:
a) Selling products or services aimed at not harming the environment
In other sectors such as manufacturing and construction, Bank Mandiri has established a credit policy that binds customers
b) Eco-friendly, efficient, cost-effective, and energy-efficient distribution processes in these sectors to adhere to the ESG-related regulations and standards, including compliance with environmental
c) Allocating a budget for eco-friendly marketing management certifications such as ISO 14001 and occupational health and safety certifications such as ISO 45001 or
d) Not overusing resources similar standards. For debtors unable to meet these requirements, the bank has implemented monitoring mechanisms
and action plans to improve its customers' ESG performance.
e) Having sustainability certificates, such as Forest Stewardship Council (FSC), Programme for the Endorsement of
Forest Certification (PEFC), or similar environmental sustainability certificates.
124 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 125
Page 4
SUSTAINABLE BANKING
Sustainable Banking Sustainable Financing Sustainable Financing Products Sustainable
Sustainable Funding Responsible Financing Approach
Investment
Bank Mandiri consistently assesses and enhances its credit 2. Analyzing the performance of the sectoral portfolio,
policies related to Environmental, Social, and Governance (ESG) using sensitivity analysis and the results of climate risk Credit approval process at Bank Mandiri
aspects in a sustainable manner. This ongoing process includes identification through Climate Risk Stress Test (CRST),
annual assessments to ensure the suitability and effectiveness presented at the board forum and utilized as a guideline Conducting credit analysis by
of these policies. The back conducts regular assessments and in internal business decision-making. reviewing various aspects:
reviews, as follows: Qualitative Aspects:
3. Direct involvement of group credit, including examples Industry and market
1. Analyzing credit portfolio management strategies, of deep dive assessments for ESG intensive industries Establishing targeted outlook, quality of company
in the form of loan portfolio guidelines, to determine customers by: management.
Through this approach, Bank Mandiri is committed to Conducting due diligence Legal and compliance
prospective sectors, industry classifications based on
continuously improving sustainability aspects in its credit on prospective debtors documents (AMDAL/UKL,
risk, growth direction, and sectoral industry allocation through Name Clearance PROPER, OHS, and other Providing legal opinions
limits. This analysis considers various factors, including activities, ensuring that the implemented policies incorporate and legal solutions related
(KYC and APU PPT). environmental regulations), The credit approval
sectoral outlook, portfolio quality, risk, and ESG aspects ESG aspects. Meeting prospective business prospects/ to legal aspects, including process takes place during
industry criteria (Well strategies, and marketing the ESG aspect, in credit the "Credit Committee
within each industry.
Known, and not included strategies. granting. Meeting," consisting
in Bank Mandiri’s exclusion Quantitative aspects such as a minimum of 2 (two)
CREDIT APPROVAL PROCESS MECHANISM [GRI 2-25] list). financial performance. Reviewing the need for
internal BMRI regulations
individuals representing
Complying with the Industry Risk assessment and risk the Business Unit and the
In carrying out the credit distribution process, Bank Mandiri applies the principle of prudence, which includes the integration of Acceptance Criteria (IAC), mitigation, including the ESG and external (legislative Risk Management Unit,
Environmental and Social aspects in risk management, as well as the implementation of Environmental and Social due diligence taking into account the ESG aspect, are part of the credit regulations) in credit responsible for making
aspects. granting process. granting. credit decisions.
throughout the monitoring process. When executing the credit approval process, Bank Mandiri also considers the results of
Environmental and Social risk analysis as a crucial factor in the decision-making process for credit approval is as follows:
Business Unit + Risk Business Unit + Risk Legal + Business Unit + Risk
Management Unit Management Unit Compliance Management
Proses Due Diligence
LEGAL & CREDIT COMMITTEE
PRE-SCREEN LOAN ANALYSIS
COMPLIANCE REVIEW MEETING
Meet the
included
general criteria
Exclusion Loan Analysis Next Credit Process
of ESG YES
List? NO
aspects?
YES
YES TIDAK
Corrective Are Corrective NO
Rejected
Actions Actions met?
LOAN MONITORING DISBURSEMENT LOAN DOCUMENTATION LOAN APPROVAL
Business Unit + Risk Business Unit + Risk
Management Unit + Credit Credit Operation Unit Management + Credit Authority
Operations Unit Operations Unit
In the process of evaluating prospective customers, Bank Mandiri identifies aspects related to ESG risks in financing activities and
develop strong management system. In the ESG Due Diligence process, the direct involvement of the group credit (business unit)
and the credit risk management unit is necessary. This includes providing examples of in-depth assessments for ESG-intensive Monitoring credit quality Complience review Business Unit: The officials authorized to
industries. Subsequently, in the Legal and Compliance Review (LCC) stage, a more detailed identification (due diligence) of through: Loan Activation Fulfillment of credit make credit decisions are
Periodic calls, on-site visits Loan Disbursement document requirements and categorized according to
potential Environmental and Social risks is conducted. Opinions and solutions are provided from a legal perspective, involving
Fulfillment of credit signing credit agreements. credit limits within Bank
participants from the Business Unit as the customer manager, Legal Group, and Compliance – AML & CFT Group. For prospective requirements Risk Management Unit: Mandiri's internal regulations.
customers with the potential for ESG risk impact, further evaluation is required, including the establishment of specific provisions. Annual review of credit Reviewing the suitability This responsibility is held by
facilities of credit agreement the Vice President, Senior
• Prospective customers who meet the requirements proceed to the subsequent stage of the credit granting process. ALERT (Early Warning documents with the Vice President (SVP), and the
• Prospective customers unable to meet the requirements are subject to corrective actions in the form of imposing conditions System) decisions of the credit BoardLevel to CEO level.
Stress tests and sensitivity committee meeting.
(covenants) that must be fulfilled. analysis Credit Operations Unit:
The evaluation process will be communicated to the credit decision-maker, where the Senior Vice President (SVP) up to the Board Monitoring loan Preparing credit
documentary maturity agreements, collateral and
Level. If the ESG impact is found to be severe during the due diligence process, additional extra due diligence and escalation to
dates insurance arrangements,
the CEO level for decision-making are necessary. The compliance with covenants is monitored (reported to the Risk Management and reviewing credit
Unit) by the Business Unit and/or legal documentation and guarantees that have not been fulfilled upon maturity. requirement compliance.
126 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 127
Page 5
SUSTAINABLE BANKING
Sustainable Banking Sustainable Financing Sustainable Financing Products Sustainable
Sustainable Funding Responsible Financing Approach
Investment
OVERSIGHT OF ESG RISK Example of ALERT implementation in Bank Mandiri: 1. Credit Criteria Fulfilment: As a condition in the credit
as part of of the evaluation conducted by Bank Mandiri agreement for next year, an improvement in the PROPER
MANAGEMENT IN FINANCING ACTIVITIES on debtors in the palm oil and textile sectors, reveals assessment to at least the "Blue" level is required during the
Bank Mandiri periodically conducts monitoring related to Units and ESG Units to ensure the implementation of issues related to environmental compliance that require latest evaluation.
the implementation and compliance of debtors towards environmental and social aspects and sustainability the outcome of the PROPER Assessment (Environmental 2. Monitoring and Evaluation: Bank Mandiri will periodically
environmental and social aspects, through the following steps: principles, as well as the mitigation of climate change Performance Rating Program). It was found that the monitor and evaluate compliance with this credit condition,
impacts on debtors. company is below the standard criteria. This is attributed to concurrently requesting customers to develop an action
1. Bank Mandiri operates an Early Warning System known the inadequate waste management system, as stipulated plan, including efforts to improve waste management.
as ALERT (Watchlist), producing triannual reports 3. Bank Mandiri requires debtors to develop an action plan by the Ministry of Environment and Forestry (KLHK), with Customers may also consider using consulting services
presented in a joint forum involving Business Units to addresss environmental and social aspects within a the PROPER assessment still falling below the "Blue" level. to support waste management problem resolution while
and Risk Management Units. The primary objective timeframe based on the type of customer business establishing a timeline for completing these actions.
of this system is to identify potential risks that could activities. These action plans are regularly assessed In response to this, customers must adhere to the following 3. Clear time bound of fulfilment: By December 2023, related
impact credit quality. ALERT considers aspects such during evaluation processes. The findings of the ALERT action plan: customers have met the credit agreement conditions
as compliance with environmental and social aspects, review regarding customers’ non-compliance with according to the agreed-upon timeline.
financial performance, industry prospects, and other environmental and social aspects after the preparation
relevant environmental and social aspects, enabling and evaluation of the action plan may necessitate
prompt preventive actions. ALERT reports are sent additional corrective action to ensure adherence to
to the Business Unit Director and Risk Management these aspects in customer business activities. BOARD-LEVEL OVERSIGHT RELATED
Director. Furthermore, the ALERT forum incorporates
an escalation mechanism. In the event that findings
4. Bank Mandiri also performs an annual review as a means
of checks and balances. This review encompasses an
TO ESG RISK MANAGEMENT [S1-1a] [S2-1a]
related to environmental and social aspects risks cannot
assessment of compliance with the most recent internal ESG risk management is a collaborative effort involving the identifying, measuring, and monitoring risks, establishing risk
be resolved at the technical level between Business
credit policy requirements, including environmental and Business Unit, Risk Management Unit, Legal and Compliance management policies and strategies, and (2) formulating credit
Units or Risk Management Units and customers, the
social aspects. Group, and is conducted in accordance with the four-eyes policies, overseeing the implementation, monitoring the status
credit decision-making oversight function is required,
performed by the Senior Vice President level up to the Furthermore, in addition to the measures, Bank Mandiri conducts principle. The implementation of Sustainable Finance and growth of credit portfolios, and offering recommendations
Board of Directors. annual reviews and audits through its Internal Audit Unit to Governance encompasses the development of a Sustainable for improvement. This also includes monitoring of ESG risk
ensure compliance with credit policies and procedures. Finance Action Plan (SFAP), integration of ESG aspects into management.
2. Bank Mandiri also facilitates communication and
operations and business, and the management of Climate-
interaction through regular meetings led by Business
related Risks. Furthermore, the Board of Commissioners oversees the
Units and jointly monitored by Risk Management
implementation of ESG, the fulfillment of ESG targets or
Bank Mandiri conducts monitoring and reporting to the Board commitments through the Risk Monitoring Committee (KPR),
Monitoring Compliance with Environmental Level through the Risk Management & Credit Policy Committee held on a quarterly basis with topics such as reviewing the
and Social Aspects in ALERT Forum (RMPC) on a quarterly basis, with duties and responsibilities effectiveness of ESG-related risk management and oversight
as stipulated in the Board of Directors’ Decision of PT Bank in financing activities. The integration of these two levels of
Mandiri (Persero) Tbk, Number Kep.Dir/009/2021 on the Risk supervision establishes a robust framework to consistently
Continuing the monitor-
Management & Credit Policy Committee or the Executive uphold and apply sustainability principles and good governance
ing process and the next
Committee. The RMPC has two main responsibilities: (1) across all operational aspects of Bank Mandiri.
credit process stages YES
COMPLIANT
Implementation
of Monitoring of Determination of
ALERT NO
Environmental the Account Strategy Exit
review
and Social As- (Cooperative
results?*
pects through the COMPLIANT
Customers)
ALERT Forum
NON-COMPLIANT
Evaluation Escalation
Preparation
of Customer process to the
of Customer
Action Plan NON- authorized
Action Plan COMPLIANT
Compliance personnel
*Including compliance with credit requirements related to environmental and social aspects; Checking regulations related to PROPER/AMDAL findings;
Government regulation changes; Financial performance; On-site visit; future customer business prospects; and other evaluation components.
128 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 129
Page 6
Sustainable Operation Bank Mandiri ensures the implementation of Sustainable Operation in an integrated manner, including information security and data protection, protection for customers, Environmentally Friendly Operations, development of superior talent that pays attention to diversity and equality (Sustainable Mandirian) and creates a safe and healthy work environment.
Page 7
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Information Security
and Data Protection
The advancement of digitalization and technology adoption has to customers. For this reason, Bank Mandiri strives to mitigate
significantly enhanced the ease and convenience of customer potential risks that could lead to financial losses, reputational
transactions. Nevertheless, the digitalization of services also damage, and legal claims against the bank.
introduces potential risks to information security, such as theft,
Since 2018, Bank Mandiri has had a dedicated unit, the CISO Office
loss, manipulation, and misuse of data, as well as the disclosure
Group, to manage and enhance cyber resilience and security.
of sensitive information and unauthorized destruction of data.
The CISO Office Group is supervised by C-level management to
These risks can threaten the confidentiality, integrity, and
implement bank-wide cyber resilience and security. The CISO
availability of information.
Office Group applies a cyber resilience framework adopted from
Bank Mandiri recognizes the importance of information security international standards and best practices in executing cyber
as an enabler in the digitalization process and technology resilience and security strategies and operations.
adoption to provide comfortable and secure banking services
Sustainable Operation is one of Bank Mandiri’s strategic foundations in
supporting the achievement of sustainability targets, one of which is Operational
Net Zero Emission in 2030. Bank Mandiri ensures the integration of sustainability SUPERVISION OF THE BOARD OF DIRECTORS
principles in all layers of operational activities which include improving AND BOARD OF COMMISSIONERS
information security and data protection, protecting customers, environmentally The Board of Directors, represented by the Director of and the Integrated Governance Committee, hold discussions
friendly operations through Digital Carbon Tracking and carbon neutral Information Technology and the Director of Risk Management, on the quarterly performance of data and information security
ensures data and information security implementation within with agendas covering the achievement of ESG aspects such
initiatives, developing superior talents who expand diversity and equality and
the Bank Mandiri environment and compliance with applicable as Privacy and Data Security, the effectiveness of the Bank's
create a safe and healthy work environment. laws and regulations. The Risk Supervisory Committee (KPR) layered security system, and compliance with Mandiri Group's
oversees and monitors cyber security, data security, and security requirements.
information security activities At the same time, the Board
Issues and topics related to data and information security are
of Directors of Bank Mandiri actively monitors and provides
reported and discussed at the board-level Data Governance
periodic supervision, guidance, and evaluation.
Forum at least once a year, attended by the Director of Risk
The Board of Commissioners and the Board of Directors, through Management, the Director of Compliance, the Director of Finance
the Risk Monitoring Committee, the Board Audit Committee, and Strategy, and the Director of Information Technology.
132 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 133
Page 8
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
PROCEDURES RELATED TO INFORMATION CYBERSECURITY FRAMEWORK
SECURITY AND DATA PROTECTION 3-Pillars
Governance Protection Operation
The company does not rent, sell, or provide data in any form a. Information Technology Standard Operating Procedure (SOP)
1. Security Awareness 1. Defense Mechanism
to third parties except for financial transactions/services. The Number K4.SP7 of 2023 1. Security Operation Center (SOC) 24x7
• Program for employees: Implementation of layered security technology
company minimizes requests for personal data in accordance Swiftly and effectively anticipates security
b. Data Management Standard Operating Procedure (SOP) Awareness about data classification, security, (applications, networks, systems) to protect incidents in accordance with international
with transaction requirements and stores personal data as and processing (i.e., collection, processing, data. standards (certified ISO 27001) and adopts
Number S11.P3.MND of 2023
permitted by laws and business needs. Bank Mandiri is committed storage, correction, display, deletion) of data. For example: international best practices.
to promptly destroying data after the specified storage period as c. Mandiri Subsidiary Management Principles Guideline (MSMPG) Media: podcast, newsletter-poster, sharing • Auto/Semi-automatic firmware update Implementation of physical security (e.g.,
session. (Antivirus-malware). access doors, CCTV, employee identification
required by business needs and permitted by laws. The company specifically related to collaboration with information technology
• Program for customers: support).
also does not obtain personal data from any third party unless and data management with the Subsidiary Company • Block removable media (i.e., USB).
Awareness about safe transaction methods 2. Threat Intelligence
regulated by regulatory requirements. (anti-fraud awareness). 2. Penetration Testing
Bank Mandiri's Information Technology SPO encompasses Anticipates current cybersecurity attacker
Media: company's official website and social A test to ensure the absence of vulnerabilities
Bank Mandiri possesses and enforces internal procedures, IT regulations concerning information technology security and techniques and tactics by subscribing to
media. in applications, networks, and systems:
credible sources.
Information Procedures and Data Security Procedures. All related cyber, as previously discussed. The Data Management SPO • Regular.
2. Data Security Regulations For example:
policies and procedures are periodically reviewed and serve as governs all domestic and international Bank work units in • Ad-hoc in the development of new
Govern the process of collecting, maintaining, Various Indicators of Compromise (IoC) service
references for similar processes in subsidiary companies. The managing data governance. Additionally, Foreign Branch Offices applications.
using, and storing data. providers affiliated with Interpol.
Standard Operating Procedures related to information security comply with these SPO provisions and refer to the regulations For example: 3. User Access Management
3. Vendor Security Assessment/Supply Chain
and data protection include: of the respective country. Testing backup and restore, encryption Restricts access to data according to standard
operating procedures and regularly changes Evaluate security aspects, including the
and encryption key holders, and database
adequacy and capability of vendor resources
administrators. passwords.
(people, process & technology) involved.
3. Organizational Structure & Personnel For example:
IMPLEMENTATION OF INFORMATION
Process:
• Dedicated team for cybersecurity operations. Authentication and authorization (i.e., username,
password, biometrics - fingerprint & face Non-Disclosure Agreement.
SECURITY GOVERNANCE MANAGEMENT
• Development of personnel capabilities recognition) Evaluation methods:
through the latest professional training and
certification. interview, questionnaire, site visit.
Securing an IT system is akin to safeguarding a house from
intruders. To ensure the house safety, a layered security
Regulasi Standar Internasional Best Practice Internasional
management system must be established, encompassing
security guards, fences, various sensors and alarms, CCTV, and
a command center for monitoring, detection, and response POJK PTI PBI PJP ISO 27001
to potential threats. Bank Mandiri's layered security system
addresses the people aspect by promoting employee awareness
and active participation in maintaining cyber security. It also INFORMATION TECHNOLOGY SECURITY STRATEGY
focuses on the process aspect by embedding controls in the
bank's operational activities by implementing robust information As an effort to maintain information security, Bank Mandiri has awareness campaign program is implemented across
security management governance. Additionally, Bank Mandiri formulated and implemented an information technology security various media, including newsletters (monthly),
emphasizes the technological aspect by utilizing best-in-class strategy that complies with regulations (BI & OJK), aligns with posters (quarterly), podcasts (quarterly), and phishing
technology and staying abreast of relevant technological international standards (ISO 27001), and best practices (NIST drills (quarterly). The security awareness campaign
advancements in current cybersecurity trends. Cybersecurity Framework, COBIT Framework, PCI Security has covered topics such as data security protection,
Bank Mandiri strives to achieve zero security breaches by Standard). The strategy for information security management maintaining data confidentiality, current trends in cyber
implementing of three pillars of execution: Governance systems is divided into three main areas: People, Process, and attacks, identifying and avoiding phishing, and online
& Awareness, Protection, and Operation, each of which 2. Pillar Protection : Technology, as follows: transaction security.
encompasses its specific aspects, namely: Defense Mechanism, Penetration Testing, User Access
1. People b. Human Resources Development (HRD)
Management.
1. Governance Pillar: To strengthen the human aspect, Bank Mandiri
a. Security Awareness
Security Awareness, Security Regulations & Standards, and 3. Pillar Operation :
The Security Awareness program is conducted to raise continuously develops the capabilities and capacities
Organizational Structure & Personnel. Security Operation Center 24x7, Threat Intelligence, Vendor of its human resources. This includes providing training
awareness about information security in everyday
behavior, ultimately becoming the culture of the and certification to enhance both soft and hard skills
bank. Bank Mandiri conducts security awareness periodically (at least once a year) for all employees,
certification on an annual basis for all employees (at including employees and vendors/contractors.
all levels, both domestic and international) as well as 1). Training and certification for employees include:
third parties/contractors. In addition, a routine security CISM (Certified Information Security Manager), CISSP
134 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 135
Page 9
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
(Certified Information Systems Security Professional), information security procedures based on regulations
CRISC (Certified in Risk and Information Systems (POJK No. 11/POJK.03/2022 on the Implementation of
Control), ISO 27001 Lead Implementer, ISO 27001 Lead Information Technology by Commercial Banks), the
Auditor, CISA (Certified Information Systems Auditor), international standard ISO 27001 (Information Security
CEH (Certified Ethical Hacker), CHFI (Computer Hacking Management System), and other best practices.
Forensic Investigator), as well as product-based Bank Mandiri has established and implemented
knowledge training to deepen expertise in the bank’s internal procedures, namely the IT Information
security systems products. Standard Operating Procedure (SPO). These policies
2). Training for vendors/contractors: Internal training for and procedures are periodically reviewed and serve
vendor employees working to support operations. as a reference for subsidiary companies, with their
implementation adjusted to the conditions and needs
Soft skills development is facilitated through training in of the subsidiary companies. The policies and procedures
leadership mindset, strategic thinking, creative thinking, are reviewed periodically (at least once a year) to ensure
design thinking, problem solving, presentation skills, their relevance and compliance with international
and negotiation skills. standards and best practices, as well as technological
Training and certification are provided through various developments.
methods, including onsite training and online (virtual)
C. Handling Cyber Incidents / Data Breach
training via platforms such as LinkedIn Learning and
Coursera. Bank Mandiri employs best-in-class security devices
optimized for their respective functions and layered
2. Process architecture to safeguard the bank's systems and data.
A. Three Lines of Defense (3LoD) They also identify and block security event anomalies
Bank Mandiri has implemented a risk management at each layer, including:
mechanism consisting of three lines of defense: the 1). Customer-accessed applications. For example: DATA INFORMATION SECURITY TRAINING
CISO Office Group as part of the 1st line of defense,
responsible for the security of the bank's information
Transaction security with PIN.
2). Network. For example: Firewall equipped with
PROGRAM 2023
Including awareness training, certified information 197 87,793
security for managers, IT & Risk Management, Training Training
through three main functions, namely: Intrusion Prevention System (IPS). cybersecurity awareness, podcasts, familiarization, Titles Participants
• Design, designing security architecture and security webinars, workshops, etc.
3). Endpoints (PC/Laptop). For example: Antimalware.
requirements embedded from the early stages of
4). Servers (Branch Servers & Data Center). For example:
development implementation to operational systems/
Antimalware.
applications. implementing remediation or mitigation measures in D. Cyber Security Testing
In response to the threat of cyber attacks, Bank Mandiri has
• Services, preparing, assessing, and socializing accordance with the general framework for handling To maintain and evaluate cyber resilience and security,
the capability to detect and handle cyber attacks through
standard procedures, awareness programs, and risk cyber incidents, including: Bank Mandiri periodically conducts cyber resilience
its 24/7 Security Operation Center (SOC). Every instance of
management. The IT team also implements security 1. Identifying and analyzing the scope of the incident and security testing in accordance with applicable
information security breach and incident is managed in
controls in the planning and development of IT. regulations, including:
a consistent, effective and measurable manner. The SOC and determining mitigation steps
• Operations, monitoring 24/7, detecting threat 1). Bank Mandiri conducts penetration testing at least
takes a proactive approach to monitoring and mitigating 2. Containment, involving the process of mitigating the
anomalies, and handling information security incidents, once a year for any new application development
risks by leveraging reputable Threat Intelligence Services attack to prevent further damage
including identification, protection, detection, and periodically for internet-facing and/or very
to stay ahead of the evolving landscape of cyber attacks.
response, and recovery from cyber security incidents.. 3. Eradication and Recovery, involving actions to stop critical applications. Penetration testing is executed
Furthermore, Bank Mandiri has developed internal
Operational Risk Group as the 2 line of defense,
nd the incident and recover from it. by an independent external party certified to
capabilities for threat hunting, bolstering its ability to
responsible for developing a bankwide risk management safeguard against online threats, including phishing, To mitigate the impact and restore the security of systems international penetration testing standards.
framework and implementing ORMT (Operational Risk scams, unauthorized access, and counterfeiting that could or networks, Bank Mandiri has formulated recovery and 2). Testing based on scenarios
Management Tools) to manage information technology compromise its brand and website. business continuity management strategies governed Bank Mandiri conducts testing based on scenarios
risks and security. by its internal policies. Bank Mandiri will continue to through the following activities:
Bank Mandiri has established a Computer Security
The IT Audit Group serves as the 3rd line of defense, Incident Response Team (CSIRT) officially registered with sustainably improve its framework for handling cyber
a. Table-top Exercise (Cybersecurity Drill)
responsible for providing assurance functions for all the National Cyber and Crypto Agency (BSSN) to foster incidents based on lessons learned from resolved cyber
collaboration, facilitate coordination, and exchange The testing activity is based on discussions,
operational activities in accordance with internal and incidents.
information during cyber incidents. The CSIRT regularly where personnel from various work units gather
regulatory requirements. IT security audits are conducted As of the end of 2023, there have been no cases of data
conducts testing and simulations of IT security incidents to discuss the steps for handling and mitigating
at least once a year. breaches or misuse of customer data and privacy. In the
to ensure preparedness in responding to such events. cyber incidents according to their respective
B. Security Policy & Procedure event of customer complaints related to privacy violations, duties. This testing activity involves relevant work
In the event of a cyber incident, the SOC team, together
they will be handled in accordance with the applicable units, including the IT unit, risk management unit,
Bank Mandiri has established a policy structure and with the CSIRT, promptly and effectively responds by
customer complaint handling procedures at Bank Mandiri. business continuity unit, customer care unit, and
136 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 137
Page 10
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
corporate secretary unit. Examples of scenarios E. Third Party Security Assessment a. Information Security Architecture
that have been tested include ransomware Bank Mandiri also realizes the existence of information Bank Mandiri continuously enhances its
attack, illegal hacking, unauthorized access, data security threats from external parties (supply chain) capabilities through investment in all layers of IT
leakage, email threats, and other scenarios. working with Bank Mandiri. Therefore, the CISO security, including endpoint security, network
Bank Mandiri collaborates with reputable Office Group routinely conducts information security security, application security, data security, and IT
international consultants (external independent checks applied by third-party organizations (people, infrastructure security. Furthermore, the bank also
parties) in preparing scenarios and conducting process, technology) in line with their involvement builds capabilities to detect anomalous network and
tabletop exercise activities to adopt current with Bank Mandiri. The checks are performed through account activity by utilizing AI and machine learning
cyber attack trends and best practices for testing questionnaire filling, interviews, and/or site visits. technology.
implementation. Furthermore, to measure and evaluate the optimization b. Endpoint Security
of the information security process, Bank Mandiri
b. Social Engineering Exercise (Phishing Drill) Bank Mandiri employs comprehensive protection
conducts a series of assessments by an external
Testing activity in the form of social engineering against potential vulnerabilities present in endpoints,
independent assessor, the National Cyber and Crypto
(phishing) attack simulation via email, requesting utilizing measures such as Virtual Private Network,
Agency (BSSN), related to:
employees to disclose sensitive information Network Access Control (NAC), antivirus/antimalware,
1). Cyber Security Maturity Assessment (CSM) with 1. Data Transfer: using Secure Managed File Transfer
such as passwords. This testing activity utilizes Endpoint Detection Response (EDR), disk encryption,
(MFT) for data exchange with third parties.
a phishing drill tool capable of automatically a maturity level result of 5 - "Optimal" (highest multi factor authentication, and other relevant
value). CSM assessment is an instrument from safeguards. 2. Drive Encryption: securing encryption on storage.
sending phishing email simulations to all
employees. The aim of this exercise is to assist BSSN to assess the level of cyber security maturity 3. Advanced Encryption Standard (AES): encrypting
c. Network Security
employees in recognizing and reporting any of an organization, including the assessment of electronic data.
the maturity of personal data management and The use of layered and redundant tools strengthens
phishing emails they may receive, providing 4. Co m m u n i c a t i o n E n c r y p t i o n : e n c r y p t i n g
protection (data privacy). internal network security, including the implementation
them with a near-real experience. communication media such as implementing
of Intrusion Prevention System, AntiDDoS, Antispam,
2). Incident Handling Maturity Level (TMPI) measurement Transport Layer Security (TLS).
c. Adversarial Attack Simulation Exercise (AASE) Virtual Patch, and Web Application Firewall. Security
with a maturity level result of 5 - "Optimize" (highest Bank Mandiri has implemented measures to restrict
The testing activity takes the form of a devices are placed in two locations, Data Center and
value). TMPI is a tool to map an organization's access to sensitive or personal data, utilizing the
real-life attack simulation conducted by a Disaster Recovery Center, to ensure service availability
readiness level in handling and recovering from cyber Data Loss Prevention (DLP) Tool and Information
reputable international consultant acting as and Business Continuity Plan readiness.
security incidents, including detecting and responding Rights Management (IRM) to prevent both intentional
an independent external party. This simulation d. Application Security and unintentional data leaks. Furthermore, the
to incidents of personal data leakage due to security
employs the latest and customized tactics, bank employs personal data security through De-
system vulnerabilities. By implementing the Secure System Development Life
techniques, and procedures derived from Identification techniques, including Anonymization
Cycle method at all stages of system and application
real-world cyber attacks, targeting the In addition, an IT Maturity Level assessment using and Pseudonymization (data mask ing and
COBIT 2019 has been conducted by a reputable development, Bank Mandiri can identify and mitigate
people, processes, and technology aspects generalization).
international consultant (external independent party) potential security vulnerabilities from the outset. Bank
to assess cyber resilience. This testing activity
with a result of IT Maturity Level 4 for security-related Mandiri has adopted Agile Development methods f. Infrastructure Security
is executed in collaboration with reputable
objectives, namely APO13 (Managed Security) and to support rapid business needs. These methods are Bank Mandiri maintains IT infrastructure security devices
international consultants (independent
DSS05 (Managed Security Services). In the Indonesia complemented by testing stages that incorporate by taking into account the expiration period (technology
external parties) in developing scenarios
Industry 4.0 Readiness Index (INDI 4.0), Bank Mandiri Dynamic Application Security Testing (DAST) and obsolescence) of the systems used. In addition, periodic
and conducting AASE activities to adopt the
has obtained a final score of 4.00 out of 4.00 (highest Static Application Security Testing (SAST) techniques. security measurement and strengthening activities
latest cyber attack tactics, techniques, and
value) in the Cyber Security field through an assessment In addition, source code management is conducted are conducted through vulnerability assessment
procedures, as well as best practice testing
conducted by an independent agency appointed by through centralized repositories, versioning, and security (VA), patching hardening, and penetration testing.
implementation. Examples of scenarios that
the Ministry of Industry & Ministry of State-Owned source code review. Similarly, security from the perspective of access rights
have been tested include unauthorized access,
Enterprises. Bank Mandiri also has digital forensic capabilities to management and user ID provisioning is conducted
theft of application source code from the
support security incident investigations for post-incident centrally through Identity Management. Meanwhile,
code repository, disabling defense systems, 3. Technology
recovery, enhance security posture, and prevent similar management of access rights with the highest
and theft of confidential data from the data Bank Mandiri implements a multilayer defense strategy, incidents. authority (power user) is conducted using Privileged
center. As a result of this testing, the attack beginning with the protection of applications, networks, Access Management (PAM) equipped with Privileged
objectives were not successfully achieved in and systems using state-of-the-art technology that is e. Data Security & Encryption Threat Analysis (PTA) features to detect and provide
all targeted attack scenarios, and the security consistently updated to align with the latest developments Data is a valuable asset for companies. Bank Mandiri notifications for defined rules..
control assessment yielded a "Good" rating in cybersecurity trends. In addition, Bank Mandiri also endeavors to prevent unauthorized access to sensitive
across all security control aspects. subscribes to threat intelligence services to obtain or personal data, such as reading and modifying data
The results of this cyber resilience and security and follow up on the latest information regarding the by implementing encryption methods. Bank Mandiri
testing are reported to the Board of Directors development of cyber attack threat techniques used by has deployed encryption in data management for data
and regulators in accordance with applicable attackers, as well as to detect potential data leaks on the in use, data in transit, and data at rest. The encryption
regulations. dark web and deep web. security includes:
138 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 139
Page 11
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Continous Improvement PERSONAL DATA PROTECTION
Bank Mandiri recognizes the crucial role of cyber resilience and security in facilitating the digitalization of its services
For Bank Mandiri, the protection of personal data (PDP) is Data and information protection is an ongoing process
for customers. As part of continuous improvement to enhance customer trust and the bank's reputation, Bank Mandiri
crucial in accordance with the digital transformation of banking that adapts to the latest technological advancements
implements global standard operations based on international standards and best practices.
products and services. In addition, the bank also recognizes that and associated risks. It has emerged as a crucial aspect of
PDP is a demonstration of its commitment to respect human sustainable finance, particularly through the Proactive Strategy
rights and an endeavor to ensure customer information trust, on Data Privacy and Security. This strategy encompasses the
CERTIFICATION AND ASSESSMENT
confidentiality, and security. enforcement of Law Number 27 of 2022 on Personal Data
Protection (PDP Law) and its related regulations.
ISO 27001:2013 ISO/IEC 17025:2017
Digital Forensics Laboratory CISO Office Group
• Provision of application
development and IT operation
related to Livin' by Mandiri
• Security Operation Centre to IT Maturity Level Assessment (IT MLA)
manage cyber security threats in
IT MLA utilized the international best practice reference COBIT 2019.
banking systems & cyber operations
Bank Mandiri achieved a score of 4 in the security-related module,
• Provision of Infrastructure and namely Align, Plan, Organize (APO) 13 (Managed Security) and
Operational Data Center and Disaster Deliver, Service, Support (DSS) 05 (Managed Security Services). This
Recovery Center IT MLA activity is carried out by an Independent External Consultant.
AUDIT OF INFORMATION SECURITY POLICIES
AND SYSTEMS
Bank Mandiri collaborates with a reputable (international a. On December 30, 2022, an independent external
scale) Independent External Consultant to conduct periodic information system auditor completed the information
real-life attack simulations on the bank's cyber resilience and system audit and security testing for payment systems,
security system comprehensively to identify and mitigate any including the Card Management System (CMS), Visa Electron
potential cyber security vulnerabilities that could be exploited (VE), Base24 (ATM), and SMS Banking (SMS Type & USSD).
by attackers. The report on the results of the information system audit
and security testing was submitted to Bank Indonesia in
Bank Mandiri conducts regular audits on all information security hardcopy format on January 9, 2023;
activities and critical business processes, including customer
protection, data privacy, and fraud management, in accordance b. Subsequently, from August to December 2023, an
with internal and regulatory provisions. The bank conducts independent external information system auditor conducted
an audit of the information system and security testing for
internal audits once a year and external audits by reputable
Mandiri Cash Management (MCM), New MCM, Mandiri
independent external parties once a year.
Internet Business (MIB), Mass Prepaid System (MPS), and
Bank Mandiri has fulfilled its risk management obligations and Integrated Card System (ICS). The report on the results of the
information system security standards by implementing periodic information system audit and security testing was submitted
information system audits by external auditors, as follows: to Bank Indonesia on December 21, 2023.
Supervision of Personal Data Protection Management
The Board's commitment to fulfilling compliance functions with Resources Director, Risk Management Director, and Information
applicable regulations is manifested by forming a PDP steering Technology Director, which functions to develop strategies and
committee consisting of the Compliance Director, Human determine steps to fulfill obligations stipulated in the PDP Law.
140 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 141
Page 12
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Data Governance PERSONAL DATA PROTECTION POLICY
To support corporate strategy through effective and efficient data strategy, data governance based on best practices in accordance
with internal and external provisions involving all units within Bank Mandiri is required. Bank Mandiri adopted a Data Governance, a Policy Coverage Implementation of the Principle of Personal Data
governance model that aligns with the company's work culture and supports its business strategy. This model is designed to adapt to Protection
new challenges and provides a structure to regulate data governance. The Data Governance comprises several levels, ranging from Operational Policy 4
the Director level to day-to-day operationalization.
Legal, Compliance, and AML/CFT Policy 4
Credit Policy 4
Data Steering Commitee Level Board of Directors Treasury, Fund, and Service Policy 4
Relevant Business Line and Subsidiary Policies 4
Level Group Head and
Data Governance Council
Department Head
Currently, Bank Mandiri has refined the Data Management 8. Data Provisioning Management
Standard Operating Procedure (SOP), governing the procedures 9. Big Data Analytics Management
Level Department Head & for processing personal data, including arrangements for
Data Task Force 10. Data Backup Management
Team Leader processing personal data in accordance with the approved
purposes of its use by customers, data retention periods, the 11. Risk Mitigation as well as Documentation and Monitoring.
process of receiving and/or sending data to external parties, The Data Management Standard Operating Procedure (SPO)
1. Data Steering Committee 2. Data Governance Council as well as data deletion and destruction. prohibits the sharing of customers' personal data and/or
It consists of Directors overseeing Information Technology, Consists of Group Heads and Department Heads discussing
As a means of transparency for customers regarding the types information with third parties, coercing prospective customers to
Risk Management, Compliance, and Operations and a matters with financial implications;
of personal data collected and its processing, Bank Mandiri has agree to share data as a condition of product/service agreements,
Director/SEVP directly related to the subject matter. 3. Data Task Force published a privacy policy for customers within the Livin' by utilizing the personal data of prospective customers whose
The Data Steering Committee is tasked with providing Beranggotakan Department Head, Team Leader, dan Tim Mandiri application. This is aimed at providing assurance and applications for product/service usage have been rejected by the
guidance and approval for Data Governance strategy to Teknis yang melakukan pembahasan terkait operasional comfort to Livin' users and includes detailed information about Bank, or using the personal information of prospective customers
meet regulatory requirements and support sustainable Bank dan menjalankan koordinasi. the handling of personal data, such as: withdrawing their applications for product and/or service usage.
business growth as stipulated in the corporate plan, as well • The purpose of processing, including compliance with Exceptions are made if there is written or electronic consent from
as reviewing the implementation of Data Governance strategy applicable regulations the customer or if it is regulated by legal provisions.
to support bankwide business growth. ; • Guarantee of confidentiality and data security Bank Mandiri treats the data or personal information of
• Types of personal data collected customers/prospective customers and/or a group of customers/
Process of Implementing Personal Data Protection • Rights and obligations of Livin' users
prospective customers in a manner that ensures the security of
the data and/or personal information by conducting periodic
Bank Mandiri implements customer protection regulations for • Contact information eligibility and security checks. Any use of data must have
defining measures to fulfill obligations stipulated in the Personal
all financial products, whether through branch or digital account Data Protection (PDP) Law. This includes appointing PDP officials/ Data referred in this Standard Operating Procedure (SPO) of Data obtained consent from the customers/prospective customers
openings. The bank prioritizes transparency in data usage for officers, providing a Record of Processing Activity, and conducting Management refers to all bank data stored in its database system and/or the group of customers/prospective customers. The
banking transactions and adheres to relevant data security Data Protection Impact Assessments. The bank has initiated relating to assets and liabilities, as well as commitments and Bank ensures that any data processing it carries out is limited to
regulations. Additionally, in digital transactions, Bank Mandiri programs encompassing metadata management, data quality contingencies. This SPO regulates data management activities as its intended purpose, safeguards data ownership, is accurate,
provides a dual authentication process using face recognition updates and enhancements, adaptation to regulations, and well as governance over the data as the basis for the end-to-end complete, non-misleading, up-to-date, and accountable, while
readiness for customer requirement adjustments. Additionally, process, including: also considering the purpose of the processing.
and biometric systems to ensure enhanced security. Bank Mandiri
the company offered training for implementing personal data 1. Data Initialization Management
employs Data Loss Prevention (DLP) solutions across all its products Bank Mandiri protects the security of personal data from loss,
protection through online and in-person courses organized by
to mitigate the risk of cyber threats to customers' personal data. The 2. Metadata Management unauthorized access, and unauthorized disclosure, as well as
Mandiri University Group.
bank consistently updates its security regulations in accordance 3. Master Data Management from alteration or destruction of personal data. The processing
with best practices, relevant regulations, and current trends. To bolster the enforcement of personal data protection in of personal data is carried out by informing the purpose of
4. Data Quality Management
compliance with the PDP Law, Bank Mandiri has revised its collection, processing activities, and failures in protecting
During the reporting period, Bank Mandiri conducted internal policies in 2023, mandating the application of personal data 5. Data Storage Management
personal data. Personal data is destroyed and/or deleted unless
reviews and issued a Risk Formation assessment. The Director of protection principles to all services, products, and offerings 6. Data Development Management it is still within the retention period as required based on the
Information Technology is tasked with developing strategies and provided to customers. 7. Data Security Management provisions of laws and regulations.
21 85
DATA PRIVACY TRAINING PROGRAM 2023
Including Certified Information Privacy Manager (CIPM)
training, culture of privacy, fundamentals, NIST Privacy Training Training
Network, etc. Titles Participants
142 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 143
Page 13
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Acces and Rectification of Personal Data The scope of the personal data protection strengthening program Bank Mandiri. The personal data protection strengthening
covers not only customer personal data but also the personal program consists of 15 main activities::
data processing of employees and third parties working with
Bank Mandiri ensures that customers have the right to modify, The bank follows the principle of minimizing requests for personal
add, complete, or delete their personal data in accordance data in accordance with transaction requirements and regulatory
with relevant regulations. Customers can access and update compliance. It stores personal data according to relevant provisions 1 2 3 4 5
their personal information through branch offices, call centers, and is dedicated to deleting data after the specified retention period Privacy Governance Data Protection Officer/ Lawful Basis for Processing Consent Management Record of Processing
and the Livin' application. The bank also prioritizes customer as necessitated by business needs and permitted by regulations. Creation or adjustment Officer Adjustment to consent Improvement of processes Activity (ROPA)
comfort by employing masking processes for sensitive data and Additionally, the company refrains from acquiring personal data of internal provisions Establishment of a Personal requests, privacy policies, and development of Improvement of the
in accordance with the Data Protection Officer and other processing bases systems to manage recording process of
safeguarding against data leaks through the use of Data Loss from any third party without the customer's consent and/or a valid Personal Data Protection (PDPO) unit as mandated by consents provided by the personal data processing
Prevention (DLP) tools. agreement and/or in accordance with applicable provisions. Law (PDP Law) the PDP Law Personal Data Subject activities along with
detailed activities
Control and Retention of Personal Data 6 7 8 9 10
Training & Awareness Data Subject Request Data Classification Third Party Contract Data Protection Impact
Bank Mandiri is fully committed to preventing unauthorized or 3. Integrated Secure File Sharing in data management Socialization, training, and Management of requests/ Implementation of Management Assessment
accidental access, processing, or deletion of data by any party. technology from data collection, processing, storage, and establishment of internal rights of Personal Data Personal Data classification Enhancement of Personal Implementation of
This commitment is upheld by implementing comprehensive transfer. regulations for employees from Data Subjects: Rights according to general and Data processing involving assessment for high-risk
to comply with the to be forgotten (erasure/ specific Personal Data types third parties that require Personal Data processing
data security management, encompassing asset management 4. Security awareness programs and risk awareness programs provisions of the PDP Law destruction), rectification, sufficient Personal Data
monitoring activities, protection of data transfers, and data aimed at all employees to ensure the adequacy of data etc. protection
destruction. The applied data security efforts include: security and management quality.
1. Implementing a Data Classification mechanism to protect 5. Performing backups, switch-overs, and disaster recovery 11 12 13 14 15
sensitive data from unauthorized access by individuals or parties. training to ensure data resiliency and support business IT Information Security Data Breach Management Cross Border Transfer Data Retention Restriction Corporate Action
Securing Personal Data Notification to Personal Restriction Processing of Personal Data Notification to Personal
2. Implementing Data Loss Prevention (DLP) Tools across all assets.
according to the level and Data Subjects and Strategy for transferring for limited purposes and Data Subjects and
bank IT assets that support business activities in preventing classification of Personal Authorities in the event of a Personal Data abroad duration in accordance Authorities in the event
data or sensitive information loss. Data according to the PDP breach in accordance with with the purpose of such of corporate actions
Law the PDP Law processing (mergers, acquisitions, etc.)
in accordance with the
PDP Law
Future Proofing Privacy Program The challenges of implementing personal data protection
In developing the personal data protection program, Bank
impact all operational activities, including those involving PRODUCT DATA PROTECTION POLICY AT BANK MANDIRI
customers, employees, and third parties. The comprehensive
Mandiri has conducted a comprehensive review of the The data protection policy at Bank Mandiri has been fully implemented across all relevant business lines (products and services),
bank's operational activities' compliance with the Personal personal data protection program is a collaborative effort
including:
Data Protection Law. The bank has also held a series of involving the Enterprise Data Management Group, IT
discussions with government agencies, namely the Ministry Application Support Group, Operational Risk Group, and Implementation of Data Implementation of Data
PRODUCT PRODUCT
Human Capital Strategy & Talent Management Group. The Protection Policy Protection Policy
of Communication and Information Technology and the
Attorney General's Office of the Republic of Indonesia, main focus of the personal data protection strengthening Lending - KSM 4 IDR Account Opening Data 4
to gain a deeper understanding of the implementation program is in 4 (four) areas: Lending - Paylater 4 Mandiri Tabungan Rencana Opening 4
of the Personal Data Protection Law. Furthermore, the n Business process improvement Lending - Credit Card 4 Deposit Opening 4
bank has organized Forum Group Discussions (FGD) with
o System development Lending - Powercash 4 Virtual Debit Card 4
a variety of Indonesian associations, foreign institutions,
and consultants to discuss best practices for personal data p Internal regulation refinement QR Credit Card as SOF 4 Virtual Credit Card 4
protection. q Organizational strengthening Investment - Prime Bonds 4 Branch Service Reservations 4
Investment - Mutual Funds 4 Livin' Care 4
Investment - Customer Fund Accounts 4 Livin' Pay Kopra 4
External Forex Transfer 4 Livin’ Merchant 4
Foreign Currency Account Opening 4 Mandiri Agent 4
Customer data and their deposits held at Bank Mandiri are and/or any exceptions to data protection adhere to relevant
classified as Bank Secrets and/or Personal Data, which must be laws and regulations.
safeguarded by Bank Mandiri. The procedures for protection
144 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 145
Page 14
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
PRIVACY POLICY IN SUBSIDIARY COMPANIES
Bank Syariah Indonesia Aplikasi I-Kurma
(https://www.bankbsi.co.id/kebijakan-privacy/bsi) (https://salamdigital.bankbsi.co.id/privacy-
policies)
The security of customers' personal data is a priority for BSI.
This Privacy Policy outlines how BSI may collect, use, disclose, The stored data includes customer data (including customer
process, and manage customers' personal data. This policy photos and visit photos and collateral), the location of
applies to the personal data of any individual that BSI possesses the pipeline menu filling, and the device ID of the device
or controls. necessary for the operational application. Without this data,
the application cannot proceed with disbursement. The
BSI informs customers about the use of their personal data for
application does not share internal data with any third parties,
both core business purposes and marketing activities/offers
utilizes Secure Socket Layer (SSL) and encryption, and stored
of products and services. BSI emphasizes that the use and
data can be deleted through a formal data deletion request
disclosure of customer data are conducted in accordance with
submitted through procedures established by the Bank.
Bank Indonesia regulations/Financial Services Authority and
other applicable data protection and privacy laws.
DATA SECURITY OF MANDIRI GROUP Mandiri Taspen
measures using encryption technology. Any transaction
(https://www.bankmandiritaspen.co.id/info/id-keamanan-
Bank Mandiri has developed the Mandiri Subsidiary Principles carries inherent risks, including digital transactions. However,
transaksi-digital128/id)
Guideline (MSPG) to serve as a guideline for Bank Mandiri and its most risks can be mitigated with a proper understanding
subsidiaries in establishing a collaborative business ecosystem In the midst of rampant phishing, Bank Mandiri Taspen is of how to conduct digital transactions more securely. The
driven by a performance-oriented culture. This approach aims to committed to safeguarding the confidentiality of all digital emphasized principles are straightforward and easy to
create sustainable added value while adhering to the principles transactions of its customers, including taking protective remember: BE CAUTIOUS, BE THOROUGH, and CONFIRM.
of Good Corporate Governance and the Articles of Association
of each subsidiary.
The MSPG addresses various aspects of collaboration in
information technology, encompassing the alignment of
Information Technology security architecture to uphold
corporate security and regulatory compliance. Additionally, it Mandiri Tunas Finance Mandiri Utama Finance
Furthermore, Bank Mandiri, in collaboration with its subsidiaries
provides guidance on data management, directing Bank Mandiri through the CISO Group, works to define security requirements (https://www.mtf.co.id/id/kebijakan-privasi) (https://www.muf.co.id/tips-aman-transaksi/)
and its subsidiaries to implement an integrated Management for the Mandiri Group, taking into account the unique The personal information is solely used for the purpose of enhancing MUF consistently maintains the trust of
Information System and data management system in accordance complexities and vulnerabilities within each subsidiary's systems. services for customers. Customers are not obligated to provide all personal all customers, ensuring their security
with relevant laws and regulations. It also emphasizes the Ongoing monitoring and reporting of compliance with subsidiary data; the website also gathers data obtained from cookies used by the during transactions by adhering to simple,
alignment of data governance practices between the subsidiaries standards are conducted regularly and reported to the Board of web server in a unique manner, as well as statistical data to identify memorable principles: BE CAUTIOUS, BE
and Bank Mandiri. Directors of Bank Mandiri and its subsidiaries. visitors' habits when they browse the website, enabling us to enhance THOROUGH, and CONFIRM.
our services.
MTF is committed to maintaining the confidentiality of all consumer
transactions. Any transaction carries inherent risks, including digital
transactions. However, most risks can be mitigated with a proper
understanding of how to conduct digital transactions more securely.
The emphasized principles are straightforward and easy to remember:
BE CAUTIOUS, BE THOROUGH, and CONFIRM.
146 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 147
Page 15
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Mandiri Capital The information is utilized to enhance services for customers.
AXA Mandiri Financial Services their privacy rights in compliance with relevant laws and (https://mandiri-capital.co.id/kebijakan-privasi/) Customers have the option not to provide all personal data,
(https://axa-mandiri.co.id/en/web/customer/kebijakan-privasi) regulations. MCI provides information about the privacy policy on the MCI but this may affect their access to facilities on the site. Data is
website. Additionally, personal information such as names, collected through cookies used by web servers and statistical
The rapid advancement of technology in today's world We are committed to exerting every possible effort to
addresses, and emails provided voluntarily by site visitors is data to comprehend visitor habits for service improvement.
has resulted in a growing demand for data usage. At AXA uphold the security and confidentiality of personal data.
collected and used by MCI to enhance services for customers Site users have the right to disable cookies when visiting the
Mandiri, we recognize the necessity to continually innovate This commitment is realized by implementing physical, site.
technical, and organizational procedures aimed at preventing in accordance with applicable provisions and regulations.
to improve the customer experience when transacting with
us and to ensure the protection of our customers' personal unauthorized access, collection, use, disclosure, copying,
data. To achieve this, we provide tailor-made protection, alteration, or deletion of personal data. We assure you that
simplify relevant information, and enhance the effectiveness we will not provide, disclose, or sell your personal data to third
and efficiency of our procedures. AXA Mandiri is dedicated to parties without your consent. Furthermore, we will verify your
upholding the security and confidentiality of our customers' identity before granting access or making any changes to your
personal data as part of our commitment to respecting personal data..
Mandiri Europe The privacy policy outlines the procedures for safeguarding data
(https://www.bkmandiri.co.uk/privatepolicy.htm) privacy, including information about cookies. It ensures that all
Bank Mandiri (Europe) Limited is committed to ensuring the your communications with us and other personally identifying
protection of your privacy. The privacy policy outlines the information will never be disclosed in ways not described in the
procedures we have implemented to safeguard your privacy. privacy policy, consent, and privacy-related inquiries.
Mandiri inhealth Mandiri inHealth highly values the confidentiality of your personal
(https://www.inhealth.co.id/kebijakan-privasi) information, recognizing its significance in maintaining your trust.
To provide protection to consumers and the public in the financial For this reason, we have developed security procedures and
services sector, Mandiri Inhealth is committed to safeguarding implemented a range of organizational and technical security
Mandiri Remittance also applies to the website and all products and services offered
your private data. We strive to the best of our ability to maintain measures aimed at safeguarding your personal information
website dan semua produk dan layanan by MIR.
your trust in the processing of Personal Data. Safeguarding privacy from unauthorized use or disclosure. As the custodian of this
data, we do not sell it to third parties outside Mandiri inHealth. (www.mandiriremittance.com/id/privacy-policy)
data is a significant responsibility. Mandiri Inhealth takes this MIR is fully committed to ensuring that our processing of
responsibility seriously. We adhere to international and national Furthermore, we continuously adapt our data privacy practices The Privacy Notice outlines how Mandiri International personal data complies with the Personal Data Protection
privacy data regulations to provide you with the necessary to meet evolving needs and align with the latest developments Remittance Sdn. Bhd. (MIR) uses your personal data. MIR is fully Act, and this policy governs the website and all products and
protection. in data privacy. committed to ensuring that our processing of personal data services offered by MIR, the purposes and types of personal
complies with the Personal Data Protection Act 2010 (PDPA). data, disclosure, security, storage, integrity, and principles of
The Privacy Notice relates to the personal data that you willingly personal data access.
provide to MIR when you access our services. The Privacy Notice
CONTROL OF DATA USAGE IN THIRD-PARTY COLLABORATIONS
Mandiri Sekuritas The privacy policy encompasses the collection, use, and Bank Mandiri ensures the security and protection of data Furthermore, the Data Management Policy governs specific
disclosure of personal data when you use and/or access when collaborating with third parties, such as IT contractors data/information requests for the purposes of law enforcement
(https://www.mandirisekuritas.co.id/id/kebijakan-privasi)
our Electronic Systems*, including associated data related or other external parties in the supply chain. Bank Mandiri and/or regulation related to Anti-Money Laundering (AML)/
Mandiri Sekuritas consistently endeavors to uphold the privacy to your choices within it. This includes the collection, use, does not provide data in any form to third parties for any Countering the Financing of Terrorism (CFT), as well as specific
and security of its customers' and prospective customers' tracking, and cookie data, transfer, disclosure, security, purpose other than for transaction execution. Bank Mandiri requirements for audits.
personal data in full compliance with relevant laws and third-party service providers, links to other sites, and requires a Non-Disclosure Agreement (NDA) from third parties
regulations. enforcement. The CISO Office routinely conducts vendor security checks,
if there is cooperation involving customer data, and only sends
including information security by third-party organizations
customer data in accordance with customer approval. The
(people, process, technology), in line with their involvement
bank also ensures that all campaign programs are carried out
with Bank Mandiri. The checks are carried out through methods
based on customer approval.
such as questionnaire completion, interviews, and/or site visits
148 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 149
Page 16
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Customer
Protection
Bank Mandiri remains committed to enhancing its services by offering tailored
financial solutions that meet the needs of the general public and its customers.
Customer protection is prioritized throughout the entire process, from product and
service design, sales, and customer service to complaint handling, ensuring a secure
and reliable banking experience for all customers.
As of December 31, 2023, Bank Mandiri served 35.8 million the banking products and services they select based on their
customers. Through its intermediary function, customers have individual requirements, while banks are obligated to ensure the
fulfilling both entertainment and shopping needs, ensuring an about Bank Mandiri's products and services by using the same
the opportunity to create a brighter future through access to financial protection of customers in relation to the associated
all-encompassing lifestyle experience. WhatsApp number.
the bank's financial services for their economic and social needs. risks of these products and services.
To facilitate this, the public must have a clear understanding of Mandiri e-money ATM
Mandiri e-money is a chip-based Electronic Money solution Banking transactions via ATMs provide customers with convenient
PRODUCTS AND RESPONSIBLE FINANCIAL SERVICES issued by Bank Mandiri, designed as a secure alternative to
cash for various payment transactions. It serves as a convenient
access to their accounts, allowing for various actions such as cash
transactions, balance inquiries, transfers, and payments using
payment method for services such as toll roads, parking facilities, Mandiri Cards. Mandiri ATMs are integrated with both domestic
Every new or updated financial product and service is designed Livin’ by Mandiri TransJakarta, trains, grocery stores, and various other merchants. and international payment networks, facilitating transactions with
to meet the needs of customers, taking into account features, cards from other banks. Furthermore, Bank Mandiri has upgraded its
convenience, reliability, security, and compliance. The security
Livin’ by Mandiri is a financial super app that provides Mandiri Paylater ATMs to accommodate cash deposit and withdrawal transactions.
comprehensive banking services accessible through a
aspects of financial products and services are tested to ensure the
protection of personal data and data security in all transactions.
smartphone. Livin’ by Mandiri offers cutting-edge solutions Mandiri Paylater, offered by Bank Mandiri, is a convenient loan Mandiri EDC
tailored to both the financial and non-financial needs of facility designed to facilitate payments for QR transactions at all
merchants. With the concept of "buy now and pay later," customers Mandiri EDC is a service offering Electronic Data Capture (EDC)
In 2023, Bank Mandiri introduced Tap to Pay, a new product designed customers. Various conveniences are integrated into Livin’
have the flexibility to settle their payments within 1, 3, 6, 9, or 12 machines at stores and merchants in collaboration with Bank
to facilitate swift transaction payments globally. Tap to Pay aims to by Mandiri, including account opening in more than 120
months. The application for Mandiri Paylater can be conveniently Mandiri. This service streamlines the electronic processing
mitigate the security vulnerabilities associated with conventional countries, cardless deposit and withdrawal, e-wallet linkage,
completed online through the Livin’ by Mandiri platform. of various transactions, including purchases, payments, cash
card transactions by eliminating the exposure of sensitive smart payment options, instant transfer through BI FAST, instant
withdrawals, and e-money top-ups.
information, such as expiry dates or CVV, during transactions at access, QR code payments and receipts, tap-topay functionality,
the cashier. This innovative solution also shields customers from paylater services, foreign exchange transfers, investment Mandiri API Mandiri EDC supports transactions with both Mandiri cards
the risk of RFID skimming, enhancing overall transaction security. product purchases, Livin’ Sukha, and various other attractive Mandiri Application Programming Interface (API) offers effortless and cards from other banks, utilizing the domestic network,
features that undoubtedly simplify the customer experience. access to a diverse range of banking products and services International Payment Network, and the Bank Mandiri network.
In addition to adhering to internal policies, procedures,
provided by Bank Mandiri. This empowers business entities
and regulatory requirements, Bank Mandiri ensures that its Livin’ Merchant Mandiri Customer Service Machine (CSM)
sustainable financial products undergo evaluation based within the Bank Mandiri digital ecosystem, enabling them to
Livin' Merchant is an application that offers comprehensive Point of easily and securely leverage a variety of banking services. The Mandiri Customer Service Machine (CSM) represents
on relevant global standards and frameworks. For instance,
Sale (POS) services. Our platform facilitates sales recording, efficient Bank Mandiri's cutting-edge digital banking service, featuring
Bank Mandiri's issuance of Sustainability Bonds and Green
Bonds in 2022-2023 adhered to the guidelines set forth by the
product stock management, acceptance of various payment Mandiri Direct Debit advanced biometric verification technology. It offers convenient
methods, and the seamless disbursement of sales proceeds. card replacement services, allowing customers to change
International Capital Market Association (ICMA). Subsequently, Mandiri Direct Debit is a service that streamlines the
card types, replace damaged cards, or address lost cards.
an independent external party conducted a review before the Livin’ Sukha acceptance of Mandiri Card transactions, whether at merchants
issuance was approved by the Risk Management Committee. in collaboration with Bank Mandiri. This service enhances Additionally, customers can efficiently open new accounts
Livin' SUKHA stands out as a key feature within Livin' by Mandiri, through these machines. The CSM enables self-service
The Board-Level Committee of Bank Mandiri is committed designed to cater to customers' diverse lifestyle needs. It transactional convenience by processing payments within
an integrated transaction flow. transactions with simplified steps, eliminating the necessity for
to ensuring the quality and integrity of its products and enables seamless purchases of airplane and train tickets, access form filling. It operates 24/7, ensuring fast and efficient service
services. To this end, the Committee regularly conducts review, to medicines and medical equipment, acquisition of game
Mandiri Chat Banking without the need to wait at the branch.
monitoring and evaluations of all financial offerings, including vouchers, subscriptions to streaming services, acquisition of
the development of new product. In addition, Bank Mandiri concert and entertainment tickets, shopping for daily necessities Mandiri Chat Banking is a communication service connecting Bank Throughout the reporting period, all new products and services
follows strict regulations and guidelines, seeking approval from and electronics, ordering food and beverages, and scheduling Mandiri with customers through our official WhatsApp business (100%) were evaluated based on security aspects and other
relevant authorities (OJK, Bapepam, etc) before introducing any health check appointments. Additionally, SUKHA offers a rich account at +6281184140000. This service facilitates the exchange criteria set by the Bank and approved by regulators. No financial
new financial products and services. Various product and services blend of entertainment and educational content, featuring of information, notifications, and interactions between Bank products or services were withdrawn or discontinued by the Bank
provided by Bank Mandiri include: articles, live streaming, and reels. It serves as a one-stop solution Mandiri and its customers. Additionally, customers can inquire or its subsidiaries. [OJK F.27] [OJK F.29]
150 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 151
Page 17
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
TRANSPARENT SALES
Collaborative), good corporate governance, Corporate Culture, 5). Brand implementation monitoring involves
Code of Conduct, Business Ethics, and consistently adhering conducting random checks to ensure that the
to the principle of prudential banking. reviewed and approved branding aligns with its
The provision of information and transparency about financial 6. Product/promotion validity period (if applicable, for example, implementation.
products and services is necessary for customers to be able to
choose the right financial products or services, and this is the
for limited edition products)
Monitoring and Evaluation b. Incidental monitoring of Sponsored events or events
7. Channels of communication through which customers can
key to the first financial protection for consumer. 1. Monitoring to minimize the potential risks that could lead supported by the Management Unit Monitoring
seek additional information.
to losses for the Bank during marketing communication involves conducting direct checks at the location..
Bank Mandiri and its subsidiaries provide information about Bank Mandiri is committed to upholding transparency and fairness
activities for products and services, it is necessary to monitor c. Monitored parameters include the number of visitors,
available financial products and services at all times on the in all transactions involving financial products and services,
all planned marketing communication activities listed in volume of Bank product transactions, placement of
Bank Mandiri website and via email or the Call Center. Each recognizing the significance of fostering trust and nurturing a
the marketing communication calendar on a regular and communication materials at the location, alignment
salesperson undergoes training on product and financial sustainable relationship between the bank and its customers. In
continuous basis. The monitoring activities are divided into of displayed communication materials with the
service knowledge, with annual refresher training sessions the credit distribution process, Bank Mandiri consistently prioritizes
two types, namely: Bank's brand guidelines, and readiness of personnel
to ensure their expertise remains current. the principle of prudence, complemented by customer protection
policies that encompass fulfilling the rights of debtors as outlined a. Routine monitoring of: conducting direct marketing communication activities.
Salespeople provide comprehensive explanations about
in Bank Mandiri's Credit Policy No. B3.KRD Year 2023. This policy 2. Evaluation is conducted to gain an overview of the
products and services, encompassing features, service 1). Placement of communication materials in ATL, BTL,
ensures that every debtor receives a comprehensive explanation effectiveness of completed marketing communication
implications, and inherent product risks to each customer. The and Digital media. Monitored parameters include
from bank officials regarding: activities for products and services. It aims to provide
Bank also ensures the application of the Know Your Customer displayed communication materials, media used for
principle in compliance with legal regulations, including for 1. A sufficient explanation of the product characteristics placement, alignment of displayed communication recommendations to the User Management Unit and
digital products and services. Information for the public and 2. Access to the terms and conditions of the fund product materials with the Bank's branding, physical condition action plans for improving future strategies, planning, and
prospective customers includes: through the Bank Mandiri website of the media used (Of Home Media), duration of implementation of marketing communication activities. The
material display, and alignment of material placement Management Unit collaborates with vendors based on reports
1. Description/explanation of the product 3. Ease of transactions through branches, e-banking services,
realization with the media plan. sent by the User Management Unit to conduct evaluations.
2. Benefits and advantages of the product or other facilities designated by the Bank
Evaluation is based on:
3. Product features 4. Interest rates in accordance with the applicable Bank 2). Survey execution for research data collection
a. Parameters used in monitoring
regulations and involves monitoring the survey activities. Monitored
4. Terms and conditions of the product
5. Information on the procedures for handling and resolving parameters include the selection of respondents for b. Realization of the programs compared to the
5. Product usage guidelines/tutorials the survey, questionnaire delivery during the survey, predetermined targets
customer complaints.
and interviewer capacity..
c. Appropriateness of budget allocation. The program
ADVERTISEMENT POLICY 3). Vendor performance monitoring involves checking
the alignment of activities carried out by vendors
evaluation results are subsequently communicated to the
User Management Unit to inform future marketing and
with the agreed-upon cooperation agreement. communication programs.
Any advertisement and promotion featuring Bank Mandiri's digital and traditional media, as well as organized events. The
financial products and services is designed to publish accurate, implementation of marketing communication adheres to 4). Marketing communication budget monitoring
transparent, truthful, and non-misleading information in consumer protection regulations, ensuring that information involves checking the alignment between: Oversight Mechanism
compliance with the relevant regulations regarding the related to products and/or services is clear, accurate, truthful, a). Annual Marketing Communication Work Plan To fulfill the control and information requirements of management
advertisement of financial services. This commitment is upheld easily accessible, and not potentially misleading. and Budget and associated work units, the Management Unit periodically
through regular reporting of all marketing activities and product reports all Marketing Communication activities for Products and
In carrying out marketing communication activities for products b). budget availability
and service communications to the Board of Directors. The Services to the Board of Directors at least once a year.
publication of Bank Mandiri's advertisements and promotions and services, Bank Mandiri implements risk management principles, c). budget realization, and
adheres to the bank's internal policy, specifically the Standard encompassing risk identification, measurement, monitoring, and d). budget stated in principle permit
Operating Procedure (SOP) for Marketing Communication control, to ensure the safe, accurate, and timely execution of
of Products and Services Number S13.P4.MKP of 2023 and marketing communication activities. Additionally, Bank Mandiri In the reporting year, Bank Mandiri provided training to 18,152 relevant employees regarding advertising policies.
the Technical Operational Guidelines (TOG) for Marketing has established the following:
Communication of Products and Services Number S13.P4.T1. 1. Establishing tasks and responsibilities among Related Work FAIR MARKETING AND
MKP of 2022. These provisions encompass the stipulations for Units (Segregation of Duties). ADVERTISING TRAINING
communication materials intended for public dissemination,
informed by and aligned with the regulations of regulators,
2. Implementing a check and balance process in carrying out Including training on Digital Banking,
Digital Foundation, Digital Marketing,
49 18.152
marketing communication activities for products and services Marketing Communications, Training Training
such as POJK No. 6/POJK.07/2022 on Consumer and Community Marketing Foundations, and others Titles Participants
with dual control.
Protection in the Financial Services Sector and the OJK Financial
Services Advertising Guidelines. This ensures that the published 3. Complying with internal and external regulations.
communication materials also prioritize the interests of 4. Applying risk management principles.
consumers. 5. Carrying out marketing communication activities for products
The marketing communication of Bank Mandiri's products and services in accordance with Core Values, AKHLAK
and services aims to enhance brand awareness through (Amanah, Competent, Harmonious, Loyal, Adaptive, and
152 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 153
Page 18
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
FINANCIAL PROTECTION FOR CUSTOMERS DEBT COLLECTION POLICY
Bank Mandiri is committed to treating all customers with of a Watchlist mechanism. This mechanism serves as an Bank Mandiri consistently aims for the smooth operation of negotiating payment schedule options or alternatives.
equality, honesty, and fairness, starting from the moment early warning system for assessing the quality of the credit its debtors' business activities to foster synergy between the At this stage, debtors are reminded that meeting their
they express interest in the bank's offerings and continuing extended, analyzing three key aspects: the debtor's future bank and business actors, ultimately advancing the country's payment obligations is crucial for maintaining their
throughout their utilization of the bank's products and business prospects, financial performance, and repayment economy. However, in the event that debtors encounter credibility.
services. history. If the monitoring indicates a deterioration in quality, challenges in fulfilling their obligations, the bank has a debt
3. Hard collection
Bank Mandiri will take measures to address troubled credits, collection policy in place that prioritizes upholding debtors'
The financial protection for customers commences with Taking a firm approach in negotiating payments aimed
with the objective of minimizing potential losses for the bank rights as stipulated in:
the initial evaluation of prospective customers or users of at resolving arrears, including restructuring options.
and salvaging the credits extended. Credit salvage can take 1. Credit Policy (KPKD) number B3.KRD of 2023.
financial products. In 2023, Bank Mandiri introduced the Livin'
the form of restructuring, including: 4. Recovery
Paylater product in response to the significant borrowing 2. Standard Operating Procedure (SPO) for Credit Collection &
activity in technology-based financial services, which has led 1. Reduction of credit interest rates; Recovery Retail number K5.SP12 of 2023. Efforts to collect from debtors who have defaulted on their
to a high incidence of loan repayment defaults. Bank Mandiri 2. Extension of credit period; 3. Standard Operating Procedure (SPO) for Credit Collection & credit obligations will include not only collection but also
supports customers in avoiding the misuse of loan products by Recovery Wholesale number B3.P10.CCW of 2022. the implementation of credit settlement mechanisms,
implementing measures such as restricting the use of paylater 3. Reduction of credit interest arrears; which may involve the following alternative solutions:
for payroll customers, setting maximum limits, and applying 4. Reduction of credit principal arrears; Collection Strategy a. Full or phased credit settlement
criteria established by the Bank Mandiri risk team. The bank
5. Addition of credit facilities; and/or Endeavors are made to collect debts from all debtors, including b. Debt transfer through Novation, Assignment, and
leverages its Enterprise Data Analytics to assess customers'
both current and delinquent ones. For current debtors, we Subrogation mechanisms,
financial capacities for obtaining paylater facilities, thereby 6. Conversion of credit into temporary equity participation.
ensuring that customers do not face installments beyond their remind them of their upcoming payment obligations (pre- c. Collateral liquidation through voluntary collateral
future capabilities. Bank Mandiri is committed to conducting business activities delinquent call). Meanwhile, for debtors showing signs of sales or collateral redemption
that prioritize customer protection to support a sustainable, declining business, Bank Mandiri also works to salvage the
Bank Mandiri enforces policies and procedures aimed at d. Collateral liquidation through auction mechanisms
stable, and consumer and community-oriented financial services credit to prevent a decline in credit quality or downgrading.
safeguarding customers' financial interests, including assessing ecosystem based on consumer protection systems as mandated Immediate preventive action is taken to prevent the debtor's In carrying out debt collection from customers, Bank Mandiri
their income based considerations for loan modification options in POJK No. 6/POJK.07/2022. condition from worsening, which could lead to losses for consistently upholds consumer financial protection policies
and credit disbursement across its product range. The bank the bank. Credit salvage actions primarily involve credit and respects the fundamental rights of customers outlined in
To build awareness and adequate knowledge regarding
extends financial protection to customers, particularly those restructuring, which can be implemented through the following the Credit Agreement between the Bank and the Customer.
customer protection, Bank Mandiri conducts familiarization
identified as vulnerable, based on the bank's established patterns/methods: The collection process encompasses direct or indirect activities
at all levels using various internal means. During the reporting
criteria. involving the customer and adheres to relevant internal and
period, 16 materials were presented through wallpapers, email 1. Interest Rate Reduction
Bank Mandiri has established policies and procedures for credit external regulations.
blasts, and Mandiri Magazine, followed by the implementation 2. Extension of Maturity and/or Rescheduling
restructuring to assist customers who encounter business of an awareness survey to measure the effectiveness of the If Bank Mandiri engages a Debt Collection Service Company for
3. Merging and/or Splitting of Credit Facilities
challenges in accordance with the stipulated provisions. Under activities. the collection process, it must ensure that the collection is only
specific conditions, customers have the option to apply for loan 4. Credit Currency Conversion
Bank Mandiri also ensures the protection of its customers by pursued when the debtor's bill is classified as non-performing.
restructuring or reconstruction by submitting a request to the 5. Sale of Debtor Company Shares Additionally, the debtor must be notified if their obligations
conducting familiarization and comprehension assessments
bank. 6. Addition of Capital by Strategic Investors have been handed over to the Debt Collection Service Company.
of consumer protection regulations for employees in relevant
In the credit disbursement process, during the Loan Monitoring work units, including frontliners. In the reporting year, a total In its implementation, the collection approach can also be The collection process must strictly refrain from using physical
stage, the bank evaluates the quality of existing debtor of 26,288 employees have undergone training on consumer categorized into several types, as follows: or verbal pressure, targeting parties other than the debtor, or
credit through various methods, including the utilization protection.. employing disruptive means of communication. Furthermore,
1. Front-end collection it should be conducted at the debtor's billing address or place
The initial stage of collection involves reminding debtors, of residence and only between the hours of 08:00 and 20:00
either in writing or orally, of their obligations. At this local time.
CUSTOMER FINANCIAL PROTECTION stage, the efforts are more focused on customer service
TRAINING In carrying out debt collection from customers, Bank Mandiri
and educating the debtors. This stage is also valuable for
consistently implements policy of protecting customers' financial
171 26.288
Including training on Asset Product Knowledge
and Process, Micro Credit Products and Processes; identifying debtors who may be experiencing declining
interests and continues to pay attention to the basic rights of
Customer Experience; Handling Complaints; business and potential payment difficulties.
Deepening Relationship with Priority Customers; Training Training customers as stated in the Credit Agreement between the Bank
and others. Titles Participants 2. Mid-range collection and the Customer. The collection process includes direct or
Collection efforts take a firmer approach towards indirect collection activities from the Customer and complies
debtors who are beginning to fall behind, including with applicable internal and external regulations.
154 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 155
Page 19
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Credit Default Resolution HANDLING CUSTOMER COMPLAINTS
Credit default resolution is the bank's process of resolving b. Subrogation and Cessie
outstanding credits after collection and credit salvage efforts
Debt settlement mechanism by transferring the
Bank Mandiri strives to provide the best service by offering tailored solutions and
have proven unsuccessful. This process aims to minimize losses
creditor's rights to a third party, thereby replacing ensuring customer satisfaction. This dedication aims to foster customer loyalty and
resulting from credit default, mitigate the escalation of bank risks,
the creditor's claim on the debtor with that of the
and facilitate credit recovery.
third party upon the fulfillment of the obligations.
inspire them to advocate for Bank Mandiri’s services to potential customers.
Credit default resolution can be achieved through various
3. Collateral Liquidation
methods, including: Customer loyalty has been the cornerstone of Bank Mandiri's convenience, including a mechanism for handling customer
Collateral liquidation involves using the debtor's collateral existence for over 25 years. The bank has been actively developing complaints. The channels for handling customer complaints are
1. Credit Settlement to decrease or pay off their credit obligations to the bank. banking solutions to cater to the needs of millions of customers, designed in compliance with the relevant regulations set forth
The credit settlement mechanism is divided into two The bank's independent appraiser assesses the collateral including individuals and businesses from diverse segments. In by the Financial Services Authority (OJK) and are implemented
methods based on the method and payment period as before some of it is sold. Collateral liquidation can be its pursuit of exceptional performance, Bank Mandiri strives to through Bank Mandiri's internal procedures, specifically the
follows: executed through:: provide the best service, focusing on providing tailored solutions Standard Operating Procedure (SOP) for Customer Complaint
a. Private sale of collateral and ensuring customer satisfaction. This approach aims to foster Management number S11.P17.PPN in 2023.
a. Lump-sum Settlement
customer loyalty and encourage them to endorse Bank Mandiri's
Lump-sum settlement is the repayment of credit Private sale of collateral to reduce the debtor's credit To deliver excellent and professional service, Bank Mandiri
services to potential customers. The bank's deep understanding
through 1 (one) payment for all outstanding obligations can be conducted either by the debtor has established an independent unit for handling customer
of the financial service requirements is fundamental to satisfy
obligations. or by the collateral owner (not the debtor) with the complaints, the Customer Care Unit, which is responsible for
its customers.
bank's approval. resolving all customer complaints following the agreed-upon
b. Gradual Settlement In addition to providing high-quality financial products, Bank Service Level Agreement (SLA). Customers have the option to
Gradual settlement is the repayment of credit carried b. Public auction of collateral
Mandiri demonstrates its commitment to customer satisfaction submit their complaints in writing or verbally through a variety
out gradually according to the schedule set for all Public auction of collateral with a minimum price by offering after-sales services that prioritize customer of convenient channels, as outlined below.
outstanding obligations. equal to the auction limit set by the bank.
2. Debt Transfer c. Collateral redemption
Credit settlement mechanism by transferring debt consists Collateral redemption is the withdrawal of credit HANDLING CUSTOMER COMPLAINTS
of several mechanisms as follows: collateral from the bank by the collateral owner/
heir of the collateral owner (not the debtor) to settle
a. Credit Novation Submitting • Receiving complaints • Conducting investigations
the credit by depositing a certain amount of money
Dealing with existing debtor's debt by transferring determined by the bank. complaints • Complaint input • Making decisions
the debt to a third party who then becomes the new
debtor (novator).
Mass Media, Telephone, Complaint
Email, Social Media, system RESOLUTION UNIT
Letter, Branch Office
NASABAH
In the reporting year, Bank Mandiri provided training to 3,438 relevant employees regarding collection policies.
Receiving feedback Notifying customers of Updating investigation
COLLECTION TRAINING on complaint investigation findings findings
Including training in Operational Risk resolutions
Management for Collectors, Retail Collection
Product Knowledge, Collection Negotiation, 26 3.438
Basic Collection for Executive Level Employees/ Training Training
Outsourced Workers, and others. Titles Participants
156 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 157
Page 20
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
In resolving customer complaints, Bank Mandiri employs a tiered Unit for resolution. Additionally, the Customer Care Unit is
strategy following the designated authorities, considering the responsible for managing and resolving complaints received from
decision-making authority for customer resolutions, customer regulatory bodies such as Bank Indonesia, OJK, Ombudsman, and SUMMARY OF CUSTOMER COMPLAINT
categories (regular, special, and VIP), the complexity of the the Ministry of State-Owned Enterprises, as well as complaints
complaints, and involving relevant work units as needed. from external sources such as print, online, electronic, and social During the reporting year, there were 1,082,317 customer complaints, an increase
media. Bank Mandiri aims to resolve customer complaints in from the previous year. Of this number, 100.00% were resolved following the
To enhance service performance, the Customer Care Unit
line with their expectations and in compliance with regulatory established Service Level Agreement (SLA).
compiles a comprehensive overview of customer complaints
provisions.
and management performance to evaluate and improve
product and banking services in coordination with relevant The Customer Care Unit consistently collaborates with the SUMMARY OF CUSTOMER COMPLAINT
work units. The management performance related to customer Product Owner to review customer complaints regularly to
complaints is also communicated to the Director of Operations enhance customer service and resolve complaints. The target Type of Complaint 2023 2022 2021
and thoroughly reviewed to implement necessary enhancements. for complaints is proposed by the Operational Risk Unit to
Total Customer Complaints 1,082,317 725,559 731,991
At the Board of Commissioners, the management performance of the Risk Management & Credit Policy Committee (RMPC) and
customer complaints is deliberated through the Risk Monitoring subsequently approved by the Board of Directors (BoD) and the Complaints being resolved in the reporting year - - -
Committee. Board of Commissioners (BoC). In 2023, Bank Mandiri's complaint Resolved complaint 1,082,317 725,559 731,991
target was 90 complaints per 1 million transactions. To enhance Total Transactions 15,146,907,333 12,038,675,803 9,675,999,534
The Customer Care Unit collaborates with the Corporate Secretary
complaint handling, PT NielsenIQ Services Indonesia conducts Target of RAS metrics (Ratio of the number of complaints compared 90 108 108
Unit to receive and handle all customer complaints and inquiries
a customer satisfaction survey regarding complaint handling to one million transactions)
from various channels, including branch offices, the 14000 Call
at Bank Mandiri and in the industry. The survey measures three
Center, the website, and Bank Mandiri’s official social media Realization of RAS metrics (Ratio of the number of complaints 71 60 76
detailed indicators, and the results are as follows:
accounts. These issues are then directed to the Customer Care compared to one million transactions)
Resolution Rate 100% 100% 100%
Indicator Bank Mandiri Industry*
Score of satisfaction with complaint
handling
8.34 8.25
CUSTOMER SATISFACTION
Score of satisfaction with the duration of 8.25 8.18 Customer satisfaction and loyalty play a crucial role in driving The CX Survey produced three values: Customer Satisfaction Score
resolving complaints sustainable business growth. Consistently implementing service (CSAT), Net Promoter Score (NPS), and Customer Effort Score (CES).
excellence is essential to ensure a positive customer experience This survey was conducted using Face-to-Face Interview (F2F)
Score of solution accessibility 7.24 7.10
and satisfaction at all customer touchpoints of Bank Mandiri. and Computer-Assisted Personal Interviewing (CAPI) methods for
*Bank KBMI IV
For this reason, Bank Mandiri conducts an annual customer quantitative surveys, as well as Focus Group Discussion (FGD) and
satisfaction survey to gather customer feedback and insights, In-Depth Interview (IDI) for qualitative surveys. Meanwhile, the
The survey findings indicate that Bank Mandiri's performance the Corporate Secretary Unit to carry out these tasks. As per SES was conducted using mystery shopping methods to measure
aiming to continuously enhance service quality. In 2023, Bank
is higher than the industry average. Bank Mandiri is dedicated regulatory provisions, unresolved complaints or disputes can be the consistency of implementing the Service Standards set by the
Mandiri collaborated with PT NielsenIQ Services Indonesia to
to continual improvement to deliver the best service to its escalated for resolution through dispute resolution institutions, Bank at all measured contact points. The value generated from
conduct a Customer Experience Survey (CX Survey) and PT
customers, thereby enhancing customer satisfaction and loyalty. arbitration, or mediation. Alternatively, they can be brought to this survey was the Service Excellence Score (SES).
court based on the bank’s and customer’s agreement. Morrigan Services to conduct a Service Excellence Survey (SES).
Customer complaints and inquiries are directed through various The results of the survey can be seen in the table below:
channels, including branch offices, the 14000 Call Center, the Bank Mandiri consistently endeavors to establish effective
website, and Bank Mandiri's official social media accounts. These customer complaint handling mechanisms, underpinned by
CUSTOMER EXPERIENCE & SERVICE EXCELLENCE SURVEY RESULT TABLE
are then forwarded to the Customer Care Unit for handling the commitment of all Mandiri employees to deliver high-
and resolution. Additionally, the Customer Care Unit handles quality complaint handling services. The bank designs these
Bank CES CSAT NPS SES
and resolves complaints from external sources, such as print, mechanisms following established best practices and seeks to
online, electronic, and social media, and collaborates with continually enhance them in the future. Bank Mandiri 89.33 86.76 66 91.39
Industry 89.10 86.20 64 87.87
The survey results indicated that Bank Mandiri's ratings in 2023 and enhancements to continue providing the best service to
were higher than the industry average in the banking sector. Bank customers, thereby increasing customer satisfaction and loyalty.
Mandiri was committed to consistently making improvements
158 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 159
Page 21
SUSTAINABLE OPERATION
Information Security and Customer Protection Operations
Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Green GREEN BUSINESS MINDSET
Operations To achieve NZE in Operations by 2030, the active participation of
all Bank Mandiri employees is crucial to transform and conduct
In the implementation of an eco-friendly work culture, Bank
Mandiri encourages all employees to prioritize the digitalization
green operations. Throughout 2023, this was accomplished through of processes and work mechanisms through the optimization of
the internalization of a culture of sustainable work, including reliable infrastructure such as the use of Microsoft Teams in the
Bank Mandiri’s concern is to carry out operational activities that prioritize mandatory E-Learning ESG Awareness Level 1 for 27,844 Mandiri document preparation process between work units, and intensive
environmental balance, as evidenced by the commitment to Net Zero Emission (NZE) employees; routine e-campaigns on 57,000 office devices in the hybrid coordination. Additionally, the bank advocates for the use
form of desktop wallpapers; conducting Internal Discussion Forums of eco-friendly materials /products in all work events, while also
in Operations by 2030 and various supporting initiatives such as measuring and related to “Road to NZE” and “The Role of Carbon Markets,” reaching empowering the community. This includes minimizing the use of
monitoring operational emissions (Scope 1 & 2), internalizing a culture of sustainable the entire Board of Commissioners and Board of Directors of Bank plastic, paper, and single-use materials, managing waste effectively,
Mandiri and its subsidiaries; and promoting ESG (ESG Awareness) and involving Bank Mandiri’s MSME partners.
work, and implementing carbon neutrality. to prospective Bank Mandiri employees (5 ODP batches).
Bank Mandiri recognizes the urgent need for extraordinary including policymakers, as well as the actions taken by Bank
measures to mitigate the effects of climate change and safeguard Mandiri and its customers to address climate change.The low- DIGITAL CARBON TRACKING
society, businesses, and the environment. It is imperative that carbon transition strategy set by Bank Mandiri is part of the
these efforts commence without delay. In 2023, Bank Mandiri 2024-2028 Sustainability Strategy, which includes two main Bank Mandiri has conducted calculations for Scope 1 GHG emissions branch level in Phase II. The emission recording on Digital Carbon
reaffirmed its commitment to climate protection by aiming to approaches: (1) Green Business Mindset, (2) Digital Carbon resulting from the use of oil fuel by 4,083 operational vehicles and Tracking complies with the Greenhouse Gas (GHG) Protocol and
achieve NZE in its banking operations by 2030. Tracking & Monitoring, and (3) reducing the carbon footprint has adopted ISO 14064-1,2,3 standards.
2,000 generators, as well as for Scope 2 GHG emissions stemming
of operations through carbon neutral initiatives.
This commitment is highly dependent on the speed of changes from electricity consumption in 2,348 branch offices across In the reporting year, the recorded operational GHG emissions was
in the real economy and the actions taken by stakeholders, Indonesia. To ensure the achievement of the NZE in Operations 295,713 tons of CO2e, a decrease of 63,040.38 tons of CO2e from
by 2023 commitment, in 2023, Bank Mandiri became the first 2019 of 367,520 tons of CO2e, or a decrease of 18% compared to
bank in Indonesia to implement Digital Carbon Tracking. This the baseline. The year 2019 served as the baseline for calculating
COMMITMENT TO LOW-CARBON OPERATIONS innovative system allows for the measurement and monitoring
of all operational emissions and is accessible to stakeholders via
operational emissions with pre-pandemic COVID-19 operational
activities. During the pandemic (2020 and 2021), Bank Mandiri
the Corporate Website. The platform effectively tracks the carbon operated at reduced capacity due to social restrictions. The bank’s
Bank Mandiri recognizes that addressing the impact of climate To ensure the achievement of this commitment, Bank footprint generated and the emissions successfully reduced from endeavors to reduce operational emissions is further demonstrated
change requires collective action and collaboration from all Mandiri has developed a strategy to reduce carbon footprint by the decline in GHG emission intensity per employee, dropping
Bank Mandiri’s operational activities, initially focusing on the
stakeholders in all activities. For this reason, Bank Mandiri is in operational activities for the medium and long term, from 9.18 tons of CO2e per person in the baseline year (2019) to
regional office level in Phase I and subsequently expanding to the
actively managing climate change and reducing greenhouse gas including: Green Business Mindset 7.59 tons of CO2e per person in 2023.
emissions from operational activities in its 2,481 branch offices 1. Digital Carbon Tracking & Monitoring
across Indonesia and 4,083 operational vehicles to achieve the
2. Carbon Neutral Initiatives. Scope 1 (Fuel) (tCO2e) Scope 2 (Electricity) (tCO2e) Total GHG emissions (tCO2e)
commitment of NZE in Operations by 2030.
3. Carbon Neutral Initiatives.
2023 43,077.18 2023 252,636.00 2023 295,713.18
2022 42,697.74 2022 260,082.45 2022 302,780.19
2021 64,319.44 2021 249,937.90 2021 314,257.34
BMRI’S STRATEGY TO ACHIEVE NZE IN OPERATIONS BY 2030
2020 61,105.49 2020 254,173.21 2020 315,278.70
2019 75,640.37 2019 283,113.19 2019 358,753.56
GHG emissionss intensity (tCO2e)
Notes:
2023 7.59 1. Calculation of GHG emissions from the use of Pertamax fuel is based on the GHG Emission Inventory Reference in
the Energy Sector, Ministry of Energy and Mineral Resources (ESDM).
2022 7.93 2. Calculation of GHG emissions from electricity consumption is based on emission factors from the Ministry of
Energy and Mineral Resources, Directorate General of Electricity, 2019.
GREEN BUSINESS DIGITAL CARBON TRACKING CARBON NEUTRAL INITIATIVES 3. The denominator chosen for calculating GHG emission intensity is the number of employees as of December 31.
MINDSET & MONITORING THROUGH GREEN OPERATIONAL 2021 8.30
4. The baseline for emission calculations is the year 2019.
& CARBON OFFSETING 5. GHG emission calculations are conducted in collaboration with a third party, PT Jejak Enviro Teknologi.
2020 8.24
2019 9.18
160 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 161
Page 22
SUSTAINABLE OPERATION
Information Security and Customer Protection Operations
Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
FINANCING EMISSIONS BY SECTOR*
EMISSION CONTROL FROM FINANCING ACTIVITIES
Top 10 Absolute Emissions by Sector Top 10 Emission Intensity by Sector
(million tCO2 eq) (million tCO2 eq / Rp. million)
To support Indonesia’s commitment to the Enhanced Nationally financing portfolio (bank only), emissions from Bank Mandiri's
Determined Contribution (ENDC) to achieve Net Zero Emissions financing and investment activities were 18.1 million tCO2e,
(NZE) by 2060, Bank Mandiri has reaffirmed its support by consisting of 13.5 million tCO2e from Loan Assets and 4.6 Power Generation 2.40 Livestock 320.6
issuing a sustainability commitment to achieve Net Zero million tCO2e from Other Assets. The calculations for this Iron and Steel 1.59 Cement 310.3
Emissions (NZE) in Operations by 2030, NZE in Financing by reporting period will be further refined in accordance with
Oil and Gas 1.38 Oil and Gas 185.2
2060, and empowering Digipreneurship. relevant standards and regulations, including the availability
and quality of data. Livestock 1.01 Power generation 152.5
As an initial step towards achieving NZE in Financing, Bank
Agriculture 0.61 Iron and Steel 124.9
Mandiri has joined the Partnership for Carbon Accounting The results of these calculations are crucial for Bank Mandiri
Financials (PCAF) as a member, providing guidelines for to comprehend the emission profile of its financing and Coal 0.55 Coal 52.7
calculating Greenhouse Gas (GHG) Emissions from financing investment portfolio, enabling the formulation of business
Chemicals and Petrochemicals 0.49 Chemicals and petrochemicals 35.5
and investment activities (Scope 3), also known as Financed strategies and risk management in transitioning towards a
Emissions. Based on calculations from debtor emission reports low-carbon economy. FMCG 0.44 Pulp and paper 33.9
and other available data sources, covering 44% of the total Cement 0.37 FMCG 28.5
Construction 0.33 Steel Mining 24.9
EMISSIONS FROM FINANCING ACTIVITIES * Business Loans, by the Debtor Emission Report
CARBON NEUTRAL INITIATIVES [OJK F.12]
Commercial Real Estate Sovereign Loans
0.3 million tCO2e 1.1 juta tCO2e
(Score 4) (Score 1)
Project Finance Bank Mandiri's efforts to achieve Operational Net Zero Emission buildings, utilizing renewable energy, waste management, water
Mortgages
0.6 million tCO2e 0.4 million tCO2e (NZE) commitment by 2030 are carried out through carbon- management, and carbon offsetting through the purchase of
(Score 2)
neutral initiatives that include a series of concrete steps. These Verified Carbon Units (VCU) and Nature-Based Solutions (NBS).
(Score 4)
efforts encompass energy reduction, implementing eco-friendly
Business Loans Motor Vehicle
10.7 million tCO2e Loans
0.4 million tCO2e Energy Reduction
(Score 2)
(Score 3) Efforts to decrease energy consumption are being undertaken efficient ones that have lower Global Warming Potential (GWP).
LOAN ASSET through a series of energy reduction and efficiency initiatives Additionally, the bank encourages all Mandiri employees to
Total Financed Emission
13.5 million tCO e 2
BANK MANDIRI
in the bank's operational activities. The bank's primary energy
consumption stems from electricity usage and the use of oil
maintain resource efficiency in all office activities by using LED
lights, turning off lights during break times, and shutting down
+ = 18.1 fuel for transportation and backup electricity. Bank Mandiri is certain elevators on holidays. Presently, 100% LED lights have
progressively replacing air handling units (AHUs) with more been installed in 241 smart branches.
4.6 million tCO e 2
million tCO2e
OTHER ASSET
Green Building
Corporate Bonds Sovereign Bonds
Every building has an impact on the environment. For this reason, 5. Using timers to reduce electricity consumption;
0.1 million tCO2e 4.5 million tCO2e
Bank Mandiri designs and operates green buildings that can have 6. Using solar panels.
(Score 2) (Score 1)
a positive influence on the surrounding environment and enhance Furthermore, we are continuously striving to implement other
the well-being of its occupants. Bank Mandiri has been awarded the initiatives in the buildings within the Bank's operational area,
Gold Design Recognition green building certificate for the Mandiri including:
Notes:
Indjoko Surabaya Building. The building's specifications comprise:
• The calculation of financing emissions is based on data and emission reports of debtors as of December 31, 2022. 1. Increasing the number of glass panels in the headquarters
• Loan Assets cover 44% of the total loan portfolio (bank only) 1. The development of green areas with lush trees; building to optimize natural sunlight for illumination during
• The Asset Class Project Finance includes power generation projects.
• The score for each Asset Class refers to the Data Quality Score as per the PCAF Guideline. 2. Using glass in certain parts of the building to maximize the day at Bank Mandiri.
sunlight for saving electricity consumption; 2. Replacing regular lights with energy-saving LEDs, including
3. Concentrating activities in one location for better synergy, in 241 Smart Branch Offices;
thus reducing car mobilization; 3. Installing timers and turning off lights during break times;
4. Providing parking spaces for bicycles and promoting bike- 4. Shutting down certain elevators on holidays;
to-work; 5. Upgrading the air conditioning and using inverter technology
162 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 163
Page 23
SUSTAINABLE OPERATION
Information Security and Customer Protection Operations
Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
in the Headquarters Building, Sentra Mandiri, and Menara
Mandiri Denpasar;
use in plant irrigation and chiller for air conditioning systems. UTILIZATION OF RENEWABLE ENERGY
This system has been deployed in the Headquarters Building,
6. Reducing the entry of sunlight radiation into the buildings Menara Mandiri Jakarta, and Wisma Mandiri. To conserve fuel, Bank Mandiri promotes the use of electric procuring charging stations in several other operational areas
with low OTTV (Overall Thermal Transfer Value) glass, thus Plaza Mandiri Building, serving as the Headquarters of Bank vehicles as operational vehicles. The bank has acquired a variety of the bank.
reducing the need for air conditioning. This initiative has Mandiri, has achieved a significant milestone by winning the of electric vehicles, including cars and motorcycles, and has
been implemented in Menara Mandiri Jayapura, Menara The bank has increased its supply of electricity from renewable
ASEAN Energy Awards 2023 in the Retrofitted Building category, established three EV charging stations with 136 electric vehicles.
Mandiri Bekasi, Menara Mandiri Denpasar, and Menara energy by installing more solar panels. Currently, Bank Mandiri
solidifying its position as the building with the best energy In the future, Bank Mandiri will persist in collaborating with
Mandiri Wijaya Kusuma; has installed 727 solar panels.
efficiency in Southeast Asia. The success of Plaza Mandiri Building stakeholders to broaden the use of electric vehicles, including
7. Installing solar panels on several buildings to partially replace underscores the consistent efforts of the bank in retrofitting,
the operational electricity supply previously fully provided including the installation of technology in room cooling systems
by PLN. Solar panel installations have been implemented in (air conditioning/AC), lighting, vertical transportation (elevators), ENERGY CONSUMPTION IN THE COMPANY (BANK ONLY) [OJK F.6] [GRI 302-1]
the Headquarters Building, Menara Mandiri Medan, Menara and water consumption reduction. Since the inception of the
Mandiri Palembang, and Gedung Indjoko Surabaya; retrofit program in 2017, the energy consumption of the Plaza Energy Consumption Electricity (Gjoule) Energy Consumption Fuel (Gjoule)
8. Implementing a Water Recycling System with Reverse Mandiri Building has decreased by 31.6%, and water consumption
Osmosis to treat wastewater to meet standard quality for has seen a remarkable reduction of up to 33%.
2023 1,040,756.60 2023 599,749.98
GREEN BULDING/OFFICE 2022 1,046,803.76 2022 569,527.59
2021 1,009,552.22 2021 770,838.19
241
Smart Branch
1 2020 1,024,548.23 2020 732,320.52
Building units
4
Green
Certified Green
Building
2019 1,140,603.15 2019 906,514.26
Buildings Energy Consumption Intensity Total Energy Consumption (Gjoule)
727 (GJoule per Employee)
2023 42.1 2023 1,640,506.58
136
Units
Solar panels
Units spreading across 2022 42.34 2022 1,616,331.35
Electric four green
Vehicles buildings 2021 47.05 2021 1,780,390.41
2020 45.93 2020 1,756,868.75
ENVIRONMENTAL CONSERVATION COSTS
2019 52.4 2019 2,047,117.41
In relation to environmental conservation activities, in 2023, Bank conservation activities and Rp2,250,000,000 for the installation
Mandiri allocated Rp22,500,000,000 for the TJSL environmental of LED lights in the Sentra Mandiri building. Notes:
1. Electricity usage is calculated by dividing the electricity cost (in Rp) by the electricity tariff per kWh.
2. Electricity usage in kWh is converted to gigajoules using The Greenhouse Gas Protocol Initiative, 2004.
Activity 2023 2022 2021 2020 3. Pertamax fuel usage in liters is calculated by dividing the total fuel purchase (in Rp) by the fuel price per liter.
4. Fuel usage in liters is converted to gigajoules using The Greenhouse Gas Protocol Initiative, 2004.
Solar Panel Installation - - Rp853,000,000 -
5. The denominator chosen in calculating energy consumption intensity is the number of employees as of December 31.
Water Recycle RO System - Rp1,510,000,000 Rp1,792,400,000 -
Rejuvenation and Repair
CSR programs in nature/
environmental conservation
Rp22,500,000,000 Rp645,015,195 Rp99,325,100 Rp365,000,000 WASTE MANAGEMENT
LED Installation Rp2,250,000,000 - - - Global waste management is a major issue caused by the the company and the community.
Total Rp24,750,000,000 Rp2,155,015,195 Rp2,744,725,100 Rp365,000,000 inefficiency of waste collection, sorting, and management
In 2023, Bank Mandiri successfully managed waste as follows:
activities. Poorly managed waste has the potential to pollute the
• Reducing paper consumption by 34,126 thousand reams
environment and disrupt public health.
Notes: or saving 10,6 % from the previous year. This achievement
• In 2023, in addition to the costs of the TJSL Conservation of Nature/Environment Activities, Bank Mandiri also incurred additional costs for energy efficiency, namely the installation of LED lights in the
Sentra Mandiri Building. The cost of installing LED lights was Rp2,250,000,000 for one procurement.
As a bank committed to implementing sustainability aspects, Bank is supported by a commitment to operational efficiency
• In 2022, the cost of solar panel installation and RO Water System was Rp1,510,000,000 in one procurement. Mandiri continues to manage waste in its operational activities. in implementing paperless initiatives and digitalization
• In 2021, in addition to the cost of TJSL programs in Nature/Environmental Conservation, Bank Mandiri also incurred other costs in order to save energy, namely the cost of solar panel installation as
alternative eco-friendly energy, and as the cost of a RO Water System to treat wastewater and produce clean, reusable water. Bank Mandiri is aware that efficient waste management can create through the Livin' Super App, Kopra, and Branchless
• Rp365,000,000 of the total cost of the TJSL programs in Nature/Environmental Conservation was used for the Air Quality Monitoring Program through the NAFAS application. The program was held from a conducive work environment and reflect sustainable values for Banking.
2020 to 2021.
164 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 165
Page 24
SUSTAINABLE OPERATION
Information Security and Customer Protection Operations
Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
• Managing hazardous waste generated from operational • For domestic waste, Bank Mandiri has partnered with third samples to accredited environmental laboratories and reporting Wijayakusuma, serving as the primary water source for buildings
activities, such as used oil. In addition, Bank Mandiri has parties to sort the waste generated from its operational activities. the findings to the relevant authorities. in the area after the stored water is processed into raw water.
successfully collected solid hazardous waste such as batteries, • Bank Mandiri has appointed a third party to manage plastic During the reporting year, Bank Mandiri had 196 biopores and There were no incidents of Bank Mandiri's effluents spilling into
light bulbs, and Uninterruptible Power Supply (UPS). Bank waste by providing a Reverse Vending Machine (RVM) to 39 infiltration wells. Additionally, other water storage facilities the environment and no environmental complaints from the
Mandiri has collaborated with third parties with official handle PET plastic bottle waste. The RVM system is also include a 1.8-hectare artificial lake in the Mandiri University area, community in 2023.
permits to manage the hazardous waste generated from its equipped with Livin’ points, where the public can exchange
operational activities. PET plastic bottle waste for Livin' points on the Livin' App.
WATER CONSUMPTION (m3)
Reverse Vending
Machine 560,911
498,365
460,699
To reduce the negative impact of plastic
waste on the environment, Bank Mandiri
is collaborating with local entrepreneurs to
provide Reverse Vending Machines (RVMs),
machines for exchanging plastic bottles 141,106 138,580
116,057
for recycling.
The RVMs can be utilized by all employees
and customers who wish to contribute to 2023 2022 2021
raising awareness about the importance
of environmental protection. These Third-party water* Recycled water**
machines are strategically positioned in
various Bank Mandiri locations, including
*The data includes Wisma Mandiri, Plaza Mandiri, Menara Mandiri, and Sentra Mandiri.
the headquarters, and are equipped with
**The data includes Plaza Mandiri and Menara Mandiri for the year 2021. The years 2022 and 2023 include Plaza Mandiri, Menara Mandiri, and Wisma Mandiri.
interactive touch screens that offer simple
instructions to users.
Employees or customers can effortlessly recycle plastic bottles by inserting used bottles into the machine, which will
automatically identify the type of bottle and provide an exchange value in the form of points. These points can be redeemed
for various rewards, such as shopping vouchers or handcrafted products made from recycled plastic bottles. Carbon Offsetting
Bank Mandiri acknowledges that to offset the carbon emissions from
its operational activities, the Bank must engage in activities beyond its
WASTE MANAGEMENT AT THE PLAZA MANDIRI BUILDING operations to compensate for them (carbon offsetting). The initiative
involves purchasing carbon units, investing in Nature-Based Solutions
DESCRIPTION UNIT 2023 2022 2021 (NBS), and undertaking other mitigation actions. Carbon offsetting is
Hazardous Waste Kg 1,520 4,400 1,200 considered a final resort after the Bank has exhausted all efforts to reduce,
substitute, and enhance efficiency. Given the limited time to achieve Net
Non-Hazardous Liquid Waste
Zero Emissions in Operations by 2030, the Bank has launched initiatives for
• Liquid Waste m3 10,200 63,693 78,480
carbon offsetting by procuring carbon units and promoting investment in
• Liquid Waste Managed Through Reverse Osmosis m 3
31,610 28,104 45,360 NBS projects focused on land restoration and conservation.
On September 26, 2023, Bank Mandiri entered the Indonesian carbon market
by acquiring 3,027 tCO2 in the primary market, equivalent to 10% of the
WATER MANAGEMENT total operational baseline emissions. These carbon units will be utilized
for the Bank’s requirements through retirement, effectively offsetting its
Bank Mandiri's office is equipped with water recycling facilities in In managing effluents, Bank Mandiri employs a sewage treatment carbon footprint. Bank Mandiri’s involvement also demonstrates concrete
the Wisma Mandiri building, Plaza Mandiri, and MM Wijayakusuma. plant to guarantee that the effluents produced adhere to support for the Government’s strategic program on the inaugural Carbon
The water recycling system is instrumental in recycling water environmental quality standards before being discharged into Trading in Indonesia. It enhances the employees’ capacity to engage actively
and preventing pollution of water bodies around the office the receiving water bodies. The bank also repurposes treated in the Carbon Market in the future. This significant milestone has earned
location. The recycled water is utilized for flushing toilets, plant wastewater for use in cooling systems, plant irrigation, and Bank Mandiri the trust of the regulator, OJK, as a partner in disseminating
maintenance, and other purposes. Additionally, the bank also drinking water through the reverse osmosis process. The quality of the national seminar in preparation for carbon trading in the five main
establishes biopores and infiltration wells in green open areas. Bank Mandiri's effluents is regularly monitored by sending water cities of Indonesia.
166 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 167
Page 25
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Sustainable Bank Mandiri endeavors to be the preferred workplace for both
current Mandirians and new talents seeking to join the Bank.
To accomplish this objective, Bank Mandiri oversees exceptional
talents through three primary strategies aligned with three human
Mandirian The talent management strategy at Bank Mandiri is designed
to enhance the engagement and productivity of Mandirians in
capital management mandates, all encapsulated in the Human
Capital 3-3-1 Strategy.
fostering sustainable business growth and cultivating new leaders.
Bank Mandiri values and upholds diversity, equality, and the well-being of its
employees to continuously create an excellent work environment for the nation’s BANK MANDIRI’S HUMAN CAPITAL 3-3-1 STRATEGY
best talents through comprehensive human resources management, from the
recruitment process, competency development, performance assessment,
compensation and benefits, to retirement. OUR GOAL
ENGAGED AND PRODUCTIVE EMPLOYEES WHO
DRIVE GROWTH, SUSTAINABLE BUSINESS, AND OUR GOALS
Bank Mandiri holds the belief that its employees, known as evaluations, performance-based remuneration systems, and
DEVELOP NEW LEADER
Mandirians, are the catalysts for sustainable business growth ultimately retirement planning for its employees.
Y
and are entrusted with the responsibility of generating MAN C APITAL STR A T E G
As a commitment to developing outstanding talents, the HU
innovations that align with the bank's long-term business STRATEGY #1 STRATEGY #2 STRATEGY #3
talent management strategy at Bank Mandiri is based on the
plans and targets. For this reason, Bank Mandiri is dedicated
core values of 'AKHLAK' and refers to the Bank's Employee OUR STRATEGY ACCELERATED CAPACITY ACCELERATED DEEPENING EMPLOYEE
to promoting and expediting the holistic development of FULFILMENT & BOOST CAPABILITY ENGAGEMENT WITH
Value Proposition (EVP) to encourage alignment of employee
exceptional banking talents. This commitment commences PRODUCTIVITY DEVELOPMENT AKHLAK & AVP
motivation with the Bank's aspirations to learn, grow,
with a transparent recruitment process, followed by training MANDATES AS HC
synergize, and contribute to Indonesia.
and career development initiatives, fair performance
#1 FOR MANDIRI #2 FOR OUR NATION #3 FOR OUR EMPLOYEE
TO SUPPORT TO CONTRIBUTE IN TO CREATE OUR MANDATE
EMPLOYEE VALUE PROPOSITION & ENABLE DEVELOPING TALENT MEANINGFUL
FOR INDONESIA EMPLOYEE EXPERIENCE
Providing an understanding Providing an understanding
to contribute and to acquire/strengthen new
participate, as well as to give knowledge, behaviors, skills,
meaning and benefit to or different values.
Indonesia.
G
U TIN LE
B SIA
NE
I
O
A
TR
RN
D
IN
CO N
TO
Employee Value
Proposition
GY
GR
ER
W
O
N
Providing an SY Providing an under-
understanding to standing to collabo-
develop personally rate for the benefit of the
and professionally. company to achieve the Vision
and Mission.
168 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 169
Page 26
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
RECRUITING THE BEST TALENTS OF THE b. Regional Business
ODP Retail Banking program is designed to develop
NATION TO BUILD A CAREER AT BANK MANDIRI skilled and knowledgeable professional Retail
Banker leaders with expertise in funding, lending,
transactions, and services.
Bank Mandiri has adopted a fair and competency-based • Officer Development Program (ODP)
recruitment strategy, while also prioritizing diversity and c. Information Technology and Digital Banking
In 2023, out of 830 talents recruited to meet hiring needs,
equality for the nation's best talents. In practice, Bank Mandiri 77% (640 talents) were sourced from the Officer Development ODP IT and Digital Banking program is projected
recognizes the challenges posed by evolving business models and Program (ODP). The Officer Development Program (ODP) aims to develop and refine digital talents into leaders
competition, requiring employees with diverse skill sets. To address to cultivate future leaders by attracting exceptional talent, and professionals with the vision and capability to
this, the bank has introduced a job field segmentation strategy in particularly fresh graduates or individuals with less than 4 years transform IT and technology. As a commitment to
its recruitment process, enhancing transparency and specificity. of work experience, through partnerships with prestigious developing IT talent, Bank Mandiri has established
universities in Indonesia and globally. Upon successfully the MY Digital Academy, a program tailored for early
To accurately assess its recruitment requirements, Bank Mandiri
passing the recruitment and selection stages, candidates will engagement and recruitment. This initiative includes
conducts analyses of upcoming retirements, shifts in business and
be designated as prospective employees and will undergo activities such as an innovation boot camp for final- Bank Mandiri aligns the ODP recruitment program with the
operational strategies, and estimates of employee turnover. In
a comprehensive 9-month ODP education program. This year students and fresh graduates selected from the leadership onboarding program through activities such as sharing
2023, the emphasis of the recruitment was on bolstering human
program includes 1 month of classroom learning, 5 months top universities in Indonesia. sessions from ODP alumni at HAY ODP, sharing sessions from top
resources in the wholesale, retail, digital talent, risk management,
and business enabler segments. Bank Mandiri recognizes that of on-the-job training, and a 3-month placement in a work d. Risk Management leaders at Bank Mandiri in Roundtable Talks, and ODP Graduation
this targeted approach aims to strengthen the bank's essential unit as a contract employee. The ODP entry path is specifically (leadership boot camp). These activities are conducted to enhance
ODP Risk Management program is designed to
competencies and develop the skills of young talents to become tailored to address the following hiring needs: engagement, motivation, and inspire ODP talents to contribute
develop individuals into leaders and professionals
future leaders (growing leaders from within). a. Wholesale Banking effectively at Bank Mandiri. They also aim to provide clear career
with specialized expertise in risk management.
direction and nurture the leadership skills necessary for future
Bank Mandiri organizes various recruitment programs aimed at ODP Wholesale Banking program is designed to e. Business Enabler permanent leaders at Bank Mandiri.
attracting the best young talents in the country and addressing develop skilled and knowledgeable professional
ODP Business Enabler program strives
the future-ready skills needed in the coming years. The programs leaders and Wholesale Bankers in • Candidates for Special Regional Leaders (CPDK)
to foster the growth of leaders and professionals in
include: wholesale funding, lending, and solutions. As a bank with business operations in almost all regions of
diverse business enablers, including banking
operations, finance, strategy, legal, human resources, Indonesia, Bank Mandiri will continue to support and embrace
market research, corporate communication, and real the sons and daughters of the region to contribute to the
estate management. nation’s progress. This is achieved through special recruitment
OFFICER DEVELOPMENT PROGRAM
and development programs designed to nurture talents from to provide a comprehensive understanding of standard
specific regions. operations and business processes within the workplace
Individuals recruited through the CPDK program will undergo units, preparing them to effectively fulfill their roles and
specialized and intensive development programs, including responsibilities as employees in their local area.
in-class and on-the-job training. This training is designed
170 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 171
Page 27
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
INCLUSIVITY IN CAREER DEVELOPMENT WITH BANK MANDIRI
• Experienced Hire staff, and IT staff. Additionally, the recruitment of disabled
Bank Mandiri also offers opportunities for talents with over employees involves collaboration with FHCI (Forum Human
three years of work experience to contribute to the bank’s Capital Indonesia), a forum for managers and practitioners Bank Mandiri consistently upholds and respects human rights, with the Human Capital Unit. Additionally, Bank Mandiri
of Human Capital Management in state-owned enterprises, including the rights of individuals with disabilities to secure collaborates with third parties, such as the Indonesian Human
sustainable growth. In 2023, the experienced hire recruitment
aimed at fostering interaction, learning, and synergy for the dignified employment. Bank Mandiri is committed to workplace Capital Forum, to facilitate this process.
route successfully filled 190 positions to meet the hiring needs
advancement of human capital management. As of December equality in accordance with human rights and compliance
in wholesale, retail, and digital talent segments. Furthermore, Bank Mandiri offers an internship program tailored
2023, Bank Mandiri has 31 active disabled employees, recruited with banking regulations through its recruitment policy for
for individuals with disabilities who have completed secondary
• People with disability through the PKWT, Kriya, and Outsourcing employee routes. employees with disabilities. Bank Mandiri recruits employees
education, focusing on contact center roles. This program,
Furthermore, Bank Mandiri extends equal opportunities with disabilities for positions in the Contact Center, back office,
In compliance with Bank Mandiri's Collective Labor Agreement named "Kriya Mandiri Contact Centre," involves a three-year
to individuals with disabilities to participate in the bank's and IT staff.
(CLA), which governs the general requirements for employee program comprising basic, intermediate, and advanced stages,
business activities. Currently, the recruitment of disabled acceptance, as well as Law Number 13 of 2003 on Manpower, The recruitment process for employees with disabilities is following a structured syllabus and curriculum.
employees through the OFFICER DEVELOPMENT PROGRAM is Bank Mandiri does not use and strongly prohibits the use of child independently conducted by each working unit in coordination
targeted for positions in the Contact Center, Mandiri University labor and forced labor throughout its business chain.
Number of Employees with Disabilities (people) Total and Percentage of Employees with
RECRUITMENT OF MANDIRI EMPLOYEE PROPORTION Disabilities by Gender
BANK EMPLOYEES
Employee Proportion By Employee Proportion By Age ORGANIK 14 22 9
Gender in 2023 Group in 2023 people people
KRIYA 9
190 31 2,649
Experienced Hire Difabel
20,379
10,119 TAD 8
72% 28%
Ragam Difabel
3
Deaf people Job Type Number (people)
Back Office 8
640 18,586 26,197 Call Center 19
Fresh Graduate 28
Male Female <30 years old 30 - 54 years old Information Technology 2
>54 years old Disabled people Front Office 2
172 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 173
Page 28
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
TALENT PIPELINE DEVELOPMENT STRATEGY LEADERSHIP PIPELINE BANK MANDIRI
ONBOARDING EQUIPPING DEVELOPING
Onboard for newly & Equipping with practical Talent acceleration
Bank Mandiri offers equal opportunities for its employees to enhance their careers and skills through the Talent Management promoted people leaders managerial skills which refers to program to enhance capabilities
and Succession program. This initiative aims to cultivate the talents within Mandiri, preparing them to assume critical and to perform leadership capability indicator gaps for next level
strategic roles in alignment with the bank's long-term business requirements. leading organization MAELP
Onboarding
(BOD & SEVP) Mandiri Advanced Executive
Executive Leaders
The Talent Management and Succession process is divided into four main stages, namely: Leaders Program
leading functions (Setara Mandiri People Manager MASLF
Talent Identification Group Head / L2) executive Mandiri Advanced Senior
Strategic Leaders Program
1 The identification process is based on performance, leadership character, ability,
agility, and engagement.
Busines Leader
Program
leading leaders (Setara Mandiri People Manager MALP
Department Head/13) Mattery Mandiri Advanced Leaders
Program
Talent Profiling Women Leadership Program
2 The assessment process of talents based on track record, technical capability,
leadership capability, and personality. leading teams (Setara Mandiri People Manager MAFLP
Team Leader) Mandiri Advanced First Leaders
Advanced Fundamental
Program
Managerial MYLead
Series Program Mandiri Young Leaders
Talent Development
3 Developing and implementing talent development plans based on leading self ODP/SDP
Officer Staff Graduates Scholarship
capability gaps. Development Program
Strategic Talent Review
4 The process of reviewing programs, development, and preparing succession plans for The tiered program in the Bank Mandiri Leadership Development Program is as follows:
the incumbent. • Officer Development Program
An onboarding program designed for fresh graduates or employees with less than four years of work experience. Candidates
who pass the recruitment and selection stage will be designated as trainee employees and must undergo an intensive one-
To fill the strategic leadership position, Bank Mandiri provides are recorded in the Individual Development Plan (IDP).
year ODP education program, consisting of three months of classroom learning, three months of on-the-job training, and
equal opportunities to employees while still taking into account six months of placement as contract employees in a work unit. To meet business needs, competency development in ODP
In general, the Mandirian competency development program
criteria fulfillment, such as performance achievement, leadership includes Information Technology (IT) development, risk management, wholesale banking, retail banking, and supporting
consists of:
character, ability, agility, and engagement during work. functions.
1. LEADERSHIP DEVELOPMENT PROGRAM
Mandiri's competency development is overseen by the Mandiri • Staff Development Program
University Group Unit, utilizing an operational framework The Leadership Development Program is a structured and
tiered leadership development program designed according The Staff Development Program (SDP) is an accelerated program designed for high-performing executive employees
based on the Strategic Learning Process. Aligned with the
to the leadership capacity at each employee level. Bank at Bank Mandiri who have successfully passed the selection stage and show potential for leadership. Similar to the
bank's strategy, the enhancement of Mandiri's competencies
Mandiri collaborates with educational institutions, including Officer Development Program (ODP), SDP participants will engage in blended learning, which includes experiential
encompasses the development of leadership and managerial
international business schools such as the National University learning at BranchX. However, unlike ODP, the duration of the SDP is shorter, lasting approximately 2.5 months.
skills, as well as technical expertise, drawing from the Leadership
Capability Model (LCM) and Technical Capability Model (TCM). of Singapore, IMD, IESE, Yale SOM, ESADE, New York University, • Mandiri People Manager Mastery
Haas Berkeley, Carnegie Mellon, and Virginia Darden in MPM Mastery is a training program for L3 (equivalent to Department Head and Area Head) with the aim of enhancing
Mandiri's development plan is methodically structured within implementing the Leadership Development Program. There leadership capabilities in managing, motivating, and improving team performance.
the Annual People Development Plan (APDP) document, are three main levels in this program:
commencing with a thorough analysis of learning needs, • Mandiri People Manager Advanced
followed by the identification of learning solutions in the form a. Onboarding; training aimed at new employees and
MPM Advance is a training program for L4 (Team Leaders) with the aim of enhancing leadership abilities in leading a team.
of training modules, scheduling program implementation, and employees undergoing rotation, promotion, or taking
assessing the impact of the learning initiatives. The APDP is on new positions to prepare them as leaders; ills training • Mandiri People Manager Fundamental
formulated by the Mandiri University Group in partnership with yang ditujukan untuk melengkapi leadership capability MPM Fundamental is a training program for SUPERVISOR-level employees to equip them with basic skills as
other departments to address the development requirements pegawai di posisinya saat ini; Strategic Business leaders.
of each competency. b. Equipping; managerial skills training aimed at enhancing • Bank Staff and Leadership School (SESPIBANK)
Additionally, Bank Mandiri also tailors Mandiri's development the leadership capability of employees in their current The development program, conducted in collaboration with the Indonesian Banking Development Institute (LPPI),
plans from the ground up to address the specific competency positions; is tailored for Bank Mandiri's Level L3 leaders to equip them for advancement within the organization. This program
gaps of each individual, which have been deliberated with c. Developing; a top talent acceleration program to enhance guides participants to actively engage in the value creation process within their respective institutions, with the goal
their superiors through development dialogues. These plans capabilities in preparing leaders for the next level of devising solutions for present and future challenges through structured learning modules, benchmarking against
174 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 175
Page 29
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
international institutions, and the creation of innovative papers. 2. TECHNICAL DEVELOPMENT PROGRAM
• Mandiri Advanced First Leaders Programs (MAFLP) The Technical Development Program is a program aimed at enhancing Mandirian's technical competencies according to
the business segments it manages. The training modules provided include:
MAFLP is a leadership development program designed to prepare top talents BOD-3 (Team Leaders, Branch Managers,
or equivalent) for elevated leadership roles. The program emphasizes the development of People Focus, Digital Mindset, • Upskilling & Reskilling
Strategy, and Innovation skills. A program aimed at employees in positions impacted by the Smart Branch Program. Employees will receive upskilling
to take on new roles and reskilling to transition to other roles.
• Mandiri Advanced Leaders Program (MALP)
The MALP is a leadership development program • Operation Transformation
designed to prepare top talents at BOD-2 for A training program aimed at supporting business transformation and enhancing employee competencies to ensure
advancement to the next level of leadership. digital readiness.
The program focuses on developing skills in
intrapreneurship, strategic leadership, people
management, and digital leadership, aligning with
the needs and strategy of the Bank.
• Mandiri Advanced Senior Leaders Program
(MASLP)
MASLP is a Leadership development program
designed to prepare top talents BOD-1 to be part
of the long-term transformation at Bank Mandiri,
while also maintaining the sustainability of ongoing
business and operations. The program places a strong
emphasis on fostering Intrapreneurship, strategic
leadership, people-centric approaches, and digital
leadership in alignment with the Bank's specific needs
and strategy.
• Mandiri Advanced Executive Leaders Program
(MAELP)
MAELP is a leadership development program
for Commissioners, Directors, and SEVP levels. This program aims to enhance leadership and technical capabilities
according to the needs of Bank Mandiri's business, as well as build relationships with other stakeholders. In 2023, 11
Commissioners and 3 Directors participated in this program at various Top Global Universities.
• Mandiri Young Leaders (MYLead)
Since 2015, Bank Mandiri has been cultivating sustainable leadership for the future by nurturing its top young talents
through the Mandiri Young Leaders (MYLead) program. This program accelerates the development of leadership,
technical skills, and job exposure for participants. As part of their development, MYLead participants receive initial
preparation for their assignments. Furthermore, to enrich their global business knowledge and strategic capabilities,
all participants undergo global exposure initiatives, including learning activities at prestigious universities worldwide
and benchmarking with renowned companies.
In 2023, a total of 20 MYLead participants completed their first-year assignments to accelerate market share growth
by directly participating in Regional Business.
176 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 177
Page 30
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
EDUCATION AND TRAINING PROGRAM IN 2023
Type of Education and Training Number of Participants
Leadership Development Program
• Officer Development Program 640 employees
• Staff Development Program 568 employees
• Mandiri People Manager 676 employees
• Mandiri Advanced First Leaders Programs (MAFLP) 364 talent L4
• Mandiri Advanced Leaders Program (MALP) 65 talent L3
• Mandiri Advanced Senior Leaders Program (MASLP) 23 talent L2
• Mandiri Advanced Executive Leaders Program (MAELP) 11 Commissioners, 3 Directors
Technical Development Program
• Strategic Business Leader 3,904 branch employees
• Wholesale Coverage RM 862 RM employees
• Digital Talent Readiness for Future 35,379 employees
Bank Certification Programs, including Total Certified Employees in 2023
• Risk Management Certification (SMR) 7,318 employees
• Beyond Lending • Mandiri Executive Scholarship for Postgraduate • Treasury Dealer Certification 136 employees
A training program is being provided to the wholesale (MESP) • Mutual Fund Sales Agent (WAPERD) 1,410 employees
business unit to prepare employees to offer transaction
MESP is a domestic postgraduate scholarship program • Securities Brokerage Intermediary (WPPE) - Limited Marketing (PT) 274 employees
solutions beyond loans to customers.
aimed at enhancing the knowledge and skills of top talent • Certification of Payment Systems and Rupiah Management (SPPUR) 27,887 employees
• Mandirian Ready to Go Digital employees at the BOD-2 level, focusing on developing
• Other certifications 527 employees
Training program to enhance employees' digital future skills needed for the long-term strategy of the Bank.
capabilities. Currently, Bank Mandiri is collaborating with Monash
University Indonesia to execute the MESP program.
3. CERTIFICATION PROGRAM
In 2023, a total of 31 employees at the L3+ and L3 levels
Furthermore, the bank offers a certification program for all
(Department Heads and equivalents) took part in the
Mandirians, including part-time and contract employees
program, pursuing fields of study related to Data Science, AVERAGE TRAINING HOURS
based on their field of work and the business segment
Business Innovation, and Cyber Security.
they are engaged in. The programs available include risk
By Gender By Position
management certification, treasury dealer certification, • Scholarship Program for Master's Degree Studies
Deputy Mutual Fund Sales Agent (WAPERD) certification, Abroad Number Position Number Average Total training
Average Total training
Deputy Securities Broker (WPPE) Limited Marketing Gender of training of training training hours hours
The postgraduate scholarship program is designed training hours hours
participants participants
(PT) certification, Rupiah Payment System and Money to enrich participants' exposure, networking skills,
Management (SPPUR) certification, and various other Commissioner 12 77.5 1,008
and knowledge of global insights relevant to Bank 18,894 136.6 2,674,432
certifications. Mandiri's requirements. In 2023, 42 employees pursued Director 12 12.2 146
postgraduate studies at the Top 15 Universities worldwide, SEVP - SVP 158 90.5 15,558
4. POSTGRADUATE SCHOLARSHIP PROGRAM
including prestigious institutions such as Harvard 20,623 124.4 2,664,804 VP – AVP 3,965 202.6 807,516
Bank Mandiri offers an opportunity for selected Mandiri University, Stanford University, University of Cambridge, SM – FAM 13,822 184.2 2,553,630
employees to engage in a comprehensive development London Business School, and other universities. Program TOTAL 39,517 130.2 5,339,236
program via formal education, both within the country Executive 19,751 88.5 1,839,932
participants have pursued diverse fields of study aligned
and abroad, as part of the Bank's Postgraduate Scholarship Non-executive 59 9.2 808
with the Bank's needs, such as Digital Business, Advanced
Program. Finance, Technology, and Enablers (Human Resources, Retiree 1,738 58.0 120,638
Law, & Operations). Total 39,517 130.2 5,339,236
178 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 179
Page 31
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
In 2023, Bank Mandiri's Human Capital reported that all Mandiri Bank Mandiri plans to conduct Mission Based Development
Digital Talent Pipeline employees at various levels (100%) had successfully completed once more, with a direct focus on achieving results and their
missions in their Mission Based Development. Moving forward, implications for the sustainable business growth of the Bank.
Development Strategy
In the age of digital banking, Bank Mandiri has begun its DEVELOPMENT OF SUSTAINABLE
digital journey by providing advanced digital innovations to
its customers. The digital transformation of Bank Mandiri relies
FINANCIAL COMPETENCIES
on the expertise of its human resources in digital technology,
including application development, data analysis, artificial For the seamless implementation of sustainable finance, the backing In 2023, Bank Mandiri introduced three modules of the ESG
intelligence, blockchain, and more. of all Mandiri employees possessing relevant competencies and Program and 33 modules of ESG Capability Development learning.
expertise is essential. Bank Mandiri incorporates the principles All employees engaged in these learning activities based on the
Bank Mandiri has established the My Digital Academy requirements to bolster the attainment of business targets set
of sustainable finance into its learning curriculum to cultivate
program to cultivate digital talent. This program serves as an by their respective work units, as well as in alignment with their
exceptional employees capable of integrating sustainability values
early engagement and hiring initiative for final year students and recent graduates from specific universities and faculties. personal career aspirations.
into the Bank's business processes. Education on sustainable finance
It includes a one-month innovation boot camp aimed at
enhancing IT capabilities. is accessible through online e-learning or Internal Discussion Forums
MY DIGITAL ACADEMY BATCH 2 2023 (FDI).
The inaugural batch of My Digital Academy commenced on
PERFORMANCE EVALUATION
November 7, 2022, in response to the demand for top digital
TARGET 600 Participants talents to bolster the Corporate Plan of establishing Bank
TOTAL Mandiri as The Best Modern Digital Bank. From a pool of 15,272
REGISTRANTS 24,673 Participants candidates, 271 participants successfully completed the boot
Bank Mandiri conducts annual performance evaluations of culture and leadership characteristics demonstrated in decision-
Registration Period its employees, assessing them based on fairness and the making and work-related interactions. The outcomes of the
camp program and are now part of the pipeline to join Bank
October - November 2023 achievement of Key Performance Indicators (KPIs). These KPIs performance appraisal serve as the foundation for rewards
Mandiri.
are established in stages at the beginning of the year, starting and compensation, competency development, and career
Applicant Categories Following its successful implementation in 2022, My Digital from the Bank's KPI to Individual KPIs. The agreed-upon KPIs are advancement.
2,338 55% Academy was deemed an effective strategy for fulfilling digital a result of alignment between employees and their respective
Fresh Graduate Bank Mandiri promotes the practice of continuous feedback
1,627 39% talent needs. Therefore, in 2023, Bank Mandiri launched My superiors, and are in harmony with the Bank's short-term and
through development dialogues, which involve 1-on-1 sessions
Digital Academy Batch 2. A remarkable 24,673 participants from long-term strategies.
166 4% between employees and their managers. These sessions aim to
Graduated 93
diverse universities in Indonesia registered for the program,
2% In the performance appraisal process, Bank Mandiri employs align individual contributions with the Bank's business goals,
surpassing Bank Mandiri's target of 600 participants.
a 360-degree survey, which includes input from employee discuss and monitor performance, enhance competencies
managers, internal stakeholders (employees with the same or and capabilities, and comprehend aspirations in developing
higher job level recommended from different groups/regions), employee plans.
PEOPLE DEVELOPMENT THROUGH GAMIFICATION
peers (employees with the same job level from the same group/
Development dialogues also serve as a platform for employees to
region), and direct subordinates (employees who report directly
establish Individual KPIs or work targets and reach consensus on
to the subject above them).
Bank Mandiri believes that excellent human resources are the of missions designed for all Mandiri employees at various levels. action plans. Additionally, through these dialogues, employees
key to an organization's sustainable growth. As a form of human It allows employees to select personalized learning methods In 2023, a total of 3,306 people leaders, ranging from SEVP level can conduct mid-reviews or modify Individual KPIs. This provides
resource development, Bank Mandiri's Human Capital conducts tailored to their specific needs and skill gaps, while enabling to branch managers, participated in the 360-degree survey. an opportunity for employees and managers to adjust work
people development through a gamification approach known real-time monitoring of their progress. Bank Mandiri aims to cultivate dependable strategic business targets, review performance progress and follow-ups, address
as Mission Based Development. This initiative consists of a series leaders who possess a comprehensive understanding of self- obstacles and solutions, and discuss aspirations and development
improvement opportunities based on feedback from employees plans for the current year.
connected to their work environment.
MISSIONS HELD BY EMPLOYEES AT VARIOUS LEVELS The performance appraisal process in 2023 involved all (100%)
In addition to meeting KPIs, performance evaluation at Bank Mandiri employees, both male and female, in accordance with
Mandiri also takes into account the application of the Bank's existing procedures.
BOD - 1 BOD - 2 BOD - 3 Staff
MISSION MISSION MISSION MISSION
Discussing development plans Discussing development with Engaging in dialogue with Engaging in dialogue
for the team and successors and superiors and the team and superiors to design development with superiors to create
being a role model in building following development missions plans and actively implementing development plans and
and developing capabilities to accelerate capabilities capability development proac tively implementing
according to the development development
plan
180 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 181
Page 32
SUSTAINABLE OPERATION
Sustainable Security
Information Services and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
EMPLOYEE ENGAGEMENT SURVEY WELL-BEING
To measure the level of comfort and satisfaction of Mandiri Employee Engagement Survey Index (%)
employees towards the Bank, leadership, career development To ensure the well-being of its employees, Bank Mandiri enrolls them in the BPJS
opportunities, relationships & communication, and benefits &
88.05
89.65 Employment program, encompassing pension guarantee, old-age security, work
compensation, Bank Mandiri regularly conducts an Employee
Engagement Survey at the end of the current year. The survey is
accident insurance, death insurance, and job loss guarantee. Moreover, the Bank
86.3
conducted in collaboration with independent consultants with offers additional health benefits for employees exceeding the government-
relevant expertise. mandated requirements.
The Bank conducted an employee engagement survey for 28,415
employees in December 2023, yielding a score of 89.65%, marking 2021 2022 2023
an increase from the 2022 score of 88.06%. Appreciation and Compensation
EMPLOYEE TURNOVER All Mandiri employees are entitled to wages, benefits, and
rewards based on fair and transparent performance assessments.
The bank's competitive remuneration strategy aims to attract
the best talent, foster employee engagement, and enhance
Bank Mandiri ensures to fulfill the rights of all Mandiri employees productivity in alignment with the bank's growth objectives.
High employee turnover is one of the challenges faced by various reasons, such as the end of their tenure, pursuing further
to wages in accordance with applicable laws. The bank does Bank Mandiri offers competitive remuneration to its employees
the banking industry. In 2023, 2,048 employees resigned for education, or other external factors.
not differentiate wages between male and female employees. based on their employment status, whether permanent or on
The bank is committed to following government regulations contract, and tailored to the specific nature of their roles.
EMPLOYEE TURNOVER regarding the Regional Minimum Wage in each of its operational
In addition to salary-based remuneration, Bank Mandiri also
locations, including providing additional allowances in certain
Description 2023 2022 2021 offers welfare benefits to assist employees in their respective
areas.
roles and positions. These benefits include holiday allowances,
By age Male Female Male Female Male Female
(People) (People) (People) (People) (People) (People) To ensure well-being and a decent standard of living, the leave allowances, specific position allowances, location-based
• <30 years 181 265 185 231 139 284
standard wage for entry-level employees is set at 0.05% higher allowances, and compensation for contract employees.
than the highest Regional Minimum Wage in Indonesia and
• 30-54 years 387 629 469 529 538 546 Furthermore, additional benefits are extended to both
applies nationally to all of Bank Mandiri's operational locations
• >54 years 429 157 313 113 359 132 permanent and contract employees, in compliance with
in Indonesia. The ratio of the highest Regional Minimum Wage in
Turnover rate (%) 5.31 4.82 5.28
government regulations, as well as the following:
Indonesia to the standard wage for entry-level employees is 1:1.
The turnover at Bank Mandiri demonstrates its commitment to through its numerous alums. Currently, 159 Bank Mandiri alumns
NON-SALARY BENEFITS
developing talent capabilities and becoming a talent factory are appointed officials in various government institutions,
for Indonesia. This is evidenced by the mandate given to ministries, state-owned enterprises, regional-owned enterprises,
Bank Mandiri employees to be appointed leaders in various and private companies. Types of Remuneration Program Permanent Contract Employees
institutions, including ministries, state-owned enterprises, and Employees
In line with its development program, Bank Mandiri also
private companies. In 2023, 48 active Bank Mandiri employees Life Insurance BPJS Health Yes Yes
consistently creates a good working environment, with a welfare
were appointed leaders in government institutions, ministries, Health Insurance Mandiri Inhealth Yes*
scheme through competitive rewards and compensation,
and state-owned enterprises. Yes*
work-life balance and well-being, employee rights fulfillment, BPJS Health Yes**
In addition to its current employees, Bank Mandiri’s dedication competency development programs, and fair career Disability and Incapacity Benefits Mandiri Inhealth
to becoming a talent factory for Indonesia is also demonstrated development opportunities for all its employees. Yes Yes
Maternity leave
Parental Leave Maternity leave
Yes Yes
Paternity leave
* for employees and registered family members
** only for employees
182 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 183
Page 33
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
AVERAGE SALARY BY POSITION AND GENDER
WORK-LIFE BALANCE AND WELL-BEING
Male Female
Psychological Workplace Financial Physical & Healthy
Well-being Well-being Well-being Well-being
Senior Vice
101,445,433 President 107,231,925
49,174,750 Vice President 49,573,802
MANDIRIAN
Assistant Vice
27,209,744 President 27,284,461
First Senior
16,534,352 Manager/Senior 16,774,141 EMPLOYEE
Manager
Bank Mandiri places a high priority on maintaining a healthy
balance between the productivity of its employees and their
personal well-being. The bank takes a holistic approach to health
11,736,394 Manager 11,771,496 and well-being, considering physical, mental, and financial aspects,
as well as the work environment.
Assistant At Bank Mandiri, well-being is seen as a shared responsibility (co-
10,018,261 Manager
10,017,203 CO-CREATING
creation), with Human Capital, leaders, and employees all playing
a role in creating a healthy and supportive work environment.
HUMAN
CAPITAL LEADER
6,621,677 Clerical 6,538,364
To promote and educate employees about the significance of
sustainability in physical and mental health, financial literacy, and
overall well-being in the workplace, Bank Mandiri consistently
organizes seminars featuring experts in these fields. In 2023, a total
of 16 educational programs, including seminars, webinars, and
podcasts, were conducted, with participation from all employees,
both in-person and virtually.
PARENTAL LEAVE
Furthermore, Bank Mandiri also provides facilities and infrastructure related to health and well-being, including:
Bank Mandiri provides maternity leave entitlement to female childbirth for a longer duration than required by the government.
employees in accordance with government regulations, and allows 1. Online psychological counseling services.
In 2023, 1,030 female employees took maternity leave, while 603
these employees to return to work after the leave period ends. male employees took leave to accompany their wives during 2. Lactation room.
Additionally, the bank also provides paternity leave entitlement to childbirth. All of these employees, 100% in total, returned to work 3. Fitness Center Mandiri Club at the main
male employees, allowing them to accompany their wives during after the conclusion of their respective leave periods. office site.
4. Clubs or sports communities for employees,
such as basketball, badminton, cycling,
running, and others.
5. Health clinic facilities, complete with
equipment and medical personnel ready
to serve at the main office site.
Bank Mandiri is committed to continuously
improving policies and well-being programs.
184 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 185
Page 34
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
RETIREMENT PROGRAM
Bank Mandiri appreciates all Mandiri employees who have Furthermore, the bank prioritizes the well-being of Mandiri
committed themselves to growing alongside the bank. As a employees approaching retirement age through the Mandiri
token of appreciation, Bank Mandiri offers a range of benefits Health Care Cooperative. This cooperative offers support,
and retirement programs to safeguard the well-being of benefits, and healthcare services, with a membership fee of
Mandiri employees during their retirement, in line with their 2% of the employees' contributions and 3% of Bank Mandiri's
employment agreements. The Retirement Fund Program is contributions.
administered through the Employer Pension Fund (DPPK),
In 2023, Bank Mandiri held training for employees who are
comprising two distinct programs: the Defined Contribution
about to enter retirement, attended by 417 participants.
Pension Program and the Defined Benefit Pension Program.
Bank Mandiri Sports and Arts Week Mini Medical Check-Up for those under 40
(PORSENI Bank Mandiri) 2023
EMPLOYEE STOCK OWNERSHIP PROGRAM
As an extension of the previously distributed Employee Stock Bank Mandiri also has an Employee Stock Ownership Program
Ownership Program (ESOP) and Management Stock Ownership (ESOP) to enhance the sense of belonging and motivate
Program (MSOP), Bank Mandiri implemented a comparable employees to make long-term contributions. ESOP is granted
program from 2015 to 2023 for its employees and management, to certain job grades and levels that meet the criteria approved
featuring predetermined grant and vesting requirements. by management, including individual performance, talent
classification, and employee track record. From 2015 to 2023,
The Management Stock Ownership Program (MSOP) takes the
Bank Mandiri distributed a total of 96,003,800 shares with vesting
form of Long Term Incentive (LTI) shares, granted to the Board of
periods ranging from three to five years.
Directors and Non-Independent Board of Commissioners. This is
aimed at motivating them to enhance future performance and to Bank Mandiri will implement a similar stock ownership program
ABC Podcast (Asiknya Bahas Culture) featuring speakers from Mandiri Club for sports and arts activities reward their efforts in sustaining and/or enhancing the long-term for employees and management in the following years.
internal and external sources value of the shares. LTI shares were granted from 2022 to 2023,
with each vesting period lasting three years.
FREEDOM OF ASSOCIATION
Bank Mandiri respects the right of its employees to form and the employees. The CLa applies to all (100%) Bank Mandiri
actively participate in labor unions. Currently, the bank has the employees, including permanent and contract employees. Bank
Bank Mandiri Employees Union (SPBM) with 13,724 members. Mandiri and SPBM signed a new CLA on December 5, 2023,
which is effective until 2025. The new CLA came into effect on
In collaboration with SPBM, the bank has established a Collective
December 15, 2023.
Labor Agreement (CLA) outlining the rights, obligations,
Mandiri Silver Carnival 2023 (Employee Gathering) Mandiri Best Employee (MBE) Immersion Learning Class of 2023 and work regulations binding for both the employer and
Seminar on Physical & Psychological Well-Being: Seminar Financial Well-Being Frugal Livin’
Emotional & Physical Well-being Lead to Productive & for Better Financial Well-Being
Meaningful Work
186 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 187
Page 35
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
EMPLOYEE GRIEVANCES
Bank Mandiri has established a mechanism for its employees procedures, and if violations are substantiated, the reported party SRIKANDI MANDIRI
to voice their grievances concerning the bank's employee will be sanctioned in line with the applicable policy.
management practices and industrial relations implementation. The resolution of grievances for each stage will not exceed
The bank ensures the confidentiality of the reporter's identity. 30 calendar days and can be submitted orally or in writing in
All reports received will be handled in accordance with existing accordance with the agreed CLA.
THE MECHANISM FOR EMPLOYEE COMPLAINT SUBMISSION
1 3
Employees have the option If the complaint
to submit their complaints If a resolution is not If the complaint remains
cannot be resolved
orally or in writing to their reached, the employee unresolved in Stage 2,
internally and evolves
immediate supervisor. may submit the the resolution process
into an Industrial
Following this, the complaint in writing to a will be escalated to the
Relations Dispute,
immediate supervisor and higher-level supervisor Group Head or Regional
the resolution efforts
the employee will engage with the knowledge CEO overseeing the
will be conducted in
in discussions to find a of the immediate employee's Work Unit,
accordance with the
mutually agreeable solution supervisor. with the knowledge of
applicable laws and
to resolve the complaint. the HCEOM Group.
regulations.
2 4
DIVERSITY
At Bank Mandiri, all individuals have an equal opportunity to Workplace Policy (RWP), which aims to cultivate a safe and
advance their career, irrespective of gender, ethnicity, religion, comfortable work environment centered on mutual respect and
or any other factors. The bank embraces and appreciates the dignity, devoid of negative behaviors such as discrimination,
diverse creativity that arises from the various backgrounds of exclusion, bullying, harassment, and various other forms of Bank Mandiri always strives to be the right workplace for workshop aimed to inspire women to maximize resources
its employees. physical and mental violence. Mandirians, particularly women. Bank Mandiri provides broad for entrepreneurship, especially for retirement planning,
opportunities for women to pursue a career with the bank. introduce digital solutions to enhance employee businesses,
Bank Mandiri is committed to establishing a workplace that is The implementation of RWP at Bank Mandiri is monitored
Currently, 52% of Bank Mandiri's total employees are women, and offer Bank Mandiri products that can bolster employee
free from discrimination, violence, and harassment, with the aim and supervised by the Board of Commissioners as part of the
with 46% of them serving in top-level management positions. enterprises. Furthermore, special events were organized for
of fostering a more inclusive and productive environment for supervisory function of the Board of Commissioners, reported Mother's Day, including SME training and Livin' Merchant
Mandirians and promoting the bank's business sustainability. To periodically (every semester) to the Minister of State-Owned The cultivation of female talent at Bank Mandiri is achieved
activities centered around the theme of the Role of Mothers
uphold this commitment, the bank has formulated a Respectful Enterprises. through the Srikandi Mandiri program. In 2023, the program
in the Digital Era.
comprised two initiatives: Woman Leadership and Woman in
Society. Woman Leadership encompasses "Women Talk," an In addition to the development program, Srikandi Mandiri
DIVERSITY PERCENTAGE in-person talk show event featuring inspirational stories from also implemented two programs to support the well-being of
prominent female leaders, and "Women Empowerment," a women during their careers at Bank Mandiri. These programs
Employee Composition mentoring program designed for female employees (L3 and included the Respectful Workplace & Policy Campaign and
Employee Composition with
by Gender Managerial Level by Gender L4) led by Mandiri Leaders (L2, L3+, and L3). This program Counseling Session. The Respectful Workplace & Policy
aimed to foster a supportive community, offer career Campaign aimed to raise awareness about respectful
52% 46% sponsorship opportunities, and facilitate the exchange of workplace issues through Bank Mandiri's internal digital
practical and implicit knowledge between mentors and communication channels and the social media platform
mentees. Instagram. The Counseling Session program collaborated with
professional psychologists to help female employees address
The Woman in Society program, on the other hand, involved
emotional, mental health, and physical well-being issues.
the Women Entrepreneurship Workshop, a collaborative
effort between Srikandi Mandiri and BUMN House. This
48% 54%
188 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 189
Page 36
SUSTAINABLE OPERATION
Information Security and Customer Protection Green Operations Sustainable Mandirian Health and Safety in the Workplace
Data Protection
Health and Safety • Conducting emergency response readiness training for
building occupants, Floor Wardens (Building Emergency
Insurance, covering inpatient care, outpatient care, maternity
care, dental care, general check-ups, eyeglasses, and special
in the Workplace Response Team), and the Emergency Response Team (ERT),
including fire extinguisher training, first responder training 4.
health insurance;
Health insurance program for Mandiri employees who have
(search and rescue), and terrorist/bomb threat security entered the retirement period;
training conducted at least once a year;
5. Health clinic facilities within the work unit environment (Plaza
• Conducting emergency evacuation simulations for building Mandiri, Menara Mandiri, Wisma Mandiri, and Graha Mandiri);
fires and other disasters, such as earthquakes, to measure 6. Life protection in the form of life insurance for Mandiri
the readiness of the Emergency Response Team and the employees and their registered family members, in
duration of evacuation from the building location to the cooperation with Mandiri Inhealth Life Insurance.
assembly point. These simulations are conducted annually
and attended by the Fire Department and the Police. Bank Mandiri effectively communicates the features, benefits, and
usage process of its health facilities, including health insurance and
To support the health of Mandiri employees, Bank Mandiri psychological services, to employees through regular familiarization
provides: events. This information is also readily accessible to all employees
1. Health facilities for Mandiri employees and their registered via Bank Mandiri's employee channels, Mandiri CLICK, in the form
family members, in accordance with the government-provided of booklets and electronic banners. Furthermore, the bank actively
health insurance program, BPJS Health; promotes health among its employees through various media and
2. Social security and social protection in accordance with the activities, often featuring renowned experts in the field.
government program through BPJS Employment; Occupational Health and Safety (OHS) training activities and
3. Health facilities for Mandiri employees and their registered emergency response simulations conducted by Bank Mandiri in
family members, in cooperation with Mandiri Inhealth Health 2023 include:
OHS TRAINING
OHS TRAINING PROGRAM 2023
Including Training and Competency Testing for SAR
(Search and Rescue) in Building Collapse, Building Risk 4 412
Assessment Training, Facility and Infrastructure Readiness Training Training
Training in Disaster Response and its standards, and Titles Participants
Disturbance Handling Preparedness Training. EMERGENCY RESPONSE SIMULATION
To mitigate operational risks due to climate change, Bank for smooth operations, including elevators, room temperature
Mandiri is committed to creating a healthy and safe working control machines, and others, undergo regular inspections and
environment in accordance with Occupational Health and maintenance. Additionally, Bank Mandiri has data centers in EMERGENCY RESPONSE SIMULATIONS
Safety (OHS) standards for its employees, customers, and other multiple locations to minimize customer inconvenience during
Name of Program Place Date
parties within the bank's operational settings. In relation to the transactions and to safeguard against the risk of data loss
resulting from climate change. Fire Training and Evacuation Sentra Mandiri Building September 14 and 19, 2023
mitigation of operational risks, Bank Mandiri has implemented
several procedures to prepare for emergency conditions, such as Earthquake Disaster Preparedness Drills Sentra Mandiri Building August 3, 2023
Business Continuity Management (BCM), Emergency Response Fire Emergency Response Simulation Wisma Mandiri Building November 2, 2023
Plan, Disaster Recovery Plan, and Crisis Management Plan. To create a safe and comfortable workplace while achieving zero Building Evacuation Drill Plaza Mandiri Building November 10, 2023
accidents, Bank Mandiri implements various occupational health
Fire Emergency Response Simulation Menara Mandiri Bekasi August 23, 2023
and safety programs, such as:
Emergency Response Simulation Sentra Rempoa Building October 2, 2023
The BCM is responsible for developing a Business Continuity Plan • Providing information on handling emergency situations to
strategy, actively interacting with independent institutions to employees, guests, and the Building Emergency Response
analyze the climate, identifying early action plans for climate Team through the installation of emergency evacuation
change, and socializing these plans to all employees to ensure the instruction posters for fire/earthquake, broadcasting
continuity of business operations. Bank Mandiri provides various emergency procedure videos on internal television media,
facilities and infrastructure for emergency conditions, such as safety briefings before events, and socializing the functions
first aid kits, fire extinguishers (APAR), hydrants, sprinklers, and and roles of the emergency response team conducted
others. The bank conducts routine inspections of these facilities annually with speakers from the Fire Department;
to ensure their proper functioning. Various facilities essential
190 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 191
Page 37
SUSTAINABILITY
Sustainability
BEYOND
Beyond BANKING
Banking
Bank Mandiri always strives to
contribute to society and the
environment through community
empowerment, inclusive financial
products and services, as well as
social responsibility initiatives.
Page 38
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Financial Services BANK MANDIRI BANKING SERVICE COVERAGE
for Indonesia
[OJK F.23] [OJK F.28]
2,371 >36 million >13,000 ~258,000 130,100 ~32 million 7.2 million
Branch Offices Customer ATMs EDCs Mandiri Agents Debit Active Prepaid
Deposits Cards Cards
94 thousands
palm oil plasma
farmers
Rp2.6 Rp8.42 Rp225 T 2.87million Rp18.26
trillion KUR Number of trillion
trillion
5.7 million ~4 million accounts opened Collection of
Payroll Retail Credit
Loan Disbursement
through UKM Center
Rp15.6 T through Mandiri community funds
KUM at Agen Mandiri
Accounts Customers
O N AL S E R Agents
E N TI VI
NV C
CO
ES
Rp92.82
trillion
1.9 million Agent Mandiri
Credit Cards transaction
volume
~Rp3,264
trillion DI Rp533 billion
transaction volume GIT ES
in the Livin’ App A L S E RVIC 241units credit disbursement
through Mandiri Pintar
21 million ~Rp2,819 Smart Branch
million
Livin’ App users transaction
volume in 2023
Rp465 billion
financing disbursement to SMEs through digital
Rp179.8 million 4.2 million offering
Number of transactions Number of Users
187.2 thousand
Rp4.5 trillion Number of Transactions
1.94 million
Financial inclusion, as stipulated in Financial Services Authority Mandiri ensures the availability of access, products, and financial Personal loan disbursement 68,445
Tabungan
(OJK) Regulation No. 76 of 2016, refers to the accessibility of a services that adhere to sustainability principles and cater to the Paylater Rp42 billion Rp77.3 billion Simpanan Pelajar
Mandiri Value Chain
users
range of financial institutions, products, and services tailored to Transaction volume (SimPel)
Buy now paylater
community’s needs and abilities. The bank consistently seeks out
the needs and capacities of the community in order to improve
their well-being. opportunities to develop new products and services, aiming to
Mutual
>95%
OJK has set a target for financial inclusion to achieve 90% by 2024. extend the benefits of inclusive and sustainable financial services Forex 63 thousand Funds & Rp24.3 trillion of Bank Mandiri’s customers are
Kopra users
For this reason, as part of the banking sector in Indonesia, Bank to a broader audience. Transaction Number of transactions
Bonds Transaction volume
13.950
Kopra transaction value
Top Up 760.3 million
& Payment Number of transactions Account Receivable Rp6.6
Financing trillion ~1.7 million
Livin’ Merchant
Distributor Financing Rp11.6 users
trillion
merchant
24.9 million
Transaction
frequency
194 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 195
Page 39
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
ACCESS TO FINANCIAL SERVICES [OJK F.28] Micro Business Credit
Micro Business Credit (KUM) is extended to micro-entrepreneurs The distribution of KUM is one of Bank Mandiri’s key roles in
As a growth agent, Bank Mandiri actively engages in financial The financial products and services are provided in a simple,
to fund their productive business requirements, encompassing aiding MSMEs to expand their operations, broaden their
inclusion initiatives by expanding and facilitating access to financial easy-to-understand format and are accessible through Bank
both investment and working capital. One of the key benefits of market presence, enhance production, and improve their
services for the community. Ease of access to financial services Mandiri’s branch offices, digital services, and via other partners
Micro Business Credit is its competitive interest rates with fixed competitiveness, thereby making a positive contribution to the
can reduce economic disparities and drive the economic recovery collaborating with the bank to provide financial services. local economy. In 2023, Bank Mandiri disbursed Micro Business
monthly installments, straightforward application requirements,
process post-pandemic. Credit of Rp15.674 billion, benefiting 361,270 active debtors.
In addition, Bank Mandiri consistently promotes sustainable and a swift credit approval process.
Bank Mandiri ensures the availability of access, products, SME & Micro Growth through:
and financial services tailored to the community’s needs and • Strengthening the SME network by enhancing the
capabilities, particularly those included in the priority criteria set capabilities of the Sales Team and supporting tools; Financing for Women through MSME Credit
by the government, such as:
• Improving the effectiveness of data analytics through the
Women play a significant role in advancing the MSME ecosystem approximately 56.7% of the total active micro-segment debtors
1. Low-income communities Early Warning System (EWS);
in Indonesia. Bank Mandiri is committed to enhancing the of 1,220,985 debtors.
2. Lower-middle-class communities (unbanked and • Streamlining business processes and improving the value competitive capacity of MSME entrepreneurs, particularly women,
underbanked) chain process, as well as utilizing technology to expedite The credit quality of female debtors also demonstrates better
enabling them to actively contribute to economic growth and
3. Groups with irregular and low incomes customer acquisition and credit analysis processes; help expand employment opportunities. performance compared to male debtors, with a current
collectability rate of 99.49% and a Non-Performing Loan rate of
4. Communities living in remote areas • Enhancing branch capabilities through one-stop solutions In the last five years, Bank Mandiri has maintained an active 1.12% as of December 2023. In contrast, the current collectability
5. People with disabilities for customers; debtor portfolio of 692,043 female micro-entrepreneurs with a
rate for male debtors is 94.22%, with a Non-Performing Loan rate
6. Laborers without legal identification documents • Mentoring micro customers for advancement; total credit of Rp44.5 trillion through KUR and KUM products.
of 1.58%.
• Improving the micro-credit process; This figure positions female micro-entrepreneur debtors of Bank
7. Rural and suburban communities
Mandiri as the largest segment of the total debtors, constituting
8. Areas with limited access to formal financial networks due • Expanding partnerships with Fintech and utilizing branchless
to geographical constraints, dispersed populations, and low banking agents.
financial literacy PERFORMANCE OF KUR AND KUM
692,043
INVOLVEMENT IN MICROFINANCE 601,769
Bank Mandiri consistently promotes the improvement of MSMEs’ business competitiveness to foster economic growth and job 512,573
467,898 44,488
creation through Micro Credit financing. When disbursing micro credit to MSMEs, Bank Mandiri employs a downstream-upstream 429,035 38,965
384,838 389,854
scheme in accordance with its regional strategy, optimizing the value chain ecosystem of Bank Mandiri’s wholesale customers. 33,113
27,072
22,595
34,400
People’s Business Credit
31,541
17,071 27,073
13,996
21,400
The People’s Business Credit (KUR) is a form of working capital and/or 16,469
10,953 10,087
investment credit extended to individual debtors, businesses, and/or productive 6,571 7,425 6,118 6,126 6,040 7,424
5,672
business groups that lack additional collateral or have insufficient collateral. The
KUR program is designed to enhance access to financing for MSMEs, thereby 2017 2018 2019 2020 2021 2022 2023
enhancing their business capacity and competitiveness.
Number of Debtors
Bank Mandiri, with its core competence as a wholesale bank, is developing a
People’s Business Credit (KUR) distribution strategy based on an ecosystem. In
this strategy, Bank Mandiri collaborates with wholesale debtor companies to
recommend their affiliated companies for financing through KUR.
Through the implementation of this ecosystem-based KUR distribution strategy, 43% DEBTORS 57%
micro, small, and medium enterprises (MSMEs) can benefit from improved
access to financial services, including expedited KUR disbursement processes. Rp37,35trillion Portfolio Rp44.49trillion
Since the inception of KUR distribution in 2008 until 2023, Bank Mandiri has 528,942 debtors Amount 692,043 debtors
disbursed KUR to 2.8 million debtors, with a disbursement limit of Rp224.91 94.22% Current Collectibility 95.49%
trillion. 1.58% 1.12%
NPL
196 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 197
Page 40
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Digital Innovation to Improve The most popular banking application in Indonesia with significant growth
Financial Service Access
Since its launch in October 2021 until December 2023, the Livin’ application has been utilized by 21 million customers, marking a
[OJK F.26] 55% year-on-year (YoY) increase from 2022. The recorded transaction value in 2023 was approximately Rp2,400 trillion, reflecting
a 37% increase compared to 2022.
With more than 35 million customers, Bank Mandiri is one of improvement, business process re-engineering, and provision
the retail banking players with a strong presence in the market. of high-performance infrastructure. Livin’ Tap-to-Pay
Through progressive business transformation, Bank Mandiri has NEW Launched in Dec-23
embarked on a digital journey, continuously offering cutting- 2. Developing Digital Native, Bank Mandiri is developing digital
edge digital innovations to customers and business partners. native service products through various innovations with
customers as the focus of product development, enabling First in the Industry
Bank Mandiri has launched the Super App Livin’ by Mandiri and
First bank in Indonesia to provide tap to
the Super Platform KOPRA, both of which have made significant the provision of end-to-end digital banking services.
pay feature through smartphone
contributions to the bank’s financial performance.
3. Modernizing Distribution Channels, Bank Mandiri is
Bank Mandiri is constantly striving to strengthen its digital banking modernizing its digital channels to enhance customer Convenient, Quick & Simple
application, focusing on the features offered, customer data experience, focusing on enhancing both User Interface No need to bring your wallet
security, and accessibility to expand the user base, particularly for anymore! Just Tap your Phone
(UI) and User Experience (UX), while also catering to diverse
individuals without access to or underserved by financial services. and payment is approved
customer needs. This initiative involves the ongoing
The bank’s digital banking aims to offer convenience for customers
development of Livin', Kopra, and Smart Branch.
to conduct transactions and boost customer transaction volume.
Globally Accepted & Multi-currency
In carrying out digital transformation during 2023, Bank 4. Digital Ecosystem Expansion, Bank Mandiri is furthering its
Accepted by payment networks overseas and can use
Mandiri has implemented a digital banking roadmap that has collaboration with third parties or strategic partners in the a SoF account in the country’s local currency to avoid
continuously refined to meet customer needs. This roadmap development of its digital ecosystem, as well as expanding exchange rates.
consists of five main components: access and the digital ecosystem for its customers. This allows
customers to directly access Bank Mandiri's products and
1. Levelling Up Digital Readiness, as the foundation for digital
transformation, Bank Mandiri focuses on improving the services through other channels.
reliability of fundamental IT systems, such as core banking
Comprehensive financial use cases, all within one app
#Downloads ~37 Mn 68% YoY 45% YoY
# Registered 2819
Users ~23 Mn 45% YoY
1944
Monthly Active
Users
~60%
Livin’ is a digital platform in the Transaction Volume (in Mn)
form of a mobile application The Highest Growth of Daily Account Opening In Indonesia
that offers comprehensive
banking solutions and caters 25 35% YoY
to the end-to-end needs of
customers. 21 3264
20 2435
Livin’ is equipped with a wide array of features and services, including 18
instant access to favorite menus, QR for fund transfers, tap to pay, savings 17
plans, time deposits, branch service reservations, linkage with e-wallets,
e-money top-ups, foreign currency transfers, and lifestyle services through
2022 1Q23 2Q23 3Q23 4Q23 Transaction Value (in Rp Tn)
Livin’ Sukha.
# of Daily Avg. New To Bank Accounts Opened Through Livin’ (In FY 2022 FY 2023
Thousands Unit)
198 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 199
Page 41
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Integrated Bill Payment with E-commerce
QRIS Pay / Bank Transfer
and E-wallet
First in the Industry First in the Industry ‘One stop solution for all your lifestyle’, Livin’ SUKHA offers transaction convenience such as purchasing
Providing multiple SoF for QRIS Smart Payment integrating electricity
airplane tickets, train tickets, entertainment, buying game vouchers, credit applications, and more
Payments (savings account, credit & phone bills and e-commerce invoices without the need to switch applications.
card & paylater) with Livin’
Transactions Volume
E-Wallet Linkage to facilitate seamless (in Thousands)
QRIS Transaction Volume (in Mn) transaction with top digital players
4,3x
QRIS Transaction Volume (in Mn) 187
4X 31%
210 760
44
580
2022 2023
Transactions Value (in Rp Bn)
QR Multiple SoF 42 2,3x
(Saving Account, CC, 77
Paylater)
2022 2023 2022 2023 33
44
2022 2023
Providing Convenience for Customers to Convert
Installments & Apply for Power Cash Through Livin’
Livin’ Paylater
of SUKHA Users (in Mn)
2,5X
Disbursement of Credit Card 1,6x
Installment Conversion through Livin' Livin’ Personal loan 5
4.2
(in trillion Rupiah) Disbursement (in Rp Tn) 2
2X 2.5
6 2022 2023
3 of Total Personal Loan 2022 2023
~10% Disbursed Through Livin’
Buy Now Pay Later
2022 2023
~81% Credit Card Installment
Conversion through Livin'
LIVIN’ MERCHANT PERFORMANCE
Value of Power Cash
Rp2.3 trillion Total disbursement
through Livin' A cashier application that can streamline MSME million 1.7 trillion 24.9 million 2.6
of the total Power Cash
operations, enabling tasks such as sales recording, registered users Transaction Sales volume in
~27% Credit Card disbursement Digital Payroll Loan Buy Now Pay Later
frequency Livin’ Merchant
Addressing The Needs Of Retailers With Modern Merchant Platform!
Power Cash Credit Card Installment is distributed through Livin'
product stock checks, and sales disbursement to be
Credit Card Conversion
~Rp42 Bn Total Disbursement Since Launched managed within a single application.
Enabling MSME Merchants To Go Digital
Transfer Valas: Livin’ Investment:
Instant Cross-border Foreign Exchange Transfer Democratizing Investment To Unlock Wealth Creation
+
Unique Value Propositions Tailored
More Upcoming features in 2024
for MSME Merchants
1st bank to introduce cross-border Accelerate retail investor growth by 4x and
15 minutes 3X settlement
transfer with transparency, real time, and established as the primary platform for onboarding per day
cost-effectiveness bond sales, securing 60% shares bankwide
Modern and
Forex Transaction Volume (in thousands) Mutual Funds & Bonds Trx Value (in Rp Tn) 0% MDR for
Complete
mechants
Point-Of-Sales
1st bond offered 9.0
26.8 via Livin’ 7.7
As of Dec-23
20.0 Total Downloads ~1.9 Mn
4.1
3.5
10.4 Registered Merchants ~1.7 Mn DIRECT PURCHASE
FROM DISTRIBUTOR
FNB ORDER
5.8 1.2 1.3 MANAGEMENT
INVENTORY
0.4 PURCHASE
Multiple Payment Integrated DIRECT PURCHASE FINANCING
Point-of-Sales Inventory System
2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Acceptance Settlement Report FROM DISTRIBUTOR
1Q23 2Q23 3Q23 4Q23 Mutual Fund, Bond & Stock
Cross Border Remittance Government bonds’ offering 1 bond 1 bond 2 bond 1 bond
Portfolio Integrated With Mandiri offered offered offered offered 1 |
Sekuritas
200 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 201
Page 42
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
LIVIN’ MERCHANT DISTRIBUTION
46% (29K) core merchants are in 15 urban cities, while 54% (34K) are in urban cities.
Kopra is a platform that offers comprehensive financial services
for all the business needs of Bank Mandiri’s customers, including
micro and small and medium-sized enterprise (UMKM) customers,
enabling them to meet all their business needs in a single access
point. Kopra is accessible anywhere and anytime, and is equipped
with data analysis and customization tailored to the customer’s
business.
Kopra portal Kopra Embedded Finance
A versatile portal accessible from various devices and platforms. A versatile portal accessible from various platforms and
connected to the customer’s Enterprise Resource Planning
(ERP) using Application Programming Interface (API).
PORTAL
No Urban City Number of % No Urban City Number of %
Merchants Merchants
1. Jakarta 12,745 20 9. Balikpapan 986 2 Embedded Finance
2. Bandung 2,711 4 10. Denpasar 794 1
3. Surabaya 2,355 4 11. Bandar Lampung 745 1
4. Semarang 1,621 3 12. Banjarmasin 659 1
5. Bekasi 1,579 3 13. Pekanbaru 542 1
6. Palembang 1,211 2 14. Jayapura 338 1
7. Makassar 1,189 2 15. Pontianak 168 0.3
8. Medan 1,156 2 16. Others 34,510 54
Highest digital transactions
Kopra has been utilized by over 1,000
of Indonesia’s largest companies, with a
KOPRA Non-interest KOPRA Transaction
transaction volume of Rp13.950 trillion in 2023,
Income. (Rp Billion) Value (Rp trillion)
marking a 5% increase from 2022.
2,201 19,100
Grew 10% YoY Grew 4% YoY
of Bank Mandiri’s customers are
KOPRA users
(Per December 2023)
202 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 203
Page 43
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
KOPRA VARIANTS
Cash Lite Billing Reconciliation Mobile App
Lite version of Cash Management service Facilitates the activation process of billing A smartphone-based Kopra application for
aimed at individual, micro, and small and data, identification and reporting of receipts, checking financial information, transaction
medium-sized enterprise customers. and reconciliation of receipt transactions approval, and other activities.
Portal Host to Host Partnership equipped with an executive dashboard.
A web-based digital solution An API-based digital solution that enables customers to Collaboration with principals and/
that enables customers seamlessly integrate their company’s system with the or third parties to provide a unique
to access a wide range of bank’s system for payment, liquidity, trade finance, and banking experience for customers
business services through a fast and efficient access to information. beyond transactional activities to
single platform. develop their business.
KOPRA SERVICES
Hospital Solution Beyond Borders
Facilitates hospital customers in Internet banking service for Bank Mandiri’s
Trade Smart Account processing payment receipts from Business and Corporate Customers,
Cash Management
patients. facilitating financial transactions with
Facilitates effortless monitoring of bank Facilitates a variety of Trade Finance product Utilizes virtual current sub-accounts for Subsidiaries abroad in Singapore, Hong
accounts and conducting diverse financial transactions, including LC or SKBDN and BG centralized fund management, offering Kong, Timor Leste - Dili, and China –
transactions. issuance, along with online trade transaction ease of allocation, recording, and Shanghai.
financing. transaction identification.
KOPRA FEATURES
Value Chain Foreign Exchange Custody
Processes, sends, accepts, and orders Executes foreign exchange transactions Performs Custodian service inquiries such
payments for electronic data bills, including with exclusive online rates and real-time as Safekeeping Positions, Settlement Status,
Virtual Assistant Giro Online Now
the execution of financing. updates. Corporate Actions Event & Notification,
including direct instruction delivery. Convenience in accessing Ease of opening a giro account
information about Bank Mandiri’s online.
corporate segment products
through audio, chatbot, and
direct and personal video call
services. Other Bank Account
Information
One dashboard for various
financial information of
On Boarding Transaction
companies in other banks.
Channel
Facilitates customers to apply
for Bank Mandiri’s wholesale Mobile Token
e-channel registration online with
Secure dynamic digital
digital form filling and document
security for transaction
signing.
authorization.
204 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 205
Page 44
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Hybrid Branch
Smart Branch with a limited assistance concept
focused on meeting the business needs of customers.
Smart Branch is Bank Mandiri’s commitment to
enhancing convenience and delivering the best
banking experience for customers. This innovative
concept represents the digital transformation of 241
conventional branch offices. Bank Mandiri’s Smart
Branch features modern and comfortable room
designs, a team of reliable and trustworthy staff,
as well as new secure, digital-based, and efficient
processes.
THREE TYPES OF BANK MANDIRI SMART BRANCHES
Upgraded Branch
Smart Branch with a digital concept to serve digitally savvy customers.
Digital Box
Smart Branch with a full assistance concept for
customers needing expert assistance and complete
financial solutions.
206 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 207
Page 45
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Smart Branch has been integrated with Livin’, Kopra, Cash Recycler cards and opening savings accounts, Video Conference Boxes for
Machine, Customer Service Machine, and other Bank Mandiri banking product advice, branch services via Livin’, and eForms
MORE EFFICIENT TRANSACTION PROCESSES
service networks. Smart Branch is also equipped with deposit- for replacing debit cards and opening savings accounts.
withdrawal ATMs, Customer Service Machines for replacing debit Average transaction processing time during peak hours (in minutes)
Livin’ E-Reservation E-form Customer Journey
SMART BRANCH ADDED VALUE
Smart Branch
New secure processes
Modern and comfortable
room design
DIGITAL BANKING
E-Channel List Description 2023 2022 Growth (%)
Livin’ by Mandiri Apps Number of Users 22,767,022 15,815,431 44%
Reliable and trustworthy Transaction Frequency 2,818,862,776 1,944,081,931 45%
selected staff
New processes based Fast new processes Transaction Amount Rp3,214,632,620,894,650,00 Rp2,435,023,256,155,220 32%
on digital, fast, and easy
Livin’ by Mandiri Web Number of Users 14,389 85,728 -83%
processes
(Closed as of February 6, Transaction Frequency 118,203 17,362,328 -99%
2023) Transaction Amount Rp303,526,111,582 Rp17,304,594,600,218.50 -98%
SMS Banking Number of Users 9,644,254 136,245 6.979%
SMART BRANCH FEATURES (Closed as of April 14, 2023, Transaction Frequency 11,040,819 101,343,280 -89%
only available for non-financial
transactions) Transaction Amount Rp6,406,029,573,793.00 Rp29,841,055,493,947,80 -79%
ATM Number of Users (BMRI Only) 17,260,005 9,154,442 89%
Transaction Frequency 1,044,345,126 1,035,074,112 1%
Transaction Amount Rp774,891,350,110,742.00 Rp795,103,153,088,190 -1%
E-Commerce Transaction Frequency 25,030,691 24,514,586 2%
Transaction Amount Rp27,471,139,174,170.00 Rp25,456,816,184,748 8%
Deposit-Withdrawal ATMs Customer Service Machine Video Conference Box (V-Box)
E-Money Number of Active Cards 15,724,583 7,330,757 115%
To serve cash deposits, withdrawals, and To serve debit card replacements and To serve banking product advice.
other non-cash transactions. opening savings accounts. Transaction Frequency for Pur- 1,317,281,617 1,181,895,707 11%
chases
Transaction Amount for Pur- Rp22,110,798,092,862.00 19,901,980,721,432 11%
chases
Transaction Frequency for Top- 181,234,778 155,785,276 16%
ups
Transaction Amount for Top-ups Rp22,382,041,226,862,00 Rp20,249,042,517,716 11%
EDC Number of Merchants 201,309 190,110 6%
Branch Services Via Livin’ eForm in Smart Branch
Transaction Frequency 262,942,792 220,517,931 19%
To schedule branch visits through the To serve debit card replacements and Transaction Amount Rp163,400,688,912,696 Rp122,4159,258,935,166 33%
“Branch Services” feature in Livin’. opening savings accounts.
Smart Branch Number of Branches 249 241 3%
208 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 209
Page 46
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
MANDIRI PINTAR
manage new productive microcredit applications and top-ups
MANDIRI AGENT ACHIEVEMENTS
for existing productive microcredit.
Customers and the public are no longer required to visit Bank
Mandiri branches to apply for microcredit. Mandiri’s over 6,700 130,100
micro-marketers, located throughout Indonesia, can now directly MANDIRI AGENT
process credit applications from the customer’s location.
Bank Mandiri is dedicated to enhancing Mandiri Pintar’s features
and has recently launched the latest version of the application.
This updated version of Mandiri Pintar has been integrated with
86.8 million Rp92.8 trillion 2.8 million
various supporting systems for micro-marketer debtor eligibility
Transaction Transaction volume Mandiri Agen customer
checks, including Dukcapil and SIKP (KUR). frequency savings accounts
Through the latest Mandiri Pintar application, credit can be
Bank Mandiri introduces the digital microcredit platform, Mandiri Best Laku Pandai Agent
disbursed within one day. During 2023, Bank Mandiri disbursed
Pinjaman Tanpa Ribet (Mandiri Pintar), to drive the growth of the with an Excellent rating in
credits of Rp 553 billion to 10,414 debtors through the Mandiri the 2023 Customer Service
MSME sector in Indonesia. Mandiri Pintar (Hassle-Free Loan) offers Pintar application. Quality Survey
a streamlined credit application process, eliminating the need Rp17.6 trillion 24,000 Rp2.8 trillion
for customers to provide extensive data and documentation. Bank Mandiri monitors the activities of micro-entrepreneurs Organizer: SWA magazine
Mandiri Agen Productive microcredit Productive
through the Sahabat Pintar platform, which fulfills the bank’s
With this application, micro-marketers can swiftly process customer funds referral accounts microcredit referrals
requirements for analyzing business strategies, including funding, volume
credit applications via smartphones, providing customers with
lending, and credit risk mitigation in the micro segment.
approvals within 15 minutes of the marketer submitting debtor
data through Mandiri Pintar. Additionally, the application can
MANDIRI AGENT
MANDIRI AGENT ECOSYSTEM DISTRIBUTION
To enhance financial literacy in Indonesia, Bank Mandiri, as a services utilizing the Mandiri Agent application and EDC Mini
catalyst for development, offers specialized services through ATM transaction facilities. Bank Mandiri has effectively boosted
the Mandiri Agentt program. Since 2014, Mandiri Agent has transaction frequency by 86.9 million transactions and increased
collaborated with individual and corporate clients to deliver the transaction volume of Laku Pandai agents to Rp92.82 trillion
Laku Pandai services via the Mandiri Agent app and EDC Mini in 2023. 75% 11% 4% 10%
ATM transactions. The community’s access to banking and non-
banking transactions, opening savings accounts, and applying for Bank Mandiri recognizes the significance of promoting financial
productive microcredit have been significantly facilitated by the inclusion and literacy within the community. In line with this
commitment, Mandiri Agent not only caters to banking needs Consumer Goods Telecomunication Plantation Others
presence of Mandiri Agent, yielding a positive impact.
but also provides education on financial and digital literacy to
The deployment of Mandiri Agent has expedited the financial
the public. Enhanced financial inclusion not only benefits the
literacy initiatives within the community, with agent locations
community but also fosters inclusive economic growth, particularly
strategically positioned in ecosystem centers, including agricultural MANDIRI AGENT PERFORMANCE
in reaching out to communities that have not been served by
ecosystems, gas stations, telecommunication outlets, and
conventional financial systems.
MSME activity centers such as markets. Digitalization plays a Description Unit 2023 2022 2021
pivotal role in enhancing financial services to be more inclusive Throughout 2023, Bank Mandiri has conducted 133 “UMKM Go Individual Mandiri Agent People 132,316 156,049 150,377
within the aforementioned ecosystem locations. The Mandiri Digital” education events for value chain retailer partners of Savings Account via Mandiri Agent Amount 2,800,000 2,287,036 1,808,173
Agentt application is equipped with features that streamline wholesale Bank Mandiri customers, with a total of more than
the onboarding process for Laku Pandai agents and customer Mandiri Agent Fund Volume in Billion Rupiah 17,600 12,443 12,591
4,300 participants, held in 21 Bank Mandiri BUMN Houses across
transaction services, making it easier to access anytime and Indonesia. Transaction Volume in Trillion Rupiah 92.82 88.65 86.80
anywhere. Number of transactions million transactions 86.83 69.27 72.59
Bank Mandiri’s commitment to achieving the government’s target
In 2023, Bank Mandiri established partnerships with 132,462
of reaching a 90% financial inclusion rate by 2024 is evidenced by
business players, mainly focusing on the value chain partners
the achievement of the Best Laku Pandai Agent with an Excellent
of its wholesale customers. Mandiri Agent has enabled the
rating in the 2023 Customer Service Quality Survey organized by
opening of accounts for 2.8 million ecosystem agent customers
SWA magazine.
and has gathered public funds of Rp18 trillion through digitalized
210 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 211
Page 47
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
DIGITAL OFFERING New Simple (Portfolio Monitoring System & Lead Action)
Bank Mandiri has a new underwriting system to expedite the credit facilities and monitoring the implementation of projects
MSME credit process with the following features: financed by Bank Mandiri;
1. Installment Monitoring: monitoring the debtor’s monthly 4. Pipeline Monitoring: monitoring monthly credit application
obligations to the bank; plans being processed by RMs;
2. Early Warning System: providing information on debtors at 5. Digital Offering Monitoring: monitoring credit applications by
prospective debtors who register through digital credit offers;
risk of deteriorating quality, issuing alerts, and recommending
action plans for these debtors; 6. Special Rate Application Automation: automated submission
of special rate debtor applications through a system/paperless
3. Obligo Monitoring KNK Contractor: recording the use of credit process.
facilities specifically for managed debtors with transactional
Bank Mandiri provides banking and financing access through customer contact rates, and marketing new products that
NEW SIMPLE FEATURES
digital offering with various backgrounds and considerations, prioritize increasing the number of customer transactions.
such as expanding customer reach, introducing and Customers selected to receive digital offerings are those who
Obligo monitoring Portfolio monitoring
familiarizing the public with digital offerings, minimizing meet certain criteria established by the Bank.
operational costs and increasing time efficiency, increasing
Pipeline monitoring Early Warning System
DIGITAL OFFERING IMPLEMENTATION FLOW
CPA automation and Installment simulation
special rate application
Through PadiUMKM, a platform for MSMEs to trade
with state-owned enterprises, Bank Mandiri
is available to support MSME vendors by
offering invoice financing facilities. This
service can be accessed directly by MSME
vendors through the PadiUMKM application
Bank Mandiri will send a digital offer containing a Landing Page The applications from customers, along with the submitted data or website, which has been integrated with
link to selected MSME customers through digital channels such and documents, are automatically input into the Leads Monitoring Bank Mandiri’s Landing Page. The financing
as WhatsApp Business, Livin’, and Kopra. Interested customers can system for further distribution to Relationship Managers (RMs). RMs facility provided is short-term, with a maximum
access the link to apply for financing, choose the desired product must contact customers within three working days. Subsequently, duration of three months and a facility limit of up
type, determine the facility limit, and tenure. Customers can then RMs conduct credit analysis based on the results of customer visits to Rp200 million. The total credit disbursement
complete the required personal/company data as credit application and perform underwriting processes using LOS IPS or New LOS SME. in PadiUMKM was Rp1.7 billion, benefiting 47
requirements. debtors.
In 2023, Bank Mandiri provided financing of Rp465 billion to MSMEs
through digital offering implementation.
212 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 213
Page 48
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
MANDIRI SME CENTER
MANDIRI VALUE CHAIN
The Mandiri SME Center is designed to meet the needs of within a certain radius of the designated unit. The Center aims
SME Segment distributors/buyers) affiliated with Bank Mandiri's wholesale customers by providing four access solutions required by SME to provide a platform for SME players to obtain credit financing
segment to access credit financing. entrepreneurs. As of December 2023, there are 28 SME Centers more quickly and easily, as well as to enhance their competencies
Financing for the value chain (suppliers and buyers) of Bank located throughout Bank Mandiri's operational areas. through literacy support/training such as tax advisory, financial
• The Value Chain financing process for SME players is
Mandiri's wholesale customers: report education, and others.
conducted digitally through the Mandiri Financial Supply The Mandiri SME Center is a business model aimed at
• Financing for the value chain (suppliers and buyers) of Bank Chain web-based system for value chain-based transactions comprehensively developing the business potential of SME players
Mandiri's wholesale customers aims to establish a derivative (relationships encompassing Suppliers, Principals, and
ecosystem (Value Chain) that encourages SMEs to explore Distributors), providing financing solutions for both Accounts
new potential business opportunities. Payable and Accounts Receivable of customers.
PERFORMANCE OF SME CENTER
• Financing through this Value Chain mechanism offers ease • Throughout 2023, Account Receivable Financing amounting
of application based on the Risk Acceptance Criteria (RAC), to Rp6.6 trillion and Distributor Financing totaling Rp11.6 Description Unit Performance in 2023
streamlining the process for SME players (suppliers and trillion have been disbursed. Number of debtors Amount 876
Credit limit Rp Trillion 2.6
Ending BADE Rp Trillion 1.9
Average BADE Rp Trillion 1.7
Average CASA Rp Billion 793
Credit quality
• Category I % 98.4
• DPK % 0.9
• NPL % 0.6
Mandiri SME Center Services
Banking and Capital Access Network & Marketing Access
Easy, fast, and flexible financing processes for all SME players, • Assisting SME players in branding their products
Micro Segment including new SME players or New To Business, with offerings through collaboration with branding consultancy
accessible through digital channels. activists.
Additionally, Bank Mandiri operates the Mandiri Value Chain KUM Talangan is a revolving credit facility in the form of a
• The SME Center acts as a mediator for the
ordering platform, which can be utilized by businesses operating ceiling that can be utilized whenever needed to fulfill retailer implementation of “Business Matchmaking”, including:
gas stations to place orders for 3 kg LPG gas with LPG agents. stock requirements. The application process for KUM Talangan
Access to Human Resource Capability Enhancement – Among SME players
The administration of subsidized gas orders can be efficiently is easy and straightforward. Prospective borrowers can apply for
– SME players with Commercial or Corporate
managed, facilitating gas station operators to place orders financing without the need to visit a Bank branch office.
• Enhancing RM’s ability as a Financial Advisor for SME players: customers/debtors
anytime and anywhere with LPG agents. lending, funding, transactional, treasury, and others.
Furthermore, the payment terms provided are quite flexible on – SME players with the Ministry of Foreign Affairs to
In 2023, a total of 65,923 gas stations from 2,522 LPG agents a daily basis, adaptable to the retailer's needs when using this • Collaboration with related institutions for training in licensing, promote SME products abroad
have utilized the Mandiri Value Chain. The Mandiri Value Chain facility as a source of payment when making purchases from taxation, bookkeeping, and others.
– Assisting SME players in online promotion and sales
platform has also been facilitated with financing options for gas Distributors. The benefit for Distributors with this facility is the • Providing SME Portal (funding, transactions, lending) catering through collaboration with platforms, e-commerce,
certainty of payment from retailers and a reduction in cash all customer needs. and social media.
stations accessible through the KUM Talangan Pembelian menu.
handling risks. A total of 3,656 retailer applications have been
Value chain services are currently implemented in the
submitted for KUM Talangan facilities since the beginning of the
telecommunications and FMCG sectors, providing Micro Information Technology (Digital) Access
partnership, with credit disbursement totaling Rp120 billion.
Business Credit Guarantee (KUM Talangan) financing facilities.
The onboarding process and disbursement of KUM Talangan • Introducing and providing training for technology tools needed by SME players. Bank Mandiri collaborates with technology
credit can be conducted through the ordering platform owned and digital startup companies.
by value chain partners. • Holding events or expos to engage SME players with start-up companies offering technology-based digital products or
services.
214 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 215
Page 49
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
CREDIT DISTRIBUTION TO FARMERS FINANCIAL LITERACY
THROUGH OIL PALM PLASMA COOPERATIVES Financial literacy initiatives for the public can play a crucial such as smart investing in the digital era, financial planning, and
role in enhancing individuals’ understanding and proficiency entrepreneurship. In 2023, the Mandiri Education seminar was
Bank Mandiri provides financing to farmers through Oil Palm The Core Company is a member of the Bank Mandiri debtor in utilizing financial services and making sound, responsible held twice with a total of 1,643 participants from the general
Plasma Cooperatives with a single management cooperation business group. financial choices. Bank Mandiri is proactively engaged in public and the academic community of Padjajaran University
agreement between the Cooperative and the Core Company for organizing financial literacy programs for the wider community and the University of North Sumatra.
As of December 31, 2023, Bank Mandiri has channeled financing
at least one planting cycle (approximately 25 years). The Single and students from diverse universities. One such initiative is
of Rp8.42 trillion (credit plafond of Rp11.79 trillion) with 0% Furthermore, other financial literacy activities carried out by Bank
Management partnership pattern involves the Core Company the Mandiri Education seminar ‘Livin’ Up Your Financial’, which
NPL. Financing was channeled to 94 thousand farmers who are Mandiri for the public include:
handling the development and upkeep of the plasma garden, features knowledgeable speakers addressing pertinent topics
members of 231 Cooperatives, with funded land covering an
procuring the plasma garden’s produce, and deducting the sales
area of 160 thousand hectares.
proceeds to fulfill the plasma farmers’ obligations to the Bank. FINANCIAL LITERACY ACTIVITIES IN 2023
NAME OF ACTIVITY DATE OF IMPLEMEN- NUMBER OF PAR- PARTICIPANTS
LOAN DISBURSEMENT THROUGH THIRD PARTIES TATION TICIPANTS
Ngaso Webinar June 2023 59
Bank Mandiri partners with P2P lending fintech and marketplaces Bank Mandiri has also collaborated with marketplaces to provide July 2023 163 Grocery Store MSME
to disburse credit to the public. Through this partnership, Bank credit facilities to online sellers accessible through the sales menu.
October 2023 223
Mandiri efficiently and extensively distributes credit to MSME Credit applications from the marketplace platform are sent to
players within the primary business ecosystem. The credit Padi UMKM Webinar December 2023 94 Padi app user MSME vendors
Bank Mandiri through H2H.
distribution mechanism encompasses both channeling/inorganic Productive Business Capital Socialization at November 2023 100
In addition, online sellers who are Bank Mandiri customers can Invited MSMEs
schemes (such as Forwarder Financing from the Meratus Line Red and White MSME Event
Ecosystem in collaboration with Modal Rakyat) and referral/ easily access financing facilities through the Livin’ application. To Livin’ Up Your Financial 2023 1,643 General public & academic
organic methods, including financing referrals in collaboration date, Bank Mandiri has distributed credit of Rp6.38 billion to 560 community of Padjadjaran
with Batumbu, Alami, Fishlog, and Awan Tunai. sellers through the marketplace platform. University and University of
North Sumatra
Mandiri Talks 9 August 2023 10,850 Students and academic
community of University of
Indonesia
Partnership with educational organizations related to financial literacy
Education is the key to unlocking the potential of the nation's
intelligent next generation, and Bank Mandiri recognizes its
pivotal role to support education and the development of
the nation's next generation potential for the advancement
of Indonesia through the improvement of students' financial
management skills. In a major step towards creating that
bright future, Bank Mandiri is committed to becoming the
University's Knowledge Partner for Our Nation's Better
Future through collaboration with universities. To realize
this commitment, Bank Mandiri, through the University
Partnership program, has taken several initiatives including
sharing and educating on finance, organizing business
case competitions, offering scholarships, providing career
mentoring and internships, collaborating in research and
innovation, as well as delivering financial solutions to both
national and private universities.
Regarding this issue, Bank Mandiri consistently conducted
financial education sessions for students at several universities
in Indonesia, including Andalas University, University of
Sumatera Utara, and Padjajaran University. The financial
216 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 217
Page 50
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
TARGET SEGMENT
Student Emerging Wealth Key Stakeholder
UNIVERSITIES
Age: 19-30 Age: 35-45 Age: 40-60
Profile Monthly income: Rp4 - 8.5 million Monthly income: Rp8.5 - 34 million Monthly income: Rp34 - 68 million
Status: Undergraduate (S1), Status: Doctoral degree students, Status: Rector, Deans, and their
Postgraduate (S2) parents, university staff deputies
• Financial security & social status • Family planning • Education for children in
enhancement • Vehicle purchases international/foreign schools
Life Goals • Starting small businesses • Developing wealth and business
• Long-term savings
• Domestic traveling scale
• Improving living standards
• High-end travel offers
• Food purchases & daily shopping • Online shopping • Shopping
• Online shopping • Hanging out with friends • Managing family and staff
Daily Needs
• Internet finances
• Maintaining health
• Student loan programs • Pre-approved programs for • Pre-approved programs for
• Education on safe investment Home Loans (KPR), Vehicle Loans Home Loans (KPR), Vehicle Loans
Product instruments for students, (KKB), and SME Loans (KSM) with (KKB), and SME Loans (KSM) with
introducing Mandiri Group specific limits. specific limits.
products • Offering short and long-term • Offering Corporate Cards
investment instruments, such with attractive features and
as for domestic travel, child customization tailored to needs,
education needs, etc. such as for travel and leisure.
• Offering research bridging funds • Product bundling including
shares, reksadana, and insurance
education program, themed "Livin' Up Your Financial," aimed
to enhance students' awareness of investment and finance. On
October 27, 2022, Bank Mandiri, in collaboration with Andalas
University, held a financial education event at the Convention Hall
of Andalas University, attended by 514 students. Furthermore, on
June 27, 2023, 463 students participated in the financial education
program held by Bank Mandiri at Bale Sawala Auditorium,
Padjajaran University. Subsequently, on October 29, 2023, Bank
Mandiri held a financial education event at the Auditorium of
University of Sumatera Utara, drawing an enthusiastic response
from students, with 1,180 participants. Through the program and
collaboration with universities, Bank Mandiri actively contributed
to the advancement of Indonesia.
In addition to conducting Financial Education Initiatives, Bank offered based on the unique profiles, goals, and daily needs of
Mandiri actively offered loan products, savings, investments, each university segment market. This comprehensive approach is
and other financial services tailored to various target markets. essential to effectively reach all segments and fulfill their specific
For universities and students, customized Bundling products are needs.
218 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 219
Page 51
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Supporting Financial Inclusion, Bank Mandiri Opens
10,000 Savings Accounts for People with Disabilities
SAVINGS
Bank Mandiri offers a diverse range of savings products designed to meet the unique profiles and requirements of its customers. These
products provide flexibility in terms of account opening, allowing customers to open accounts at Bank Mandiri branches, non-branches
such as Mandiri Agents, or online through Livin’ or join.bankmandiri.co.id.
Mandiri Agent, as a channel for opening accounts, has facilitated the opening of 2.8 million accounts by the end of 2023. This demonstrates
the significant contribution of Mandiri Agent in extending banking services to customers who were previously underserved in the
financial sector.
Business Partner Savings (TabunganMU) Tabunganku
TabunganMU is a rupiah-denominated savings account, designed Savings accounts with simple and minimal requirements, jointly
for individuals to meet their banking transaction needs at a offered by banks in Indonesia to foster a culture of saving and
reasonable cost. enhance the well-being of the people.
Migrant Worker Savings (Tabungan TKI) Tabungan Simpanan Pelajar (SimPel)
A rupiah-denominated savings account for Indonesian Workers Tabungan Simpanan Pelajar (SimPel) is a type of Mandiri
Bank Mandiri continues to promote inclusivity for people
or Prospective Indonesian Workers/Migrant Workers and their Savings product specifically designed for students in early
with disabilities through the Inclusive Economic Acceleration
families, subject to the terms and conditions set by the Bank. childhood education, primary, secondary, and high school
Movement by opening 10,000 new savings accounts for
levels, aiming to educate Indonesian children about the
people with disabilities in West Java, Central Java, and
importance of saving from a young age.
Tabungan NOW Yogyakarta. Bank Mandiri provides various types of savings
products tailored to the needs of prospective customers,
Tabungan NOW is a rupiah-denominated savings product,
Simpanan Mandiri Makmur (SiMakmur) ranging from Tabungan Now, TabunganMU, and SimPel
designed for individuals seeking convenience and flexibility. It
The SiMakmur service is an individual rupiah-denominated savings for people with disabilities who do not possess a National
allows for account opening anywhere and anytime through the
account that leverages technology and information from Mandiri Identity Number (NIK).
Livin’ by Mandiri app or via join.bankmandiri.co.id, and enables
online and offline transactions using a variety of features and Agents, providing easy access to banking services for the entire This program also offers fundamental financial literacy
channels provided by Bank Mandiri. population. SiMakmur offers the advantage of no minimum training to individuals with disabilities, covering topics
account balance and no monthly administrative fees. Customers such as an introduction to banking products, financial
Branchless Banking Savings with SiMakmur accounts can conduct transactions without visiting management, investment comprehension, financial
a bank branch, only needing to visit the nearest Mandiri Agent. transactions, and guidance on becoming a young
(Tabungan Branchless Banking) The SiMakmur service is guaranteed by the Deposit Insurance entrepreneur for people with disabilities. New customers
Tabungan Branchless Banking is an individual rupiah- Corporation (LPS). from the disability community can promptly utilize ATM cards
denominated savings account that utilizes technology and and the Livin’ application to access services and carry out
information from branchless banking agents (Mandiri Agents) financial transactions.
in collaboration with Bank Mandiri, enabling the entire population
to easily access banking services (financial inclusion).
220 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 221
Page 52
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Sustainability Research Esg Report 2022 – Industry For Tomorrow: Towards Esg
Implementation In Indonesia
& Policy Advocacy The 2022 annual report from the Mandiri Institute represents the inaugural sustainability study report
aimed at informing Bank Mandiri’s ESG-related policy formulation. Drawing on data gathered from the
Sustainability Research is a key initiative within Bank Mandiri’s implement sustainability and incorporate sustainability criteria financial sector and corporations, the report seeks to assess the integration of ESG principles by asset
Sustainability Beyond Banking pillar. Through this initiative, Bank into their business strategies. managers and retail investors in Indonesia.
Mandiri undertakes studies focused on sustainability to drive the The research findings uncovered a phenomenon in which asset managers, in their efforts to attract more
The outputs and activities conducted from 2022 to 2023 include:
low-carbon economy in Indonesia. The research is conducted clients, introduce ESG-related financial products, only to encounter limited demand for these offerings.
via the Mandiri Institute, a research center established by Bank 1. ESG Investing: A Survey from 18 Indonesia Fund Managers; This can be attributed to customers’ inadequate understanding and perception of ESG, as well as the
Mandiri in 2014. The primary goal of the Mandiri Institute is 2. ESG Investing: A Survey from Retail Investors; fact that the ESG-based financial products available are primarily focused on issuers with substantial
capitalization and low volatility.
to conduct research in the fields of economics and finance, 3. ESG Business Survey: Listed Companies;
providing valuable insights to the government and other On the other hand, concerning retail investors, it can be inferred that a strong awareness of ESG principles
4. ESG Business Survey: Non-Listed Companies;
stakeholders. serves as the primary motivator for investing in ESG-based financial products. The lack of comprehension
5. ESG Implementation Survey: Listed Companies; regarding ESG is the predominant reason why most retail investors do not possess a defined investment
To promote the implementation of sustainability values, the 6. ESG Implementation Survey: Big Corporation. strategy for purchasing ESG-based financial products.
Mandiri Institute conducts policy advocacy and policy research
In the corporate context, the Mandiri Institute’s 2022 annual report concluded that ESG values have been widely adopted by corporations
related to the financial sector, sectoral trends, and regional and The Mandiri Institute has conducted several focused group
in Indonesia. However, numerous corporations in Indonesia struggle to establish criteria and key performance indicators (KPIs) that
global standards. Furthermore, the Mandiri Institute conducts discussions and provided input on sustainability policies issued
effectively measure the implementation of ESG principles in their business strategies. Additionally, the measurement of carbon emissions
studies related to the green economy and sustainability to map by the government by inviting regulators and related financial resulting from corporate activities in Indonesia is not yet widely practiced.
the challenges and opportunities that can be further explored institutions, contributing to providing input on the preparation of
regarding the implementation of sustainability in the future. In Sustainable Investment Guidelines, and contributing to providing
this regard, the Mandiri Institute observes several stakeholders input on the preparation of Indonesian Sustainable Taxonomy. Esg Report 2023 – Sustainability Act: Why Now, What’s Next?
in the financial sector as the focus of sustainability studies. In the 2023 Sustainability Research report, the Mandiri Institute observed the development and response
The Mandiri Institute has been publishing annual reports
of the financial sector and corporations to the increasingly widespread implementation of ESG. Continuing
In regard to the funding supply, the Mandiri Institute delves periodically since 2022, which provide an overview of the
from the 2022 report, the Mandiri Institute also measured the business world’s perception of the urgency
deeper into the adoption and implementation of sustainability implementation of sustainability by the private sector in of climate change and global warming.
by financial institutions, such as banks and asset managers. Indonesia as well as regional and global trends in the financial
The Mandiri Institute conducted a survey of 162 listed companies on the Indonesia Stock Exchange and 251
Meanwhile, in regard to funding demand, the emphasis sector. The ESG implementation report also aims to provide input
large non-listed companies to assess the challenges of ESG implementation. The survey revealed positive
of sustainability research is on examining how companies related to sustainable financial policies in Indonesia.
developments in various aspects of ESG, including increased ESG scores and awareness, as outlined in
the report.
Listed companies prioritize environmental aspects over other aspects in ESG in 2023. This is in line with the
high awareness of companies regarding climate change. These trends are further evidenced by the rise in
the number of listed companies measuring carbon emissions, which reached 63% of respondents in 2023.
Additionally, 72% of listed companies have already implemented a sustainability framework, indicating a
strong awareness and commitment to environmental responsibility.
However, contrasting results were observed for large non-listed companies. In various measured parameters, the adoption and awareness
of ESG principles are not as robust as those of listed companies. For instance, the measurement of carbon emissions and the level of
commitment to achieve net zero emissions are lower compared to listed companies.
DISSEMINATION OF SUSTAINABILITY RESEARCH
FINDINGS AND POLICY ADVOCACY
The Mandiri Institute’s sustainability research findings are shared 2. The formulation of sustainability policies commencing from
at the Mandiri Sustainability Forum (MSF), the first ESG forum clear sectoral standards and criteria in government regulations;
organized by a bank in Indonesia. Through MSF, Bank Mandiri 3. The implementation of ESG incentives for the financial and
contributes to fostering an understanding of ESG adoption in private sectors should be contingent upon the establishment
the financial and private sectors by inviting regional and global of sustainability taxonomy or green taxonomy prepared by
ESG practitioners and experts. the government and the Financial Services Authority;
Findings from Sustainability Research that provide input for the 4. The sustainability/green taxonomy and ESG incentive
formulation of ESG policies in Indonesia include: schemes are anticipated to be key factors in the event that
the government and regulators transition from a voluntary
1. The need to increase awareness and understanding of ESG
to a mandatory sustainability policy paradigm in the future.
for the financial and private sectors;
222 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 223
Page 53
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Developing Prosperous BASIS OF TJSL IMPLEMENTATION
Communities
The TJSL programs and activities are consistently conducted in 3. Law No. 40 of 2007 on Limited Liability Companies as lastly
[OJK F.25], [GRI 3-3], [GRI 412-1]
accordance with the Bank's mission and aligned with Environmental, amended by Government Regulation in Lieu of Law No. 2
Social, and Governance (ESG) aspects. The TJSL program is also of 2022 on Job Creation.
under the guidance of various regulations, including: 4. Government Regulation No. 47 of 2012 on the Social and
Bank Mandiri demonstrates a strong commitment to sustainably conducting 1. Law No. 7 of 1992 on Banking as amended by Government Environmental Responsibility of Limited Liability Companies.
Regulation in Lieu of Law No. 2 of 2022 on Job Creation.
business processes by consistently considering the balance of performance across 5. Ministerial Regulation of State-Owned Enterprises of the
2. Law No. 19 of 2003 on State-Owned Enterprises as lastly Republic of Indonesia Number PER-1/MBU/03/2023 dated March
economic, social, and environmental aspects by implementing various TJSL amended by Government Regulation in Lieu of Law No. 2 3, 2023, on Special Assignments and Social and Environmental
programs supported by adequate budget allocations. of 2022 on Job Creation. Responsibility Programs of State-Owned Enterprises.
Bank Mandiri implements Corporate Social Responsibility and leading to the realization of sustainable competitive advantage TJSL PRINCIPLES
Environmental (TJSL) programs as a form of support for achieving and the strengthening of broader resilience to society and the
various Sustainable Development Goals. The implementation environment. Referring to the Minister of State-Owned Enterprises Regulation, legal and governance, in accordance with the Ministerial
of these CSRE programs is a tangible manifestation of Bank there are four principles for the systematic and integrated Regulation.
Bank Mandiri implemented TJSL programs in accordance with implementation of the TJSL program to ensure that the
Mandiri's accountability to all stakeholders. Through various b. Directed, having a clear direction to achieve the Bank's goals;
ISO 26000 through the concept of Creating Shared Value (CSV) implementation of the TJSL program achieves performance targets
development activities in the TJSL program, Bank Mandiri
with the characteristics of sharing benefits and value. This is in in line with priorities and work plans. These four principles are: c. Measurable impact, contributing and providing benefits
demonstrates its commitment to meeting current needs
line with the Minister of State-Owned Enterprises Regulation that result in changes or added value for stakeholders and
without compromising, sacrificing, or destroying the fulfillment a. Integrated, based on risk analysis and business processes
No. PER-1/MBU/03/2023. Therefore, the implementation of the Bank.
of future needs. By implementing these TJSL programs, Bank related to stakeholder engagement; TJSL PILLARS Strategic
TJSL programs by Bank Mandiri is expected to provide optimal
Mandiri demonstrates that its current business development is initiatives of Bank Mandiri's TJSL are based on 4 (four) d. Emphasizing accountability, and being answerable, thus
benefits for social and environmental development, contribute
focused on aligning performance across economic, social, and main pillars, namely social, environmental, economic, and avoiding potential misuse and deviations.
to creating added value for the company, and encourage the
environmental aspects.
development of micro and small businesses to become more
Bank Mandiri believes that by developing and reinforcing long- resilient and independent. TJSL PILLARS
term values, it can establish a solid foundation for sustainability,
Strategic initiatives of Bank Mandiri's TJSL are based on 4 (four) of State-Owned Enterprises Number PER-05/MBU/04/2021 on
main pillars, namely social, environmental, economic, and legal the Social and Environmental Responsibility Program of State-
and governance, in accordance with the Ministerial Regulation Owned Enterprises.
BANK MANDIRI’S TJSL PILLARS
ISO 26000 STANDARD PRINCIPLES
Community Engagement SOCIAL
Human Right
and Development ECONOMIC
To achieve the fulfillment of
basic human rights in a fair To achieve quality economic
and equal manner to improve growth through sustainable
the well-being of the entire employment and business
ORGANIZATIONAL
Environment Labor Practices community. opportunities, innovation,
GOVERNANCE
inclusive industry, adequate
infrastructure, and clean
energy supported by
partnerships.
Customer Issues Fair Business Practices
LAW & GOVERNANCE
ENVIRONMENT
To realize effective legal
certainty and governance, For the sustainable
transparency, accountability, management of natural
and participation to create resources and the
security stability and achieve a environment as a support for
rule of law-based state. all life.
224 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 225
Page 54
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
TJSL PROGRAM STRATEGY [F.23] Award
The TJSL program of Bank Mandiri is expected to enhance the No. Date Awarding Entity
to maximize the benefits, Bank Mandiri conducts an assessment Award Name Category
community’s well-being by creating opportunities for economic to comprehend the potential and needs of the local community.
4 May 2023 The Iconomics Indonesia Best CSR Indonesia Best CSR Award The Iconomics
activities. Another expected impact is that the community, as The target for Bank Mandiri’s TJSL program for the 2023 reporting
Award 2023 (Indonesia CSR Brand Equity
fund owners and users, can engage in transactions, thereby year according to the TJSL Pillars is as follows: Award 2023)
contributing to the growth of the national economy. Therefore,
5 June 2023 TOP AWARD CSR 2023 CSR Innovation CSR Innovation Programs For Top Business - Top CSR Award
Programs For Sustainable Business Sustainable Business Growth 2023
TARGET FOR BANK MANDIRI’S TJSL PROGRAM Growth & TOP CSR AWARDS 2023
ACCORDING TO TJSL PILLARS – 2023 #GOLDEN TROPHY TOP ACHIEVEMENT
6 May 2023 TSLP Award 2023 Economic Recovery & Health in Secretariat of the Corporate
PILLAR Target (Rp) Yogyakarta Social and Environmental
1 Social 47,500,000,000 Responsibility Forum (TSLP)
2 Economic 68,800,000,000 7 August 2023 Merdeka Award Appreciation 2023 Innovative Program for Economic Merdeka Awards
3 Environment 22,500,000,000 Independence
4 Law & Governance 11,200,000,000 8 August 2023 Indonesia TJSL Awards 2023 (WARTA Category “BEST TJSL 2023 PROGRAM Warta Ekonomi.co.id
EKONOMI.CO.ID) IN DEVELOPING THE ICONOMIC
5 Total 150,000,000,000
POTENTIAL OF THE COMMUNITY BY
FOSTERING MSMEs”
PURPOSE OF TJSL SCOPE OF TJSL 9 October 2023 Republika CSR Awards 2023 CSR in the MSME Sector Republika
10 December 2023 IDX Channel CSR Awards 2023 Economic Development Initiatives IDX Channel CSR Awards 2023
The purposes of Bank Mandiri’s implementation of the TJSL Bank Mandiri’s TJSL program is implemented to benefit the local (Urban Festival) Category
program are: community surrounding the bank's operational activities, as well
1. To realize a harmonious relationship between the bank and as the broader community in a targeted manner. Throughout
the community. 2023, Bank Mandiri's TJSL program concentrated on three
primary areas: Education, Environment, and SME Development.
2. To help the independent, resilient, and competitive growth BANK MANDIRI TJSL PROGRAM
and development of micro, small, and medium enterprises
with professional management. TJSL MANAGEMENT STRUCTURE
SOCIAL PILLAR
3. To develop a pattern of fostering micro, small, and medium Bank Mandiri’s TJSL program is overseen by the Corporate Social
Contribution Routine Programs:
enterprises, emphasizing aspects of equality, independence, Responsibility Department under the Corporate Secretary Group.
to the
professionalism, and ethics. The person in charge of the TJSL program is the Director of • Agricultural Equipment Facilities and Infrastructure • Facilities and Infrastructure for Integrated Health
Sustainable Posts/Health
4. To preserve environmental sustainability and help improve Institutional Relations. Development
the quality of life of the community, covering areas such as Goals (SDGs): • Grocery Packages • Construction and Renovation of Facilities &
Infrastructure for Educational Buildings
education, health, and well-being.
• Meat Packages • Educational Facilities and Infrastructure
TJSL 2023 ACHIEVEMENTS • Disaster Response • Educational Scholarships
As evidence of Bank Mandiri's commitment to implementing TJSL and achieving Sustainable Development Goals, in 2023, Bank • Ambulance Units
Mandiri received various awards from third parties, including: Initiative/Flagship Programs:
• Farmer Entrepreneurship Program • State-Owned Enterprises (BUMN) Volunteer Service
AWARD FOR THE TJSL PROGRAM BANK MANDIRI IN 2023. BUMN Scholarships
• Safari Ramadhan • Mandiri Scholarships
Award • Mandiri Sehati Program
No. Date Awarding Entity
Award Name Category Achievements:
1. March 2023 Bronze Winner PR Indonesia Award 2023 CSR Program, Community-Based PR Indonesia • Assistance with agricultural equipment at 18 • Renovation of school facilities and boarding
Development Sub Category locations schools at 113 locations
2. March 2023 Best CSR in MSME (UKM) Program In Indonesia CSR Excellence Award 2023 First Indonesia Magazine • Assistance with 42 ambulance units • Disaster response program at 17 locations
Education Or Scholarship Category, • 860 Nutrition Packages • 339,644 packages of social welfare aid
Best CSR Global Program, The Best CSR
• Mass circumcision assistance to 1,490 people • 302 beneficiaries of scholarship programs
Commitment
3 March 2023 BCOMSS 2023 TJSL Best Millenial and Community BCOMSS
Involvement Category
226 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 227
Page 55
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
ECONOMIC PILLAR TJSL TARGET
Contribution Routine Programs: Bank Mandiri set a target of Rp150 billion to support the Rp74.0 billion, or 42.4% of the realization, allocated to the
to SDGs: implementation of TJSL programs in 2023, focusing on social, social pillar, Rp70.4 billion, or 40.3% allocated to the economic
• Agricultural and MSME infrastructure • Public Street Lighting/Construction
economic, environmental, legal, and governance pillars. pillar, Rp23.3 billion, or 13.3% allocated to the environmental
• development and renovation of roads • Development of village facilities and infrastructure The funds disbursed for TJSL programs by the end of 2023 pillar, and Rp6.9 billion, or 4% allocated to the legal and
amounted to Rp174.6 billion, an increase of 16.4% from the governance pillar. Below is a table detailing the realization
Initiative/Flagship Programs:
target allocation of Rp150 billion. This distribution comprised of TJSL programs by pillar for Bank Mandiri in 2023:
• WMM Program • Mandiri Sahabat Difabel
• WMM Alumni Development • BUMN House
REALIZATION OF BANK MANDIRI’S TJSL TARGETS IN 2023
• Mandiri Urban Festival • Mandiri Sahabatku
Achievements: 2023
Achievements
No. Pillars
• MSME training for 9,702 people at 206 locations • Assistance for MSME equipment at 25 locations (Number of Programs) Realization Target
• Provision of agricultural tools in 15 areas • Rural road repairs at 37 locations 1 Social 426 Rp74.0 billion Rp47.5 billion
2 Economic 280 Rp70.4 billion Rp 68.8 billion
3 Environmental 232 Rp23.3 billion Rp22.5 billion
4 Law and Governance 23 Rp6.9 billion Rp11.2 billion
Total 961 Rp174.6 billion Rp150 billion
ENVIRONMENTAL PILLAR
Contribution Routine Programs:
to SDGs:
TJSL PERFORMANCE PROGRAM [GRI 203-2] [OJK F.25]
• Infrastructure for Clean Water • Construction and Renovation of Places of Worship
• Construction of clean water facilities and • Development of public facilities and infrastructure
infrastructure
• Construction of sanitation channels • sports facilities and infrastructure MANDIRI YOUNG
Initiative/Flagship Program: ENTREPRENEUR (WMM)
• Self-sufficient Clean Water • Environmental Ecosystem Initiatives
Mandiri Young Entrepreneur (WMM) is a Bank
• Tree Planting Program • Development Area
Mandiri CSR program that has been conducted
Achievements: 16 times since 2007. This activity aims to assist
• Assistance in clean water facilities and • Construction/illumination of public roads at 37 the government in fostering entrepreneurship
infrastructure at 18 points points in Indonesia, particularly among the younger
• Tree planting at 4 points with 350 tree seedlings • Development of village facilities and infrastructure generation.
at 26 points
In its implementation, the number of WMM 2023
• Renovation of places of worship in 73 mosques, 20
registration participants reached approximately
churches, and 23 temples
8,291 participants, including both Business
Plan and Existing Business participants from 4
categories: Culinary, Social & Environmental,
Technology, and Creative.
LAW AND GOVERNANCE PILLAR
Contribution Routine Program: The Mandiri Young Entrepreneur 2023 was held
to SDGs: in Surabaya from January 14-19, 2024. Through
• Homecoming Together with SOEs
SDG 16: Peace, a series of activities ranging from mentoring,
Justice, Achievements: Entrepreneurship Exhibition to the Awarding Night.
and Strong
Institutions • 7,000 people participated in Homecoming In 2023, Arka Irfani clinched the top spot in the Creative Ciroes business in the technology category, Muhammad
Together with SOEs category of the WMM, showcasing the Bell Living Lab Bayu Hermawan with the Tambiyaku business in the culinary
business as the best of the best. Additionally, the top finalists category, and Mohammad Rofiul Ulum with the Bintang Songo
from the other three categories were Sandy Wijaya with the Indonesia business in the social and environmental category.
228 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 229
Page 56
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Mandiri Sahabatku
Through Mandiri Sahabatku, Bank Mandiri offers support
for enhancing the competencies and fostering the business
development of Indonesian Migrant Workers (PMI), who currently
stand as the second largest foreign exchange contributor to
Indonesia. Competency improvement initiatives are conducted
through entrepreneurship training, covering topics such as:
• Personal financial management;
• Innovation, creativity, and entrepreneurship;
• Seizing opportunities, starting and developing businesses, and
Graduates of Mandiri Sahabatku’s program will have the opportunity
other topics.
to become Mandiri Agents and access MSME financing facilities.
The training is facilitated by experts and PMIs who are currently Furthermore, the Bank also offers a Foster Father program, in
abroad, as well as those who have returned to Indonesia. In 2023, collaboration with program partners, to serve as mentors for Mandiri
a total of XX PMIs have received this entrepreneurship training. Sahabatku alumni in initiating and expanding their businesses.
Mandiri Edukasi
Mandiri Edukasi is a program aimed to enhance teaching skills for
teachers in schools and to prepare elementary school students for
Mandiri Edukasi 101.
The target of Mandiri Edukasi 101 is the development of Character
Education Pilot Schools in 32 Public Elementary Schools (SDN) in
Indonesia.
BUMN HOUSE
Mandiri Edukasi has successfully organized training and mentoring
Bank Mandiri has been entrusted by the Ministry of State- certification training, coaching, and incubation for MSMEs sessions in Character Education to enhance the skills of educational
Owned Enterprises to establish BUMN Houses since 2017. In (uRBan Festival). personnel and engage parents in promoting character education
2023, Bank Mandiri has established 23 BUMN Houses with with a focus on health awareness in 32 public elementary schools
During the uRBan Festival, 15 MSME finalists, under the guidance (SDN) across Indonesia, accumulating a total of 260 points and
a total of 9,702 MSMEs at several locations, such as Kampar
of the BUMN House, were selected following a curation process. At involving a total of 60,000 students.
Regency (Riau Province) to Bintuni (West Papua Province), as
the event, 3 winners competed for prizes in the form of production
well as other major cities including Jakarta, Bogor, Medan,
equipment assistance to bolster their businesses. In 2023, an
Semarang, and Surabaya.
impact assessment was conducted at the BUMN House in Cilegon, HEALTHY HOMECOMING WITH SOE
Through the BUMN House, Bank Mandiri has organized evaluating the benefits experienced by direct beneficiaries and
various activities, including the BUMN Entrepreneur Week other relevant stakeholders using the SROI method. The Social As a demonstration of social responsibility, Bank Mandiri
and acceleration programs designed not only for MSMEs but Return on Investment (SROI) value for the BUMN House Program organized communal homecoming activities for the public and its
also for BUMN House facilitators. These programs encompass in Cilegon was determined to be 2.4. employees within the company’s vicinity. This free homecoming
initiative served as a mandatory social activity for Bank Mandiri
prior to Eid al-Fitr and was open for direct utilization by the
general public.
The objectives of the activity encompass providing assistance
to individuals, particularly those associated with Bank Mandiri,
including customers and internal employees, who wish to return
to their hometowns using public transportation. Additionally,
the initiative aims to showcase Bank Mandiri’s concern for the
surrounding community and environment. Bung Karno, in collaboration with the Ministry of State-Owned
In facilitating the healthy homecoming journey with SOE on April Enterprises and the Ministry of Religious Affairs Office.
16-19, 2023, Bank Mandiri effectively assisted 7,000 travelers
at the PBNU Office, TNI Headquarters Cilangkap, and Gelora
230 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 231
Page 57
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research Developing Prosperous
for Indonesia Financial Service Access & Policy Advocacy Communities
Mandiri Entrepreneur Expo
Improving MSME Infrastructure [GRI 203-1]
The Mandiri Entrepreneur Expo is a joint event for entrepreneurs,
featuring participants such as the URBan Festival finalists, which
includes small and medium enterprises fostered by state-owned
enterprises, and the Young Independent Entrepreneurs (WMM) Junior.
The latter involves elementary school students in three categories:
urban, rural, and 3T (remote, underdeveloped, and disadvantaged)
area students, as well as students from Islamic elementary schools.
The objective of the Mandiri Entrepreneur Expo is to cultivate an
entrepreneurial mindset from a young age and to potentially nurture
exceptional and high-quality entrepreneurs. Throughout the event,
participants were expected to develop outstanding and high-quality
products. The top 3 winners of the URBan Festival competed for prizes in
the form of production equipment assistance to bolster their businesses, as those that have an economic impact, such as
namely: 1st place Dyah Puspita (Healthy Cempaka Noodles), 2nd place SMEs with a solid workforce base.
Nastarofika (Ulur Wiji), 3rd place Sabrina Naula (Recycling Village).
Several achievements have been accomplished
Additionally, the top 3 winners of WMM Junior were: 1st place SDN
across various locations. These include the
2 Citatah, West Bandung Regency, 2nd place SDN Sukaresmi, Cianjur
Regency, 3rd place SDN Koda Permai, Sumbawa Regency. establishment of the SME Center in the East
The program aims to expand MSME market access by Parking Area of Gelora Bung Karno, benefiting 24 SMEs,
building promotional spaces for MSMEs in public areas such the construction of the SME Center in the Menara Siger
Waste to Energy From March 2022 to March 2023, the achievements of the as sports arenas, cultural heritage sites, or strategic public Bakauheni Cultural Heritage Area in Lampung, benefiting
WTE Program are as follows: locations. 33 SMEs, and the development of the SME Center in the
The Waste to Energy program is a waste management
initiative aimed at increasing the value of organic waste by 1. Installation of 1 BSF unit capable of managing more than The target of this program is local SMEs with excellent Religious Tourism Area of Purwakarta. Additionally, a Creative
converting it into energy or Waste to Energy (WTE) through 15,700 kg of organic waste. products that are in high demand among the public, as well Corner has been established in Omah Kurasi, Surabaya.
the development of the Waste Management Center (SEKOLA) 2. Installation of 10 biogas units capable of managing more
as a hub for waste management development and training than 11,400 kg of organic waste.
in Pancer, Sumberagung Village, Pasanggaran, Banyuwangi
- East Java.
3. Management of over 250,000 kg of various types of waste, Entrepreneurship for Farmers
including organic, residual, and inorganic waste.
The program's target is to promote the implementation of Farmer Entrepreneurship is a tangible manifestation of Bank
4. More than 235,000 metric kg of CO2e.
waste management, particularly in Pancer, Banyuwangi, Mandiri's commitment to enhancing inclusivity and the welfare
Indonesia, to increase the utilization of organic waste into In 2023, we measured the impact or benefits perceived by of local farmers. This involves the development of physical
energy or Waste to Energy (WTE), as well as to develop direct beneficiaries and other related stakeholders using infrastructure such as buildings, provision of equipment and
community development programs and partnerships the Social Return on Investment (SROI) method. The SROI rice processing complements, and the provision of institutional
with various stakeholders in sustainable domestic waste measurement was conducted for the MandiriPilahSampah innovations for farmers, as well as development for farmers. The
management in Sumberagung Village. program, resulting in an SROI value of 3.2. areas covered include the Integrated Rice Processing Center (SPBT)
in Pamarican, Kebumen, and Jembrana.
This SPBT aims to form an integrated rural-based agricultural
economy to improve farmers' livelihoods, increase rural purchasing
power, break detrimental supply chains for farmers, and reduce
poverty rates in those areas.
In 2023, we conducted impact measurement or benefit assessments
perceived by beneficiaries directly and other relevant stakeholders,
using the Social Return on Investment (SROI) method. SROI
measurements were performed on the SPBT Pamarican and
SPBT Kebumen programs. The SROI value for the SPBT Pamarican
program was 3.7, and the SROI value for the SPBT Kebumen
program was 3.2.
232 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 233
Page 58
SUSTAINABILITY BEYOND
BANKING
Financial Services Digital Innovation to Improve Sustainability Research
for Indonesia Financial Service Access & Policy Advocacy
RISE TOGETHER WITH MANDIRI PROGRAM
This CSR program aims to address societal issues, including social well-being, health, education, environment, and the enhancement
of public facilities and infrastructure. The objective is to generate positive outcomes for the community's well-being and prosperity.
This initiative aligns with Bank Mandiri's commitment to realizing its social responsibility, encompassing assistance for both
natural and non-natural disasters, educational support, healthcare improvement, public infrastructure development, places of
worship, environmental conservation, and initiatives to alleviate poverty and enhance social welfare.
These targets align with the priority targets of the Sustainable Development Goals (SDGs), specifically SDG 10: Reduced Inequality.
The program consists of two activities, outlined as follows:
Disaster Response
This program emphasizes emergency disaster response
activities in collaboration with all relevant stakeholders.
This program aims to expedite the response to disaster
impacts on communities by meeting their basic needs both
during and after the disaster.
Bank Mandiri actively participated in disaster response
endeavors throughout 2023, including:
• Disaster Response in Mulyorejo Village, Tirto, Pekalongan,
Central Java
• Flood and Landslide Response in Tapanuli Tengah Regency Karangasem Regencies
• Earthquake Response in Jayapura City • Flood Response in Kudus
• Flood Response in Pati Regency • Flood Response in Semarang
• Flood Response in Musi Rawas Regency • Flood Response in Padang
• Flood Response in Lahat Regency • Flood and Landslide Response in North Sumatra
• Landslide Response in Serasan Island, Natuna Regency • Mount Marapi Eruption Response in West Sumatra
• Fire Response at Pertamina Pelumpang Depot In its execution, Bank Mandiri consistently collaborates with
• Flood and Landslide Response in Manado the National Disaster Management Agency (BNPB), the
• Flash Flood Response in Lumajang Regency Ministry of State-Owned Enterprises (BUMN), and relevant local
governments to generate beneficial and effective outcomes
• Flood and Landslide Response in Garut City
in all disaster response endeavors.
• Flood and Landslide Response in Jembrana and
TJSL FUND DISTRIBUTION
In 2023, Bank Mandiri disbursed a total of Rp174.6 billion from with BUMN, and 0.8% for Mandiri Sahabatku. The bank has
the TJSL fund, with 100% allocated to support the Non-MSME allocated Rp250 billion for the year 2024. Below is the table of
Funding Program, 10% for the Mandiri Young Entrepreneur TJSL fund distribution by Bank Mandiri.
Program, 1.1% for BUMN Houses, 2.7% for Healthy Homecoming
Program 2023 2022 2021
Mandiri Sahabatku Rp1.4 Billion Rp500 Million Rp1 Billion
Mandiri Young Entrepreneurs Rp17.5 Billion Rp8.9 Billion Rp6.5 Billion
BUMN House Rp2 Billion Rp2.6 Billion Rp3.6 Billion
Healthy Homecoming with BUMN* Rp4.7 Billion Rp3.9 Billion -
(*) New Programs in 2023
234 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Laporan Keberlanjutan 2023
Page 59
Corporate Governance Bank Mandiri believes that adapting and transforming corporate governance is one of the strategic steps in addressing and mitigating the impact of climate change on the Bank’s current and future operations.
Page 60
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
Banking is a highly regulated industry that is undergoing transformation to provide Composition and Basis of Appointment of the Board of Commissioners of
the Company
sustainable products and services. In addition to adhering to good corporate
governance principles, the Bank must integrate Environmental, Social, and Governance Name Position
Basis of
Gender Age Expertise
Appointment
(ESG) aspects into its operations to facilitate its development in supporting the
Muhamad Chatib Basri President Annual GMS on Male 56 Years Macroeconomic,
transition to a low-carbon economy. Commissioner/ February 19, 2020 Finance
Independent
This aligns with the Organization for Economic Cooperation Consistent with these considerations, Bank Mandiri holds the
and Development’s (OECD) statement that climate change belief that adapting and reshaping corporate governance Andrinof A. Chaniago Deputy Chief Annual GMS on Male 59 Years Macroeconomic
presents substantial challenges to corporate governance, represents a strategic imperative in addressing environmental Commissioner/ February 19, 2020
encompassing economic, legal, and accounting matters impacts and mitigating climate change-related risks for both Independent
related to shareholder rights, corporate disclosure, and the its present and future operations. ESG is no longer confined Loeke Larasati Agoestina Independent Annual GMS on Female 62 Years Legal
responsibilities of the Board of Directors (OECD, 2022). to a singular unit or function but has evolved into an integral Commissioner February 19, 2020
component of bank-wide risk management.
Muliadi Rahardja Independent Annual GMS on March Male 63 Years Banking, Accounting
Commissioner 10, 2022
Heru Kristiyana*) Independent Annual GMS on March Male 67 Years Banking, Finance,
Commissioner 14, 2023 Legal
Corporate
Zainudin Amali*) Independent Annual GMS on March Male 61 Years Finance, Public
Commissioner 14, 2023 Policy
Governance
Rionald Silaban Commissioner Extraordinary GMS on Male 55 Years Human Capital,
August 28, 2019 Finance
Arif Budimanta Commissioner Annual GMS on Male 53 Years Finance
February 19, 2020
The principal governing body of Bank Mandiri, operating accordance with the Articles of Association, the Bank’s vision Nawal Nely Commissioner Annual GMS on Female 48 Years Accounting, Banking
under the highest corporate body, the General Meeting of and mission, and providing advice to the Board of Directors and February 19, 2020
Shareholders, consists of the Board of Directors and the Board ensuring that the Company implements corporate governance
Faried Utomo Commissioner Annual GMS on Male 48 Years Legal
of Commissioners. The Board of Directors collectively holds at all levels of the organization.
February 19, 2020
the authority and full accountability for steering the Company
towards the realization of the Bank’s vision and mission, in The detailed implementation of the duties, responsibilities, Muhammad Yusuf Ateh Commissioner Annual GMS on March Male 57 Years Accounting, Audit
accordance with the Articles of Association and the directives and authorities of the corporate governance bodies can be 15, 2021
of shareholders and stakeholders. found in Bank Mandiri’s 2023 Annual Report, specifically in the
*) Appointed as an Independent Commissioner at the Annual GMS on March 14, 2023.
Corporate Governance section.
Meanwhile, the Board of Commissioners is collectively
responsible for supervising the control of the Company in
238 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 239
Page 61
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
Composition and Basis of Appointment of the Company’s Board of Directors
Basis of
Name Position Gender Age Expertise
Appointment
Darmawan Junaidi President Director Annual GMS on March Male 56 Years Treasury & International Banking, Risk
10, 2022 Management, Funding & Lending,
Finance, Special Asset Management,
Credit Recovery, Legal.
Alexandra Askandar Vice President Extraordinary GMS on Female 50 Years Corporate Banking, Special Assets
Director October 21, 2020 Management, Structured Finance,
Government & Institutional.
Ahmad Siddik Director of Risk Annual GMS on Male 57 Years Credit risk management, risk handling
Badruddin Management February 19, 2020 strategy, risk analysis, management and
collection strategy, risk management
fraud, acquisition or business closure/
sale, and portfolio management,
scorecard portfolio, operational risk
management, self-assessment process
for risk control, external collection
agency management, and various risk
management training programs.
Agus Dwi Handaya Director of Annual GMS on March Male 52 Years Human Capital Finance Strategy and
Compliance and HR 21, 2018 Performance
Riduan Director of Annual GMS on March Male 52 Years Accounting, Finance Audit, Banking, and
Commercial Banking 21, 2018 Risk Management.
Aquarius Rudianto Director of Network Extraordinary GMS on Male 55 Years Corporate & Commercial Credit, Retail
and Retail Banking January 7, 2019 Credit Risk Management, Commercial
Credit Risk Management, Commercial
Banking, and Commercial Sales.
Toni E. B. Subari Director of Annual GMS on Male 58 Years Credit Recovery, Corporate Banking,
Operations February 19, 2020 Business Banking, and Special Asset
Management.
Susana Indah K. Director of Corporate Extraordinary GMS on Female 57 Years Corporate Banking, Commercial
Indriarti Banking October 21, 2020 Banking, Credit Analyst, Commodities
Trading, and Wholesale Risk.
Rohan Hafas Director of Extraordinary GMS on Male 61 Years Brain Mapping, Risk Management,
Institutional Relations October 21, 2020 Marketing, Corporate Relations, and
Corporate Secretary.
Sigit Prastowo Director of Finance Extraordinary GMS on Male 51 Years Treasury Dealer, Risk Management,
and Strategy October 21, 2020 Credit Analyst, Budgeting, and Finance.
Timothy Utama Director of Annual GMS on March Male 57 Years Banking operation, treasury trade
Information Director 10, 2022 service, and information technology.
Eka Fitria*) Director of Treasury Extraordinary GMS on Female 45 Years Treasury, Human Capital
and International October 21, 2020
Banking
*) Appointed as a Director at the Annual GMS on March 14, 2023.
240 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 241
Page 62
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
GOVERNANCE STRUCTURE [GRI 2-9], [GRI 2-11]
Bank Mandiri complies with the Republic of Indonesia Law Number 40 of 2007 on Limited Liability Companies (Company Law), Attachment to Directors’ Decision No. KEP.DIR/030/2023 concerning Organizational Structure
stating that the Company’s organs consist of the General Meeting of Shareholders (GMS), the Board of Commissioners, and the August 4, 2023
Board of Directors. Management is carried out by the Board of Commissioners and the Board of Directors, with clear functions and
responsibilities to ensure independence in accordance with the Articles of Association and regulations.
BOARD OF COMMISSIONERS BOARD OF DIRECTORS
Risk Monitoring Assets & Liabilities Capital & Subsidiaries Human Capital Policy Information Technology Integrated Risk
Audit Committee
Committee Organizational structure Committee Business Committee
Committee Committee
& Digital Banking
Committee Committee
PT BANK Mandiri (Persero) Tbk.
Remuneration & Integrated Governance Policy & Procedure Risk Management & Transformation Credit Committee/ Social & Environmental
Nomination Committee Committee Committee Credit Policy Committee Committee Rapat Komite Kredit Responsibility Committee
President Director
Vice Director
Corporate Commercial Institutional Treasury & Risk Operations Information Technology Compliance Finance & Network &
Banking Banking Relations International Management & HR Strategy Retail Banking
Banking
Int’l Banking
Special Asset Corporate Commercial & Financial Information Micro & Consumer Internal
Wholesale Risk Digital Banking
Management Banking Banking Institutions Technology Finance Audit
Environmental, Corporate Corporate Commercial Gov & Overseas Wholesale Credit IT Strategy & IT Digital Wholesale Compliance & Strategy & SME Banking Micro Regional CEO Wholesale &
SAM I Corporate Risk Treasury Market Risk Corporate Risk
Social, & Banking 1 Banking 4 Banking 1 Institutional 1 Banking Network Operations Architecture Infrastructure Banking AML - CFT Performance Development & 1-12 Corporate Center
Governance Management Agent Banking Audit
Wealth
Corporate Corporate Commercial Commercial Gov & Transaction Financial Commercial Retail Credit CISO Office IT Application Digital Retail HC Strategy Management
SAM II Banking Institutions Operational Risk Accounting Micro Personal
Digital Banking 2 Banking 5 Banking 2 Risk 1 Institutional 2 Risk 1 Operations Support Banking & Talent Retail Audit
Wholesale Business Distribution Loan
Marketing Management
Head of Strategy
Corporate Corporate Commercial Commercial Goverment Credit Portfolio Commercial Retail Credit Engineering Front End Enterprise Data Investor
SAM III Strategic Credit Cards IT Audit
Banking 3 Banking 6 Banking 3 Risk 2 Solution Risk Risk 2 Center Application Analytics Human Capital Relations
Procurement Transaction
Development Services
Banking Retail
Corporate Commercial ECO & Wholesale Corporate Policy & Cash & Trade SORH Strategic Consumer Loans Senior
Legal EBO & ERO Office of Chief ECO & Wholesale Sales
Solution Banking 4 Risk Solution Secretary Procedure Operations Information Mandiri Investment & Investigator
Economist Risk Solution Technology Back End University Subsidiaries
Application Management Retail Deposit
Commercial Corporate Real Consumer Credit Electronic Development Product &
EBO & Executive Estate Risk & Analytics Channel HC Engagement
SORH Wholesale Solution Solution
Legal Litigation Operations & Outsource
Banking Business
Managament Transformation
Goverment SORH
SME & Micro Risk Distribution &
Project & ERO Customer Care
HC Performance Consumer
& Remuneration Corporate
Retail Collection Business Transformation
& Recovery Continuity
Management
Sr HCBP Head
Retail Product of Improvement SORH Corporate
Delivery & Fraud SORH Project Center
Risk Operations
Mandiri Sekuritas BSI Bank Mantap Bank Mandiri, Cyman MCI AMFS
Island, Hong Kong,
Singaopre & Shanghai
Inhealth MTF MAGI
Bank Mandiri Dili -
MUF Timor Leste MMI
BMEL
MIR
Board of Commissioners and Directors and Committees Functional and Not Subsidiary Affiliated Office
Director SEVP Group Head Deputy Group Head
Committees under the Commissioner under the Directors Structural Officials Company Entities Overseas
242 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 243
Page 63
Corporate Governance
Corporate Governance ESG Governance Risk Management Ethics and Anti-fraud Stakeholder Management
Governance Asessment
In carrying out its duties, the Board of Directors is assisted Risk Management policies and improving or refining
General Meeting of Shareholders (GMS) by the Corporate Secretary and Committees tasked with Integrated Risk Management policies based on the results
The GMS is the highest authority with powers not granted to of Directors and the Board of Commissioners. The GMS is providing advice and recommendations related to the policies of implementation evaluations.
the Board of Commissioners and the Board of Directors. The held at least once a year (Annual GMS), but can also be held and directives of the Board of Directors. Bank Mandiri has 7. Policy & Procedure Committee (PPC) is a committee
GMS is a forum where shareholders have the authority to at any time upon the request of one of the company’s organs Committees under the Board of Directors, also known as the formed to assist the Board of Directors in regulating the
obtain information about the Company, both from the Board (Extraordinary GMS). Executive Committee, consisting of 11 (eleven) Committees. Company’s Regulations in the form of Policies and/or
1. Asset & Liability Committee (ALCO) is a committee Procedures and assisting the Board of Directors in granting
formed to assist the Board of Directors in determining authority to Company officials ex-officio.
Board of Commissioners the asset and liability management strategy, interest rate 8. Risk Management & Credit Policy Committee (RMPC)
setting, and liquidity management, as well as other matters is a committee formed to assist the Board of Directors in
The Board of Commissioners is tasked with overseeing the oversight functions and ensuring the implementation related to the management of the company’s assets and identifying, measuring, and monitoring risks, determining
Board of Directors in accordance with the Articles of Association. of the nomination process for strategic positions in liabilities. In addition, in significant financial conditions or risk management policies and strategies, formulating
The Board of Commissioners can also provide advice to the management and the determination of remuneration is during financial and economic crises, ALCO monitors and credit policies, overseeing the implementation of credit
Board of Directors and request reports related to the company, carried out in an objective, effective, and efficient manner. implements the Recovery Plan. policies, monitoring the development and conditions of
review, sign, and approve annual reports. Another crucial task OJK regulations require banks to form Remuneration and 2. The Business Committee (BC) is a committee formed to the credit portfolio, and providing recommendations for
is to ensure and evaluate the implementation of ESG in Bank Nomination Committees as part of GCG implementation assist the Board of Directors in determining the integrated improvement.
Mandiri, assess audit reports, and provide opinions on risk to ensure that the bank is governed according to the business management strategy, production regulation, 9. Transformation Committee (TFC) is a committee
management implementation. In relation to shareholders, principles of transparency, accountability, responsibility, and marketing communication strategy and effectiveness formed to assist the Board of Directors in maintaining and
the Board of Commissioners plays a role in safeguarding independence, and fairness; in the Wholesale banking and Retail banking fields. determining the Bank’s transformation needs, establishing
the interests of shareholders, thus providing advice to 3. Risk Monitoring Committee was formed by the Board 3. Capital & Subsidiaries Committee (CSC) is a committee strategic directions for Bank transformation development,
shareholders on important issues faced by Bank Mandiri. All of Commissioners of Bank Mandiri to assist the Board of formed to assist the Board of Directors in managing the determining transformation initiatives/projects to be
members of the Board of Commissioners have undergone Commissioners in carrying out the task and responsibility company’s capital and determining the management implemented and managed with the Bank’s business
compliance and eligibility tests conducted by the Financial of overseeing and advising the Board of Directors to obtain strategy of subsidiary entities, including capital injections, strategy, addressing and resolving strategic transformation
Services Authority. In accordance with regulations, the Board adequate confidence so that the Bank’s risk management capital disbursements, the appointment of members of management issues, and determining organizational
of Commissioners of Bank Mandiri does not hold positions in remains in compliance with the elements of adequate the Board of Directors and/or members of the Board of adjustments, work units, and officials responsible for
the Board of Directors. In carrying out its duties, the Board of risk management procedures and methodologies, so that Commissioners of subsidiary entities, and remuneration implementing transformation functions in accordance
Commissioners is assisted by: the Bank’s business activities remain controllable within for members of the Board of Directors and/or members of with organizational changes.
1. Audit Committee; acceptable limits and beneficial to the Bank; the Board of Commissioners of subsidiary entities. 10. Credit Committee (RKK) is a committee responsible for
2. Remuneration and Nomination Committee; 4. Integrated Governance Committee has the task and 4. Human Capital Policy Committee (HCPC) is a committee assisting the Board of Directors in deciding on the granting
3. Risk Monitoring Committee; responsibility to assist the Board of Commissioners in formed to assist the Board of Directors in determining of credit (new, additional, reduction, and/or extension)
4. Integrated Governance Committee. carrying out oversight functions on the implementation the company’s Human Capital management strategy, managed by Business Units according to the authority
of Governance at each Financial Services Institution establishing and developing the organization, and limits, including determining/changing credit structures.
Committees under the Board of (LJK) in the Bank Mandiri Financial Conglomeration in determining the strategic direction for the development 11. Social & Environmental Responsibility Committee
Commissioners accordance with the Integrated Governance Guidelines of the Human Capital Information System. (SERC) is a committee formed to assist the Board of
1. Audit Committee is directly responsible to the Board of and the Implementation of the duties and responsibilities 5. Information Technology & Digital Banking Committee Directors in coordinating between work units/fields to
Commissioners. Its main function is to assist the Board of the Board of Directors of Bank Mandiri. In addition, (ITDC) is a committee formed to assist the Board of formulate objectives and guidelines for implementing
of Commissioners in overseeing the financial reporting the Committee also functions to provide guidance or Directors in controlling through the establishment of the Bank Mandiri’s TJSL Program, conducting mapping and
process, internal control systems, risk management, advice to the Board of Directors of Bank Mandiri on the IT Strategy & Execution Plan (ISP), IT strategic projects, and drafting of Bank Mandiri’s TJSL Program, and assisting the
audit processes, and the Company’s processes to monitor implementation of the Integrated Governance Guidelines, IT security strategies. Board of Directors in evaluating the implementation of
compliance with regulations and the Code of Conduct. and to evaluate the Integrated Governance Guidelines and 6. Integrated Risk Committee (IRC) is a committee formed Bank Mandiri’s TJSL Program.
2. Remuneration and Nomination Committee is formed provide direction for improvement. [F.1] to assist the Board of Directors in formulating Integrated
to assist the Board of Commissioners in carrying out
Board of Directors [GRI 2-11]
The Board of Directors of Bank Mandiri consists of 12 members of Directors is to make decisions related to sustainability,
led by the President Director responsible for coordinating including managing the social, economic, environmental
the activities of the Board of Directors. The task of the Board impacts, and climate change issues. The Board of Directors
of Directors is to manage the company’s daily affairs and is prohibited to hold multiple positions, and all members of
to represent Bank Mandiri in and out of court in accordance the Board of Directors have undergone a fit and proper test
with the Articles of Association. A crucial role of the Board conducted by the Financial Services Authority.
244 PT Bank Mandiri (Persero) Tbk Sustainability Report 2023 Sustainability Report 2023 PT Bank Mandiri (Persero) Tbk 245
Names mentioned 43 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Directorate General of Plantation's
p.1
unresolved
org
Minister of Environment and Forestry
p.1
unresolved
org
Ministry of Environment and Forestry.
p.1 ×4
unresolved
org
Ministry of Energy and Mineral
p.2
unresolved
org
Ministry of Environment
p.3
unresolved
org
Mandiri (Persero) Tbk
p.5
unresolved
org
Bank Mandiri's Information Technology SPO
p.8
unresolved
org
Bank Mandiri. Therefore
p.10
unresolved
org
Ministry of Industry & Ministry of State-Owned
p.10
unresolved
org
Bank Indonesia
p.11 ×4
unresolved
org
Bank Secrets
p.13
unresolved
org
Financial Services Authority
p.14 ×2
unresolved
org
Bank Mandiri Taspen
p.14
unresolved
org
Remittance Sdn. Bhd.
p.15
unresolved
org
Bank Mandiri. This
p.16 ×2
unresolved
org
Bapepam
p.16 ×2
unresolved
org
Bank Mandiri's Credit Policy No. B
p.17
unresolved
org
Bank Evaluation
p.17
unresolved
org
Bank Mandiri's Lump-sum
p.19
unresolved
org
Ministry of State-Owned Enterprises
p.20
unresolved
org
PT NielsenIQ Services Indonesia
p.20 ×2
unresolved
org
Bank KBMI IV For
p.20
unresolved
org
Bank Mandiri’s MSME
p.21
unresolved
org
Ministry of Energy and Mineral Resources
p.21 ×2
unresolved
org
Directorate General of Electricity
p.21
unresolved
org
PT Jejak Enviro Teknologi.
p.21
unresolved
org
Bank Mandiri's Determined Contribution
p.22
unresolved
org
Bank Agriculture
p.22
unresolved
org
Bank Mandiri Financials
p.22
unresolved
org
Bank Mandiri. They
p.26
unresolved
org
Bank Mandiri's Collective Labor Agreement
p.27
unresolved
org
Bank Mandiri Leadership Development Program
p.28
unresolved
org
Bank Staff
p.28
unresolved
org
Bank Mandiri's Level L
p.28
unresolved
org
Bank Certification Programs
p.30
unresolved
org
Bank Mandiri's Human Capital
p.31 ×2
unresolved
org
Bank Mandiri’s Smart Branch
p.44
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.