Source file signed link, expires in 15 minutes
Extracted text 145
Page 1
Bank Mandiri continues to
maintain strong and sustainable
financial performance,
supported by solid balance
sheet growth, healthy financial
ratios, and stable profitability
through cost efficiency and
effective business strategies.
Healthy credit growth and
an increase in low-cost funds
ensure an optimal funding
structure, strengthening cost
efficiency and liquidity. Strong
asset quality reflects prudent
risk management, while net
income from subsidiaries
contributes positively to
consolidated performance.
Through digital innovation,
operational excellence,
and strategic synergy, Bank
Mandiri continues to create
long-term value and reinforce
its leadership in the financial
industry.
MANAGEMENT
DISCUSSION AND
ANALYSIS
Page 2
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC GLOBAL
ECONOMIC ANALYSIS
REVIEW
During 2024, Indonesia’s economic growth remained positive, The global economy remains overshadowed significant import tariffs on other countries,
by various uncertainties. This is reflected in the including China. Moreover, ongoing geopolitical
navigating global and national challenges such as market expectation that U.S. Federal Reserve interest risks could trigger fluctuations in commodity prices
volatility, inflation, and fluctuations in commodity prices. rate cuts may not be as substantial as previously and exchange rates.
The government focused on national economic recovery anticipated, given strong U.S. economic data,
including high inflation and solid labor market According to the World Economic Outlook
amidst uncertainties, while the banking sector demonstrated conditions. The re-election of Donald Trump as report from the International Monetary Fund
resilience through increased loan disbursement, strong third- U.S. President adds further pressure to global (IMF) in January 2025, global economic growth is
economic and trade prospects, due to the projected to slow slightly to 3.2% in 2024, before
party fund growth, and advancements in digital services, aggressive policies planned, such as imposing rising modestly to 3.3% in 2025.
reinforcing its role in driving sustainable economic growth.
Realized & Projected GDP Growth of Indonesia’s Major Trading Partners
(in percentage)
8.2
7.0
6.5
6.1
6.1
6.1
5.8
5.5
5.2
5.0
4.8
4.8
4.5
4.4
4.4
4.2
4.2
3.7
3.6
3.3
3.2
3.2
3.0
2.9
2.8
2.8
2.7
2.6
2.5
2.5
2.2
2.2
2.1
2.0
1.9
1.8
1.8
1.7
1.7
1.4
1.3
1.2
1.1
1.1
0.3
Dunia Negara Negara Tiongkok Amerika India Jepang Filipina Malaysia Korea singapura Taiwan Vietnam Thailand Australia
Maju Berkembang Serikat Selatan
2003 2004* 2005*
*): projection | Source: World Economic Outlook IMF October 2024, processed.
Throughout 2024, the U.S. economy outpaced initial expectations, accompanied by improvements in
unemployment rates, stronger domestic demand, and a downward trend in inflation. These conditions shifted
market expectations regarding the Federal Reserve’s rate cuts, which are now projected to be smaller than
previously anticipated. During the December 2024 Federal Open Market Committee (FOMC) meeting, the Fed
lowered the federal funds rate (FFR) by 25 basis points to 4.50%, aligning with market expectations. However,
in 2025, the Fed is expected to reduce rates by only 50 basis points, down from earlier forecasts of a 100-basis-
point cut.
In Europe, the economy also showed an improving trend throughout 2024, as evidenced by rising retail
sales. Nonetheless, the region continues to encounter challenges in the manufacturing sector. The European
Central Bank (ECB) further reduced its benchmark interest rate to 3.15% in December 2024. The IMF projects
the Eurozone economy to grow by 0.8% in 2024.
PT BANK MANDIRI (PERSERO) TBK 270 271 ANNUAL REPORT 2024
Page 3
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMIC ANALYSIS INDONESIAN
ECONOMIC ANALYSIS
China’s economic growth is expected to slow countries, driven by strong domestic consumption
to 4.8% in 2024, below the government’s target and easing inflation. In 2025, India’s growth is
of approximately 5%. To stimulate the real expected to slow to 6.5%.
economy, the Chinese government and central Indonesia’s economy in the GDP Growth (%)
bank introduced various stimulus measures and Global trade volume is projected to increase third quarter of 2024 continued
eased monetary policies. However, the IMF by 3.1% in 2024, a significant improvement from to demonstrate resilience and
forecasts China’s growth to decelerate further to the 0.8%. growth recorded in 2023. Meanwhile, sustained recovery amid global
4.5% in 2025. the Global Manufacturing PMI, as reported by challenges. The Central Statistics
5.31
J.P. Morgan and S&P Global, stood at 49.4 in Agency (BPS) recorded a growth
5.13
5.05
5.06
4.95
India’s economy is projected to grow by 7.0% November 2024, remaining in contraction territory rate of 4.95% year-on-year (yoy). All
in 2024, one of the highest rates among G20 (below 50.0) but improving from the previous sectors posted growth, with the Other
3.70
Services sector showing a significant
increase of 9.95%, Transportation
and Warehousing up by 8.64%,
and Accommodation and Food
Service activities growing by 8.33%.
Meanwhile, the manufacturing
-2.07
industry, which plays a dominant role
in Indonesia’s economy, recorded
2020 2021 2022 2023 Q3-24 2024F 2025F
J.P.Morgan Global Manufacturing PMI growth of 4.72%.
*) Projection; Source: BPS, BI, and IMF.
Sa,>50 = improvement since previous month
60
Indonesia’s economic growth in the third quarter of 2024 was bolstered by strong domestic demand.
Investment activity also remained robust, particularly in construction, supported by the completion of
various National Strategic Projects (PSN). Household consumption, especially among the upper-middle
55
class, remained steady and well-maintained.
50 GDP Growth Based on Business and Expenditure as of Quarter III 2024
GDP Growth By Business GDP Growth By Spending
(Y-ON-Y) (percent) (Y-ON-Y) (percent)
45
11.69
11.47
9.09
40
7.48
5.89
35
4.91
4.82
4.72
5.15
‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24
3.46
1.69
4.62
Source: J.P.Morgan, S&P Global.
etc
Agriculture Mining and Processing Perdagangan Trade & etc Household LNPRT Government PMTB Export Import
Quarrying Industry & Reparasi Repair Consumption Consumption Consumption
Source: BPS
PT BANK MANDIRI (PERSERO) TBK 272 273 ANNUAL REPORT 2024
Page 4
MANAGEMENT DISCUSSION AND ANALYSIS
INDONESIAN ECONOMIC ANALYSIS INDONESIAN ECONOMIC ANALYSIS
Indonesia’s cumulative non-oil Export & Impor Foreign Exchange Reserves Indonesia’s Balance of Payments (BOP)
and gas exports grew positively (USD Billion) (USD Billion) remained stable, supporting external
Export Import
despite global challenges and stability. In the third quarter of 2024, the
declining commodity prices. BOP recorded a deficit of US$5.87 billion,
According to BPS, cumulative underpinned by a stable current account
non-oil and gas exports deficit and a continued surplus in the
292
151
reached $226.91 billion, up goods trade balance of US$9.29 billion.
2.24% (c-to-c). Cumulatively, Portfolio investment inflows also persisted
259
241
the total value of Indonesia’s in the third quarter of 2024, with net inflows
146
237
232
145
222
exports from January- amounting to US$9.55 billion. Cumulatively,
212
196
November 2024 reached portfolio investments through the third
163
$241.25 billion, marking a 2.06% quarter of 2024 recorded net inflows of
142
137
(c-to-c) increase compared US$10.95 billion. Direct investment also rose
136
to the same period in 2023. in the third quarter of 2024 to US$5.24 billion
Meanwhile, the total value from US$2.14 billion in the previous quarter,
of Indonesia’s imports during reaching a cumulative total of US$11.98
January-November 2024 was billion. This reflects global investor optimism
recorded at $212.39 billion, a 2020 2021 2022 2023 11M24 2020 2021 2022 2023 2024* about the domestic economic conditions.
growth of 4.74% (c-to-c) from
the same period in 2023. Source: BPS *): per October 2024; Source: BI.
In the fourth quarter of 2024, Bank Indonesia (BI) projects that national economic growth will remain Bank Indonesia recorded foreign exchange reserves at US$155.7 billion in December 2024. This is the
strong, supported primarily by increased investment, solid household consumption, and higher highest level on record, rising from the previous month’s position of US$150.2 billion in November 2024.
government spending at the end of the year. For the full year, BI forecasts Indonesia’s economic growth The increase in foreign exchange reserves in December 2024 was attributed to tax and service receipts,
in 2024 to remain resilient, within a range of 4.7% to 5.5%. Meanwhile, the Indonesian government, in its government foreign loan disbursements, and foreign exchange earnings from the oil and gas sector.
macroeconomic assumptions, has set a target of 5.2% for 2024. According to the International Monetary BI anticipates that Indonesia’s BOP in 2024 will remain stable, supported by a current account deficit
Fund (IMF) in its World Economic Outlook report from January 2025, Indonesia’s economic growth in 2024 that stays within a low range of 0.1% to 0.9% of GDP. The capital and financial account balance is also
is projected to reach 5.00%. projected to maintain a surplus, underpinned by increases in both direct and portfolio investments, in line
with positive investor sentiment toward the national economic outlook and attractive investment returns.
GDP Nominal GDP/Capita
(USD Billion) (USD) Current Account Balance Current Account Balance
(USD Billion) (% to GDP)
13.22
1.00
1,403
1,371
4,981
4,920
1,319
4,798
3.51
0.29
1,188
4,363
1,063
3,932
-4.43
-0.42
-0.16
-2.14
-1.05
-14.71
2020 2021 2022 2023 2024* 2020 2021 2022 2023 2024* 2020 2021 2022 2023 2024* 2020 2021 2022 2023 2024*
*) Projection; Source: IMF. *) Projection; Source: IMF,
PT BANK MANDIRI (PERSERO) TBK 274 275 ANNUAL REPORT 2024
Page 5
MANAGEMENT DISCUSSION AND ANALYSIS
INDONESIAN ECONOMIC ANALYSIS INDONESIAN ECONOMIC ANALYSIS
On inflation, conditions remained well within the target range of 2.5±1%. Statistics Indonesia (BPS) recorded
a year-end inflation rate of 1.57% in 2024, with the Consumer Price Index (CPI) reaching 110.39.
Indonesia’s trade balance in November 2024 The Rupiah exchange rate weakened by 1.6%
recorded a surplus of US$4.42 billion, driven by by the end of December 2024 compared to the
a non-oil and gas surplus of US$5.67 billion, while previous month. This depreciation was primarily Annual Inflation Comparison (% yoy)
the oil and gas sector posted a deficit of US$1.25 driven by ongoing global uncertainties, such
2022 2023 2024
billion. From January to November 2024, the oil as a more moderate global rate-cut outlook
and gas sector registered a cumulative deficit of than previously anticipated and the potential
US$18.64 billion, while the non-oil and gas sector implementation of aggressive policies by Donald
5.95
5.71
achieved a surplus of US$47.50 billion, resulting in Trump. On a year-over-year basis, the Rupiah
5.51
5.47
5.42
5.28
an overall trade surplus of US$28.86 billion. depreciated by 4.6% compared to the end of
4.97
4.94
4.69
December 2023, performing better than the
4.33
4.35
4.00
Japanese Yen and South Korean Won, which
3.55
3.52
3.47
3.27
depreciated by 7.0% and 10.3%, respectively.
3.05
3.08
3.00
Indonesia’s Trade Balance
2.84
2.86
2.75
Bank Indonesia will continue to optimize all
2.64
2.61
2.57
2.56
2.51
(USD Billion)
2.28
2.18
2.13
monetary instruments, including strengthening
2.12
2.06
1.84
1.71
1.57
1.55
pro-market monetary operations through the
utilization of Bank Indonesia Rupiah Securities
(SRBI), Bank Indonesia Foreign Exchange Securities
54
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
(SVBI), and Bank Indonesia Foreign Exchange
Sukuk (SUVBI), to enhance policy effectiveness in Source: BPS
attracting foreign capital inflows and supporting
36
35
the Rupiah’s exchange rate stability.
29
22
Most expenditure indexes exhibited stable stabilizing the Rupiah exchange rate in light of
inflation rates. The food, beverages, and tobacco increasing uncertainty in global financial markets.
Exchange Rate group recorded inflation of 1.90%; clothing Looking ahead, Bank Indonesia will continue to
(USD/IDR) and footwear group at 1.16%; housing, utilities, monitor the possibility of lowering policy rates
2020 2021 2022 2023 11M24
electricity, and household fuels group at 0.59%; while considering inflation prospects, the Rupiah’s
16,102
*): Januari-November 2024; Source: BPS.
household equipment and maintenance group exchange rate, and economic growth.
at 1.04%; health group at 1.93%; recreation, sports,
15,568
and culture group at 1.17%; education group at
15,397
BI-Rate Vs Inflasi
1.94%; food and beverage service/restaurants
group at 2.48%; and personal care and other B1-Rate (%) Inflasi (EOP, % yoy)
services group at 7.02%. Meanwhile, there were 6.00
5.75
declines in the indexes of the transportation 5.50
14,253
group, which experienced deflation of 0.33%, and
14,050
the information, communication, and financial 5.51
3.75 3.50
services group, which declined by 0.27%.
In December 2024, Bank Indonesia decided to
2020 2021 2022 2023 2024* maintain the BI Rate at 6,0%, the Deposit Facility 2.61
rate at 5.00%, and the Lending Facility rate at 1.57
1.87
1.68
*): per December 2024; Source: Bloomberg
6.50%. This decision aligns with BI’s monetary
policy direction to keep inflation under control
2020 2021 2022 2023 2024*
within the target range of 2.5±1% in 2024 while
also supporting sustainable economic growth. *): per December 2024; Source: BI & BPS.
In the short term, BI’s monetary policy focus is on
PT BANK MANDIRI (PERSERO) TBK 276 277 ANNUAL REPORT 2024
Page 6
MANAGEMENT DISCUSSION AND ANALYSIS
BANKING BANKING INDUSTRY ANALYSIS
INDUSTRY ANALYSIS
This strong intermediation in the Weighted Net Balance a positive Lending Standard
Indonesian Banking Main Financial Indicators performance was also (SBT) of new loan disbursements, Index (ILS) of 0.2. The aspects
supported by well-maintained which stood at 97.9%. By loan of lending policies anticipated
credit quality, with the Non- type, the increase in new loan to be more stringent include
Commercial Banks Assets Commercial Banks Loans Commercial BaNKS TPF Performing Loan (NPL) ratio growth was primarily driven by credit limits, loan interest rates,
Aset (Rp T) ASET YoY (%) Kredit (Rp T) Kredit YoY (%) DPK (Rp T) DPK YoY (%) stood at 2.08% (gross) and 0.75% investment loans and working and risk premium adjustments.
(net) as of December 2024. capital loans. Furthermore,
12.21 Loan at Risk (LaR) also showed in the first quarter of 2025, Survey results indicate
10.39
a declining trend to 9.28%. This new loan disbursements are that respondents remain
7,827
10.38 11.11
10.18 9.90 11.35
8,837
7,090
8,458
12,335
11,766
8,154
9.01
LaR ratio is approaching the expected to remain strong, optimistic about credit growth
11,113
6,424
7,479
5,769
10,112
7.18
6,665
5,548
5.24 pre-pandemic level of 9.93% with the projected SBT for new through the end of 2025, with
9,178
5.87
4.83
3.73
4.48 recorded in December 2019. loan disbursements at 82.3%. strong projected growth in
outstanding loans. This optimism
-2.41 The Banking Survey conducted However, lending standards is driven by economic and
by Bank Indonesia indicated in the first quarter of 2025 monetary outlooks, as well as
2024* 2024* 2024* are expected to remain as the relatively well-maintained
2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
positive growth in new loan
disbursements during the fourth stringent as in the previous risk levels in loan disbursement.
*): assets data as of November 2024, loans data & third-party funds data as of December 2024. quarter of 2024. This is reflected period. This is indicated by
Source: Indonesian Banking Statistics August 2024 Financial Services Authority (assets data), BI and KSSK (loans & TPF).
Throughout 2024, banking which grew by 13.62%, followed increase. Meanwhile, based Profit After Tax
intermediation performance by Consumer Loans at 10.61% on the debtor category,
(commercial banks) continued and Working Capital Loans at corporate loans and Micro, Profit After Tax (Rp T) YoY (%)
to grow positively, maintaining 8.35%. Small, and Medium Enterprises
double-digit growth since the (MSME) loans grew by 15.67%
end of 2023. As of December From a bank ownership and 3.37%, respectively. This 44,29
2024, loan growth to third perspective, State-Owned loan growth pushed the Loan
243,0
33,33
237,2
parties increased by 10.39% Enterprises (SOEs) served a to Deposits Ratio (LDR) of
202,0
20,30
(yoy) to Rp7827.92 trillion. This key role in driving commercial commercial banks to 88.57% as
140,0
strong growth was primarily bank intermediation growth, of December 2024. -2,41
105,0
driven by Investment Loans, recording a 12.10% (yoy)
-32,69
2020 2021 2022 2023 2024*
LDR (%) NPL (%) LaR (%)
*): data as of November 2024.
Source: Indonesian Banking Statistics August 2024 Financial Services Authority.
88,6
23,38
83,8
82,2
3,06 19,48
3,00
78,7
77,1
14,05
2,44
10,94
2,19
2,08 9,28
2020 2021 2022 2023 2024* 2020 2021 2022 2023 2024* 2020 2021 2022 2023 2024*
*): as of December 2024.
Source: Press Release, Financial Services Authority, BI, and KSSK.
PT BANK MANDIRI (PERSERO) TBK 278 279 ANNUAL REPORT 2024
Page 7
MANAGEMENT DISCUSSION AND ANALYSIS
BANKING INDUSTRY ANALYSIS ANALYSIS OF BANK MANDIRI
POSITION IN THE BANKING
In terms of profitability, net profit of commercial
banks reached Rp237.15 trillion as of November
Regarding fund collection, Third-Party Funds
(DPK) in commercial banks continued to increase, INDUSTRY
2024, a contraction of 2.41% (yoy) compared to reaching Rp8836.84 trillion in December 2024,
the same period in the previous year. Meanwhile, reflecting a growth of 4.48% (yoy) compared
the profitability of commercial banks, as indicated to the same period in the previous year.
by the Return on Assets (ROA) and Net Interest Savings recorded the highest growth at 6.78% The overall growth of Bank Mandiri’s consolidated financial performance has been successfully maintained
Margin (NIM) ratios, stood at 2.69% and 4.62%, (yoy), followed by time deposits and demand and further enhanced. The following table compares Bank Mandiri’s consolidated financial performance
respectively, as of December 2024. These ROA deposits, which grew by 3.50% and 3.34% (yoy), growth with that of the banking industry (commercial banks).
and NIM levels demonstrate that the banking respectively.
industry remains resilient and relatively stable. Comparison of Consolidated Financial Performance Growth of Bank Mandiri (as of December 2024) vs
In addition, commercial banks were able to Banking industry liquidity in December 2024 the Banking Industry (Commercial Banks) as November 2024 (yoy)
effectively manage the Operating Expenses to remained adequate, with the Liquidity Asset to
Operating Income (BOPO) ratio, maintaining it at Non-Core Deposit (AL/NCD) and Liquidity Asset Banking Industry Bank Mandiri
Performance
79.87% as of November 2024. to Third-Party Funds (AL/DPK) ratios standing (Commercial Banks) (Consolidated)
at 112.87% and 25.59%, both well above their Assets 7.93% 11.6%
ROA (%) respective thresholds of 50% and 10%. Meanwhile, Loans 10.4%1) 19.5%
the Liquidity Coverage Ratio (LCR) was at Third Party Funds 4.48%1) 7.73%
2.74 2.69
213.23%, and the Net Stable Funding Ratio (NSFR) Low-Cost Funds 5.06%1) 8.49%
2.43 stood at 128.75%. These LCR and NSFR positions Interest Income * 18.9% 14.1%
indicate the continued strength of short-term Interest Expenses ** 37.8% 35.0%
liquidity resilience and long-term funding stability Net Interest Income *** 3.01% 6.40%
1.84
1.59 in the national banking industry. Fee Based Income 14.1% 4.12%
Total Operating Income **** 6.42% 5.73%
Total Non-Interest Operating Income ***** 29.5% 10.2%
Operating Profit 9.34% 1.90%
CAR (%) Net Profit 7.00% 1.31%
2020 2021 2022 2023 2024*
Source: OJK as of November 2024, Bank Mandiri’s Published Report as of December 2024
NIM (%) 1) BI’s RDG Results December and OJK press release from December 2024
27.65
*) includes interest income and sharia income;
26.69
**) includes interest expenses and sharia expenses;
4.81 25.67 25.66
***) includes interest income and expenses, sharia income and expenses, premium income, and claim expenses;
4.71 23.89 ****) the total of Net Interest Income and Fee-Based Income;
4.62 *****) includes allowance for impairment losses costs.
4.51
4.45
2020 2021 2022 2023 2024*
2020 2021 2022 2023 2024*
*): as of December 2024.
Source: Press Release Financial Services Authority,
BOPO (%)
BI, and KSSK
86.54
83.58
Meanwhile, the Capital Adequacy Ratio (CAR)
of commercial banks remained at a high level,
78.65
79.87
stood at 26.69% as of December 2024. This strong
78.92
capital position serves as a risk mitigation buffer,
enabling banks to absorb global uncertainties
while supporting future credit growth.
2020 2021 2022 2023 2024*
*): BOPO data as of November 2024.
Source: Press Release December 2024 Financial Services
Authority, BI, and KSSK
PT BANK MANDIRI (PERSERO) TBK 280 281 ANNUAL REPORT 2024
Page 8
MANAGEMENT DISCUSSION AND ANALYSIS
MARKET SHARE OF BANK MANDIRI MARKET SHARE OF BANK MANDIRI CONSOLIDATED FINANCIAL PERFORMANCE
CONSOLIDATED FINANCIAL PERFORMANCE INDICATORS IN THE BANKING INDUSTRY (COMMERCIAL BANKS)
INDICATORS IN THE BANKING INDUSTRY
(COMMERCIAL BANKS) LOANS
Industri
Loan Growth (%)
Bank Mandiri
As of December 2024, Bank
Mandiri’s consolidated loans
19.49
reached Rp1,670.5 trillion, grew
by a double-digit rate of 19.5%
16.29
14.48
(yoy) compared to Rp1,398.1
11.35
10.38
10.39
trillion in December 2023. The
loan growth exceeded the
banking industry’s (commercial
banks) growth rate of 10.4% 2022 2023 2024*
(yoy) as of December 2024.
With this positive loan growth, Loan Market Shares (%)
Bank Mandiri’s market share in
loans increased to 21.34% as of
21.34
December 2024.
19.72
18.72
2022 2023 2024*
*): data for Commercial Banks and data for Bank Mandiri as of December 2024;
BMRI’s loan market share compared to the banking industry’s loans.
ASSETS Asset Growth (%) THIRD-PARTY FUNDS TPF Growth (%)
Industry Bank Mandiri Industri Bank Mandiri
As of December 2024, Bank As of December 2024, Bank
Mandiri’s consolidated total Mandiri successfully acquired
15.46
15.5
assets reached Rp2,427.2 trillion, consolidated third-party
an increase of 11.6% (yoy). The funds amounting to Rp1,698.9
11.6
asset growth surpassed the trillion, reflecting a 7.73% (yoy)
9.90
9.01
9.12
average growth in the banking increase from Rp1,577.0 trillion
7.73
7.93
industry (commercial banks), in the same period the previous
5.87
5.78
4.48
which stood at 7.93% (yoy), year. The growth in third-party
3.73
reaching Rp12,334.7 trillion funds exceeded the banking
2022 2023 2024* 2024*
as of November 2024. This industry’s (commercial banks) 2022 2023
achievement boosted Bank growth rate of 4.48% (yoy) in
Mandiri’s asset market share to BMRI Asset Market Share (%) December 2024. Bank Mandiri’s BMRI TPF Market Share (%)
19.68%. market share of third-party
funds among commercial
19.23
19.68
banks rose to 19.23% as of
18.64
18.28
December 2024.
18.48
17.93
2022 2023 2024*
2022 2023 2024*
*): data for Commercial Banks as of November 2024 and data for Bank Mandiri as of
December 2024; *): data for Commercial Banks and data for Bank Mandiri as of December 2024;
BMRI’s asset market share compared to the banking industry’s assets. BMRI’s TPF market share compared to the banking industry’s TPF.
PT BANK MANDIRI (PERSERO) TBK 282 283 ANNUAL REPORT 2024
Page 9
MANAGEMENT DISCUSSION AND ANALYSIS
MARKET SHARE OF BANK MANDIRI CONSOLIDATED FINANCIAL PERFORMANCE MARKET SHARE OF BANK MANDIRI CONSOLIDATED FINANCIAL PERFORMANCE
INDICATORS IN THE BANKING INDUSTRY (COMMERCIAL BANKS) INDICATORS IN THE BANKING INDUSTRY (COMMERCIAL BANKS)
CASA RATIO CASA Growth (%)
Perbandingan Rasio Keuangan Bank Mandiri (Bank Only) dibandingkan Industri Perbankan
Industry Bank Mandiri Banking Industry
Financial Ratios Bank Mandiri
Amid slowing growth in third- (Commercial Banks)
party funds, Bank Mandiri Capital Adequacy Ratio (CAR) 26.68% 20.10%
Non-Performing Loan Gross (Gross NPL) 2.08% 0.97%
21.63
managed to maintain a high
ratio of low-cost funds (CASA) Non-Performing Loan Net (Net NPL) 0.74% 0.33%
to total third-party funds Return on Assets (ROA) 2.69%* 3.59%
12.80
at 74.83% as of December Net Interest Margin (NIM) 4.59%* 4.93%
2024, equivalent to Rp1,271.2 Operating Expenses to Operating Income (BOPO) 79.87%* 56.46%
8.49
7.05
trillion. The ratio increased by Loan to Deposit Ratio (LDR) 88.57% 98.04%
5.06
3.30
52 basis points compared to Source: OJK as of December 2024, Bank Mandiri Publication Report as of December 2024
2022 2023 2024*
74.30% in the same period *) As of November 2024
in 2023. Consequently, Bank
Mandiri’s CASA market shares BMRI CASA Market Share (%)
relative to the banking industry From a financial ratio perspective, Bank Mandiri’s Bank Mandiri has also achieved stronger
(commercial banks) continued achievements as of December 2024 continue to profitability compared to the banking industry
22.69
21.98
to increase, reaching 22.69%. surpass those of the banking industry (commercial (commercial banks), as reflected in its NIM and
21.21
banks). Bank Mandiri’s Capital Adequacy Ratio ROA ratios of 4.93% and 3.59% respectively, both
(CAR) is maintained at a high and well-preserved higher than the banking industry’s NIM and ROA
level of 20.10%, staying above the regulatory ratios of 4.59% and 2.69%.
requirement.
In addition, Bank Mandiri has managed to keep
2022 2023 2024*
Bank Mandiri’s asset quality also outperforms the operational costs efficiently controlled. Its Operating
*): data for Commercial Banks and data for Bank Mandiri as of December 2024; banking industry (commercial banks), as reflected Expense to Operating Income (BOPO) ratio stood
BMRI’s CASA market share compared to the banking industry’s CASA.
in its Gross NPL ratio of 0.97%, which is lower than at 56.46% as of December 2024, significantly lower
the banking industry’s (commercial banks) Gross than the commercial banking industry’s BOPO ratio
NPL ratio of 2.08%. of 79.87% as of November 2024.
NET PROFIT Net Profit Growth (%)
Industry Bank Mandiri
As of December 2024, Bank
Mandiri successfully booked
46.89
a net profit of Rp55.78 trillion,
43.94
grew 1.31% (yoy) compared
33.73
to December 2023’s figure
of Rp55.06 trillion. This
20.57
1.31
achievement raised Bank
8.08
Mandiri’s net profit market
share in the banking industry 2022 2023 2024*
(commercial banks) to 23.52%.
BMRI Net Profit Market Share (%)
23.52
22.63
20.40
2022 2023 2024*
*): data for Commercial Banks as of November 2024 and data for Bank Mandiri as
of December 2024;
BMRI’s net profit market share compared to the banking industry’s net profit.
PT BANK MANDIRI (PERSERO) TBK 284 285 ANNUAL REPORT 2024
Page 10
MANAGEMENT DISCUSSION AND ANALYSIS
CORPORATE CORPORATE STRATEGY
STRATEGY
Since its establishment in 1998, is formulated in accordance Bank Mandiri has undergone
Bank Mandiri has continuously with Financial Services 5 (five) transformation
As one of Indonesia’s leading state-owned enterprises updated its strategies to align Authority Regulation (POJK) phases to continuously
(SOEs), Bank Mandiri plays a strategic role in driving long- with the evolving dynamics
of the banking industry,
No. 55/POJK.03/2016, POJK
No. 12/POJK.03/2021, and
adapt to changes, ensuring
competitiveness and growth in
term economic growth. As the largest bank in Indonesia, addressing both long-term Ministry of SOEs Regulation No. a dynamic environment. These
and short-term considerations. PER-2/MBU/03/2023 on SOE transformation phases among
Bank Mandiri has significant potential to become a In the long run, Bank Mandiri’s Governance and Significant others are:
world-class SOE, delivering cutting-edge banking and strategy is outlined in its Long- Corporate Activities.
Term Corporate Plan, which
financial services, and serving as a key driver of the
Indonesian economy by stimulating business activity
across the nation. 1 2 3 4 5
Domestic Dominant Most Admired Indonesia’s To be Your Preferred Financial
Powerhouse Multispecialist & Progressive Best, ASEAN’s Partner
(Corporate Plan (Corporate Plan FI in Indonesia Prominent (Corporate Plan 2020-2024),
2003-2005) 2005-2009) (Corporate Plan (Corporate Plan
2010-2014), 2015-2020),
Bank Mandiri During this With a strengthened Bank Mandiri Bank Mandiri aims to become the
focused on period, Bank foundation, Bank aspired to be the primary financial partner for its
becoming the Mandiri focused Mandiri shifted its best in Indonesia customers through strategies such
leading domestic on improving focus to developing and a leading as beyond lending for the wholesale
powerhouse corporate culture wholesale player in ASEAN segment (Be the Prominent Wholesale
through strategic and credit transactions, by strengthening Bank, Beyond Lending), providing
initiatives such quality while increasing deposits relationships with financial solutions tailored to customer
as an IPO (Initial transforming into a and retail payments, corporate clients needs. For the MSME segment, Bank
Public Offering), dominant financial and expanding (wholesale), Mandiri also emphasizes sustainable
integration of multispecialist in retail financing accelerating growth with an ecosystem-based
information Indonesia. to become the growth in the rapidly approach (Promote Sustainable SME
technology most admired expanding retail & Micro Growth). In addition, for the
systems, and and progressive segment, and consumer segment, Bank Mandiri
balancing financial institution in integrating group offers reliable digital banking solutions
corporate and Indonesia. businesses through to become Indonesia’s Best Modern
non-corporate a conglomerate Digital Bank (Become Indonesia’s #1
loan portfolios. approach. Modern, Digital Retail Bank).
With its identity as a wholesale bank with all-rounder ecosystem potential capable of building a holistic
business ecosystem, Bank Mandiri has a long-term vision to become “The Best Financial Institution in
Southeast Asia”. Bank Mandiri is committed to delivering the best customer service, recognized regionally,
while maintaining its role as a catalyst for national economic growth.
To support this vision, Bank Mandiri has also established its mission: “Providing integrated and innovative
financial solutions based on technology with excellent service, focused on customer satisfaction, financial
inclusion, and increasing value for shareholders, to drive Indonesia’s economic growth to be competitive
on a global level”.
PT BANK MANDIRI (PERSERO) TBK 286 287 ANNUAL REPORT 2024
Page 11
MANAGEMENT DISCUSSION AND ANALYSIS
CORPORATE STRATEGY CORPORATE STRATEGY
b. Achieve Urban Leadership In the Corporate Plan 2025-2029, Bank Mandiri
Vision In the retail segment, retail banking will focus is also preparing enablers or other strategic
“The Best Financial Institution in Southeast Asia”
on harnessing all retail business potential, bankwide support to achieve its business targets,
both from conglomerate derivatives and including developing competent and high-
regional ecosystems. Retail banking will act quality business leaders (create business leaders),
“Providing integrated and innovative financial solutions
Mision as an urban leader by providing integrated utilizing the latest technology to drive growth,
based on technology with excellent service, focused on
business solutions, driving regional economic efficiency, and operational excellence (game-
customer satisfaction, financial inclusion, and increasing
value for shareholders, to drive Indonesia’s economic growth, and promoting financial inclusion. changing technology & innovation), committing
Our growth to be competitive on a global level”. In addition, wealth management, as a gate to supporting sustainable business practices to
Identity opener, will unlock and explore all retail meet customer needs through green services
Purpose business potential, both from conglomerate and products (conduct sustainable business),
"Prosperous spirit." derivatives and regional ecosystems. To and continuously undergoing risk management
support this strategy, Bank Mandiri has transformation in all aspects (robust risk strategy).
prepared technology enhancements,
thematic programs, and internal process Moving forward, Bank Mandiri will continue to
Main Goals improvements to deliver a one-stop solution serve a vital role in supporting the development
Strengthen Core Achieve Urban Extract Values from
tailored to the persona and lifestyle of each of key sectors in Indonesia’s economy, including
Competence Leadership Subsidiaries customer. Bank Mandiri will also collaborate agriculture, manufacturing, downstream
Strategy with several key partners through partnerships processing, healthcare, technology, and
enablers and joint financing initiatives to enhance infrastructure. As a bank with significant strength
for
financial inclusion and optimally expand the in the corporate segment, Bank Mandiri is well-
2025-2029 3 main goals
Strengthen Core Achieve Urban Extract Values from
Competence Leadership Subsidiaries Bank’s business reach. positioned to serve as a beacon for delivering
banking solutions to both large domestic
Enablers atau Create Business Game Changing Conduct
Robust Risk c. Extract Values from Subsidiaries companies and foreign investors looking to enter
Technology & Sustainable
dukungan strategis Leaders Innovation Business Strategy
The aspiration for Bank Mandiri’s subsidiaries Indonesia.
is to become industry leaders contributing
to the growth of Mandiri Group’s business Moreover, Bank Mandiri has the opportunity to act
while complementing Bank Mandiri as a driving force for financial inclusion across the
Currently, Bank Mandiri has developed its Long- a. Strengthen Core Competence through financial services that go beyond country. By leveraging leading digital platforms
Term Plan or Corporate Plan for the 2025–2029 With its core competence in Wholesale conventional banking. Positioned as a such as Kopra, Livin’, and Livin’ Merchant, as
period. In preparing this Corporate Plan, Bank Banking, Bank Mandiri aspires to become a Financial Conglomerate, Bank Mandiri no well as its extensive network, Bank Mandiri can
Mandiri has taken into account the Final Draft benchmark for wholesale banks in Southeast longer identifies solely as a bank but as a expand access to financial services to even the
of the National Long-Term Development Plan Asia and reaffirm its position as the preferred Financial Institution. Over the next five years, most remote areas. This approach will also foster
(RPJPN) 2025–2045 and the SOE Strategic bank for conglomerates, financial institutions, Bank Mandiri aims not only to remain the broader public participation in the financial
Planning Guidelines 2024–2034. These guidelines and government entities. Bank Mandiri aims largest bank but also to become the largest system. In addition, Bank Mandiri can strengthen
aim to support the SOE Vision 2034 of “Building an to be the primary orchestrator of principal financial institution in Southeast Asia. By its role in supporting entrepreneurship by providing
Inclusive and Sustainable Growth of Indonesia’s business ecosystems through a conglomerate adopting a conglomerate mindset, Bank funding, mentorship, and tailored financial
Future” and the Indonesia Emas 2045 vision. This approach supported by top-tier technology Mandiri’s subsidiaries play a significant role services to meet the needs of entrepreneurs.
SOE Vision has been translated into five priority services and a global presence. Strengthening in realizing this aspiration, particularly in These initiatives will help spur the growth of small
formulations by the Ministry of SOEs: Economic Bank Mandiri’s position in the Wholesale the financial aspect, emphasizing growth, and medium-sized enterprises, which form the
and Social Value for Indonesia, Business Model segment will also drive growth in the Retail profitability, and sustainability to achieve
Innovation, Technology Leadership, Investment segment, leveraging the derivative business financial targets.
Enhancement, and Talent Development. These ecosystem (value chain) of Wholesale
priorities are aligned with the latest internal customers. For digital innovation, Bank Mandiri
and external factors impacting the company’s will integrate next-generation technology
conditions. into Kopra, its digital platform, to create
a competitive edge and solidify its status
The three main goals and strategies in the as the top choice for Wholesale customer
Corporate Plan 2025-2029 are: transactions. Bank Mandiri will also enhance
its global presence by optimizing the business
model of its overseas offices.
PT BANK MANDIRI (PERSERO) TBK 288 289 ANNUAL REPORT 2024
Page 12
MANAGEMENT DISCUSSION AND ANALYSIS
2024 STRATEGIC FOCUS ON STRENGTHENING
FOCUS SUSTAINABLE BUSINESS
Bank Mandiri continues to enhance its business approach with a customer-oriented concept by offering Bank Mandiri continues to and the Enhanced Nationally 2030, and Catalyzing Multiple
customized and tailored products that meet the specific needs of customers, providing them with relevant demonstrate its commitment Determined Contribution Growth for Social Impact to
and value-added experiences. In 2024, Bank Mandiri’s business strategy is focused on accelerating to strengthening sustainable (ENDC) targets, paving the way Achieve the SDGs.
growth across all potential sectors to solidify its dominance in the banking industry. To address challenges, business through a consistent for Indonesia’s Net Zero Emission
seize opportunities, and compete effectively in the market, Bank Mandiri has strengthened and refined its ecosystem-based strategy and (NZE) goal by 2060 or earlier. To achieve this vision, Bank
strategy for 2024 by mastering four key elements: digitalization. This strategy has Mandiri has developed an ESG
driven Bank Mandiri to achieve As part of its long-term efforts, Framework consisting of three
outstanding performance Bank Mandiri has formulated main pillars and eight strategic
growth throughout 2024. its 2024–2028 sustainability initiatives to be implemented
Beyond the orientation toward strategy with the core aspiration during the 2024–2028 period.
financial gains, Bank Mandiri of “Becoming Indonesia’s This framework is designed
places significant emphasis Sustainability Champion for a to support the integration of
Wholesale Digital Platform Ecosystem- Strengthen Group on environmental, social, and Better Future.” This aspiration sustainability into all aspects
Acceleration Optimization Driven Growth Synergy governance (ESG) impacts. This is realized through three key of Bank Mandiri’s operations
Improving synergy with commitment reflects the Bank’s objectives: Leading Indonesia’s and business activities, ensuring
Strengthen core Develop progressive Growing in the
competence in the digital initiatives retail segment Subsidiary Companies dedication to supporting the Transition to a Low-Carbon a significant impact on the
starting from cross selling,
wholesale segment (Livin’. Livin’ through an streamlining business achievement of the Sustainable Economy, Achieving Net Zero environment, society, and the
and maximise the Merchant, Kopra, ecosystem-based processes by utilising Development Goals (SDGs) Emission (NZE) Operations by national economy.
business potential and Smart Branch) value chain technology, as well as
of its ecosystem. especially to drive approach and implementing the risk
CASA growth. leading sectors in management principles
of the parent company in
each region. a prudent manner.
1 2 3 4
BECOMING INDONESIA’S SUSTAINABILITY CHAMPION FOR A BETTER FUTURE
VISION
1.
1 Wholesale Acceleration, accelerating growth Mandiri, Kopra by Mandiri, and Smart Branch
in the wholesale segment to dominate by Mandiri) to enhance and strengthen the SUSTAINABLE SUSTAINABLE SUSTAINABILITY
principal customer businesses and create transactional CASA base, maintain a low cost of BANKING OPERATION BEYOND BANKING
PILLAR
opportunities for other segments within the funds, and increase fee-based income. Digital
derivative business ecosystem, including platform optimization spans from acquiring new
Lead Indonesia’s Transition Net Zero Emission (NZE) Catalyzing Multiple
value chains spanning downstream customers to adding superior features that boost
to Low Carbon Economy Operations by 2030 Growth for Social Impact
segments to micro and individual levels. stickiness, ensuring that customers’ operational to Achieve SDGs
COMMITMENT
Mastery of the wholesale business is carried funds at Bank Mandiri continue to grow.
out comprehensively, from loans, CASA,
transactions, as well as derivative products 4.
4 Strengthen Group Synergy, enhancing 1. Integrating ESG Aspect 3. Leading Practice in Data Empowering
in Business Process (Sustainable Privacy & Security Digipreneurship in
and businesses. synergy with all subsidiaries by aligning Finance Framework, Sector 4. Diversity, Equity & Inclusion Society (Indonesia
subsidiary strategies with the parent Policy Enhancement) 5. Achieving NZE in Operations Migrant Worker,
ONGOING
2.
2 Ecosystem-Driven Growth, accelerating company’s strategy to maximize business INITIATIVES Develop Sustainable by 2030 Young Entrepreneur,
growth in the retail segment through an potential execution and strengthen the Portfolio & Products/ Services a. Green Business Mindset KUR, Branchless
(Sustainability/Green Bond, b. Digital Carbon Tracking Banking)
ecosystem-based value chain approach by business ecosystem in an integrated manner. ESG Repo, Sustainability & Monitoring
effectively executing all derivative business This is achieved through refining cross-selling Linked Loan, Green/Social/ c. Carbon Neutral
potentials from the wholesale segment. In strategies and streamlining business processes Corporate-in-Transition Initiatives through Green
addition, the retail segment will grow by by leveraging technology, while prudently Financing) Operational & Carbon
2. Influencing Key Policy Maker Offsetting
focusing on key sectors in each region, implementing the parent company’s risk to Accelerate Indonesian Low
leveraging digital platforms as an expanded management principles. Carbon Economy
acquisition channel.
These four strategic focuses for 2024 are key to
3.
3 Digital Platform Optimization, optimizing digital Bank Mandiri’s continued strong performance,
6. Strengthening ESG Governance, Capacity Development & Disclosure
platforms (Livin’ by Mandiri, Livin’ Merchant by enabling sustainable business growth.
ENABLERS
PT BANK MANDIRI (PERSERO) TBK 290 291 ANNUAL REPORT 2024
Page 13
MANAGEMENT DISCUSSION AND ANALYSIS
CONSISTENT DIGITAL ASSET QUALITY
TRANSFORMATION WELL MAINTAINED
Throughout 2024, Bank Mandiri has been 3. Modernizing Distribution Channels, Bank Bank Mandiri has implemented tailored to its business and NPL position, which declined
implementing a digital banking roadmap that Mandiri is modernizing its digital channels to an independent risk operational needs throughout to 0.97% as of December 2024,
continues to be refined to meet customer needs. enhance customer experience, improving management framework 2024. The implementation down by 5 basis points (bps)
This roadmap consists of five key components: both User Interface (UI) and User Experience aligned with regulations from of ERM provides added from 1.02% in December 2023.
(UX) while addressing diverse customer the Financial Services Authority value to Bank Mandiri and its This bank-only gross NPL level
1. Levelling Up Digital Readiness, as the needs. This includes continuous development (OJK), Bank Indonesia, and stakeholders. is also better than the banking
foundation for digital transformation, Bank of Livin’, Kopra, and Smart Branch. international banking best industry (commercial banks),
Mandiri focuses on strengthening the reliability practices. The Bank applies Amid global economic which stood at 2.19% as of
of its fundamental IT systems, including core 4. Digital Ecosystem Expansion, Bank Mandiri is the concept of Enterprise uncertainty in 2024, Bank November 2024. Meanwhile,
banking improvements, business process re- strengthening collaborations with third parties Risk Management (ERM) as a Mandiri consistently maintained the bank-only NPL coverage
engineering, high-performance infrastructure and strategic partners to enhance its digital comprehensive and integrated strong asset quality. This is ratio at Bank Mandiri reached
development, and more. ecosystem, expanding access for customers risk management strategy reflected in the bank-only gross 304.07% in December 2024.
to seamlessly use Bank Mandiri’s products
2. Developing Digital Native Products, Bank and services across various channels.
Mandiri develops digital-native banking
Rasio NPL NPL Coverage
services through various innovations, with 5. Data-Driven Decision-Making Process, Bank
Bank Mandiri Vs Industry Bank Mandiri (Bank Only)
customers at the center. The development of Mandiri is optimizing data utilization to drive
digital-native products ensures that the Bank business growth. This includes leveraging NPL Industry (%) NPL Bank mandiri (%) B1-Rate (%) inflation (% yoy)
can deliver fully end-to-end digital banking artificial intelligence, visual analytics, robust
385
services. data management governance, and data
analytics. These efforts aim to support more 2.44
311
accurate and sustainable business decision- 2.19 2.19 304
making while generating long-term revenue 1.88
sources.
1.02 0.97
2022 2023 2024* 2022 2023 2024*
In addition, the improvement in Bank Mandiri’s asset quality was also reflected in the decline of Loan
at Risk (LaR) ratio. As of December 2024, Bank Mandiri’s LaR ratio decreased by 194 bps to 6.81%. This
improvement was also accompanied by a reduction in restructured loans, which declined from Rp78.2
trillion in December 2023 to Rp73.5 trillion in December 2024.
PT BANK MANDIRI (PERSERO) TBK 292 293 ANNUAL REPORT 2024
Page 14
MANAGEMENT DISCUSSION AND ANALYSIS
FEE-BASED INCOME GROWTH RESPONSE TO CHANGES IN
STRATEGY FOR 2024 MONETARY POLICY DIRECTION
In 2024, Bank Mandiri recorded purchasing service for various to Rp2.4 trillion, reflecting a The Bank Indonesia Board of potential for further policy Amid a relatively stable
consolidated Fee-Based leading brands, allowing year-on-year growth of 9.33%. Governors Meeting (RDG) rate adjustments. Meanwhile, benchmark interest rate
Income (FBI) of Rp42.3 trillion, customers to browse vehicles, This revenue growth was driven on December 17–18, 2024, macroprudential and with a downward trend
reflecting a year-on-year receive loan approval within by the increase in Kopra’s decided to maintain the BI- payment system policies until November 2024, Bank
growth of 4.12%. On a bank- just 30 minutes, and have digital transaction value, which Rate at 6.00 percent, the remain focused on supporting Mandiri’s Prime Lending Rate
only basis, Bank Mandiri’s FBI the vehicle delivered to their reached Rp22,703 trillion from Deposit Facility rate at 5.25 sustainable economic growth. (SBDK) as of December 2024
reached Rp31.6 trillion. This doorstep. In collaboration with 1.312 billion transactions. percent, and the Lending A loose macroprudential posted an increase compared
growth was driven by recurring Mandiri Sekuritas, Livin’ now Facility rate at 6.75 percent. policy stance continues to be to December 2023. The prime
FBI, which amounted to Rp16.2 enables users to buy, sell, and Bank Mandiri also provides This decision aligns with the implemented to encourage lending rate for Corporate
trillion on a bank-only basis, manage their stock portfolios holistic treasury solutions monetary policy direction bank lending and financing Loans rose to 8.50%, Micro
grew by 14.0% yoy, primarily directly within the app. Livin’ for customers, addressing to ensure inflation remains to priority growth sectors Loans increased to 13.50%,
supported by fee income also enhances the customer investment, structured within the 2.5±1 percent and job creation, including Mortgage Loans (KPR) climbed
from digital banking platforms experience through artificial funding, and hedging needs target range for 2024 and MSMEs and the green to 12.50%, and Non-Mortgage
such as Livin, Kopra, and other intelligence, providing more through product development 2025, while supporting economy. This is supported Consumer Loans reached
e-channels. tailored and intuitive banking and enhanced customer sustainable economic growth. by the strengthening of the 12.00%. This increase was driven
interactions. Additionally, the experience. The Bank The monetary policy focus Macroprudential Liquidity by adjustments in response to
Bank Mandiri’s digitalization loyalty feature offers seamless continues to intensify trade is directed at strengthening Incentive Policy (KLM) strategy the implementation of POJK
efforts served a significant role collection and redemption of product offerings for anchor Rupiah stability amid rising starting in January 2025, No. 13 of 2024 regarding
in achieving Fee-Based Income Livin’ points, providing added customers in the Corporate global economic uncertainty while maintaining prudential interest rate transparency,
(FBI) in 2024. Livin’ by Mandiri, value to users. Going forward, and Commercial segments due to U.S. policy direction principles. Payment system which led to changes in the
a banking application that Livin’ by Mandiri will continue through the Value Chain. and escalating geopolitical policies are also directed at calculation methodology
integrates all customer needs to innovate to maintain its To drive trade BG revenue tensions in various regions. promoting growth, particularly and figures for SBDK starting
in one platform, recorded leadership in the digital banking growth, Bank Mandiri focuses Going forward, Bank Indonesia in the trade and MSME sectors, in November 2024. Apart
fee-based income of Rp2.6 space. on targeted intensification will continue to closely monitor by enhancing the reliability of from this adjustment, Bank
trillion, grew by 20.7% yoy. efforts for existing customers by Rupiah exchange rate payment system infrastructure Mandiri remains in a position to
This growth aligned with the On the other hand, Bank Mandiri setting up facility limits, offering movements, inflation outlook, and industry structure, as well maintain its existing SBDK.
increase in Livin’ transaction introduced Kopra by Mandiri, a special transaction rates, and evolving economic as expanding the adoption of
value, which reached Rp4,027 digital single access platform and providing more efficient conditions in assessing the digital payment systems.
trillion, driven by 29.3 million that serves as the central transaction solutions.
users, representing a 29.1% hub for financial information
yoy growth in user numbers. and transactions for business Going forward, Bank Mandiri Bank Indonesia Bank Mandiri
Currently, Bank Mandiri has communities in the Wholesale remains committed to Interest Rate October December September December
Basic Rupiah Lending Rate
Benchmark 2024 2023 2024 2023
introduced four pioneering segment and its end-to-end delivering the best banking
BI-Rate 5.75% 6.00% Corporation 8.50% 8.05%
features in the industry through ecosystem. In 2024, Bank services to ensure continued
Deposit Facility 5.00% 5.25% Retail N/A 8.30%
Livin’ by Mandiri. Livin’ Auto Mandiri recorded fee-based growth in fee-based income,
Loan Facility 6.50% 6.75% Micro 13.50% 11.30%
offers an end-to-end vehicle income from Kopra amounting particularly recurring fees.
Mortgage 12.50% 7.30%
Non-Mortgage 12.00% 8.80%
PT BANK MANDIRI (PERSERO) TBK 294 295 ANNUAL REPORT 2024
Page 15
MANAGEMENT DISCUSSION AND ANALYSIS
RESPONSE TO CHANGES IN MONETARY POLICY DIRECTION STRATEGIC FOCUS
FOR 2025
The direction of the monetary, macroprudential, 4. Expanding BI-FAST services to include bulk
and payment system policy mix to maintain transfer, request for payment, and direct debit
stability and support sustainable economic growth transfer to meet public needs for fast, easy,
is reinforced by the following policy measures: affordable, secure, and reliable economic In 2025, Bank Mandiri will focus on dominating To achieve these objectives, Bank Mandiri has
and financial transactions, effective from 21 transactions in principals, merchants, and formulated strategic pillars derived from the
1. Strengthening a pro-market monetary December 2024. individuals to secure solid low-cost funding, Corporate Plan 2025–2029 strategies, which
operation strategy to enhance the thereby ensuring strong liquidity to maintain include:
effectiveness of monetary policy transmission, 5. Strengthening strategies to ensure the its position as the biggest lender, including
accelerate the deepening of the money availability and efficient operation of the expanding its presence in the government sector 1. Solidify Wholesale Dominance to Uphold
market and foreign exchange market, and payment system across all regions of the by supporting new government programs. To Market Leadership, strengthening Bank
encourage capital inflows by: Republic of Indonesia to meet public needs achieve these Strategic Objectives, the Bank Mandiri’s position as a market leader in
a. optimizing Bank Indonesia Rupiah during the 2024 Christmas and New Year will develop Leaders with the capacity to act the wholesale segment by consistently
Securities (SRBI), Bank Indonesia Foreign (Nataru) period, including the implementation as “ecosystem orchestrators,” capable of driving wholesale credit growth above the
Exchange Securities (SVBI), and Bank of Semarak Rupiah di Hari Natal Penuh Damai coordinating the entire business ecosystem for industry average and maintaining its market
Indonesia Foreign Exchange Sukuk (SUVBI) (SERUNAI) from December 15–20, 2024. customers. Consequently, the strategic focus share. Enhancing the Bank’s presence in
as pro-market monetary instruments; theme for 2025 will emphasize Integrated Strategic the wholesale segment also expands the
b. strengthening the interest rate structure Bank Indonesia continues to strengthen Growth and Transformational Leadership Driven customer ecosystem base, which in turn
of monetary instruments to attract foreign policy coordination with the government by Orchestrating the Ecosystem, encapsulated in becomes a source of growth for the retail
portfolio inflows into domestic financial to maintain stability and support economic three Strategic Objectives for the year: segment. Moreover, complete domination of
assets; growth. Coordination between monetary and the wholesale business is pursued by driving
c. enhancing term-repo and foreign fiscal policies is being reinforced to ensure 1. To be the “Main Transaction Bank” for both growth in transactional demand deposits
exchange swap transaction strategies; macroeconomic stability and sustain economic Wholesale and Retail customers, where Bank through increased transactional float.
and growth momentum. Bank Indonesia is also Mandiri will dominate the transaction market
d. Strengthening the role of Primary Dealers enhancing policy synergy with the Financial by providing high-quality products and 2. Orchestrate Captive Ecosystem to Scale
(PDs) to increase SRBI transactions in System Stability Committee (KSSK) to safeguard services supported by a strong relationship Up the Retail Business, leveraging the full
the secondary market and repurchase financial system stability and drive bank lending management framework for principals, potential of the retail value chain from the
agreement (repo) transactions among and financing for businesses. Policy coordination merchants, and individuals. captive ecosystem of wholesale customers
market participants. with both central and regional governments is and increasing Bank Mandiri’s market share
implemented through the National Movement for 2. To be a leader in low-cost funding, becoming in every region by mastering territorial control.
2. Strengthening the Rupiah exchange Food Inflation Control (GNPIP) in various regions the “Leader in Low-Cost Funding.” As the Additionally, retail banking will serve as an
rate stabilization strategy through foreign under the Central and Regional Inflation Control preferred bank for transactions, Bank Mandiri urban leader by offering integrated business
exchange market interventions in spot Teams (TPIP and TPID). In addition, Bank Indonesia aims to become the primary operational solutions, acting as a key driver of regional
transactions, Domestic Non-Deliverable is expanding international cooperation in central account provider for its customers. economic growth and financial inclusion.
Forward (DNDF), and government securities banking, including payment system connectivity Furthermore, the Bank seeks to acquire and In terms of fund collection, retail banking
(SBN) in the secondary market. and local currency transactions, as well as retain customers who value quality service will focus on retail transaction services to
facilitating investment and trade promotion in and long-term relationships rather than boost market share in savings accounts and
3. Enhancing the publication of the Prime priority sectors in collaboration with relevant focusing solely on pricing. merchant transactions.
Lending Rate (SBDK) transparency assessment institutions.
by providing deeper insights into lending rates 3. To be the “Largest Lender” in Wholesale and 3. Intensify Subsidiaries Synergy to Expand
based on priority sectors covered under the Retail credit within an ecosystem-based Growth Pathways, Bank Mandiri also
KLM (Annex). framework, maintaining an optimal yield level. emphasizes creating strong synergy among
With access to low-cost funding, Bank Mandiri the entities within the Mandiri Group. The
can expand its credit portfolio and strengthen goal of this integration is to build a more
its position as the leading lender in the market efficient, innovative, and leading financial
while minimizing pressure on the NIM. conglomerate. The synergy between business
units is expected to enhance shareholder
value and provide broader societal benefits
by offering more integrated products and
services that create a holistic and resilient
financial ecosystem.
PT BANK MANDIRI (PERSERO) TBK 296 297 ANNUAL REPORT 2024
Page 16
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS OUTLOOK BUSINESS OUTLOOK
The global economy in 2025 will continue to face economic growth structure, particularly in sectors accounts. This was achieved through both new
rising risks and uncertainties. This is in line with that create jobs and generate high added value. customer acquisitions and deeper ecosystem
economic recovery in advanced economies, engagement, leveraging the optimization
which remains overshadowed by disinflation, The stability of the national financial services sector of platforms such as Kopra, Livin’, and Livin’
ongoing geopolitical tensions in the Middle East, in 2025 is also expected to remain well-maintained Merchant.
and geo-economic and trade fragmentation amid monetary policy easing, supported by
that require careful monitoring. These challenges strong capital, adequate liquidity, manageable In addition to Bank Mandiri’s solid performance
highlight the increasing importance of inflation risk profiles, and positive growth in the financial throughout 2024, the positive signal of a
control, fiscal consolidation, monetary and fiscal services sector. The performance of the national declining benchmark interest rate is expected
policy coordination, and policy communication to banking industry is also projected to remain to further boost the Bank’s loan disbursement
strengthen macroeconomic stability and support stable, backed by a strong capital adequacy in 2025. Anticipating the downward trend in
economic growth. The IMF, in its World Economic ratio (CAR), a positive trend in intermediation interest rates that began in early Q4 2024, Bank
Outlook released in October 2024, projects that performance, and moderate growth in third-party Mandiri remains committed to its growth strategy
global economic growth in 2025 will remain stable funds (DPK) collection. in 2025. This includes focusing on strengthening its
at 3.2%, the same as the estimated figure for 2024. dominance in its principal business (Wholesale),
Given these conditions, Bank Mandiri remains driving growth through ecosystem-driven
Although geopolitical tensions remain a factor confident and optimistic about its sustainable expansion, and enhancing key regional sectors
to watch, the trend of declining policy interest performance growth in 2025. The bank continues in the retail segment to build a higher-quality
rates in advanced economies, particularly in the to refine its strategies consistently to transform loan portfolio. Furthermore, with the inauguration
United States, is expected to continue. To maintain challenges into opportunities while effectively of Indonesia’s new President, Prabowo Subianto,
stability and support economic growth, policy mitigating risks. the national economy is expected to accelerate,
responses to mitigate global spillover effects will generating a multiplier effect from increased
require careful consideration by stakeholders, To maintain profitability amid global and consumption to credit expansion.
particularly in encouraging foreign capital inflows national challenges, Bank Mandiri continues
and strengthening exchange rate stability. to manage its cost of funds by driving CASA Meanwhile, in terms of increasing third-party fund
growth and selectively repricing loans, ensuring collection, Bank Mandiri focuses on becoming
Amid global risk dynamics, Indonesia’s economy that its Net Interest Margin (NIM) remains at an a financial partner for its customers by providing
is projected to remain strong. Domestic economic optimal level in 2025. As of December 2024, comprehensive financial solutions through the
growth in 2025 is expected to exceed 5% (yoy), CASA composition remained stable at 74.83%, optimization of digital platforms and leveraging its
continuing the positive performance seen in supported by the growth of current and savings extensive network across Indonesia.
2024, driven by household consumption and
investment. Household consumption remains
stable, particularly among the upper-middle Projections of Indonesia’s Economy & Banking Industry in 2025
class. Investment continues to grow in line with the World Bank
Description IMF OECD ADB Government OJK
completion of various National Strategic Projects Bank Indonesia
(PSN), including the development of the new GDP 5.1% 5.1% 5.2% 5.0% 5.2% 4.8% - 5.6% -
capital, Ibu Kota Nusantara (IKN). Non-oil and gas Inflation 2.5% 2.9% 2.5% ± 1% 2.8% 2.5% 2.5% ± 1% -
exports are also expected to improve, supported Bank Loans - - - - - 10% - 12% -
by growth in the manufacturing and mining
sectors.
Going forward, Indonesia’s economic activity
is projected to continue expanding, with an
estimated growth of 5.2% (yoy) in 2025. However,
this growth must be supported by strengthening
domestic demand and structural reforms aimed
at increasing productivity and enhancing the
PT BANK MANDIRI (PERSERO) TBK 298 299 ANNUAL REPORT 2024
Page 17
MANAGEMENT DISCUSSION AND ANALYSIS
MARKETING MARKETING ASPECT
ASPECT
To meet the increasingly 1. Perceived Ease of Use Bank Mandiri believes that MARKET SHARE
diverse needs and preferences Promoting a sense of there is significant potential
of its customers, Bank Mandiri comfort in using Bank for expanding and marketing As of December 2024, Bank BMRI Aset Market Share (%) Loan Market Share (%)
has implemented both Mandiri’s products. This is digital banking services in Mandiri was able to maintain its
short-term and long-term supported by the ease of Indonesia. Therefore, the financial performance growth
business strategies. One key access to these products Bank optimizes its marketing above the average of the
21.34
component of this approach and services. efforts through engaging banking industry (commercial
19.68
is its marketing strategy, which and relevant campaigns and banks). This is reflected in
19.72
is designed to reach and serve 2. Perceived Usefulness promotions across its official Bank Mandiri’s annual growth
18.48
18.72
17.93
customers with the bank’s Highlighting the features social media channels. Bank in assets, loans, deposits,
superior products and services. of Bank Mandiri’s products Mandiri strives to maximize the and CASA, which grew by
This strategy also supports Bank and services that cater effectiveness and efficiency of 11.61%, 19.49%, 7.73%, and 2022 2023 2024* 2022 2023 2024*
Mandiri in achieving its targets to customers’ evolving all its communication channels. 8.50% (yoy) respectively as of
and strengthening its market financial needs, anytime December 2024. The growth
share in the national banking and anywhere. The use of conventional and in these four key performance
industry over time. digital media is adjusted indicators of Bank Mandiri
3. All-In-One Ecosystem proportionally. Digital media has driven an increase in their TPF Market Share (%) CASA Market Share (%)
Through an all- utilization, including social respective market shares within
MARKETING encompassing ecosystem, media, online publishers, the industry. Below is a chart
22.69
STRATEGY Bank Mandiri offers a fully search engine optimization, showing the market share
21.98
integrated range of services key opinion leader partnerships, trends of Bank Mandiri’s assets,
21.21
Bank Mandiri focuses on market that comprehensively and messaging platforms such loans, deposits, and CASA
19.23
potential and opportunities support both lifestyle and as WhatsApp, accounts for against the banking industry
18.64
18.28
while closely monitoring market financial needs. 65%. Conventional media, (commercial banks) over the
challenges and developments such as print advertisements past three years:
in digital technology. In 4. Building Connection That in newspapers, television and 2022 2023 2024* 2022 2023 2024*
addition, the bank continues to Mandiri Elevates My Living radio commercials, outdoor
innovate in the development of Norm media, and other traditional
financial products and services More than just banking. channels, contribute the Notes:
to meet customer needs across Bank Mandiri not only remaining 35%. The Bank’s - Industry assets data as of November 2024;
- Industry loans, deposits and CASA data as of December 2024;
both wholesale and retail fulfills customers’ financial social media presence across - Bank Mandiri’s assets, loans, deposits, and CASA data as of December 2024.
segments. needs but also enhances Instagram, Facebook, Twitter,
their living standards, YouTube, and TikTok plays a Source: Indonesian Banking Statistics October 2024, Financial Services
Authority; Bank Mandiri’s December 2024 Public Report.
The development of Bank positioning itself as a significant role in its marketing
Mandiri’s products and sustainable bank and an strategy.
services is based on a holistic agent of development for
marketing strategy. This Indonesia. In addition, Bank Mandiri
strategy aims to enhance actively drives digital
customer understanding of 5. Always Here for You! transformation through
banking products and services, Growing together with collaborations and synergies
strengthen customer loyalty, customers. Providing the with various partners to
and drive new customer best for customers will expand its digital ecosystem.
acquisition by creating a always be Bank Mandiri’s This transformation aims to
positive customer experience. top priority and core continuously provide greater
identity. Bank Mandiri is value to customers across
A positive customer experience committed to supporting all segments while making a
can be shaped through several customers as they grow positive impact on the broader
aspects of brand building, and succeed together. economy.
including the following:
PT BANK MANDIRI (PERSERO) TBK 300 301 ANNUAL REPORT 2024
Page 18
MANAGEMENT DISCUSSION AND ANALYSIS
BMRI SHARE BUSINESS
PERFORMANCE 2024
REVIEW
BMRI Share Performance Versus JCI - YTD December 2024 Trend
BMRI JCI
Throughout 2024, Indonesia’s economy demonstrated solid resilience
as of last closing price. 31 December 2024 and sustainable growth despite facing the challenges of a highly
uncertain global economic landscape. Key factors such as the
recovery of domestic consumption, stability in the financial sector,
and supportive fiscal and accommodative monetary policies were
the main drivers of this positive performance.
IHSG
-3%
BMRI
-6%
Dec-23 Jan-24 Feb-24 Mar-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24
Since the onset of the Covid-19 pandemic in high interest rates, a strengthening USD, and
2020, Bank Mandiri and the national banking geopolitical tensions, while domestic challenges
sector have demonstrated resilience, achieving involved tight liquidity, rising LDR, and economic
significant growth and investor appreciation. uncertainties. Despite these obstacles, Bank
Bank Mandiri consistently delivered the best Mandiri remains committed to strengthening its
stock performance from 2021 to 2023. In 2024, fundamentals, maintaining investor confidence,
the Bank continued its positive momentum, and driving sustainable growth. In 2025, Bank
reaching an all-time high share price. However, Mandiri’s primary focus will be on digital
global and domestic challenges toward the innovation, prudent risk management, and
end of the year led to a -6% YTD correction. strategic execution to solidify its position as a
Global challenges included expectations of leader in the national banking sector.
PT BANK MANDIRI (PERSERO) TBK 302 303 ANNUAL REPORT 2024
Page 19
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS REVIEW BUSINESS REVIEW
was primarily driven by the Bank Mandiri’s solid with transaction value
Wholesale segment, which performance growth is reaching Rp22,703 trillion,
remains Bank Mandiri’s core driven by its ongoing digital an increase of 16.7% (yoy).
business and achieved transformation, with a strong This comprehensive digital
a significant 25.5% (yoy) focus on innovation to deliver platform enables businesses to
increase. The Bank successfully the best services for customers. conduct transactions anytime
maintained a balanced Through a series of innovations and anywhere, catering to
approach, as reflected in introduced throughout various business segments,
its strong asset quality. On a the year, Livin’ by Mandiri from corporations to SMEs. As
bank-only basis, Bank Mandiri’s achieved significant user of December 2024, Kopra by
gross Non-Performing Loan growth, increasing by 29.1% Mandiri had more than 249,000
(NPL) ratio stood at 0.97%, (yoy) to 29.3 million users as of users.
marking a 5-basis point (bps) December 2024. Meanwhile,
decline year-on-year. transaction frequency on Livin’ Kopra by Mandiri has been
by Mandiri reached 3,879 further enhanced to provide
In terms of segmental growth, million transactions, marking a significantly improved user
Bank Mandiri’s largest loan a 38% (yoy) growth, while experience while maintaining
expansion was driven by the transaction value surged to its three core functions: cash
corporate segment, which Rp4,027 trillion, reflecting a 23% management, value chain,
recorded a growth of 26.7% (yoy) increase. and trade, all accessible
(yoy) to Rp620.5 trillion by the through a single sign-on.
end of the fourth quarter of This strong performance is the The platform now features a
2024. Meanwhile, in the retail result of continuous innovation personalized management
segment, loan growth was launched throughout dashboard, customizable to
primarily supported by the 2024. Bank Mandiri remains business needs, along with
expansion in the productive optimistic that the expansion various additional digital
Throughout 2024, Indonesia’s Loans, which increased by by current accounts, savings, micro and Small Medium of its digital ecosystem will transaction features. As a
economy recorded a positive 13.6% (yoy), followed by and time deposits, which Enterprise (SME) segments, continue to grow through a bank with core competence
growth rate of 5.03% year- Consumer Loans at 10.6% (yoy) increased by 3.34%, 6.78%, which grew by 9.63% (yoy) and series of innovations. One key in wholesale banking and a
on-year (yoy), reflecting and Working Capital Loans at and 3.50% (yoy), respectively. 13.21% (yoy), respectively, as initiative was the introduction unique all-rounder ecosystem,
strong resilience amid 8.35% (yoy). of December 2024. of a new Livin’ interface Bank Mandiri remains focused
external pressures, including The solid performance of and the launch of Livin’ on meeting the banking needs
commodity price volatility The strong intermediation the domestic economy and In terms of fund collection, Loyalty, enabling customers of business players, particularly
and adjustments in global performance was balanced commercial banks throughout Bank Mandiri’s consolidated to accumulate Livin’ Points in the corporate segment.
interest rate policies. This by maintained credit quality, 2024 had a positive impact on Third-Party Funds grew by and access stock investment
economic performance was with the gross Non-Performing Bank Mandiri’s performance. 7.73% (yoy) to Rp1,698.9 trillion features. This innovation is part
among the best in Emerging Loan (NPL) ratio recorded at Bank Mandiri continued in the fourth quarter of 2024. of Bank Mandiri’s strategy to
Market Economies (EMEs), 2.08% as of December 2024. to demonstrate a strong This increase was supported position Livin’ by Mandiri as
supported by maintained The Loan at Risk (LaR) ratio commitment to supporting by savings growth of 13.4% a beyond superapp, offering
macroeconomic stability. also showed a declining trend, sustainable national economic (yoy) to Rp665.45 trillion and customers a more seamless,
reaching 9.28% in December growth, as reflected in its current accounts, which grew faster, and personalized
The Indonesian banking sector 2024, which is below the pre- financial achievements and by 3.60% (yoy) to Rp606.77 banking experience.
also demonstrated positive pandemic level of 9.93% in effective asset management, trillion. The expansion in
performance despite facing December 2019. which showed overall business volume contributed During the same period,
both global and domestic improvement through the to Bank Mandiri’s net profit the Wholesale Digital Super
challenges. Loan disbursement In terms of Third-Party Funds fourth quarter of 2024. achievement, which reached Platform Kopra by Mandiri
to third parties by national (TPF) in the national banking Rp55.78 trillion, reflecting a successfully managed 1,312
commercial banks grew by sector (commercial banks), Bank Mandiri’s consolidated year-on-year growth of 1.31% million transactions, reflecting
10.4% (yoy), reaching Rp7,826.9 total TPF reached Rp8,837.2 loan disbursement recorded in 2024. a growth of 21.0%(yoy),
trillion as of December 2024. trillion in December 2024, a growth of 19.5% (yoy)
This double-digit growth was reflecting a (yoy) growth of to Rp1,670.5 trillion as of
primarily driven by Investment 4.48%. This growth was driven December 2024. This growth
PT BANK MANDIRI (PERSERO) TBK 304 305 ANNUAL REPORT 2024
Page 20
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
RETAIL BANKING PERFORMANCE HIGHLIGHTS WHOLESALE BANKING PERFORMANCE HIGHLIGHTS
Description 2022 2023 Des-24
Description 2022 2023 Sep-2024 Dec-24 Kopra Active Users 93,277 107,687 117,586
Active Users (‘000) 9,658 13,180 14,675 14,874 Total Kopra Transaction (Million) 885 1,057 1,311
Total Livin’ Transaction (Million) 1,944 2,819 2,757 3,879 Kopra Transaction Value (Rp Trillion) 18,567 19,450 22,703
Livin’ Transaction Value (Rp Trillion) 2,472 3,271 2,940 4,027 Total Fee Based Income (Rp Billion) 2,038 2,201 2,372
Total Livin’ Fee Based Income (Rp Billion) 1,736 2,174 1,858 2,624
Active Users (‘000) Total Livin’ Transaction (Million) Total Kopra Transaction (Million) Kopra Active Users
14,874
14,675
117,586
3,879
1,311
13,180
107,687
1,057
93,277
2,819
2,757
9,658
885
1,944
2022 2023 Sep-24 Dec-2024 2022 2023 Sep-24 Dec-2024 2022 2023 Des-2024 2022 2023 Des-2024
Livin’ Transaction Value (Rp Trillion) Total Livin’ Fee Based Income (Rp Billion) Total Fee Based Income (Rp Billion) Kopra Transaction Value (Rp Trillion)
22,703
2,372
4,027
19,450
18,567
2,624
3,271
2,174
2,940
2,201
1,858
2,472
1,736
2,038
2022 2023 Sep-24 Dec-2024
2022 2023 Sep-24 Dec-2024 2022 2023 Des-2024 2022 2023 Des-2024
PT BANK MANDIRI (PERSERO) TBK 306 307 ANNUAL REPORT 2024
Page 21
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
KEY HIGHLIGHTS Bank Mandiri continues to innovate beyond Livin’, forecasting feature supports strategic
helping business owners improve service and financial decision-making and future financial
streamline operations through Livin’ Merchant. planning.
Bank Mandiri’s solid performance growth is inseparable from the
Key initiatives include: 3. Transfers to multiple accounts can be
ongoing digital transformation, with a focus on innovation to executed without the need to contact a
deliver the best services to customers. These innovations are part 1. Introducing account creation options for branch or relationship manager. Recurring
of Bank Mandiri’s efforts to position Livin’ by Mandiri as a beyond both individuals and business entities, with payments are also more efficient with the
superapp, enabling customers to enjoy a more seamless, faster, capabilities for managing multiple business Save as Favorite and template features.
and personalized banking experience. branches to broaden the service reach to 4. Enhancing payment convenience with
larger-scale enterprises. the Pay Bill Again feature, which facilitates
2. Delivering end-to-end solutions tailored to recurring payments. Additionally, it supports
Livin’ Merchant has also become increasingly comprehensive the food and beverage sector, including customers’ needs for processing bulk
in providing digital solutions designed to simplify entrepreneurs’ QR Table Ordering for order placement, payments efficiently.
business management through a single app. This effort aligns with methods for simplifying order presentation 5. Introducing an innovative solution for
Livin’ Merchant’s mission to become “The Most Preferred Apps for with open and close bill systems, dine-in and electronic invoice creation and delivery within
Small, Micro, and Medium Enterprises (MSME) Merchant.” takeaway options, order receipt printing, and the collection feature, enabling seamless
kitchen checker features to enhance outlet and efficient payment management. This
efficiency. is further supported by the Bill Reminder,
Kopra by Mandiri has now been refined to offer users a significantly 3. Enabling customers to self-order through which sends automated billing notifications
enhanced experience while maintaining its three main functions: kiosks located in various food areas, offering directly to Kopra or Livin’ for business partners.
Cash Management, Value Chain, and Trade, all accessible through a wide range of merchant choices. Additionally, it includes a virtual account
single sign-on. Kopra by Mandiri also features a personalized 4. Expanding payment acceptance options (VA) dashboard, allowing real-time VA bill
management dashboard tailored to business needs, along with a to include debit and credit cards via a card reconciliation for greater accuracy and
dongle. efficiency.
variety of additional digital transaction features.
5. Introducing store stock ordering features 6. Providing a comprehensive liquidity
where payments can be directly routed to management solution through cash
Livin’ by Mandiri, with capabilities to track concentration, complemented by an intuitive
orders and access short-term funding options visual guide to enhance the customer
to facilitate stock purchases. experience in designing liquidity schemes.
7. Enabling suppliers to accelerate invoice
These innovations underscore Bank Mandiri’s payment receipt through the supplier
DIGITAL BANKING STRATEGY & 2. Launching the ability to open accounts using commitment to delivering sophisticated financial financing solution, which can be accessed
INNOVATION IN 2024 passports as a way to expand reach into solutions that remain relevant and closely aligned directly via the supplier’s Kopra or Livin’
previously untapped customer segments. with customer needs. platform.
3. Expanding currency options and offering cross- 8. Delivering a seamless and efficient trade
As part of its strategy to strengthen digital banking border QR Payments, including multicurrency Meanwhile, Kopra by Mandiri has strengthened its transaction experience with a simplified
in 2024, Bank Mandiri remains committed to debit and tap-to-pay capabilities to simplify platform through the following innovations: form, supported by tooltips and validation to
enhancing the features of its flagship financial transactions abroad. guide each step. Kopra Trade also provides
super app Livin’ by Mandiri, Livin’ Merchant, and 4. Enhancing the digital lending journey on Livin’ 1. Customers are able to seamlessly complete real-time notifications for Bank Guarantee
the Super Platform Kopra by Mandiri. The following by Mandiri, enabling customers to access the onboarding process independently with issuance, ensuring immediate information
outlines Bank Mandiri’s digital banking strategies various loans such as credit cards, personal clear and intuitive guidance. delivery to beneficiaries.
for the Wholesale and Retail segments in 2024: loans, paylater services, home mortgages, 2. The dashboard display is designed to be
and Livin’ Auto for vehicle financing. customizable, aligning with customers’ The implementation of this digital banking strategy
For the Livin’ by Mandiri super app, several new 5. Adding stock trading capabilities to broaden specific needs. Additionally, the cash flow has been realized in 2024.
innovations introduced in 2024 are as follows: customer investment options within Livin’ by
1. Introducing a refreshed Livin’ by Mandiri Mandiri.
interface tailored to each customer’s habits 6. Introducing Livin’ Loyalty, a loyalty program
and preferences, providing a seamless, offering easy-to-earn, check, and redeem
more intuitive, and personalized transaction points to boost customer engagement with
experience. Livin’.
PT BANK MANDIRI (PERSERO) TBK 308 309 ANNUAL REPORT 2024
Page 22
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
DIGITAL BANKING – RETAIL SEGMENT
Throughout 2024, Bank Mandiri continuously introduced innovations by rolling out new and enhanced
features on its Livin’ by Mandiri super app, including:
1 2 3 4 5 6
Introducing a new QR Payment Cross Border, a Multicurrency debit Tap-to-pay multicurrency Livin’ KPR (Mortgage Livin’ Auto delivers end-to-end
personalized interface cross-border QR code-based allows international debit offers a simple way Loan) provides a range financing services for vehicle
tailored to the habits payment feature, enables card transactions to be for customers to make of features related to purchases. Customers can apply
and preferences of international transactions debited from foreign payments from foreign property purchases for loans processed by financing
each Livin’ by Mandiri without currency exchange. currency accounts in the currency accounts by via mortgage loans, companies partnered with Bank
customer, enhancing their Using the QRIS Antar Negara transaction currency, tapping their phone on including property Mandiri. Livin’ Auto offers a
transaction experience by feature in Livin’ by Mandiri, eliminating conversion payment terminals. This showcases, mortgage variety of features, including a
making it more convenient customers can conduct fees. This activity can be feature can be activated simulations, scheduling wide selection of vehicles, credit
and comfortable. cross-border transactions via managed directly from directly through Livin’ by appointments with simulations, simple application
QR code without needing to the card details menu in Mandiri. bank officers, and processes, and attractive
exchange currencies while Livin’ by Mandiri. submitting and tracking offers, all integrated within one
shopping abroad. mortgage applications. application.
PT BANK MANDIRI (PERSERO) TBK 310 311 ANNUAL REPORT 2024
Page 23
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
In addition to Livin’ by Mandiri, Livin’ Merchant also introduced several new features, including:
7 8 1 2 3 4
The stock trading feature Livin’ Loyalty is a loyalty A registration A multi-outlet feature A bulk product upload A Table QR feature
represents a collaboration program offering reward feature dedicated allowing business feature and additional that displays a
between Bank Mandiri points earned from to business entity owners to manage variant options that menu and enables
and Mandiri Sekuritas, average savings balances merchants, multiple outlet simplify inventory and customers to place
enabling customers to buy and or various customer enabling non- branches in one product management orders directly from
and sell stocks via Livin’ by transactions, such as individual businesses application, including for merchants. their mobile phones
Mandiri. This feature allows payments made with Mandiri to benefit from Livin’ adding outlets, by scanning the QR
customers to monitor debit or credit cards on EDC Merchant services. assigning employees code.
investment portfolios, machines, and transactions to each outlet,
access stock market through Livin’ by Mandiri. setting staxes and
information, and conduct service charges, and
transactions anytime and overseeing financial
anywhere. reports from all outlets.
PT BANK MANDIRI (PERSERO) TBK 312 313 ANNUAL REPORT 2024
Page 24
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
5 6 7 8 9 10
A presentation method Integrated order A card dongle device FnB Kiosk that A shopping from A bridging fund feature
feature that allows information for printing for accepting debit and simplifies self-ordering distributors feature as a funding option for
merchants to offer order receipts and credit card payments, for customers using for ordering goods purchasing goods from
customers a choice of providing kitchen where customers can devices placed in according to business distributors, which can
open or closed billing checkers, enhancing insert or tap their card on various dining areas, needs, paid directly be disbursed directly
systems, as well as the efficiency of outlet the provided device. offering a diverse through Livin’ by Mandiri, from Livin’ Merchant.
dine-in and take-away operations. selection of merchants. and the ability to monitor
options. purchases and shipments
directly from Livin’
Merchant.
PT BANK MANDIRI (PERSERO) TBK 314 315 ANNUAL REPORT 2024
Page 25
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
DIGITAL BANKING RETAIL SEGMENT PRODUCTS AND SERVICES Leveraging Advance Conversational AI, We Aim To Improve Operation Efficiency
In Customer Service And Software Development
Digital banking products and services for Retail segment customers include existing e-channel products
along with various innovations and enhancements tailored to the needs of the Retail segment.
Since its launch, Livin’ by Mandiri has become Bank Mandiri also introduced biometric login and
a cornerstone of Bank Mandiri’s innovation in one-click transaction capabilities to enhance user
enhancing digital banking services in Indonesia. security and convenience.
The application is designed to provide a seamless,
secure, and integrated banking experience By 2024, Livin’ by Mandiri has been downloaded
for customers, aligning with the growing digital by millions of users, demonstrating steady growth.
transformation priorities within the financial The app has played a crucial role in increasing
industry. financial inclusion in Indonesia, particularly during
the COVID-19 pandemic when many customers Livin’ by Mandiri Flagship Features:
Livin’ by Mandiri was initially introduced as part of relied on digital services for their daily transactions. Just Take a Selfie, Ease of opening savings accounts without visiting a branch, everything can be done
Bank Mandiri’s initiative to simplify banking access Livin’ by Mandiri successfully positioned Bank Savings is Done within minutes directly through the Livin’ by Mandiri app.
while reaching more customer segments, including Mandiri as a leader in digital banking, competing
tech-savvy younger generations. The app’s early with other platforms to provide a fully integrated One account for all
features included basic services such as interbank banking experience. (savings, loans, credit Check all Bank Mandiri products, including savings, loans, credit cards, and favorite
transfers, bill payments, and the purchase of digital cards, & favorite e-wallets, right from the Livin’ by Mandiri dashboard.
products like phone credits and data packages. The addition of comprehensive investment e-wallets)
features has also broadened the app’s service Users can customize the features they access most frequently to appear on the main
Over time, Bank Mandiri has continuously updated scope into the investment sector, enabling users Quick Pick Favorite Deals
screen.
the app, adding various innovative features that to invest in products such as mutual funds, bonds,
simplify the financial lives of its users. One significant and stocks directly through the app. This strategy Check Balance & Top Up This feature allows customers to manage and link all their e-wallet accounts. Users can
development was the integration of QRIS for strengthens Bank Mandiri’s position as a holistic Automatic E-Wallet also set up automatic top-ups by frequency and amount as needed.
digital payments, personalized features based financial services provider. Cardless Cash Withdrawal Livin’ by Mandiri provides the convenience of cardless cash withdrawals and deposits,
on customer needs, and the ability to apply for and Deposit ideal for customers without debit cards.
banking products such as credit cards and loans Looking ahead, Bank Mandiri is committed
directly through the app. to further developing Livin’ by Mandiri by Goal Saving & Time Plan and set the amount for Mandiri Tabungan Rencana and Mandiri Deposito to
integrating Artificial Intelligence (AI) and data Deposits better prepare for the future.
In 2021, Livin’ by Mandiri was relaunched with a analytics technologies to deliver increasingly
Late fees can be avoided with smart reminders. Additionally, Livin’ by Mandiri users
more modern design and advanced features. personalized services. This strategic plan aims to Smart Reminder,
can review transaction histories up to 15 months. For Mandiri Credit Cards, monthly
This version allowed customers to access all their keep the application relevant in a competitive E-Statement & E-Billing
transaction statements are also available in Livin’ by Mandiri.
accounts in a single application, including savings digital banking landscape while contributing to
accounts, time deposits, and linked e-wallets. Indonesia’s economic digitalization. Livin’ by Mandiri is developed with an open ecosystem concept. Bank Mandiri offers
Open Ecosystem
digital services frequently used by customers in their daily lives.
Indonesian citizens abroad can enjoy the convenience of using Livin’ by Mandiri
Open an Overseas
with local numbers, including opening rupiah accounts. Livin’ by Mandiri is currently
Account
available in 121 countries worldwide.
Branch reservation Branch reservation services without the wait.
Personal Loan Selected customers can apply for and top up personal loans directly from the app.
Ease of opening savings accounts without visiting a branch—everything can be done
Credit card
within minutes directly through the Livin’ by Mandiri app.
PT BANK MANDIRI (PERSERO) TBK 316 317 ANNUAL REPORT 2024
Page 26
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
Digital Banking Retail Segment Existing Products: DIGITAL BANKING – WHOLESALE SEGMENT
A point-of-sale (POS) application from Bank Mandiri that helps enhance the seller-to-customer
experience. The Livin’ Merchant app is equipped with various features, including product sales, Digital Banking Wholesale Segment Products And Services
Livin’ Merchant
multiple payment methods, and support for expanding businesses through online stores, table The following digital banking products and services for Wholesale segment customers include existing
QR codes, and kiosks. e-channel products along with innovations and enhancements tailored to the specific needs of Wholesale
A chip-based electronic money product issued by Bank Mandiri to replace cash in payment customers.
Mandiri e-Money transactions such as toll roads, parking, busways, trains, convenience stores, and various other
merchants.
LinkAja, a server-based electronic payment platform managed by a BUMN group, is a product
integration of similar services from state-owned banks, including Mandiri Pay from Bank Mandiri.
LinkAja was launched on 30 June 2019, and is committed to strengthening Indonesia’s digital
economy ecosystem in general and that of BUMNs in particular. LinkAja is now accepted
LinkAja
at a variety of merchants. Bank Mandiri supports the LinkAja program by expanding LinkAja
transaction acceptance at EDCs and Mandiri Bank merchants. The bank also broadens
LinkAja’s acceptance ecosystem by focusing on expanding non-cash transactions in
transactional areas and establishing an ecosystem for LinkAja use in these locations.
A chat communication service between Bank Mandiri and its customers via the official Bank
Mandiri WhatsApp account at 08118414000. Through this service, Bank Mandiri uses a chatbot
Mandiri Chatbanking
system to deliver information, notifications, and interact with customers. In turn, customers can
inquire about Bank Mandiri’s products and services through the same WhatsApp number.
A service providing electronic data capture (EDC) machines available at stores/merchants As the largest bank in Indonesia with its Bank reaffirmed its commitment to delivering
partnered with Bank Mandiri. Mandiri EDC facilitates electronic transactions using Mandiri
Mandiri EDC Unique All-Rounder Ecosystem, Bank Mandiri innovative financial solutions tailored to
Cards or cards from other banks through domestic networks, international payment networks,
and Bank Mandiri’s network. remains focused on meeting customer needs customers’ needs in the digital era. As part of
by continuously driving innovation through this initiative, Kopra by Mandiri underwent a
Banking transaction services via automated teller machines (ATMs) that enable customers to
access their Mandiri Savings or Mandiri Giro accounts for cash withdrawals, balance inquiries,
the latest digital advancements. One of its comprehensive transformation, significantly
Mandiri ATM transfers, payments, and purchases using Mandiri cards. Through domestic networks and key initiatives is the Wholesale Digital Super enhancing both its user interface (UI) and user
international payment networks, Mandiri ATMs also support transactions using cards from other Platform, Kopra by Mandiri, which provides end- experience (UX), a development completed in
banks. to-end solutions for customers and their value less than a year.
A service for accepting transactions with Mandiri cards or other bank cards at online stores/ chains. Through Kopra, Bank Mandiri offers
merchants partnered with Bank Mandiri. Mandiri e-commerce offers a seamless transaction comprehensive banking services for all business This development reflects Bank Mandiri’s
Mandiri e-Commerce experience as payments are conducted within an integrated transaction flow, without needing segments, from SMEs to large corporations. commitment and dedication to delivering the
to access additional banking channels. Customers can use both Mandiri cards and other bank
cards via international payment networks. best wholesale banking solutions in the market.
Since its launch in mid-2021, Kopra by Mandiri Throughout the process, we collaborated with
A frictionless and secure payment method using Mandiri Debit at e-commerce merchants,
has contributed to Indonesia’s economic key stakeholders and benchmarked against
utilizing a transaction ID consisting of the card number and expiry date, combined with OTP
Mandiri Direct Debit growth. The platform focuses on three top global players in the industry to identify
(One-Time Password) authorization. For authorization, Bank Mandiri acts as the issuer, bypassing
the principal by sending OTPs directly to the customer. globally standardized core functions, Cash necessary enhancements. Every feature of
A QR-based transaction acceptance service using server-based electronic money or other
Management, Value Chain, and Trade, Kopra by Mandiri was carefully reviewed to
funding sources at stores/merchants partnered with Bank Mandiri. Mandiri QRIS (Quick accessible through a single point of access for ensure its capabilities align with customers’
Mandiri QRIS Response Indonesia Standard) simplifies transactions at stores/merchants without using cash business operators. business needs while optimizing the customer
or cards. Transactions can be performed interoperably using Mandiri Online, other mobile journey to enhance efficiency by reducing the
banking services, or fintech applications approved by Bank Indonesia.
In 2022, Bank Mandiri released the Kopra Mobile steps required for each transaction. Through
Bank Mandiri’s latest digital banking service offers customers a convenient way to replace App, making it even easier for customers these efforts, we strive to ensure that our
Mandiri Customer cards (damaged or lost) and open new accounts. Customers can conduct these transactions to access Kopra by Mandiri anytime and solutions are on par with, or even surpass, those
Service Machine independently at a customer service machine through a fast, practical process, eliminating
the need to queue at a branch. anywhere. In 2023, the bank introduced a offered by leading global players.
breakthrough with KOPRA Beyond Borders,
Mandiri Application Mandiri API provides easy access to banking products and services for participants in the
demonstrating its commitment to providing a The transformation of Kopra by Mandiri
Programming digital financial ecosystem, seamlessly integrated into partner applications. This allows safe,
Interface (API) real-time use of banking services. seamless experience. This innovation addresses introduces a modern and sophisticated
the integrated digital financial service needs of interface, enhanced by an improved
Bank Mandiri partners with digital companies in Indonesia to offer working capital loans (non-
revolving) to MSMEs registered as online sellers/merchants. Loan applications are submitted
corporate customers in Indonesia and abroad, transaction experience and the addition
Seller Financing online through the partner platform and sent to Bank Mandiri via API. Once approved, the funds extending the ecosystem reach for clients. of globally benchmarked features to meet
are credited to the customer’s account. For digital companies without a financing application customer needs. These enhanced services
platform, Bank Mandiri offers an onboarding website that can process loan applications. Building on this momentum, on 2 October 2024, are designed to streamline transactions and
KUM Talangan Pembelian is a business financing product provided by Bank Mandiri to customers coinciding with Bank Mandiri’s 26th anniversary improve overall banking efficiency. Key
selling through digital platforms. Customers can repeatedly draw loans up to the credit limit under the theme “Adaptive and Solutive,” the upgraded features include:
KUM Talangan
in a revolving manner. The application process is conducted online via a partner platform
Pembelian
connected to Bank Mandiri through an API. Customers can also track their loan application
status directly on the partner platform.
PT BANK MANDIRI (PERSERO) TBK 318 319 ANNUAL REPORT 2024
Page 27
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
1 Kopra by Mandiri has undergone a massive transformation in both user interface (UI) and user 3 The Dashboard feature is designed to do more than just display balance and transaction
experience (UX), with the development process completed in less than a year. Throughout this information; it can customize the information display according to business needs. Equipped with
process, we collaborated with stakeholders and conducted benchmarking against top global Strategic Insights and accurate cash flow projections, this dashboard facilitates decision-making
players in the industry to determine the necessary enhancements. We reviewed the design and and future financial planning.
customer journey of each feature within Kopra by Mandiri with the expectation that, following this
upgrade, its capabilities will be on par with or even exceed those offered by top global players.
This update introduces a more elegant interface along with an enhanced transaction experience,
complemented by the addition and strengthening of globally standardized features to meet
customer needs.
2 Seamless Onboarding through the Simple Settings option enables customers to complete the
onboarding process with ease, minimizing the need for an implementer. Customers are provided
with two options, one of which is Simple Settings, allowing the creation of corporate users
within minutes. This option enables customers to configure makers and approvers in a single,
straightforward step.
4 The Transfer feature provides services for transactions to various domestic and global banks,
including foreign exchange transactions with competitive exchange rates directly from Kopra.
Additionally, it offers flexibility for transferring funds to multiple accounts without the need to
contact a branch or relationship manager and is equipped with favorite templates to expedite
routine payment processes.
Or through Advanced Settings, where customers can create corporate users and define a unique
approval scheme for each transaction, tailored to the company's approval policies.
PT BANK MANDIRI (PERSERO) TBK 320 321 ANNUAL REPORT 2024
Page 28
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
5 The Payment feature provides services for recurring payments using Pay Bill Again. Additionally, this 7 The Liquidity feature provides a comprehensive fund management solution through cash
feature simplifies bulk payments for customers. concentration, enabling customers to consolidate, distribute, and automatically set minimum
and maximum balance limits on operational accounts. Additionally, this feature includes an
educational landing page to assist customers in designing liquidity schemes more easily.
6 The Collection feature is designed to automate the billing process, making it more seamless,
efficient, and faster. It facilitates automated and scheduled payment collection through Auto
Debit, enables the creation and electronic delivery of invoices to business partners, and simplifies
payment reconciliation with virtual account collection. Additionally, it includes a dashboard for
monitoring receivables management.
8 The Value Chain service enables customers to monitor transaction information, limits, and
reconciliation in real time. This service also includes a supplier financing solution that allows
individual suppliers to receive invoice payments more quickly, accessible directly through their
Kopra or Livin’ accounts.
The introduction of new innovations such as Bill Reminder facilitates invoice collection by
enabling direct billing from Kopra to business partners using Kopra and Livin’.
PT BANK MANDIRI (PERSERO) TBK 322 323 ANNUAL REPORT 2024
Page 29
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
Kopra by Mandiri comprises three variants, which include:
1. Kopra Portal: A digital service variant featuring front-end access through a single access portal.
2. Kopra Embedded Finance (Host to Host): A single access digital service variant based on integration
between the customer’s system and the Bank’s system.
3. Kopra Partnership: A solution providing transactional services with specific added value for customers
and its business ecosystems.
The following are Kopra by Mandiri flagship features:
Remittance Tracking Ease of tracking the fund transfer status and the fees charged by each intermediary bank
for foreign currency remittance transactions to other banks based on the Bank Mandiri
transaction reference number.
Onboarding Suppliers Online registration feature for suppliers to join the principal customer’s KOPRA by Mandiri
ecosystem.
Virtual Assistant Convenient access to communicate with the bank via audio calls, video calls, and online
chat for explaining a product or submitting complaints regarding Bank Mandiri’s services and
products registered in KOPRA by Mandiri.
Consolidated A feature that provides customers with their financial information. The financial dashboard
Financial Dashboard displays the following details:
a. Cash Position: Displays the balance and transaction history for all customer accounts,
both at Bank Mandiri and other banks.
b. Limit Information: Displays trade, guarantee, and value chain limit details.
c. Custody: Displays the total security assets owned by the customer.
d. Transaction Reminder: Displays due dates and other important transaction-related
dates for trade, value chain, and custody.
e. Exchange Rate Information: Displays exchange rate data for 15 foreign currencies at
9 The Trade service simplifies form completion, supported by tooltips and automatic validation as special rates.
a guide. Additionally, it features a Bank Guarantee Draft Preview to ensure document accuracy f. Billing Information: Displays details of Active Billing and Billing History.
before issuance, along with real-time notifications via Kopra for beneficiaries. Online Onboarding Convenience in registering Wholesale Bank Mandiri channels by filling out digital forms and
Transactional Product signing them online.
Online Subsidiaries A feature to register subsidiaries online, allowing the parent company to view a summary of
Registration the subsidiary’s financial information via the KOPRA by Mandiri dashboard.
Market Overview A feature providing customers with market outlooks such as Macroeconomic Forecasts,
Market Highlights, and Economic Reviews prepared by Bank Mandiri’s Chief Economist team.
Product Offering A feature enabling customers to receive product offers relevant to their profile directly on
the KOPRA portal page.
EIPP (Electronic Bank Mandiri's collection service for companies that do not yet have a biller code but
Invoice Presentment require invoicing solutions.
& Payment)
Kopra Smart Account The Cash Management service utilizes virtual current sub-accounts (Virtual Accounts) to
help companies centrally manage funds with ease in allocation, recording, and transaction
identification.
Kopra Foreign The Kopra by Mandiri feature enables customers to conduct foreign exchange (forex)
Exchange transactions online with special exchange rates from the Treasury Group. The displayed
exchange rates are continuously updated in real time. Customers can execute transactions
by selecting currency pairs and choosing buy/sell positions according to their needs.
Kopra Beyond The internet banking service supports Bank Mandiri's business and corporate customers,
Borders both domestically and internationally. This service facilitates financial transactions between
parent companies and overseas subsidiaries located in Singapore, Hong Kong, Timor-Leste
(Dili), and China (Shanghai).
Kopra Bill Reminder A feature in Kopra by Mandiri provided to biller customers using the Mandiri Bill Collection
(MBC) service as an additional solution for billers to collect payments from consumers
(payers) through Livin’ by Mandiri.
PT BANK MANDIRI (PERSERO) TBK 324 325 ANNUAL REPORT 2024
Page 30
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
The following are Kopra by Mandiri flagship features:
Kopra Mobile App The mobile application version of the Kopra by Mandiri platform allows customers to access
company financial information, view foreign exchange conversion rates, and approve cash
management transactions through a mobile app. DIGITAL BANKING CHALLENGES IN 2024
Mandiri Mobile Token A smartphone-based token application that serves as an authentication tool for transactions
on Bank Mandiri services, specifically Kopra by Mandiri. Mandiri Mobile Token is a soft token
Bank Mandiri encounters several challenges in developing its
that must be downloaded and activated on the customer's smartphone device.
digital banking business in 2024. Among these, the growing number
Mandiri An integrated portal owned and developed by the bank as a platform for companies to
of digital transactions heightens the risks of data breaches and
Reconciliation Portal submit billing data, monitor dashboards, and view detailed payment receipt reports.
cyberattacks. As a result, Bank Mandiri continues to strengthen its
cybersecurity systems to protect customer data and maintain service
integrity throughout 2024. Enhancing biometric authentication
Wholesale Digital Super Platform Kopra by Mandiri Services: and implementing the latest technology-based security measures
Kopra Cash remain top priorities for Bank Mandiri.
Management An internet-based digital service designed for wholesale segment companies to conduct
Wholesale their financial activities, including both financial and non-financial transactions. In addition, digital transformation requires modernizing infrastructure,
(KCM Wholesale) including increasing core banking capacity and integrating digital
A web-based service provided by the Bank to meet customer needs in supply chain services into various ecosystems such as e-commerce and fintech.
transactions (transactions between principals, suppliers, and distributors within the supply As such, Bank Mandiri continuously strives to ensure that its digital
Kopra Value Chain
chain network), covering invoice submission, invoice receipt, payment instructions, and
financing requests. services remain stable and reliable for customers.
A web-based portal accessible 24/7 from anywhere at any time, enabling customers to
Kopra Trade conduct various types of trade transactions, including export, import, local trade, and bank Another challenge Bank Mandiri encounters in developing digital
guarantees. banking during 2024 is meeting customers’ demand for faster,
A new web-based service that enables customers to easily inquire about their portfolio, simpler, and feature-rich services. To address this, Bank Mandiri
Kopra Custody transaction status, and Corporate Action Event information, as well as submit instructions with will continue innovating by developing new features in Livin’ by
a dual control mechanism (four-eyes principle). Mandiri, Kopra by Mandiri, and other services. In adapting to
Kopra Cash An internet-based digital service designed for individual business customers and small and changing customer preferences, Bank Mandiri’s innovations are
Management Retail medium enterprises (SMEs) to conduct financial and non-financial transactions on registered complemented by effective education to help customers make the
(KCM Retail) business current or savings accounts with Bank Mandiri.
most of these features.
A web-based service that facilitates hospitals in processing payment receipts from general
Kopra Hospital
patients, providing reconciliation, reports, and a payment receipt dashboard for both general
Solutions
patients and BPJS Kesehatan patients.
DIGITAL BANKING Through a series of innovations launched
PERFORMANCE IN 2024 throughout 2024, Livin’ by Mandiri achieved a
29% (yoy) increase in users, reaching 29.3 million
as of December 2024. Meanwhile, the frequency
Digital Banking Retail Segment of transactions via Livin’ by Mandiri rose by 38%
Performance (yoy) to 3.9 billion, with transaction value surging
The introduction of Livin’ by Mandiri has not only 23% (yoy) to Rp4,027 trillion. These solid results
simplified customer services such as fund transfers are a direct outcome of continuous innovation
and account openings but also brought numerous throughout the year. Bank Mandiri remains
standout features, including investment services optimistic that its expanding digital ecosystem will
and the ability to apply for loans directly through continue to flourish thanks to these initiatives.
the app. As of December 2024, the performance
of Bank Mandiri’s digital banking retail segment In addition, Livin’ Merchant saw a 41% (yoy)
continued to show positive growth, demonstrating growth in individual merchants, reaching 2.4
its ongoing success. million by December 2024. The frequency of
PT BANK MANDIRI (PERSERO) TBK 326 327 ANNUAL REPORT 2024
Page 31
MANAGEMENT DISCUSSION AND ANALYSIS
DIGITAL BANKING DIGITAL BANKING
transactions through Livin’ Merchant reached 147 Bill Reminder and Kopra to Livin’ Financing expand Wholesale segment achievements as of December 2024 are as follows:
million, with a transaction value of Rp14.7 trillion. connectivity with Livin’, fostering inclusive growth
and enhancing supply chain efficiency. Year Type Cash Management Trade & Bank Garansi Value Chain
Strong performance in the digital banking retail Dec-2024 Transaction Nominal Rp18,363 trillion Rp656,2 trillion Rp74,1 trillion
segment has been bolstered by Bank Mandiri’s Moreover, Kopra by Mandiri continues to be Sep-2024 Transaction Nominal Rp13,170 trillion Rp482,1 trillion Rp52,7 trillion
customer-oriented strategies, which focus on refined to offer an even better user experience, 2023 Transaction Nominal Rp18,277 trillion Rp717,2 trillion Rp70,6 trillion
creating an integrated digital service ecosystem focusing on its three main functions, Cash 2022 Transaction Nominal Rp102,8 trillion Rp878,6 trillion Rp58,2 trillion
for Livin’ by Mandiri, Kopra by Mandiri, and Livin’ Management, Value Chain, and Trade, all
Merchant. Bank Mandiri also earned the “Digital accessible via single sign-on. Kopra by Mandiri
Experience of the Year” accolade at the 2024 also features a personalized management
Asian Experience Awards, cementing its position dashboard tailored to business needs, along with STRATEGI DIGITAL BANKING To address the evolving needs of customers,
as one of Indonesia’s leading banks in digital numerous additional digital transaction features. YEAR 2025 Bank Mandiri, through its wholesale segment, has
innovation. This award highlights Bank Mandiri’s established a strategy to strengthen its position
ability to deliver adaptive and responsive digital As a bank with core competence in wholesale as the market leader in digital banking services
banking solutions amid evolving technology and banking and a unique all-rounder ecosystem, Bank In 2025, Bank Mandiri remains committed to in Indonesia. This strategy focuses on developing
market needs. Mandiri focuses on meeting the banking needs enhancing and enriching the features of its and reinforcing a closed-loop ecosystem through
of business players, particularly in the corporate financial super app Livin’ by Mandiri and the Kopra Partnership, which facilitates an end-to-
This achievement reflects Bank Mandiri’s segment. With this approach, Kopra by Mandiri KOPRA by Mandiri super platform. end connected ecosystem, from principals,
dedication to enhancing customers’ digital continues to strengthen its position as the market suppliers, and distributors to retailers and individual
experiences while supporting grassroots economic leader in wholesale digital banking services. Bank For the Livin’ by Mandiri super app, several new customers, by integrating Kopra by Mandiri and
growth through broader financial inclusion. Mandiri’s commitment to providing leading and innovations are planned, such as: Livin’ by Mandiri. One key initiative is Kopra Bill
innovative solutions for customers is reflected in 1. Introducing features aimed at expanding Reminder, which enables direct billing to Livin’ by
the various international awards received in 2024. acquisition reach to the next generation of Mandiri users. Furthermore, to expand services for
Digital Banking Wholesale Segment One of the most prestigious accolades was the customers. customers, we have integrated Kopra by Mandiri
Performance Euromoney Awards for Excellence, where Bank 2. Incorporating artificial intelligence-driven and Livin’ by Mandiri with the Kopra to Livin’
During 2024, the digital banking performance of Mandiri was recognized as the Best Bank for financial management tools to enhance Financing solution. This innovation accelerates
Bank Mandiri’s Wholesale segment posted rapid Corporates, reaffirming its position as the preferred financial literacy across all customer invoice payment receipt for individual suppliers
growth through the Kopra by Mandiri platform. choice for corporate customers in conducting segments. by directly linking payments to their Livin’
The Wholesale Digital Super Platform, Kopra operational business transactions. Moreover, 3. Adding investment products to further accounts. The introduction of these two features
by Mandiri, successfully managed 1.3 billion Kopra by Mandiri received industry recognition complete the investment journey for Livin’ users. is expected to address customer needs while
transactions, grew 21% (yoy), with transaction through awards from The Digital Banker, winning driving their adoption and usage. Looking ahead,
value reaching Rp22,700 trillion, an increase in the Best Cash Management and Best Trade Meanwhile, for Livin’ Merchant, new innovations Kopra by Mandiri will further integrate customers’
of 17% (yoy). This comprehensive digital super Finance in Southeast Asia categories. will include: business processes into the Kopra ecosystem by
platform serves various transaction needs anytime 1. Direct disbursement of customer payments connecting Kopra by Mandiri with Livin’ Merchant,
and anywhere, catering to multiple business Closing the year 2024, Kopra by Mandiri successfully into merchant accounts to provide greater enhancing seamless financial transactions across
segments, from corporates to SMEs, with more secured the title of Best Bank for Payment Solution convenience for business operators. the ecosystem.
than 247,000 users as of December 2024. from Corporate Treasurer and Best Digital Banking 2. Offering additional revenue opportunities for
Platform from Alpha Southeast Asia. Specifically business owners through bill payment and
Kopra by Mandiri has currently become a in trade services, Kopra by Mandiri achieved digital product services.
cornerstone for corporate business needs. As such, a significant milestone by being recognized as 3. Integrating with food ordering platforms to
Bank Mandiri continues to strengthen its ecosystem Best Trade Finance Provider in Indonesia by the produce comprehensive transaction records.
solutions with a closed-loop approach, integrating prestigious Global Finance. This achievement
corporate clients, suppliers, and distributors into a marks a historic win for Bank Mandiri in a category
single efficient system. Innovations such as Kopra it had never received before.
PT BANK MANDIRI (PERSERO) TBK 328 329 ANNUAL REPORT 2024
Page 32
MANAGEMENT DISCUSSION AND ANALYSIS
OPERATIONAL REVIEW OPERATIONAL REVIEW BY BUSINESS SEGMENT
BY BUSINESS SEGMENT
Bank Mandiri divides its working units into three main units: business units, support functions, and
business & network units, all of which function to carry out activities in the banking industry. These
PROFITABILITAS SEGMEN OPERASIONAL
three main units are further divided into several segments and sub-segments of operations.
The business unit serves as the primary driver of the Bank’s business development and operates
Operational Segment Net Operational Segment Interest
as an operational segment consisting of two main segments: Wholesale Banking and Retail
Profit Growth and Sharia Income Growth
Banking. The support functions unit supports overall business operations, while the business
& network unit functions as the unit responsible for selling products and services to all Bank • Bank Mandiri’s Operational • Bank Mandiri’s Operational
Mandiri customer segments. The business & network unit consists of 12 Regional Offices spread segment net profit increased to segment interest and sharia
across Indonesia. Rp61,17 trillion, grew by 1.87% income grew by 14.11% (yoy) to
(yoy) in 2024. Rp151,24 trillion in 2024.
• This growth was primarily • The Wholesale Banking segment
supported by the net profit from significantly contributed to this
OPERATIONAL SEGMENTS Corporate Banking segment,
which reached Rp14,32 ttrillion.
growth, increased by Rp15,81
trillion or 23.25% (yoy) to Rp83,79
trillion.
Bank Mandiri’s operational segments are outlined in the following structure:
Main Segments
• Corporate Banking
• Commercial Banking Key Contributors in Wholesale Banking Segment in the Increase of Interest
• Institutional Relations Income & Sharia Income
• Treasury & International Banking
1. Corporate Banking: Increased by Rp10,40 trillion, grew by 23.07% (yoy) to Rp55,46 trillion.
Retail Segments 2. Commercial Banking: Increased by Rp5,41 trillion, grew by 23.61% (yoy) to Rp28,33 trillion.
• Retail Banking
3. Institutional Relations: Increased by Rp4,54 trillion, grew by 56.37% (yoy) to Rp12,60 trillion.
– Comprising Consumer/Individual Segment
MAIN SEGMENTS – Micro & Business Segment 4. Treasury & International Banking: Increased by Rp1,72 trillion, grew by 7.18% (yoy) to
– Wealth Management Rp25,68 trillion.
Geographic Segments
• Operasional utama Grup dikelola di wilayah:
– Indonesia
– Asia (Singapura, Hong Kong, Timor Leste, Shanghai, Malaysia)
– Eropa Barat (Inggris)
Retail Banking Segment Subsidiary
– Cayman Islands
• Retail Banking’s interest • Interest and sharia income from
and sharia income grew by the subsidiary segment grew by
Subsidiary Rp8.45 trillion, increased by 12.41% (yoy) to Rp39.48 trillion.
• PT Bank Syariah Indonesia Tbk (BSI) 11.49% (yoy) to Rp82.02,65
• Bank Mandiri (Europe) Limited (BMEL) trillion as of December 2024.
• PT Mandiri Sekuritas (Mansek)
SUPPORTING • PT Bank Mandiri Taspen (Bank Mantap)
SEGMENTS • PT Mandiri Tunas Finance (MTF)
• Mandiri International Remittance Sdn. Bhd. (MIR)
• PT AXA Mandiri Financial Services (AXA Mandiri)
• PT Mandiri Utama Finance (MUF)
• PT Mandiri Capital Indonesia (MCI)
PT BANK MANDIRI (PERSERO) TBK 330 331 ANNUAL REPORT 2024
Page 33
MANAGEMENT DISCUSSION AND ANALYSIS
OPERATIONAL REVIEW BY BUSINESS SEGMENT OPERATIONAL REVIEW BY BUSINESS SEGMENT
Operating Segment Profitability 2024 (as of 31 December 2024)
Corporate Commercial Institutional Retail Treasury & International Subsidiary - Subsidiary Subsidiary - Non- Adjustment and
Description Head Office Total
Banking Banking Relations Banking Banking Sharia -Insurance Sharia and Insurance Elimination*)
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interest Income and Sharia Income **) 55,458,085 28,329,824 12,599,521 82,023,216 25,675,744 311,561 25,190,341 366,240 13,922,134 (92,640,639) 151,236,027
Interest Expense and Sharia Expense **) (43,095,529) (21,526,623) (9,354,874) (31,421,713) (26,435,919) (309,039) (7,889,030) - (5,662,346) 96,215,966 (49,479,107)
Net Interest and Sharia Income 12,362,556 6,803,201 3,244,647 50,601,503 (760,175) 2,522 17,301,311 366,240 8,259,788 3,575,327 101,756,920
Net Premium Income - - - - - - - 2,520,813 - - 2,520,813
Net Interest, Sharia and Premium Income 12,362,556 6,803,201 3,244,647 50,601,503 (760,175) 2,522 17,301,311 2,887,053 8,259,788 3,575,327 104,277,733
Other Operating Income:
Fees and Commissions 3,579,720 1,068,987 540,910 7,939,832 249,408 4,207,616 3,591,648 - 2,876,145 (606,746) 23,447,520
Others 370,578 140,578 47,508 5,979,568 2,795,794 4,640,925 2,674,566 1,163,338 2,552,526 (1,641,886) 18,723,495
Total 3,950,298 1,209,565 588,418 13,919,400 3,045,202 8,848,541 6,266,214 1,163,338 5,428,671 (2,248,632) 42,171,015
Reversal/(Establishment) Allowance for Impairment Losses of
208,039 533,724 22,539 (8,056,279) (19,093) 39,701 (2,822,044) - (1,835,591) - (11,929,004)
Financial Assets and Others
Gains on Sale of Marketable Securities and Government Bonds - - - - - 1,041 147,338 1,016 902 - 150,297
Other Operating Expenses:
Salaries and Employee Benefits (707,702) (582,713) (261,121) (8,550,280) (184,589) (4,397,981) (5,284,069) (461,312) (3,560,996) - (23,990,763)
General and Administrative Expenses (537,990) (337,903) (287,935) (8,794,411) (163,140) (6,746,929) (5,822,530) (780,922) (3,047,873) - (26,519,633)
Others (953,374) (474,356) (283,621) (3,421,039) (353,631) (398,829) (850,481) (1,154,040) (657,778) 447,099 (8,100,050)
Total (2,199,066) (1,394,972) (832,677) (20,765,730) (701,360) (11,543,739) (11,957,080) (2,396,274) (7,266,647) 447,099 (58,610,446)
Net Non-Operating Income/(Expenses) - - - - - 342,689 4,393 - (3,191) - 343,891
Tax Expense - - - - - (11,890,259) (2,044,505) (278,899) (1,024,702) - (15,238,365)
Net Profit 14,321,827 7,151,518 3,022,927 35,698,894 1,564,574 (14,199,504) 6,895,627 1,376,234 3,559,230 1,773,794 61,165,121
Net Profit Attributable To:
Owners of Parent Entity - - - - - - - - - - 5,382,379
Noncontrolling interests - - - - - - - - - - (56,224,883)
Consolidated statement of financial position
Gross Loans 515,387,333 292,862,407 96,337,445 397,443,310 8,748,909 - 275,170,624 - 46,933,649 (9,667,065) 1,623,216,612
Total Assets 532,047,351 285,625,155 97,040,404 270,832,653 288,676,693 403,099,471 408,613,432 41,914,379 131,222,110 (31,848,386) 2,427,223,262
Demand Deposits and Wadiah Demand Deposits (266,264,072) (101,979,504) (56,424,491) (121,995,373) (5,041,157) 670,918 (19,147,079) - (1,094,974) 2,699,723 (568,576,009)
Saving Deposits and Wadiah Saving Deposits (22,875,714) (29,835,214) (2,216,055) (459,185,804) (426,607) - (55,280,067) - (10,372,335) - (580,191,796)
Time Deposits (40,428,190) (29,372,581) (44,297,076) (246,264,747) (4,983,283) 104,031,094 - - (37,426,416) 1,274,047 (297,467,152)
Total Deposits from Customer (329,567,976) (161,187,299) (102,937,622) (827,445,924) (10,451,047) 104,702,012 (74,427,146) - (48,893,725) 3,973,770 (1,446,234,957)
Total Liabilities (330,132,708) (162,089,578) (104,667,569) (719,307,812) (116,194,603) (186,574,573) (109,666,533) (38,101,669) (109,228,303) 16,783,973 (1,859,179,375)
*) Includes the elimination of internal transfer pricing or reclassification between operating segments and elimination of subsidiaries.
**) Includes components of internal transfer pricing between operating segments.
PT BANK MANDIRI (PERSERO) TBK 332 333 ANNUAL REPORT 2024
Page 34
MANAGEMENT DISCUSSION AND ANALYSIS
OPERATIONAL REVIEW BY BUSINESS SEGMENT OPERATIONAL REVIEW BY BUSINESS SEGMENT
Operating Segment Profitability 2023 (as of 31 December 2023)
Subsidiary -
Corporate Commercial Institutional Retail Treasury & International Subsidiary - Subsidiary Adjustment and
Description Head Office Non-Sharia and Total
Banking Banking Relations Banking Banking Sharia -Insurance Elimination*)
Insurance
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interest Income and Sharia Income **) 45,062,477 22,918,692 8,057,705 73,572,015 23,955,016 273,499 22,266,780 456,576 12,396,296 (76,414,586) 132,544,470
Interest Expense and Sharia Expense **) (30,279,973) (16,104,740) (4,928,572) (27,618,272) (21,432,754) (265,903) (5,993,167) - (4,466,631) 74,432,116 (36,657,896)
Net Interest and Sharia Income 14,782,504 6,813,952 3,129,133 45,953,743 2,522,262 7,596 16,273,613 456,576 7,929,665 (1,982,470) 95,886,574
Net Premium Income - - - - - - - 2,677,680 - (554,634) 2,123,046
Net Interest, Sharia and Premium Income 14,782,504 6,813,952 3,129,133 45,953,743 2,522,262 7,596 16,273,613 3,134,256 7,929,665 (2,537,104) 98,009,620
Other Operating Income:
Fees and Commissions 2,802,116 828,477 485,844 7,397,841 282,570 3,909,218 2,766,757 - 2,333,237 (657,650) 20,148,410
Others 396,415 145,282 45,618 5,933,469 2,754,747 7,315,708 2,014,757 1,282,189 2,184,912 (1,698,661) 20,374,436
Total 3,198,531 973,759 531,462 13,331,310 3,037,317 11,224,926 4,781,514 1,282,189 4,518,149 (2,356,311) 40,522,846
Reversal/(Establishment) Allowance for Impairment
2,046,409 1,650,569 (12,738) (9,013,714) (26,561) (33,011) (3,220,873) - (1,538,788) - (10,148,707)
Losses of Financial Assets and Others
Unrealized Gain/(Loss) from Increase/ (Decrease) in Fair
- - - - - - - - - - -
Value of Policyholders Investment in Unit-Link Contracts
Gains on Sale of Marketable Securities and Government
- - - - - 47,701 74,434 19,340 (16,180) - 125,295
Bonds
Other Operating Expenses:
Salaries and Employee Benefits (223,524) (341,091) (110,771) (2,347,645) (146,412) (12,889,547) (5,035,077) (562,463) (3,321,193) 554,634 (24,423,089)
General and Administrative Expenses (95,607) (110,462) (171,253) (2,033,553) (127,053) (11,965,900) (4,748,386) (900,857) (2,579,823) - (22,732,894)
Others (563,287) (261,325) (153,238) (1,821,926) (338,731) (1,792,243) (725,852) (1,206,267) (521,296) 672,657 (6,711,508)
Total (882,418) (712,878) (435,262) (6,203,124) (612,196) (26,647,690) (10,509,315) (2,669,587) (6,422,312) 1,227,291 (53,867,491)
Net Non-Operating Income/(Expenses) - - - - - 98,094 100 - (54,876) - 43,318
Tax Expense - - - - - (11,690,331) (1,695,729) (256,165) (990,786) - (14,633,011)
Net Profit 19,145,026 8,725,402 3,212,593 44,068,215 4,920,824 (26,992,715) 5,703,744 1,510,033 3,424,872 (3,666,124) 60,051,870
Net Profit Attributable To:
Owners of Parent Entity - - - - - - - - - - 55,060,057
Noncontrolling interests - - - - - - - - - - 4,991,813
Consolidated statement of financial position
Gross Loans 409,857,020 237,952,186 72,741,580 358,074,141 7,162,500 - 237,907,537 - 42,066,502 (5,929,271) 1,359,832,195
Total Assets 424,358,483 229,139,153 73,595,383 240,050,664 307,078,639 414,628,061 353,624,125 43,938,924 114,843,074 (27,037,057) 2,174,219,449
Demand Deposits and Wadiah Demand Deposits (256,481,994) (91,227,532) (63,703,665) (115,236,424) (4,902,962) (980,003) (20,847,525) - (1,192,752) 2,213,701 (552,359,156)
Saving Deposits and Wadiah Saving Deposits (16,495,482) (21,306,778) (1,062,603) (414,655,290) (190,222) - (47,026,375) - (8,554,739) - (509,291,489)
Time Deposits (26,777,108) (37,227,044) (33,127,841) (149,488,496) (6,772,458) (2,509,694) - - (35,470,457) 1,575,594 (289,797,504)
Total Deposits from Customer (299,754,584) (149,761,354) (97,894,109) (679,380,210) (11,865,642) (3,489,697) (67,873,900) - (45,217,948) 3,789,295 (1,351,448,149)
Total Liabilities (300,286,798) (150,621,915) (99,279,109) (681,149,184) (55,329,532) (163,775,636) (88,202,768) (38,734,998) (95,226,939) 12,164,064 (1,660,442,815)
*) This includes elimination of internal transfer pricing or reclassification between operating segments and elimination of Subsidiaries.
**) Includes internal transfer pricing components between operating segments.
PT BANK MANDIRI (PERSERO) TBK 334 335 ANNUAL REPORT 2024
Page 35
MANAGEMENT DISCUSSION AND ANALYSIS
CORPORATE BANKING CORPORATE BANKING
PERFORMANCE SUMMARY The focus of the Corporate Banking segment is to serve the needs of large corporate customers, whether
for financing large-scale and long-term projects or for fund placements. Bank Mandiri’s Corporate Banking
operations are also supported by Mandiri Sekuritas.
The customer profile parameters for Bank Mandiri’s Corporate Banking segment are as follows:
Parameter Corporate Banking
Company Size Companies with Gross Annual Sales (GAS) exceeding Rp2 trillion, including its business groups.
Domestic:
Private companies, listed state-owned enterprises (SOEs), and its business groups, as well as
business groups or sponsors classified among the top companies in Indonesia or Asia.
Overseas:
Customers • Customers with fund accounts registered at branches in Hong Kong, Shanghai, Singapore,
55.46 3.95 515.39
and the Cayman Islands.
• Overseas companies affiliated with Bank Mandiri customers in Indonesia or foreign
RP trillion RP trillion RP trillion companies that meet the criteria for financing in accordance with regulations in Indonesia
and abroad.
INTEREST INCOME FEE BASED INCOME LOANS
Corporate Banking is a core competency and the CORPORATE BANKING
Grew Grew Grew
23.07% (YOY) 23.50% (YOY) 25.75% (YOY)
primary driver of Bank Mandiri’s performance. As STRATEGY IN 2024
such, amid ongoing domestic and international
challenges, Bank Mandiri’s Corporate Banking The following strategies were executed by
segment applies a prudent approach in lending. Corporate Banking in 2024:
1. Portfolio Strategy
KEY HIGHLIGHTS COMPETITIVE ADVANTAGES Growth is focused on managing a sound
AND INNOVATIONS IN and sustainable conglomeration while
CORPORATE BANKING maintaining prudent banking principles and
disbursing loan in accordance with best
Bank Mandiri Corporate Banking segment is practices in the banking industry.
• The strengthening of the organizational structure in 2024 and the a market leader in corporate lending. This is
focus on managing a sound and sustainable conglomeration have supported by a strong reputation and extensive 2. Business Strategy
contributed to strong credit growth of 25.75% year-on-year while experience in corporate banking, with a customer A comprehensive customer ecosystem
maintaining a prudent approach in line with best practices in the base that includes state-owned enterprises (SOEs) approach is implemented by leveraging the
and Indonesia’s largest business conglomerates. strong foundation of Corporate Banking,
banking industry. To sustain its business growth, the Corporate enabling the retail segment to penetrate
Banking segment maintains strong and close and maximize the full potential of Corporate
• The optimization of the digital platforms Livin’ and Kopra successfully relationships with debtors both domestically and Banking customers.
drove Fee-Based Income growth by 23.50% year-on-year. internationally. Moreover, the segment benefits
from the support of a broad correspondent 3. Operation Strategy
• Loan disbursement in the Green Portfolio and Sustainable Portfolio banking network, Bank Mandiri’s overseas The organizational structure has been
accounted for 15.3% of the total Corporate Banking loans in 2024. branches, and an extensive syndication network. strengthened by transitioning from a
sector-based model to a conglomerate-
based approach, enhancing the ability
to identify potential opportunities more
comprehensively.
PT BANK MANDIRI (PERSERO) TBK 336 337 ANNUAL REPORT 2024
Page 36
MANAGEMENT DISCUSSION AND ANALYSIS
CORPORATE BANKING CORPORATE BANKING
CORPORATE BANKING PRODUCTIVITY AND REVENUES Business Sector of Corporate Individual Debtors
(in Rp Billion)
The effective implementation of strategies has served a crucial role in the productivity and revenue No Business Sector of Corporate Individual Debtors Outstanding
performance of Bank Mandiri Corporate Banking segment throughout 2024, as presented in the following 1 Financial Services 19,120
table: 2 Food & Beverage Industry 15,458
3 Metal Ore Mining 12,882
Kinerja Corporate Banking
4 Energy & Water 12,620
(In Rp million)
5 Transportation Support Services 10,987
Growth
Description 2024 2023 6 Palm Plantation & CPO 9,805
(Rp Million) %
7 Land Transportation Services 9,315
Total Loans 515,387,333 409,857,020 105,530,313 25.75
8 Oil & Gas Industry 8,600
NPL Ratio (%) 0.44% 0.37% - 0.07
9 Non-Infrastructure Construction Services 7,876
Total Third-Party Funds 329,567,976 299,754,584 29,813,392 9.95
10 Food & Beverage Industry 7,654
Total Fee Based Income 3,950,298 3,198,531 751,767 23.50
Total 114,316
Total Net interest Income 12,362,556 14,782,504 (2,419,948) (16.37)
Business Sectors of Debtor Group Corporation
Bank Mandiri’s loan growth, with Indonesia’s economic Rp12.36 trillion by December (in Rp Billion)
which outpaced the banking expansion in 2024. 2024, up from Rp14,78 trillion in No Business Sector of Corporate Group Debtors Outstanding
industry average, was December 2023. 1 Energy & Water, Retail Trade of Food, Beverages & Tobacco, Hotels, Restaurants 35,309
supported by an increase On the other hand, third- 2 Pulp & Paper Industry, Coal Industry, Machinery & Equipment Industry, Energy & Water 30,518
in loan disbursed by the party funds in Bank Mandiri In addition, by optimizing
3 Metal Ore Mining, Oil & Gas Industry, Non-Financial Business Services 24,995
Corporate Banking segment. Corporate Banking segment digitalization through Kopra
4 Infrastructure Construction Services & Non-Infrastructure Construction Services 22,376
As of December 2024, this reached Rp329.57 trillion as by Mandiri in the Corporate
5 Infrastructure Construction Services, Financial Services, Palm Plantation & CPO 20,735
segment reached Rp515.39 of December 2024, grew by Banking segment, Fee-Based
6 Financial Services and Non-Financial Business Services 19,142
trillion, a 25.75% (yoy) growth 9.95% (yoy) from December Income increased by 23.50%
from Rp409.86 trillion in 2023. Meanwhile, Net Interest (yoy), reached Rp3.95 trillion in 7 Food & Beverage Industry, Fertilizer & Pesticide Industry, Financial Services 18,740
December 2023. This growth in Income in the Corporate December 2024, up from Rp3.19 8 Energy & Water, Non-Financial Business Services 16,134
Corporate Banking loans aligns Banking segment grew to trillion in December 2023. 9 Coal Industry, Wholesale Trade of Machinery & Equipment, Financial Services 12,818
10 Transportation Support Services & Infrastructure Construction Services 12,801
Total 213,566
Corporate Banking Loans by Product
(In Rp million)
2024 2023 Growth
Product
Rp Forex Total Rp Forex Total Rp Forex Total
Investment Loan (IP) 197,722 104,653 302,375 145,889 92,973 238,861 51,833 11,680 63,514
Working Capital Loan (KMK) 149,674 63,338 213,012 106,214 64,781 170,996 43,460 (1,443) 42,016
Total 347,396 167,991 515,387 252,103 157,754 409,857 95,293 10,237 105,530
Bank Mandiri’s Corporate Banking segment identifies industries with the highest financing productivity,
which is primarily dominated by the food and beverage industry, both individually and as part of business
groups. The following table presents the loan outstanding for the 10 largest industrial sectors, categorized
by individual credit customers and group credit customers, as of the end of 2024.
PT BANK MANDIRI (PERSERO) TBK 338 339 ANNUAL REPORT 2024
Page 37
MANAGEMENT DISCUSSION AND ANALYSIS
CORPORATE BANKING CORPORATE BANKING
CORPORATE companies is expected to has begun expanding into this
BANKING BUSINESS expand in line with sustained sector by financing renewable
OUTLOOK FOR 2025 economic growth. energy and sustainability
projects. Its commitment and
focus on ESG (Environmental,
Various internal and external In terms of digitalization and Social, and Governance) not
factors are expected to support product innovation within the only strengthen its reputation
the business prospects of Bank Corporate Banking segment, but also attract more
Mandiri’s Corporate Banking Bank Mandiri will continue to corporate clients who prioritize
segment, keeping it strong and strengthen its digital capabilities sustainability.
growing in 2025. Indonesia’s through the Kopra by Mandiri
economic growth is projected super platform, which simplifies Nevertheless, Bank Mandiri will
to exceed 5% in 2025, serving financial management for continue to closely monitor the
as a positive catalyst for corporations. The digitalization challenges that may affect its
business activities within the trend in the Corporate Corporate Banking segment
Corporate Banking segment. Banking segment will enhance in 2025. These include intense
Supportive monetary policies operational efficiency and competition with other banks,
and enhanced economic attract more corporate clients including foreign banks that
competitiveness also provide to collaborate with Bank are also active in the Corporate
opportunities for the banking Mandiri. Banking sector. In addition,
sector to continue growing ongoing global economic
while ensuring Indonesia’s The growth of industrial sectors uncertainties stemming
economic stability. such as manufacturing, mining, from geopolitical risks in the
energy, and healthcare is Middle East, the prolonged CORPORATE strategy will be balanced the use of digital channels
Several other key factors also projected to show significant Russia-Ukraine conflict, and BANKING WORK with optimal concentration Livin’ and Kopra to
support the positive outlook
for Bank Mandiri’s Corporate
potential in 2025. This positive
outlook presents opportunities
volatile commodity
could impact corporate loan
prices
PLANS FOR 2025 risk management through
portfolio diversification
enhance floating funding
from customer transactions
Banking segment. Major for Bank Mandiri Corporate demand. across various industrial at Bank Mandiri.
infrastructure projects, such as Banking financing services while To address challenges while sectors, in line with prudent
toll roads, ports, airports, and also allowing it to expand its To sustain growth and ensure maximizing opportunities in banking principles and 3. Optimizing the Corporate
renewable energy, remain portfolio by supporting working that the Corporate Banking the coming year, the Grand best practices. Banking customer
a priority for the Indonesian capital loans, investment segment remains a key pillar Strategy for Corporate Banking ecosystem
government in the coming financing, and trade finance of its business, Bank Mandiri will in 2025 will include the following: 2. Increasing low-cost With strong relationships
years. As the largest bank in needs. continue expanding digital- funding through customer and an extensive network,
Indonesia, Bank Mandiri holds based services to enhance 1. Maintaining position as the transaction acquisition reinforced by Bank
a strategic position to support With the increasing global customer convenience, focus largest lender The growth of Third- Mandiri’s digital platforms,
corporate financing for these and local demand for green on industrial sectors with long- Corporate Banking will Party Funds will focus Corporate Banking is
projects. Moreover, financing financing, Bank Mandiri has term potential, and diversify its continue to strengthen Bank on increasing low- expected to fully optimize
demand from state-owned responded effectively. The loan portfolio to mitigate risks Mandiri’s dominance as cost funding through a the potential of its customer
enterprises (SOEs) and private Corporate Banking segment and increase revenue. a leading wholesale bank customer transaction ecosystem.
by driving growth within a acquisition strategy. This will
sound conglomeration. This be achieved by optimizing
PT BANK MANDIRI (PERSERO) TBK 340 341 ANNUAL REPORT 2024
Page 38
MANAGEMENT DISCUSSION AND ANALYSIS
COMMERCIAL BANKING COMMERCIAL BANKING
PERFORMANCE SUMMARY The business focus of the Commercial Banking segment is to serve the needs of medium-scale industrial
customers with gross annual sales ranging from over Rp50 billion to Rp2 trillion. Bank Mandiri Commercial
Banking also provides products and services in the form of comprehensive transaction solutions to simplify
customers’ business activities.
The customer profile parameters for Bank Mandiri’s Commercial Banking segment are as follows:
Parameters Commercial Banking
Company Companies with gross annual sales of more than Rp50 billion to Rp2 trillion or with a loan ceiling
Size >Rp25 billion, including their business groups.
Loans and funds at overseas branches managed by GAM under the Commercial Unit, loans and
funds at overseas branches not managed by GAM but initiated by the Commercial Unit, BUMD
Customers including RSUD and PDAM, multifinance business entities, local governments, private universities,
292.86 161.19 28.33
rural banks, and other non-individual fund customers who meet the criteria for acquisition by
Commercial Banking.
RP trillion RP trillion RP trillion
LOANS THIRD-PARTY FUNDS INTEREST INCOME
COMPETITIVE ADVANTAGES 2. Acquisition focus on top sectoral players for
Grew Grew Grew AND INNOVATIONS OF Commercial Banking units in each industrial
23.08% (YTD) 7.63% (YTD) 23.61% (YOY) COMMERCIAL BANKING sector, which are subsequently acquired as
new debtors of Bank Mandiri.
3. Strengthening Credit Execution Discipline
Bank Mandiri Commercial Banking has the through:
following competitive advantages and a. Timely and sufficient pipeline discipline.
innovations: b. Monitoring discipline to maintain credit
KEY HIGHLIGHTS • Providing the best solutions through
comprehensive product solutions for assets,
quality.
c. Collection discipline, collaborating with
liabilities, and transactions tailored to the Special Asset Management (SAM)
customer needs and supported by e-channel unit for intensive collections and early
services. warning restructuring.
• The improvement in loan disbursement performance in the • Offering solution structures that are fit and 4. Business optimization through the acquisition
Commercial Banking segment in 2024 also contributed to Bank aligned with customer requirements. of the Wholesale business ecosystem by
Mandiri’s loan growth. deepening client relationships in each region.
5. Leveraging Bank Mandiri’s potential by
• Commercial Banking recorded a loan increase of 24.21%, reaching COMMERCIAL BANKING strengthening territorial strategies, with
Rp292.86 trillion in December 2024 compared to Rp237.79 trillion in STRATEGY FOR 2024 commercial solutions acting as a business
enabler, providing monthly sectoral and
December 2023, in line with the recovery of Indonesia’s economy. Commercial Banking has prepared a strategic regional reviews to the business unit.
plan to continue one of the strategies from the 6. Organization and people development
2021–2024 Corporate Plan, formulated based on supported by the development of
the focus of each segment: Be The Prominent organizations in the plantation sector and
Wholesale Bank, Beyond Lending.” The formulation plans for fulfilling competent human resources.
of a sound growth strategy is as follows:
1. Loan growth supported by strengthening
the loan follow the transactions strategy,
concentrating on providing loan to customers
already transacting with Bank Mandiri.
PT BANK MANDIRI (PERSERO) TBK 342 343 ANNUAL REPORT 2024
Page 39
MANAGEMENT DISCUSSION AND ANALYSIS
COMMERCIAL BANKING COMMERCIAL BANKING
PRODUCTIVITY AND REVENUE OF COMMERCIAL BANKING Bank Mandiri Commercial Banking has identified various industries with the highest financing productivity,
with the majority coming from the land transportation services industry, amounting to Rp2.07 trillion for
The effective implementation of the above strategies serves a vital role in the productivity and revenue individual customers, and the palm oil plantation & CPO industry, amounting to Rp56.79 trillion for group
of Bank Mandiri’s Commercial Banking, as presented below: customers. The following table outlines loan disbursement to the 10 (ten) largest industrial sectors for
individual credit customers and group credit customers at the end of 2024.
Commercial Banking Performance
(In Rp Million) Business Sectors of Commercial Individual Debtors
Growth (In Rp Million)
Description 2024 2023
(Rp Million) % No Sektor Usaha Debitur Individual Korporasi Outstanding
Total Loans 292,862,407 237,952,186 54,910,221 23.08 1 LAND TRANSPORTATION SERVICES 2,065,318
NPL Ratio (%) 1.10% 1.75% - (0.65) 2 METAL INDUSTRY & WHOLESALE TRADE 1,980,861
Total Third-Party Funds 161,187,299 149,761,354 11,425,945 7.63 3 METAL MINING 1,864,713
Total Fee Based Income 1,209,565 973,759 235,806 24,22 4 FOOD & BEVERAGE INDUSTRY 1,510,724
Total Net interest Income 6,803,201 6,813,952 (10.751) (0.16) 5 PALM OIL PLANTATION & CPO 1,374,028
6 WATER TRANSPORTATION SERVICES – GOODS 1,240,752
7 PROPERTY – INVESTMENT 980,321
The loan disbursement The acquisition of third- grew by 14.69% (ytd) to Rp131.81 8 PLANTATIONS & NON-PALM OIL PLANTATION INDUSTRY 908,689
performance of the party funds in Bank Mandiri trillion, positively impacting the 9 PHARMACEUTICAL INDUSTRY 860,132
Commercial Banking segment Commercial Banking segment cost of funds for Commercial 10 TRADE OF LIVESTOCK PRODUCTS & ANIMAL FEED 830,133
as of December 2024 also also demonstrated positive Banking. Net interest income Subtotal Top 10 Business Sectors for Individual Debtors 13,615,671
contributed to the overall loan performance, marked by reached Rp6.80 trillion as of Other Business Sectors for Individual Debtors 10,198,421
growth of Bank Mandiri. Bank a growth of 7.63% (ytd) to December 2024. Total Loan Outstanding for Individual Debtors 23,814,092
Mandiri Commercial Banking Rp161.19 trillion as of December
loan increased to Rp292.86 2024, compared to Rp151.07 Furthermore, Commercial
trillion in December 2024, up trillion as of December 2023. Banking recorded Fee Based Business Sectors of Commercial Group Debtors
23.08% (ytd) compared to Most of the third-party fund Income of Rp1,209.57 billion in (In Rp Million)
Rp237.95 trillion in December collection in the Commercial December 2024, an increase No Sektor Usaha Debitur Indivi0064ual Korporasi Outstanding
2023. Banking segment came from from Rp973.76 billion in 1 PALM OIL PLANTATION & CPO 56,794,531
low-cost funds or CASA, which December 2023. 2 WATER TRANSPORTATION SERVICES & GOODS 28,198,390
3 FINANCIAL SERVICES 18,584,601
4 COAL INDUSTRY 16,415,775
Kredit Segmen Commercial Banking Berdasarkan Produk 5 PROPERTY – INVESTMENT 13,958,884
(In Rp Million) 6 ENERGY & WATER 13,415,704
2024 2023 Growth 7 FOOD & BEVERAGE INDUSTRY 11,235,985
Product
Rp Forex Total Rp Forex Total Rp Forex Total 8 METAL MINING 9,767,391
Investment Non 9 TELECOMMUNICATIONS 7,358,574
138,750 45,803 184,554 101,256 43,867 145,123 37.0% 4.4% 27.2%
Loans (KI) Revolving 10 AUTOMOTIVE TRADE 6,810,667
Revolving - - - - - - - - - Subtotal Top 10 Business Sectors for Group Debtors 182,540,500
Total KI 138,750 45,803 184,554 101,256 43,867 145,123 37.0% 4.4% 27.2% Other Business Sectors for Group Debtors 86,507,815
Working Total Loan Outstanding for Group Debtors 269,048,315
Non
Capital Loans 68,257 3,994 72,251 57,041 4,101 61,142 19.7% (2.6%) 18.2%
Revolving
(KMK)
Revolving 31,744 4,313 36,058 26,506 3,016 29,522 19.8% 43.0% 22.1%
KMK Total 100,002 8,307 108,309 83,547 7,116 90,664 19.7% 16.7% 19.5%
Total 238,752 54,110 292,862 184,804 50,983 235,787 29.2% 6.1% 24.2%
PT BANK MANDIRI (PERSERO) TBK 344 345 ANNUAL REPORT 2024
Page 40
MANAGEMENT DISCUSSION AND ANALYSIS
COMMERCIAL BANKING COMMERCIAL BANKING
COMMERCIAL and enable customers to In addition, sectors that COMMERCIAL government programs and On third-party funds,
BANKING BUSINESS manage financing, payments, are prioritized in national BANKING WORK the development of regional Commercial Banking will focus
OUTLOOK FOR 2025 and liquidity more efficiently. development, such as modern
agriculture, tourism, and
PLAN FOR 2025 champions that will drive the
development of derivative
on acquiring new customers and
intensifying engagement with
Medium-sized businesses technology, will open additional ecosystems. Moreover, existing customers by increasing
With various growth involved in the supply chains financing opportunities for In 2025, Commercial Banking Commercial Banking is penetration of Kopra and
opportunities arising from of large corporations, both Bank Mandiri Commercial will continue to maintain its committed to continuously other programs. Furthermore,
the growth of Indonesia’s local and international, will Banking segment. Partnerships position as a Market Leader improving loan profitability Commercial Banking will also
economy, the business outlook continue to require financial with large corporations through in Lender by pursuing a loan by maintaining portfolio focus on increasing low-cost
for Bank Mandiri’s Commercial services to support operational ecosystem-based financing growth strategy focused on composition to keep credit funds (CASA) as an effort to
Banking segment is expected efficiency. In 2025, Bank can also provide Bank Mandiri sector expertise aligned with yields at an optimal level. maintain the Cost of Fund at an
to remain positive in 2025. Mandiri Commercial Banking Commercial Banking customers optimal level.
This positive outlook is also segment is projected to benefit with access to larger business
supported by the optimization from growth in areas such as networks. Bank Mandiri believes
of digitalization and service manufacturing, agribusiness, that optimizing digitalization,
innovations through the Kopra trade, and services. To serve adapting to market needs,
by Mandiri super platform, these segments, Bank Mandiri and diversifying services will
designed to support the needs leverages its strong network be the keys to success in the
of medium-sized businesses and portfolio. Commercial Banking segment.
PT BANK MANDIRI (PERSERO) TBK 346 347 ANNUAL REPORT 2024
Page 41
MANAGEMENT DISCUSSION AND ANALYSIS
INSTITUTIONAL INSTITUTIONAL RELATIONS
RELATIONS
PERFORMANCE SUMMARY
RP 102.94 trillion RP 588.42 trillion RP 5.34 trillion The Institutional Relations Directorate was
established with the aim of becoming “the
Through the management of special units, the
Directorate of Institutional Relations is also actively
THIRD-PARTY FUNDS FEE BASED INCOME INTEREST INCOME & primary bank of choice for institutional supporting government initiatives as a form of
SHARIA INCOME customers” by providing financial solutions the spirit to prosper the nation. The Directorate
supported by collaboration within the Mandiri of Institutional Relations actively contributes to
Grew Grew Grew Group. This institutional segment fulfills business government programs, including assistance for
5.15% 10.72% 57.14% YOY functions, serves as an agent of development, basic food supplies, Program Keluarga Harapan
and provides supporting functions that enhance (PKH), Kartu Tani, Social Rehabilitation Assistance
Bank Mandiri’s value, such as the management Program, Rumah Sejahtera Terpadu Program,
of fixed non-moving assets (ATTB). The Directorate Natural Disaster & Social Disaster Social Response
serves more than 779 customers from Ministries/ Assistance, Education Assistance, and Urban Livin’
KEY HIGHLIGHTS Agencies, Public Service Agencies, and non- Program. In its daily operations, the Directorate
listed State-Owned Enterprises; over 1,823 value of Institutional Relations distributes to 3.89 million
chain clients from government institutions; more beneficiaries of the basic food program, 2.02
than 900,000 government institution payroll million PKH beneficiaries, 220,000 beneficiaries
clients; and manages over 1,101 ATTB locations of the ATENSI anak YAPI, 29,800 beneficiaries of
• Conducting efforts and negotiations to upgrade 20 SHGB titles to SHM, worth Rp45.2 trillion. other programs (rumah sejahtera terpadu, natural
extend 3 SHGB HPL certificates, and renew 9 SHGB validity periods disaster and social disaster response programs,
in line with directives from the Ministry of SOEs, aimed at expediting To establish holistic relationships with over 759 honorariums for social rehabilitation, disaster
certification and safeguarding ATTB from unauthorized third parties. institutional customers, the Institutional Relations preparedness cadets, and peace pioneers), as
Directorate offers fund placement (current well as 1.8 million beneficiaries of educational
• Total cooperation proceeds from the 2024 PNO asset optimization accounts and time deposits), financing facilities assistance program.
amounted to Rp321.339 billion, with cost savings from temporary asset (investment and working capital), system solutions
utilization reaching Rp99.250 billion. for state revenues (taxes, customs, non-tax The Directorate of Institutional Relations also
state revenues), and other transaction solutions functions as a support system that enhances Bank
• Maintaining market leadership with a 60.47% share of financing at the such as MVA and MHAS (Dashboard System Mandiri’s added value, particularly in managing
Indonesian Ministry of Finance’s foreign loans and a 79.92% share in Solutions) for vertical hospitals and educational ATTB and maintaining the top-of-mind awareness
domestic loans. institutions. Institutional Relations segment also of customers toward Bank Mandiri and its products.
acts as a collaboration leader for retail and In terms of ATTB management, the Directorate of
• According to Nielsen’s research, Livin’ secured the top brand ranking. other segments, especially in managing more Institutional Relations oversees ATTB across more
than 900,000 value chain government institution than 1,101 locations spread throughout Indonesia,
customers through payroll packages, bulk pre- with asset values reaching over Rp45.2 trillion,
approved KSM, bulk approval for corporate including ADP (Asset Development Projects).
credit cards and ID cards, as well as BG Cash
Loan facilities for partner entities.
PT BANK MANDIRI (PERSERO) TBK 348 349 ANNUAL REPORT 2024
Page 42
MANAGEMENT DISCUSSION AND ANALYSIS
INSTITUTIONAL RELATIONS INSTITUTIONAL RELATIONS
INSTITUTIONAL RELATIONS • Interest Income achieved a significant PRODUCTIVITY AND REVENUE OF INSTITUTIONAL RELATIONS
STRATEGY FOR 2024 growth of 57.14% (yoy) to Rp5.34 trillion as of
December 2024, compared to Rp3.40 trillion The effective implementation of the above strategies serves a vital role in the productivity and revenue
The strategy and business focus of the Directorate in December 2023. of the Directorate of Institutional Relations, as detailed below.
of Institutional Relations in 2024 center on growing • Fee-Based Income (FBI) reached Rp588.42
business volumes and other operational revenues billion, grew 10.72% (yoy) as of December Institutional Relations Performance
through innovative, tailor-made digital solutions. 2024, with major contributions from FBI (In Rp million)
These efforts aim to support all transactions and Trade BG, FBI Credit Administration, and FBI Growth
Description 2024 2023
customer needs, with 90% of customers coming Custodian. (Rp Million) %
from the government sector. • Optimization of working units and partners Contribution to the Wholesale Segment
units by supporting SME loan disbursement Total Loans 96,337,445 72,741,580 23,595,865 32.44%
The Directorate of Institutional Relations also growth of 16.68% (yoy) to Rp8.17 trillion, with NPL Ratio (%) 0.00% 0.00% 0.00% 0.00%
supports government-related transactions for the the number of SME debtors reaching 1,135, as Total Third-Party Funds 102,937,622 97,894,109 5,043,513 5.15%
disbursement and receipt of state and non-state well as the disbursement of Bank Guarantees Total Fee Based Income 588,418 531,462 56,956 10.72%
budgets, such as the State Treasury and Budget (BG) for partners units amounting to Rp61.1 Total Net interest Income 3,244,647 3,129,133 115,514 3.69%
System (SPAN) of the Ministry of Finance of the trillion. Total Revenue (NII + FBI) 3,833,065 3,660,595 172,470 4.71%
Republic of Indonesia, the State Revenue Module • Increased contribution to Consumer Loan, Contribution Margin 3,199,316 3,034,481 164,835 5.43%
(MPNG-2), and the State University Admission including Personal Loans (KSM), Mortgage Contribution to the Retail segment (Strategy Execution 331)
Selection (SBMPTN). Loans (KPR), and Credit Cards, through the Total Loans 46,019,862 36,680,773 9,515,257 26.07%
optimization of Civil Servant Payroll, with the NPL Ratio (%) 0.00% 0.00% 0.00% 0.00%
As a collaboration leader and gate opener, the number of payroll accounts growing by 15% Total Third-Party Funds 37,975,079 34,617,106 2,869,545 8.17%
Directorate of Institutional Relations establishes (yoy) to 1,019,309 CIF accounts. Total Fee Based Income 424,882 442,953 63,146 17.46%
intensive coordination with representatives or Total Net interest Income 3,201,177 2,885,530 324,757 11.29%
government business heads at each regional The Directorate of Institutional Relations also Total Revenue (NII + FBI) 3,626,059 3,328,483 387,903 11.98%
office of Bank Mandiri. This ensures a strong focus performs its role as an agent of development and Revenue HBK Environment
on managing institutional relations customers a supporting function that enhances the Bank’s
within their respective regions, enabling the added value, particularly in managing ATTB Loan disbursement by the Directorate of Institutional Relations reached Rp96.34 trillion, a 32.44% (ytd)
orchestration of business across all lines. and maintaining the top-of-mind awareness of growth compared to Rp72.74 trillion in 2023. The increase was supported by a gross expansion of Rp85.8
customers/Bank products, including innovations trillion, grew 16.9% (yoy). The financing composition in Rupiah accounted for 47.8%, with the largest
in digitalization, with the following achievements: contributions coming from the defense equipment and infrastructure sectors.
COMPETITIVE ADVANTAGES
AND INNOVATIONS IN • Undertaking efforts and negotiations to
Description
2024 Composition 2023 Composition Growth
INSTITUTIONAL RELATIONS upgrade 20 SHGB rights to SHM, extend 3
SHGB HPL certificates, and extend 9 SHGB
(Rp Million) (%) (Rp Million) (%) (%)
Current 96,337,445 100.00% 72,741,580 100.00% 32.4%
The Directorate of Institutional Relations has validity periods, aligning with the Ministry of Of special concern - - - - -
innovated by shifting its business focus from a SOEs’ directives to accelerate certification Less current - - - - -
portfolio previously dominated by Institutional as a form of securing ATTB from unauthorized Doubtful - - - - -
Customer Fundraising (DPK) to a balanced third parties. Bad - - - - -
emphasis on Loans, achieving the following • Total results from the 2024 PNO collaboration Total Loans 96,337,445 100.00% 2,741,580 100.00% 32.4%
milestones: for asset optimization amounting to Rp321,339 NPL 0.00% 0.00% 0.00% 0.00% 0.00%
billion and cost savings from temporary asset
• Loan Disbursement increased to Rp96.34 utilization of Rp99,250 billion.
trillion in December 2024, a 32.44% (yoy) • Maintaining a strong market share in defense
growth from Rp72.74 trillion in December 2023, equipment loans, achieving 51.96% in foreign
while maintaining excellent credit quality with financing and 72.09% in domestic financing.
an NPL ratio of 0%.
• Third-Party Funds strengthened to Rp102.94
trillion in December 2024, a 5.15% (yoy) growth
from Rp97.89 trillion in December 2023.
PT BANK MANDIRI (PERSERO) TBK 350 351 ANNUAL REPORT 2024
Page 43
MANAGEMENT DISCUSSION AND ANALYSIS
INSTITUTIONAL RELATIONS INSTITUTIONAL RELATIONS
Amid this credit expansion, the credit quality of Public service digitalization, energy transition, and credit information systems from upstream to and Bank Mandiri subsidiaries through
the Institutional Relations Directorate remains National Strategic Projects (PSN) are ongoing downstream. bundled product collaborations and payroll
well-maintained with zero NPL. This is driven by development initiatives supported by the 3. Increasing fee-based income through package solutions for customers in the
a highly selective financing approach, focusing Indonesian government. Through its Institutional expanded collaborations in financial services/ Ministries/Agencies and SOEs sectors.
on government projects/programs related to Relations business segment, Bank Mandiri can transactions, such as custodial banking 6. Strengthening organization and risk
the State Budget (APBN). In addition, to maintain offer banking services such as project financing, partnerships, remittance, and the distribution management by enhancing the
credit quality, Bank Mandiri also implements: treasury, and cash management. Moreover, and receipt of APBN and Non-APBN funds competence and capabilities of human
demand for digital solutions for institutions, such through e-channel optimization. resources, developing monitoring systems for
a. Periodic and disciplined reviews of as API banking services and payment gateways, 4. Refining relationship models and account Ministries/Agencies and SOEs customers, and
collectability and watchlist analysis. will continue to grow. In this regard, Bank Mandiri strategies by improving business processes providing assistance from business expertise in
b. Monitoring the fulfillment of credit liabilities can assist government agencies and major for customers in the Ministries/Agencies the Institutional Relations segment.
before maturity to prevent customers from institutions in enhancing the efficiency of financial and SOEs sectors, particularly in managing 7. Managing the optimization of Bank Mandiri’s
falling into collectability two. management. derivative businesses in the Wholesale and ATTB through digitalization to enable more
c. Ensuring compliance with the terms and Retail segments. than 1,000 ATTB points scattered across the
conditions in loan agreements. Another factor supporting the positive outlook 5. Leading collaboration for new core business country to be self-financed and support other
d. Improving business processes by enhancing of Bank Mandiri’s Institutional Relations business segments, Wholesale, affiliated companies, assets.
the effectiveness of simultaneous loan segment in 2025 is the government’s increasing
renewal processes for customers within the focus, through SOEs, on sustainable financing
same debtor group and extending loan (green financing). Bank Mandiri will undoubtedly
facilities three months prior to maturity. capitalize on this momentum to offer financing
solutions for renewable energy projects, energy
The Institutional Relations Directorate’s portfolio efficiency, and green infrastructure. Furthermore,
rebalancing strategy in loan and institutional ongoing fiscal reforms will create opportunities
banking has yielded results, with an Average for new development projects requiring financial
Low-Cost Fund Balance of Rp55.5 trillion as of support.
December 2024.
INSTITUTIONAL RELATIONS WORK
BUSINESS PROSPECTS FOR PLAN IN 2025
INSTITUTIONAL RELATIONS IN
2025 The business focus of the Directorate of Institutional
Relations in 2025, based on Bank Mandiri’s 2025–
2029 Corporate Plan, includes the following:
Given the crucial role of the Institutional Relations
(Institutional Banking) segment in supporting 1. Driving the growth of funds from Ministries/
government, SOEs, and other institutional Agencies and SOEs and orchestrating
financing, the business prospects of this segment derivative businesses in the Wholesale
at Bank Mandiri are projected to remain strong and Retail segments through deepening
in 2025. With the right strategies, Bank Mandiri client relationships, optimizing customer
can maintain its competitive edge, seize new transactions, providing comprehensive
opportunities in the institutional market, and financial solutions, and payroll package
effectively navigate challenges. solutions for basic salaries and performance
allowances.
SOEs serve a significant role in national 2. Increasing credit growth for Ministries/
development, and Bank Mandiri consistently Agencies and SOEs with a focus on
fosters close relationships with other SOEs. Large- potential, healthy sectors that can generate
scale financing will be required for major projects business value chains, such as the financial,
such as infrastructure, energy, and transportation. healthcare, defense, and education sectors.
As one of Indonesia’s largest banks, Bank Mandiri This sound credit growth is also supported
has sufficient financing capabilities to meet the by comprehensive monitoring, credit
working capital and investment needs of SOEs. policies and procedures, and enhanced
PT BANK MANDIRI (PERSERO) TBK 352 353 ANNUAL REPORT 2024
Page 44
MANAGEMENT DISCUSSION AND ANALYSIS
TREASURY & TREASURY & INTERNATIONAL BANKING
INTERNATIONAL BANKING
PERFORMANCE SUMMARY Bank Mandiri Treasury
International Banking segment
& The financial institution
segment includes Banks and
The Treasury & International
Banking Directorate also
conducts business activities Non-Bank Financial Institutions oversees the Overseas Banking
related to financial institutions, (NBFIs). Banks comprise both Network (OBN) Group, which
capital markets, and domestic and international supervises business synergies
international business through banks, excluding Rural Banks between Bank Mandiri as the
its head office, branches, and (BPR). Meanwhile, NBFIs parent entity and its foreign
subsidiaries both domestically include private insurance branches and overseas
and internationally. The companies and their affiliated subsidiaries.
Financial Institutions Business financial institutions (such as
(FIB) Group manages activities insurance and reinsurance
related to financial institutions brokers), Financial Institution COMPETITIVE
and capital market operations. Pension Funds (DPLK), Employer ADVANTAGES AND
RP 8.75 trillion USD 6.54 billion USD 133.79 billion Business activities with
Pension Funds (DPPK), as well
as Securities Companies and
INNOVATIONS
IN TREASURY &
financial institutions include Investment Managers.
THIRD-PARTY FUNDS KLN LOANS TREASURY CUSTOMER transactions related to trade INTERNATIONAL
VOLUME finance, remittances, insurance Bank Mandiri’s treasury business BANKING
company funds, and bank is managed by the Treasury
Grew Grew Grew lending. On the other hand, Group, supported by nine With a market share of 17.39%
22.15% (YOY) 16.68% (YOY) 17.71% (YOY) capital market-related activities Regional Treasury Marketing in national foreign exchange
consist of custodian services, units and four dealing rooms transaction volume (interbank
trustee services, and short-term across various regions in and customer), Bank Mandiri’s
credit for securities companies. Indonesia to meet the needs of Treasury & International
Additionally, business activities Wholesale and Retail customers. Banking is a leading player in
HIGHLIGHTS PENTING encompass foreign exchange
transactions, money markets,
Bank Mandiri’s diverse treasury
business activities include
Indonesia’s treasury business
segment. In recognition of its
securities, and derivatives, which foreign exchange transactions, achievements, Bank Mandiri
are managed within trading money markets, fixed-income received numerous awards
or banking portfolios. These securities, international banking from various institutions
• In 2024, third-party loans from Treasury & International Banking activities are part of the treasury services, and capital market throughout 2024.
business and can be conducted activities, serving financial
increased by 22.15% compared to the previous year. The growth with interbank counterparts or institutions, corporations,
in credit was driven by loan disbursements to banks. Non-Bank Financial Institution commercial clients, and retail
(NBFI) customers. customers.
• On Overseas Unit, Net Interest Income reached USD175.1 million, a
13.51% increase from the previous year, while Fee-Based Income
stood at USD56.8 million, grew by 12.13% year-on-year.
Bank Mandiri received an award from Bank Indonesia as the Best
Supporting Bank for Foreign Exchange Market Development. The
Bank was also recognized as the best in Indonesia at the Alpha
Southeast Asia Awards 2024, winning categories such as Best
Foreign Exchange Bank for Corporates & Financial Institutions,
Best International Banking Network, Best Foreign Exchange Bank
for Retail Clients, and Best Local Currency Bond Deal of the Year
in Indonesia. Moreover, Global Finance named Bank Mandiri
the Best Foreign Exchange Bank in Indonesia.
PT BANK MANDIRI (PERSERO) TBK 354 355 ANNUAL REPORT 2024
Page 45
MANAGEMENT DISCUSSION AND ANALYSIS
TREASURY & INTERNATIONAL BANKING TREASURY & INTERNATIONAL BANKING
These awards and recognitions to conduct foreign exchange Bank Mandiri secures more TREASURY & INTERNATIONAL transaction distribution, and create more efficient
serve as a testament to Bank transactions in real time with than sufficient financing BANKING STRATEGY IN 2024 work processes while providing seamless digital
Mandiri’s efforts in digital various benefits, including from international banks and services to customers.
transformation to meet special pricing. This digital financial institutions, reflecting
the increasingly complex transformation enables an end- strong global confidence In 2024, Bank Mandiri continued to enhance
financial transaction needs to-end exchange rate dealing in the Bank. To support the its extensive one-stop solution services for bank PRODUCTIVITY AND REVENUE
of its customers. In addition, process, from uploading diversification of rupiah fund counterparties. Beyond focusing on financing OF TREASURY & INTERNATIONAL
placement instruments, Bank
Bank Mandiri has been
acknowledged for its ability
underlying documents and
executing buy-sell exchange Mandiri offers corporate
and funding products, the Bank also provided
integrated services with other domestic banks
BANKING
to continuously innovate and rate deals to transaction securities trading services, to meet customer needs through the utilization
develop financial transaction settlement, without the need designed to meet customers’ of Bank Mandiri’s digital channels. In the capital Treasury
products and solutions. With for customers to contact a investment needs. This service market, Bank Mandiri is actively optimizing the use As a leading player in the foreign exchange
digital support, corporations dealer or visit a branch. provides a competitive of its new core custody system, which includes market for both interbank and customer
and financial institutions can financial instrument alternative, the implementation of online custody services. transactions, Bank Mandiri continues to
expedite foreign exchange Bank Mandiri Treasury enabling customers to This enables customers to access their portfolios in strengthen market penetration through a more
transactions at Bank Mandiri. & International Banking manage their portfolios more real time and submit instructions online. aggressive approach. This strategy aims to offer
provides treasury transaction effectively. By offering this a diverse range of product solutions to customers.
Furthermore, Bank Mandiri services to customers across product, Bank Mandiri not only On overseas units, Bank Mandiri continued to Additionally, Bank Mandiri remains committed to
offers a diverse range of Indonesia through its head expands investment options for enhance its role by increasing the assets of overseas developing treasury products based on structured
hedging products tailored to office and regional treasury customers but also strengthens branches through both loan disbursement and the solutions, focusing on yield enhancement and
meet customer needs. These offices located in Medan, its position as a trusted financial expansion of securities and trade asset portfolios. risk protection through hedging, which has been
products include FX Forward, Palembang, Batam, Bandung, partner, delivering diverse and Overseas units also proactively collaborated with well received by both the Wholesale and Retail
FX Par Forward, FX Swap, FX Semarang, Solo, Surabaya, innovative investment solutions. business units at the head office and counterpart segments.
Option, Mandiri Call Spread, Denpasar, Balikpapan, and banks to explore business opportunities and
Interest Rate Swap, and Cross Makassar. Bank Mandiri also In compliance with regulatory extend credit to managed customers who meet In 2024, total revenue from Treasury Fee-Based
Currency Swap. offers electronic channels such requirements, Bank Mandiri the Bank’s criteria. Additionally, overseas units Income reached Rp4.58 trillion, supported by
as Mandiri e-FX and Mandiri consistently meets Bank strengthened treasury transaction activities, Foreign Exchange Transaction revenue of Rp2.05
For investment needs, Bank Cash Management (MCM) Indonesia’s provisions on the increase trade financing volume, develop cross- trillion and Securities Transaction revenue of
Mandiri provides various as solutions for customers to Minimum Reserve Requirement border supply chain business, expand wealth Rp1.66 trillion.
products such as Mandiri conduct foreign exchange (GWM). As of December 2024, management services, enhance remittance
Deposit Swap, Mandiri Market transactions efficiently. the average Rupiah GWM
Linked Deposit, Mandiri Dual stood at 5.21%, in line with the
Currency Investment, and Bank Mandiri optimizes its established limit. Meanwhile, Treasury Productivity and Revenue
Securities. These investment reciprocal cooperation the RIM Reserve was at 0.25%, (in Rp Million)
options can also be customized network with 916 correspondent and the PLM Reserve reached Growth
Description 2024 2023
according to customers’ banks across 73 countries, 9.17% of total Rupiah third- (Rp Million) %
risk profiles and investment enhancing the utilization of party funds. In addition, the Total Fee Based Income 4,584,291 4,007,321 576,969 14.40
objectives. business collaborations. These average foreign exchange - Forex Transactions 2,050,617 1,722,697 327,920 19.04
partnerships cover various GWM was 4.10% of total foreign - Securities Transactions 1,661,480 1,361,450 300,029 22.04
Foreign exchange trading areas, including treasury, currency third-party funds, in - Others 872,194 923,174 (50,980) (5.52)
services can be accessed trade finance, remittances, risk accordance with the set limit.
online through Kopra by sharing, and bilateral financing.
Mandiri, allowing customers Meanwhile, in terms of funding,
PT BANK MANDIRI (PERSERO) TBK 356 357 ANNUAL REPORT 2024
Page 46
MANAGEMENT DISCUSSION AND ANALYSIS
TREASURY & INTERNATIONAL BANKING TREASURY & INTERNATIONAL BANKING
Financial Institution Business and Overseas Banking Network TREASURY & INTERNATIONAL solutions, including bank loans and an active
The Financial Institution Business (FIB) Group and Overseas Banking Network (OBN) Group effectively BANKING BUSINESS OUTLOOK role as a primary dealer. In terms of digitalization
carry out business activities, including business development with international and domestic financial
institution customers, both bank and non-bank. In addition, FIB and OBN oversee and develop the
FOR 2025 development, Bank Mandiri aims to build synergies
with other domestic banks by leveraging its digital
business activities of seven overseas units located in Singapore, Hong Kong, Shanghai, the Cayman infrastructure and ecosystem to support its mission
Islands, Dili Timor-Leste, Bank Mandiri (Europe) Limited, and Mandiri International Remittance as a In 2025, the business prospects for Bank Mandiri’s of becoming the main transaction bank. For the
subsidiary. These entities contribute directly through revenue generation and indirectly as distribution Treasury & International Banking segment remain Non-Bank Financial Institution (IKNB) segment, the
channels and gateways for the Bank’s overall business. promising. This segment is supported by economic Bank will optimize the capabilities of Livin’ and
growth, advancements in global financial markets, Kopra, as well as its retail and wholesale segments,
and increasing international trade activities, to create a closed-loop ecosystem and expand
Financial Institution Business making it one of the Bank’s key pillars. Amid global solutions for IKNB’s extended ecosystem.
In 2024, FIB segment successfully disbursed loans of Rp8.75 trillion as of December 2024, a 22.15% (yoy) economic uncertainties, Indonesia continues
growth. CASA collection reached Rp5.47 trillion, grew by 8.16% (yoy). to strengthen its role in global trade, particularly Beyond focusing on business development, the
through increased exports of key products Treasury & International Banking segment will
Financial Institution Business Productivity and Revenue such as commodities, manufacturing goods, continue to innovate in response to the growing
(in Rp Million) and agricultural products. Bank Mandiri aims to trend of digital banking services. The focus will be
Growth capitalize on this momentum by enhancing its on creating more efficient work processes and
Description 2024 2023
(Rp Million) % trade finance services, including letter of credit providing seamless digital services for customers.
Total Third-Party Funds 10,450,550 11,440,384 (989,834) (8.65) (L/C), standby L/C, and documentary collections. In the capital market, Bank Mandiri will optimize
CASA 5,467,267 5,054,827 412,440 8.16 the use of its new core custody system, which will
- Current Accounts 5,040,660 4,871,757 168,903 3.47 Bank Mandiri will also continue to optimize foreign be integrated with the Bank’s digital services to
- Savings 426,607 183,070 243,537 133.03 exchange trading volume, which is expected to enhance the user experience, particularly for retail
- Time Deposits 4,983,283 6,385,558 (1,402,274) (21.96) grow in line with increasing international trade and customers.
Total Loans 8,748,909 7,162,500 1,586,409 22.15 customers’ hedging needs. With strong liquidity,
Total Revenue 1,146,870 1,108,424 38,445 3.47 Bank Mandiri is well-positioned to be a key player From the perspective of overseas units, Bank Mandiri
- Fee Based Income 406,207 373,731 32,476 8.69 in both the domestic and regional forex markets. continues to enhance its services by upgrading
- Net interest Income 740,663 734,694 5,969 0.81 As such, the Treasury & International Banking various systems, including the core banking system,
segment is projected to remain one of the Bank’s Kopra Beyond Border enhancement, Collateral
main revenue contributors in 2025, supported by Management System, and the implementation of
Overseas Banking Network economic growth, financial market developments, the New Treasury Core System. Additionally, efforts
The Overseas Banking Network (OBN) oversees and develops the business activities of seven overseas units and growing global trade activity. With a strategy to grow assets through loan disbursement, as well
located in Singapore, Hong Kong, Shanghai, the Cayman Islands, Dili Timor-Leste, Bank Mandiri (Europe) focused on digitalization, market diversification, as the expansion of securities and trade asset
Limited, and Mandiri International Remittance as a subsidiary. These entities contribute directly through and product innovation, Bank Mandiri has portfolios, will continue to be developed. Overseas
revenue generation and indirectly as distribution channels and gateways for the Bank’s overall business. significant potential to maintain its position as a units proactively collaborate with business units
market leader in this segment. at the head office and counterpart banks to
In 2024, overseas unit disbursed Third-Party Funds of USD996.99 million, a 3.43% growth. Loan disbursement explore business opportunities and extend credit to
reached USD6.6 billion, grew by 16.45% year-on-year. Fee-Based Income stood at USD58.62 million, a managed customers who meet the Bank’s criteria.
12.79% year-on-year increase, while Net Interest Income reached USD179.85 million, grew by 12.17% year- TREASURY & INTERNATIONAL Overseas units will also enhance their participation
on-year. BANKING WORK PLAN FOR 2025 in international syndications. Looking ahead,
overseas units will further strengthen treasury
Overseas Unit Productivity and Revenue Bank Mandiri Treasury & International Banking transaction activities, increase trade service and
(in Rp Million) has prepared various strategies to maximize financing volumes, develop cross-border supply
Growth opportunities in 2025. The strategic plan aims to chain business, expand wealth management
Description 2024 2023
USD Thousand % position the Bank as the main transaction bank, services, and enhance remittance transactions.
Total Third-Party Funds 996,991 963,955 33,036 3.43 maintain low-cost funding, and reinforce its status In the retail segment, this includes providing digital
Total Loans 6,580,064 5,650,637 929,427 16.45 as the largest lender. Bank Mandiri will leverage its services for Indonesian migrant workers (PMI).
Total Fee Based Income 58,623 51,978 6,646 12.79 strong liquidity to provide financing and funding
Total Net interest Income 179,853 160,336 19,517 12.17
PT BANK MANDIRI (PERSERO) TBK 358 359 ANNUAL REPORT 2024
Page 47
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
PERFORMANCE SUMMARY Bank Mandiri’s retail banking business delivered
an impressive performance, recording Third-Party
1. Micro Banking is responsible for managing
individual customers, cooperatives, and
Funds (TPF) of Rp827.45 trillion as of December 2024. business entities that meet the criteria for a
This figure represents a significant year-to-date (ytd) maximum loan limit of Rp1 billion, as well as
growth of 21.79% compared to Rp679.83 trillion in overseeing Branchless Banking Agents.
the previous year. The growth in TPF reflects the 2. Small Medium Enterprises (SME) is responsible
increasing customer confidence in Bank Mandiri’s for managing individual customers,
retail banking services and products. cooperatives, business entities, and legal
entities that qualify for a maximum loan limit
In addition, loan disbursement also increased to of Rp25 billion.
Rp358.07 trillion, reflecting a growth of 10.99% 3. Consumer Loan is responsible for managing
(ytd) from Rp358.07 trillion in the same period the individual customers, cooperatives, and
previous year. This underscores Bank Mandiri’s business entities that meet the criteria for
RP 397,44 trillion RP 827,45 trillion RP 82,02 trillion
strategic role in driving financing in the retail sector,
in line with its commitment to supporting national
economic growth. 4.
consumer loans, including financing for home
and motor vehicle purchases.
Credit Card is responsible for managing
LOANS THIRD-PARTY FUNDS Interest Income & individual and corporate customers who meet
Sharia Income The growth in loan disbursement in the Retail the requirements to obtain a credit card.
segment also contributed to the increase in Net 5. Retail Deposit is responsible for managing
Grew Grew Grew
Interest Income (NII) for the segment, which grew savings and deposit accounts.
10.99% 21.79% 21.79% by 10.11% year-on-year (yoy) to Rp50.60 trillion as 6. Wealth Management is responsible for
of December 2024. This achievement reflects Bank managing individual customers through
Mandiri’s success in optimally managing its loan premium banking services, including portfolio
portfolio and increasing interest income from the management, and developing investment
retail segment. products such as mutual funds and securities
KEY HIGHLIGHTS Meanwhile, Fee-Based Income from the Retail
in accordance with customer needs.
segment also recorded a growth of 4.41% (yoy), Retail Banking offers a variety of products as follows:
reached Rp13.91 trillion as of December 2024. This 1. Loans, including consumer financing such
increase was driven by the growing number of as Home Ownership Loans (KPR), Mandiri
customers utilizing Bank Mandiri’s digital services, Multipurpose Loans, Livin’ Paylater, Vehicle
Bank Mandiri’s Retail Banking loans reached Rp397.44 trillion as of reinforcing the success of its digitalization strategy Loans (KKB), credit cards, and productive
December 2024, reflecting a 10.99% growth from Rp358.07 trillion in in expanding non-interest income. financing loans for MSME customers.
2. Third-Party Funds, including Mitra Usaha
December 2023. This achievement was driven by the optimization
According to Bank Mandiri’s 2021–2024 Corporate Savings (TabunganMU) and Business Savings
of the value chain for retail customers and the Wholesale customer Plan, one of its strategic focus areas is retail (Tabungan Bisnis).
ecosystem. In addition, the convenience of submitting retail loan banking, particularly the Micro, Small, and Medium 3. Transaction services, including Mandiri
Enterprises (MSME) sector. The business activities Internet, Mandiri Internet Business, and
applications through Livin’ has contributed to the growth of Bank
managed by Bank Mandiri’s Retail Banking Mandiri Cash Management to support the
Mandiri’s consumer retail loan business. The digital onboarding segment include the following subsegments: transactional needs of Retail Banking deposit
process for productive microcredit customers in 2024, carried out customers.
in collaboration with e-commerce companies, has been a game
changer in expanding the productive micro-retail loan business.
PT BANK MANDIRI (PERSERO) TBK 360 361 ANNUAL REPORT 2024
Page 48
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
COMPETITIVE ADVANTAGES RETAIL BANKING STRATEGY FOR RETAIL BANKING PRODUCTIVITY AND REVENUE
AND INNOVATIONS IN RETAIL 2024
BANKING The productivity and revenue of Retail Banking in 2024 are as follows:
In 2024, Bank Mandiri aims to sustain the positive Retail Banking Performance
Bank Mandiri drives the growth of Retail Banking performance trend of Retail Banking through the (In Rp Million)
loans by strengthening its competitive advantage following strategies: Growth
Description 2024 2023
in expanding the downstream ecosystem of Nominal %
Wholesale customers. As a result, payroll customers 1. Maximizing business potential within the Total Third-Party Funds 827,445,924 679,380,210 148,065,714 21.79
within the Wholesale customer ecosystem have customer ecosystem by fostering synergy Total Kredit 397,443,310 358,074,141 39,369,169 10.99
become a key focus for Retail Banking loan growth. between the retail and wholesale segments Total Fee Based Income 13,919,400 13,331,310 588,090 4.41
The continuous refinement of data analytics and to unlock business opportunities, launching Total Net interest Income 50,601,503 45,953,743 4,647,760 10.11
big data utilization enables Retail customers to thematic programs aligned with market
receive more tailored offers. Additionally, the conditions and customer needs, and ensuring As of December 2024, Retail Banking successfully the retail segment, which rose by 10.11% (yoy) to
ongoing integration of Retail loan onboarding a seamless process to enhance customer recorded Third-Party Funds (TPF) of Rp827.45 Rp50.60 trillion as of December 2024. This reflects
through the Livin’ by Mandiri application has convenience, enabling credit growth while trillion, reflecting a growth of 21.79% (ytd) from Bank Mandiri’s success in effectively managing
expanded throughout 2024, contributing positively maintaining healthy credit quality. Rp679.83 trillion in the previous year. Meanwhile, its loan portfolio and increasing interest income
to the growth of the Retail loan business. 2. To strengthen liquidity, Bank Mandiri will focus loan disbursement increased to Rp397.44 trillion, in the retail segment. Meanwhile, Fee-Based
on acquiring business potential from the micro, marking a growth of 10.99% (ytd) from Rp358.07 Income from the retail segment grew by 4.41%
To meet the needs of Retail customers, Bank business, individual, and payroll segments, trillion in the previous year, driven by economic (yoy), reaching Rp13.91 trillion as of December
Mandiri continues to optimize and focus on flagship optimizing cross-selling opportunities and recovery and improved consumer purchasing 2024. This growth was supported by a higher
businesses in each region to expand productive transactions to enhance customer fund power throughout 2024. number of clients utilizing Bank Mandiri’s
Retail lending. This approach, combined with the volume, particularly from debtors, and digital services, demonstrating the success of
development of Retail business opportunities within maximizing fund potential within the closed- The increase in retail loan disbursement also its digitalization strategy in expanding non-
the Wholesale customer ecosystem, has become a loop transaction ecosystem of its customers. drove the growth of Net Interest Income (NII) in interest income.
game changer in driving the growth of productive 3. The Bank will continue optimizing its digital
Retail loans targeted at micro, small, and medium platforms to enhance fee-based income
entrepreneurs. through several initiatives, including: Micro Loans
a. Expanding the Livin’ Super App to acquire
To expand its customer base, Bank Mandiri business and individual customers, drive
has partnered with Fintech and e-commerce daily transaction usage, and enrich Bank Mandiri micro loans and/or Micro Banking segment consists of Micro Business Loans (KUM), People’s
companies. The underwriting process for productive use cases such as Livin’ Sukha, Livin’ Business Loans (KUR), and Mandiri Multipurpose Loans (KSM). KUM and KUR are business/productive
Retail loans has become faster and more secure Investment, and Mandiri Credit Cards as financing loans designed to help borrowers scale up their businesses or meet working capital financing
while also refining target market segmentation. sources of funds. needs. Meanwhile, KSM caters to various customer financing needs without requiring collateral. The micro
Through the digitalization of productive Retail b. Optimizing the merchant and card loan performance by loan type as of December 2024 – December 2023 is as follows:
lending, including Digital Offering, New LOS, and business to expand the ecosystem
Mandiri Pintar, Bank Mandiri can keep pace with through merchant acquisition, integrated Micro Loans by Loans Type
the industry’s aggressive growth while maintaining business solutions, and game-changing (In Rp Million)
prudence and healthy credit quality. Bank initiatives such as Livin’ Merchant, Digital 2023 Growth
Description
Mandiri’s Retail Banking continues to innovate, Merchant Activation, cross-border (Rp Million) (%) (Rp Million) (%) (Rp Million) (%)
providing both digital and non-digital services to transactions with competitive exchange Micro Business Loans (KUM) 26,881,324 14.30 20,508,333 12.22 6,372,992 31.08
meet customer needs. rates, and increasing installment People's Business Loans (KUR) 63,913,776 33.99 62,311,294 37.11 1,602,482 2.57
transactions for credit cards. Mandiri Multipurpose Loans (KSM) 97,230,136 51.71 85,058,779 50.67 12,171,356 14.31
4. On the business process side, improvements Total Loans 251,939,013 100.00 167,878,406 100.00 20,146,830 12.00
will be made through branch transformation,
network optimization, and people Bank Mandiri’s micro segment successfully recorded a total loan portfolio of Rp251.94 trillion in December
development. 2024, grew by 12.00% (ytd) compared to the previous year. This growth was primarily driven by an increase
in KSM, which reached Rp97.23 trillion, up 14.31% (ytd) from Rp85.06 trillion in 2023. Meanwhile, KUM and
KUR stood at Rp26.88 trillion and Rp63.91 trillion, reflecting year-to-date growth of 31.08% and 2.57%,
respectively, compared to their positions in 2023.
PT BANK MANDIRI (PERSERO) TBK 362 363 ANNUAL REPORT 2024
Page 49
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
Small and Medium Enterprises Loans
In 2024, the trade sector received the majority the value chain ecosystem of Wholesale Banking
of KUM and KUR disbursements. Meanwhile, customers and collaborated with its subsidiaries
In the SME segment, customers engaged in high-potential business sectors can receive a credit limit of up
KSM was primarily granted to payroll segment to reach the target market. In addition, KSM
to Rp25 billion from Bank Mandiri to support their working capital and investment needs.
government employees (civil servants, military/ disbursement was facilitated through digital
police personnel, and SOE employees), who are channels (Livin’ by Mandiri), ensuring a cost-
2024 2023 Growth
considered lower-risk borrowers, while selective efficient, fast, and seamless credit acquisition Description
(Rp Million) (%) (Rp Million) (%) (Rp Million) (%)
growth was maintained in the private employee process, demonstrating the Bank’s commitment
Working Capital Loans 32,636,719 37.68% 34,159,089 44.62% (1,522,370) (4.46)%
segment. To identify key opportunities in each to enhancing service quality for its customers.
Investment Loans 28,546,098 32.96% 18,777,031 24.53% 9,769,067 52.03%
region, Bank Mandiri focused on employees within
KAD 21,378,728 24.68% 22,186,871 28.98% (808,143) (3.64)%
Cooperatives 4,054,923 4.68% 1,428,014 1.87% 2,626,909 183.96%
Dana Mikro Berdasarkan THIRD-PARTY FUNDS
TR & Others 86,616,467 100.00% 76,551,004 100.00% 10,065,463 13.15%
(In Rp Million)
Total SME Loans 32,636,719 37.68% 34,159,089 44.62% (1,522,370) (4.46)%
2024 2023 Growth
Description
(Rp Million) (%) (Rp Million) (%) (Rp Million) (%) Bank Mandiri recorded total SME loans of Rp86.62 trillion as of December 2024, reflecting a growth of
Current Account and Savings Account 56,000,625 92.50 48,897,814 92.50 7,102,812 14.53 13.15% (yoy) from Rp76.55 trillion in December 2023. A significant portion of the loans disbursed consisted
Time Deposits 3,924,057 6.55 3,962,052 7.50 37,994 (0.96) of Trust Receipt loans, which saw a substantial growth of 183.96%.
Total Third-Party Funds 59,924,683 100.00 52,859,866 100.00 7,064,817 13.37
Bank Mandiri focuses the growth of the SME segment on acquiring businesses that are part of the value
chain of Wholesale customers, which represent the bank’s core competencies, as well as acquiring
businesses from key regional sectors or ecosystems. This acquisition strategy is carried out prudently,
ensuring the quality of the portfolio, with the Non-Performing Loan (NPL) ratio maintained at 0.92% as of
Branchless Banking December 2024.
The increase in SME loans was supported by the growth of Trust Receipt loans, which expanded by
In 2024, Bank Mandiri recorded a total of 110,672 Mandiri Agen, consisting of 110,481 individual agents 183.96%, equivalent to Rp2.62 trillion, as detailed in the following table:
and 191 corporate entities. The optimization of Mandiri Agen’s population and the digitalization of its
processes continued as part of the Bank’s Branchless Banking business strategy. The impact of these SME Loans By Economic Sectors
efforts was reflected in the increased volume of agent transactions, reaching 72.9 million transactions (In Rp Million)
in 2024 with a total transaction value of Rp81.5 trillion. Additionally, the number of customers within the 2023 2023 Growth
agent ecosystem grew by 12.5% yoy. By the end of 2024, Mandiri Agen had 3.1 million customers, with Description
(Rp Million) (%) (Rp Million) (%) (Rp Million) (%)
total funds collected amounting to Rp20.6 trillion, a 17.2% yoy increase. Agriculture, Hunting and
10,347,821 11.95% 10,286,972 13.44% 60,850 0.59%
Agricultural Facilities
Mandiri Agen Mining 6,288,087 7.26% 3,743,227 4.89% 2,544,860 67.99%
2020 2021 2022 2023 2024 Industrial 5,931,434 6.85% 5,784,438 7.56% 146,997 2.54%
134.518 162.416 156.191 130.100 110.672 Electricity, Gas and Water 127,268 0.15% 142,165 0.19% (14,898) 10.48%
Construction 6,931,635 8.00% 6,664,924 8.71% 266,711 4.00%
Trade, Restaurants and Hotels 25,551,005 29.50% 24,098,511 31.48% 1,452,493 6.03%
The Branchless Banking network continues to Bank Mandiri also collaborates with the Ministry Transport, Warehousing and
8,249,855 9.52% 6,153,193 8.04% 2,096,662 34.07%
be strengthened through the implementation of SOEs and the Social Affairs Office to make Communications
of the Mandiri Agen application as part of the Branchless Banking agents as distribution Business Services 2,930,012 3.38% 2,369,821 3.10% 560,191 23.64%
digitalization of Branchless Banking products agents for social assistance, Kartu Tani program, Social/Community Services 3,017,272 3.48% 2,014,898 2.63% 1,002,373 49.75%
and services. By 2024, the number of Mandiri Keluarga Harapan Program (PKH), and Non-Cash Other 17,242,079 19.91% 15,292,855 19.98% 1,949,224 12.75%
Agen application users had reached 61,300 Food Assistance (BPNT), as well as Village-Owned Total Loans SME Banking 86,616,467 100.00% 76,551,004 100.00% 10,065,463 13.15%
agents, or around 55.4% of the total Mandiri Agen Enterprises (BUMDes).
In terms of Third-Party Funds, Bank Mandiri’s SME Banking segment successfully raised Rp280.06 trillion in 2024.
population. This was a 65.4% increase compared
Of this amount, low-cost funds such as current accounts and savings held a dominant share of 89.75%.
to 2023, and will continue to ensure that all Mandiri
Agen adopt the application moving forward. SME Funding by Types
(In Rp Million)
2024 2023 Growth
Description
(Rp Million) (%) (Rp Million) (%) (Rp Million) (%)
Giro dan Tabungan 251.364.690 89,75% 225.396.663 87,06% 25.968.027 11,52%
Deposito 28.693.796 10,25% 33.488.185 12,94% -4.794.389 -14,32%
Total Dana SME 280.058.487 100,00% 258.884.848 100,00% 21.173.639 8,18%
PT BANK MANDIRI (PERSERO) TBK 364 365 ANNUAL REPORT 2024
Page 50
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
Consumer Loans Mandiri Mortgage Loans (Mandiri KPR)
Through consumer loans, Bank Mandiri customers can apply As of December 2024, Bank Mandiri KPR is Mortgage Loans offered by Bank The efforts of Bank Mandiri in enhancing the
Mandiri provides customers for financing for both new Mandiri’s consumer loans Mandiri to individuals for purchasing residential Mandiri KPR business during 2024 are as follows:
with financing solutions for and used two-wheel and reached Rp122.77 trillion, grew houses, apartments, shophouses, or office houses,
home ownership, vehicles, four-wheel vehicles, as well by 8.26% (ytd) compared to either through developers or independent A. Optimizing FLPP Distribution for the Community
credit cards, and multipurpose as multipurpose vehicle loans Rp113.41 trillion in December purchases. The features of Mandiri KPR include: Bank Mandiri continues to reinforce its
loans. For new and/or second- across Indonesia. 2023. This growth was primarily commitment to supporting housing needs
hand home financing, Bank driven by Mandiri Mortgage 1. Mandiri KPR (New Booking) by providing Mortgage Loans (KPR) for both
Mandiri has partnered with To capitalize on the potential Loans, which increased by Financing for the purchase of residential subsidized and non-subsidized segments.
leading developers at both the increase in consumer spending Rp9.48 trillion or 16.93% (ytd), houses, apartments, shophouses, or office Specifically for Low-Income Communities
national and regional levels, in 2024, Bank Mandiri actively reached Rp65.41 trillion in 2024. houses either new or second. Purchases (MBR), Bank Mandiri actively facilitates
as well as several prominent innovates its credit card The increase in consumer loans can be made through developers or non- mortgage loans under the Housing Financing
brokerage agencies across products in the retail segment. also contributed to higher Fee- developers. Liquidity Facility (FLPP) scheme, aiming to
Indonesia. Therefore, the Bank continues to Based Income, which grew by 2. Mandiri KPR Take Over improve access to affordable and decent
enhance the synergy between 14.85% (yoy) to Rp3.71 trillion Financing for mortgage takeovers from other homeownership.
In vehicle financing, Bank Mandiri Credit Cards and the from Rp3.23 trillion in the same banks, with a maximum credit limit equivalent
Mandiri collaborates with Super App Livin’ by Mandiri period the previous year. to the latest outstanding loan balance at In line with the government’s efforts to reduce
its two subsidiaries, Mandiri to provide customers with a the originating bank or with an additional the housing supply backlog, by the end of 2024,
Tunas Finance (MTF) and seamless digital transaction credit limit based on the bank’s assessment. Bank Mandiri had disbursed 6,133 new KPR
Mandiri Utama Finance (MUF). experience. If the total amount exceeds the previous units under the FLPP scheme. This achievement
Through this partnership, Bank outstanding balance, the excess funds can represents a 63% (yoy) growth, with credit
be used to meet various other needs. quality maintained at an optimal level.
3. Mandiri KPR Top Up
Consumer Outstanding Loans Performance An increase in the credit limit for Mandiri KPR
(In Rp Million) that have been active for at least one year,
provided that installment payments have
2024 2023 Growth
Description been current for the past six months. The
(Nominal) (%) (Nominal) (%) (Nominal) (%) additional credit limit allows borrowers to
Mortgage Loans 65.491.544 53,34 56.009.660 49,39 9.481.884 16,93 meet various other financial needs.
Motor Vehicle Loans 35.004.802 28,51 37.957.373 33,47 (2.952.571) (7,78)
Credit cards 19.269.947 15,70 16.705.235 14,72 2.580.049 15,46
Others 3.008.513 2,45 2.753.692 2,43 254.821 9,25
Total Consumer Loans 122.774.806 100,00 113.410.623 100,00 9.364.183 8,26
PT BANK MANDIRI (PERSERO) TBK 366 367 ANNUAL REPORT 2024
Page 51
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
As an agent of change and a government As of December 2024, Bank Mandiri recorded
partner, Bank Mandiri welcomes and supports loan disbursement for environmentally friendly
the government’s plan to increase the FLPP buildings that meet standards/certifications
quota for 2024 by 34,000 units. Bank Mandiri reaching Rp6.3 trillion. This includes retail
believes that the property sector has the financing through the Green Mortgage (KPR
potential to create a multiplier effect in driving Hijau) program, contributing to the growth of
national economic growth. Furthermore, the Bank Mandiri’s total sustainable portfolio to
expansion of FLPP mortgage disbursement will Rp292.5 trillion, an increase of 10.8% (yoy) over
continue, focusing on strengthening housing the same period.
supply and expanding demand beyond the
Fixed Income (employee) segment to include The Green Mortgage (KPR Hijau) is a financing
the Non-Fixed Income segment, which still facility for customers to purchase residential
holds significant potential. properties that have received green building
certification from a rating agency. Bank Mandiri
With BP TAPERA as the coordinator of the FLPP launched the Green Mortgage financing
program, Bank Mandiri aims to ensure that FLPP to raise customer and public awareness of
disbursement in 2024 is executed effectively the importance of environmentally friendly
and continues sustainably through 2025. To housing. As awareness continues to grow,
achieve this, Bank Mandiri is leveraging digital demand for green properties is expected to
platforms to market KPR and introducing increase in the future.
innovative, adaptive, and solution-oriented
transactions for the community through the Since its launch in May 2024, KPR Hijau
Livin’ KPR feature in the Super App Livin’ by has offered various promotions to attract
Mandiri. customers. These include a low interest rate
of 2.7%, a 0% down payment, and reduced
This aligns with Bank Mandiri’s objective mortgage fees. These incentives are expected
to become the top-of-mind provider for to make the Green Mortgage more appealing
comprehensive banking solutions across all to a wider customer base, thereby increasing
segments of society. Additionally, Bank Mandiri interest and awareness in green properties.
aims to position itself as an urban everyday C. Digital Mortgage with Livin’ KPR discounted provision fees, and a simplified
banking institution, catering to financial needs Going forward, Bank Mandiri remains committed Bank Mandiri continues to innovate by providing mortgage application process, all available
and delivering integrated business solutions. to supporting the growing demand for green homeownership solutions for customers through through Bank Mandiri.
properties in Indonesia through the KPR Hijau. the Livin’ KPR feature in the beyond super
Not only that, in celebration of its 26th This aligns with the government’s target of app, Livin’ by Mandiri. This feature enables Additionally, Livin’ KPR makes it easier for
anniversary, Bank Mandiri has also prepared reducing emissions to achieve Net Zero Emission customers to apply for a mortgage more easily customers to find properties based on their
the KPR Sejahtera Non-FLPP program to (NZE) by 2060 or sooner. This commitment is and quickly in a single app. price preferences and nearby public facilities
continue supporting housing distribution for the in line with Bank Mandiri’s vision to become while allowing them to explore every corner
MBR segment with affordable interest rates and Indonesia’s Sustainable Champion for a Better Various challenges, such as difficulties in of a property as if they were there in person
credit costs, starting from a 7.50% fixed rate for Future. As part of the banking sector, Bank meeting home loan requirements, high through the Virtual Tour 360° experience.
10 years. Meanwhile, for KPR, customers can Mandiri can contribute to emission reductions in interest rates, and a complex application Livin’ KPR also offers flexibility in financial
enjoy a special anniversary provision fee of other sectors through its financial products. process, often lead many people to planning with the Installment Simulation
0.26% and a special anniversary administration postpone homeownership or not yet feature and provides real-time mortgage
fee of 0.026%. Bank Mandiri is collaborating with NavaPark consider housing as a primary long-term application tracking through the KPR Tracking
BSD, South Tangerang, a project that received investment. The Livin’ KPR feature is part of feature, enabling customers to monitor their
B. Bank Mandiri Green Mortgage (KPR Hijau) a Greenship certification with a platinum Bank Mandiri’s ongoing efforts to deliver application status seamlessly.
Bank Mandiri continues to innovate in rating from the Green Building Council added value to its customers.
developing sustainable financial products that Indonesia (GBCI) in 2022. This rating was Bank Mandiri hopes that the Livin' KPR
contribute to green property development. awarded following an assessment across The Livin’ KPR feature serves as an innovative feature will make it easier for more customers
This green financing innovation is part of Bank several categories, including land ecological solution to streamline the mortgage financing to own their dream homes, creating a
Mandiri’s efforts to integrate the Environmental, enhancement, movement and connectivity, process, making it more seamless by ensuring more meaningful future for everyone. The
Social, and Governance (ESG) framework into water management and conservation, solid a fast and efficient application process. introduction of Livin’ KPR is also expected to
its financial products through the Sustainable waste and materials, community well-being Customers can benefit from a wide selection optimize mortgage acquisitions and further
Banking pillar. strategy, building and energy, and innovation of properties, competitive interest rates, enhance the Mandiri KPR portfolio in 2024.
and future development.
PT BANK MANDIRI (PERSERO) TBK 368 369 ANNUAL REPORT 2024
Page 52
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
Mandiri Vehicle Loans (Mandiri KKB) Mandiri Kredit Cards
Bank Mandiri reaffirms this commitment through Mandiri Credit Card is a credit facility provided to customers in the form of a card issued by Bank Mandiri,
the signing of a Memorandum of Understanding offering a variety of features and benefits to cater to customers’ needs and lifestyles anywhere, with
(MoU) with PT BYD Motor Indonesia. This acceptance at merchants worldwide through the Visa, Mastercard, and JCB networks.
collaboration aligns with Bank Mandiri’s mission
to become Indonesia’s Sustainability Champion Mandiri Credit Card Growth
for a Better Future, starting with support for Kredit Cards 2024 2023 Growth (%)
environmentally friendly lifestyle changes within Outstanding (Rp Trillion) 19.3 16.7 15.4
society. Sales Volume (Rp Trillion) 66.1 51.2 29.2
NPL 1.06% 1.23% (0.17)
In line with the role of SOEs as agents of change, Fee Based Income (Rp Trillion) 2.1 1.9 7.6
Bank Mandiri will provide various financial support
and strategic banking services needed by BYD, As of December 2024, active users of Mandiri credit cards reached 2.2 million cards, reflecting an 8%
including optimizing its financing subsidiaries, (yoy) growth. Meanwhile, the outstanding Mandiri Credit Card balance stood at Rp19.3 trillion, up 15.4%
Mandiri Tunas Finance and Mandiri Utama compared to Rp16.7 trillion in the same period of previous year. This achievement was bolstered by Bank
Finance, to strengthen and enhance the electric Mandiri’s strong Retail and Wholesale segments and its extensive distribution network.
vehicle ecosystem comprehensively.
Mandiri Credit Card Achievements & Events
Moreover, this collaboration includes facilitating In 2024, Mandiri Credit Card received several awards, as follows:
the procurement of operational vehicles,
particularly electric vehicles from the BYD Group,
while leveraging digital banking products such JCB Award Indonesia
as Kopra and Livin’ by Mandiri to strengthen the • Best Growth of Issuing Total Sales Volume in
BYD ecosystem. Beyond that, the partnership is Indonesia 2023
expected to contribute to Indonesia’s transition • Outstanding Nationwide Usage Program in
Mandiri Vehicle Loan (Mandiri KKB) is a motor toward net zero emissions (NZE) by 2060, Indonesia 2023
vehicle financing facility for individual customers. accelerating the country’s green economy
The benefits of Mandiri KKB include competitive through the development of sustainable financing • Best New Card Acquisition Performance in
interest rates, simple document requirements, a and financial products. Indonesia 2023
fast application process, and flexible payment
methods. Green financing has been directed toward
sustainable sectors, including renewable energy
Currently, customers and the Indonesian public such as hydro and geothermal power plants, VISA Award 2024
can apply for vehicle loans through Livin’ Sukha transportation, and the end-to-end electric • Outstanding Growth in Signature Card
under the “Nyicil Otomotif” menu. Additionally, vehicle ecosystem. In line with this, Bank Mandiri Volume Bank Buku 4
Bank Mandiri has revamped the vehicle financing has established an ESG Desk as a point of contact • Outstanding Credit Volume Growth Bank
application process on its website at https:// for customers, particularly in the Wholesale Buku 4
bmri.id/formkkb to provide easier access for loan segment, providing sustainable financing
applications. solutions such as Green Loans, Sustainability-
Linked Loans, and corporate-in-transition
In 2024, Bank Mandiri further strengthens its financing. Additionally, the ESG Desk serves as an
commitment to sustainable economic growth advisor for corporate clients in developing their
by promoting environmentally friendly business ESG Framework. IDX Channel Anugrah Inovasi
practices, including in the Mandiri KKB segment. Best Digital Credit Card Payment Innovation : The
One of its key initiatives is supporting the expansion First Tap to Pay, QRIS, & Virtual Card
of the electric vehicle ecosystem by offering a
range of banking products and financing services
that the public can access.
PT BANK MANDIRI (PERSERO) TBK 370 371 ANNUAL REPORT 2024
Page 53
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
To expand its credit card business and provide the best financial solutions to customers throughout 2024,
Bank Mandiri continues to innovate by issuing co-branded credit cards in partnership with various strategic
partners and communities in Indonesia.
Mudik Asik Bank Mandiri in Collaboration
with KAI
Bank Mandiri, in collaboration with Lippo Mall Indonesia,
launched the Mandiri Lippo Malls Card. This co-branded
credit card is designed to complement customers’
lifestyle and daily needs, offering numerous benefits at
A series of Garuda Indonesia Travel Festival Lippo Malls across Indonesia.
(GATF) events in seven major cities across
Indonesia, GATF International in Singapore,
Shanghai, and Seoul, Garuda Online Travel
Fair (GOTF), Sales Outlet Travel Fair (SOTF), and
Corporate Travel Fair.
Bank Mandiri also issued the CoBrand MyPertamina
credit card, specifically designed for customer
transactions at Pertamina gas station merchants and
automotive-related merchants.
Mandiri Golf Tournament
Bank Mandiri also issued a credit card dedicated to
donating to the Buddha Tzu Chi Foundation, the specially
designed Mandiri Tzu Chi Card. This specially designed
credit card was created to facilitate customers who
wish to donate to the Buddha Tzu Chi Foundation.
Japan Festival JCB
PT BANK MANDIRI (PERSERO) TBK 372 373 ANNUAL REPORT 2024
Page 54
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
In addition, Bank Mandiri collaborated with renowned Korean stars Park Seo Joon and Kim You Jung to Retail Deposit
launch a specially designed product innovation aimed at young customers who love K-Dramas: the Mandiri
Credit Card Special Design featuring Park Seo Joon and Kim You Jung.
Bank Mandiri remains focused on the retail segment for fund collection, particularly in accumulating low-
cost funds (current accounts and savings). The growth of retail low-cost deposits in 2024 showed a positive
trend, with the average balance of current accounts and savings reaching Rp170.34 trillion, marking a
7.73% increase compared to the 2023 average balance of Rp158.48 trillion.
Retail Deposits Funding by Products
(In Rp Million)
2024 2023 Growth
Description
(Rp Million) (%) (Rp Million) (%) (Rp Million) (%)
Giro dan Tabungan 187,432,302 84.98% 174,900,873 82.74% 12,531,429 7.16%
Deposito 33,123,641 15.02% 37,188,246 17.53% (4,064,605) (10.93)%
Total 220,555,942,60 100.00% 212,089,120 100% 8,466,823 3.99%
Bank Mandiri recorded total retail deposits of Rp220.6 trillion, reflecting a 4.0% increase compared to
Rp212.1 trillion in 2023.
Wealth Management
Bank Mandiri’s Wealth Mutual Funds 2. A Fixed Income Mutual
Management offers a As a Mutual Fund Selling Fund is a mutual fund
comprehensive range of Agent (APERD), Bank Mandiri that invests at least 80%
financial and investment handles the sale of mutual fund of its Net Asset Value in
services tailored to meet the securities under agreements debt securities issued by
diverse needs of its priority with mutual fund managers. either the government or
and private clients. Bank Bank Mandiri has been corporations. This type of
Moreover, customers can also Another feature, Power As a result of these innovations Mandiri remains optimistic registered as an APERD with mutual fund is available
enjoy the convenience of Installment, allows cardholders and ecosystem expansions, by about continued growth in its the Financial Services Authority in two denominations:
conducting transactions with to convert large transactions the end of December 2024, Wealth Management business (OJK) since 2007. In offering Rupiah and US Dollar.
Mandiri Credit Card digitally. into light installments of up to Mandiri Credit Card recorded throughout 2024, targeting a mutual fund products to clients, 3. A Mixed Mutual Fund is a
Through the Livin’ by Mandiri 36 months, giving them more a 29.2% year-on-year (yoy) 15% (yoy) increase in priority Bank Mandiri partners with nine mutual fund that invests
app, the Mandiri Credit Card flexibility in managing their growth in transaction value. At and private clients and over highly competent investment in equity securities, debt
can be used for a variety finances. In addition, the Power the same time, the outstanding 13% (yoy) growth in managed managers. securities, and/or domestic
of services and features, Cash feature available on Livin’ balance for Mandiri Credit Card funds. In 2024, Bank Mandiri money market instruments,
providing ease and flexibility. by Mandiri enables near real- grew significantly, increasing was also recognized with the The mutual fund products with each category
One of its standout features time instant cash withdrawals 15.4% (yoy) to Rp19.3 trillion. “Best Domestic Private Bank” marketed through Bank Mandiri comprising no more than
is the Virtual Card, which with competitive interest rates and “Best Digital Solutions” are as follows: 79% of its assets. The
enables users to access card starting at 0%. awards at the Euromoney portfolio must include both
credentials virtually, making Private Banking Awards. 1. A Money Market Mutual equity and debt securities.
it safer and faster to carry out Fund is a mutual fund 4. An Equity Mutual Fund is a
online transactions. The Wealth Management that invests exclusively in mutual fund that allocates
products offered by Bank domestic money market at least 80% of its assets in
Mandiri include: instruments and/or debt equity securities. This type of
securities with a maturity of mutual fund is available in
less than one year. two denominations, namely
Rupiah and US Dollar.
PT BANK MANDIRI (PERSERO) TBK 374 375 ANNUAL REPORT 2024
Page 55
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
5. Index Mutual Fund is a under the investment- the real sector, and may The potential for priority and and invitations to attend a wide array of lifestyle events,
mutual fund that are grade category, ensuring involve, but are not limited private customer growth in range of exclusive events that and outstanding investment
managed to achieve that at maturity, the value to, the production of goods Papua is quite significant. This support the growth of their management capabilities
investment returns that of these debt securities at and/or the working capital is reflected in the 884 priority businesses. place Bank Mandiri at the
closely mirror a specific least covers the amount of needed for such activities. customers in the Papua region. forefront of the industry.
benchmark index, which the protected principal. Currently, Mandiri Prioritas has Beyond these traditional
can be either a Bond Index 7. A Limited Participation Bank Mandiri continues a total of more than 69,000 services, Bank Mandiri also The number of Wealth
or a Stock Index. Mutual Fund (RDPT) is a to consistently introduce customers. Growing together provides digital innovations Management customers at
6. A Protected Mutual Fund mutual fund that pool innovations designed to with its customers is Bank through Livin’ by Mandiri for Bank Mandiri reached an all-
(RDT) is a mutual fund that funds from professional expand its Mandiri Prioritas Mandiri’s top priority. Through personal financial needs and time high, exceeding 69,000
provides protection for the investors and subsequently service network, thereby Mandiri Prioritas services, Kopra by Mandiri for business managed customers by
investor’s initial investment invests them in a securities strengthening its Wealth the Bank is committed to requirements. Through its the end of December 2024.
through its portfolio portfolio based on real- Management business. As delivering exceptional banking Wealth Management business This represents a growth of
management mechanism. sector activities. These real- a strategic move to attract experiences while providing segment, Bank Mandiri delivers more than 9,000 customers
The Investment Manager sector activities include, premium clients in emerging the best financial solutions to tailored services that meet compared to the same
of the Protected Mutual directly or indirectly, business areas throughout its customers. both the business and lifestyle period the previous year. This
Fund will allocate part of activities related to the 2024, the Bank reintroduced needs of customers. This strong growth contributed
the managed funds into production of goods, the its Prioritas outlets, including a By developing an integrated includes integrated solutions to the performance of Bank
debt securities that fall provision of services in relaunch in Jayapura, Papua. network, Bank Mandiri in collaboration with business Mandiri Wealth Management,
recognizes the premium units and subsidiaries, ensuring with total managed funds
segment’s significant potential customers receive the best increasing by over 13% (yoy).
for future growth. The Bank financial services available.
is committed to consistently In addition, Bank Mandiri
providing the best services to Through its range of service earned the award for Best
priority customers in Papua and product innovations as Digital Solutions in Indonesia,
and its surrounding areas. well as accelerated digital resulted by enhancements to
Through the relaunching of the transformation, Bank Mandiri the Livin’ Investment feature
Priority outlet in Jayapura, Bank earned the prestigious in the Livin’ by Mandiri app.
Mandiri aims to strengthen award for Best Domestic This innovation enables
relationships with customers Private Banking in Indonesia customers to invest in mutual
and offer top-tier financial at the 2024 Euromoney funds and bonds directly
solutions to support their Private Banking Awards. from their phones, improving
business growth. This recognition reinforces convenience and efficiency in
Bank Mandiri’s position as financial management.
Bank Mandiri offers a suite a committed provider of
of specialized services transactional and investment Bank Mandiri continues
designed exclusively for Priority solutions for its customers. to enhance its portfolio
Customers. These include communication, growth
a Dedicated Relationship The accolade highlights Bank insights, returns information,
Manager who provides Mandiri’s commitment to and investment simulations,
advisory services to help delivering high-quality services further solidifying its position as
optimize customers’ asset and and achieving significant a bank that prioritizes customer
financial management. Bank growth. This success stems experience. Relationship
Mandiri also offers exclusive from the bank’s superior Managers can focus more on
services for priority and private service quality, extensive providing investment advisory
customers, such as executive reach, and diverse banking services by leveraging
lounge access, premium and investment products, advanced technology,
airport assistance, safe deposit including innovative digital resulting in more accurate and
boxes, waived annual credit solutions. Concierge services beneficial advice for clients.
card fees, market updates, via debit and credit cards, a
PT BANK MANDIRI (PERSERO) TBK 376 377 ANNUAL REPORT 2024
Page 56
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
In 2024, Bank Mandiri’s Retail Banking recorded total Wealth Management Assets Under Management (AUM)
These achievements are a of Rp24.74 trillion, up 3.7% compared to the previous year’s achievement of Rp23.87 trillion. Meanwhile,
testament to the trust that Wealth Management Fee-Based Income stood at Rp206.08 billion, a decrease of -11.4% compared to
customers place in Bank Mandiri, Rp232.63 billion in 2023.
driving the Bank to continue
growing and innovating. Bank Primary and Secondary Market Retail Government Bonds
Mandiri remains committed Retail Government Bonds (SBN) are sovereign securities issued by the Government specifically for retail
to delivering innovative investors in the primary market. The payment of interest and principal is guaranteed directly by the
transaction and investment Republic of Indonesia according to the terms of the bonds. Bank Mandiri offers two types of Primary
solutions tailored to customer Market Retail Government Bonds: Government Bonds (SUN) and Sharia Sovereign Securities (SBSN). SUN
needs, reinforcing its status as a comprises Retail Government Bonds (ORI) and Retail Savings Bonds (SBR), while SBSN includes Retail Sukuk
leading bank in Indonesia. (SR) and Savings Sukuk (ST).
In 2024, customers can enjoy a In addition to offering Primary Market Retail Government Bonds, Bank Mandiri also provides secondary
range of attractive programs market bonds to its customers. These secondary market transactions are conducted in collaboration with
and offers when transacting the Treasury Group.
mutual funds through Livin’ by
Mandiri, among others: Volume and Revenue of Primary Market Retail Government Securities
(In Rp Million)
Initial Securities with Volume Initial Securities Income
Asset Under Management
Growth Growth
(Volume) 2024 2023 2024 2023
(Nominal) (%) (Nominal) (%)
Primary Market Retail
23,023,.151 22,810,892 212,259 0.93 77,023 75,839 1,184 1.56
Government Securities
In 2024, Bank Mandiri’s Retail SBN sales reached with seamless access to stock investments
Rp23.02 trillion, an increase from Rp22.81 trillion in anytime, anywhere. The integration of Growin’,
the previous year. Fee-Based Income from these the latest digital trading platform from PT Mandiri
sales activities in 2024 amounted to Rp77.02 billion, Sekuritas, into Livin’ marks a groundbreaking
up 1.56% from Rp75.83 billion in 2023. The growth innovation, pioneering investment capabilities
in primary market Retail Government Bond sales within a banking application. With Growin’ on
volume was driven by increased liquidity in the Livin’, all Livin’ customers can effortlessly open a
Productivity and Revenue of Wealth Management Products – Mutual Funds economy overall. Mandiri Sekuritas Rekening Dana Nasabah (RDN)
(In Rp Million) and invest in stocks with ease and convenience,
Mutual Funds with AUM Mutual Fund Products Income Bancassurance all while monitoring their investment performance
Asset Under Management In providing bancassurance products, Bank and portfolio without switching applications.
Growth Growth
(AUM) 2024 2023 2024 2023
(Nominal) (%) (Nominal) (%) Mandiri has collaborated with various insurance
Equity Mutual Fund 2,705,984 3,460,914 (754,930) (21.8)% 40,945 64,136 (23,191) (36.2)% companies to offer solutions that provide The integration of Growin’ into Livin’ is a testament
Mixed Mutual Fund 162,769 247,991 (85,222) (34.4)% 2,041 2,379 (338) (14.2)% financial protection against health and life risks, to the strong synergy between Bank Mandiri and
Fixed Income Mutual as well as help meet educational expenses, Mandiri Sekuritas in delivering a more holistic and
4,307,814 4,765,550 (457,736) (9.6)% 53,114 60,265 (7,151) (11.9)%
Fund retirement costs, and asset protection needs. accessible digital investment service for all Mandiri
Money Market Mutual Bank Mandiri’s bancassurance products and Group customers. This innovation is expected to
16,992,558 14,888,946 2,103,612 14.1% 106,329 104,509 1,820 1.7%
Fund services available to customers include Mandiri drive financial literacy and inclusion on a large
Index Mutual Fund 127,453 10,845 116,608 1075.2% 1,850 396 1,454 367.1% Elite Plan-Prime Insurance, Mandiri Legacy Plan scale while enhancing the overall investment
Sub Total 24,296,577 23,374,246 922,331 3.9% 204,278 231,685 (27,407) (11.8)% Platinum Insurance, Mandiri Legacy Plan Titanium experience for customers, enabling them to grow
Protected Mutual Fund 370,632 409,847 (39,215) (9.6)% 986 0 986 0.0% Insurance, Mandiri Investasi Prestige Insurance, their financial assets.
Limited Inclusion Mutual and Mandiri Secure Criticare Insurance.
77,080 83,824 (6,744) (8.0)% 795 890 (95) (10.7)%
Fund
In 2024, Mandiri Sekuritas recorded a stock
PDNI (Individual Customer
Fund Management)
0 0 0 0% 25 55 (30) 0% Growin’ On Livin’ transaction volume of Rp415 billion through
Total 24,744,289 23,867,917 876,372 3.7% 206,084 232,630 (26,546) (11.4)% Growin’ by Mandiri Sekuritas is now available on Growin’ on Livin’ and added 167,000 new
the Livin’ by Mandiri app, providing customers customers through the platform.
PT BANK MANDIRI (PERSERO) TBK 378 379 ANNUAL REPORT 2024
Page 57
MANAGEMENT DISCUSSION AND ANALYSIS
RETAIL BANKING RETAIL BANKING
Foreign Exchange Transactions and Bank Mandiri believes that the well-established opportunity for Bank Mandiri to reach more 2. Strengthening the Bank’s liquidity through
Structured Products collaboration between IIPC and Bank Mandiri’s new customers. The increasing demand for the accelerated and aggressive growth
Wealth Management collaborates with the overseas offices will continue to be strengthened retail investment instruments, including mutual of customer acquisition, particularly for
Treasury Group to provide foreign exchange going forward. This partnership is expected to funds, retail bonds, and insurance, also provides savings customers, by focusing on five
transaction services and offer structured products create a domino effect and multiply inbound momentum for Bank Mandiri to expand its Wealth main pipelines: derivative businesses of
such as Mandiri Deposit Swap, Mandiri Dual investments while simultaneously supporting Management product line to meet the needs wholesale customers, regional priority sectors,
Currency Investment, and Mandiri Market Linked Indonesia’s goal of becoming a developed of the middle-class and affluent segments. In subsidiary ecosystems, global and regional
Deposit to clients enrolled in premier customer nation by 2045. the consumer loan segment, Bank Mandiri has communities, and strategic partners. The
services. These investment product options can sufficient resources to respond to rising demand optimization of savings fund growth in retail
be tailored to the customer’s risk profiles and Bank Mandiri have comprehensive capabilities for products such as home ownership loans (KPR) customers focuses on optimizing payroll
investment objectives. across various industries, from upstream to and unsecured loans (KTA), particularly among customers, business and wealth customers,
downstream sectors, which can help prospective millennials and Generation Z, who are beginning and digitally savvy individual customers by
Other Investment Alternatives investors establish a footprint, find the right to build personal assets. creating a closed-loop transaction ecosystem
In addition to acting as an APERD and a distributor local partners, and expand their investments in based on a lifestyle community approach
for Government Securities, Bank Mandiri also Indonesia. Moreover, Bank Mandiri has prepared Supported by economic growth, digitalization, and personalized offerings. This enables the
provides access to more advanced investment communication tools such as an investor landing and evolving customer needs, Bank Mandiri is well- provision of end-to-end financial solutions
products such as Individual Customer Portfolio page and marketing toolkits that provide valuable positioned to maintain its leadership in the retail for every customer’s financial needs and
Management (PDNI), Infrastructure Investment information, making it easier for investors to initiate banking market. By focusing on digital innovation, enhances customer engagement to increase
Funds in the form of Collective Investment and grow their investments in the country. product diversification, and strengthening transactions and product holding.
Contracts (DINFRA), Real Estate Investment Funds financial literacy, the bank has the potential to 3. The Bank will continue to optimize transactions
in the form of Collective Investment Contracts sustain its dominance and continue making a and the value of digital platform usage
(DIRE), and Asset-Backed Securities in the form RETAIL BANKING BUSINESS significant contribution to overall business growth. among customers to position Bank Mandiri as
of Collective Investment Contracts (KIK-EBA). OUTLOOK FOR 2025 the primary transaction bank through several
Bank Mandiri works with authorized investment initiatives, including:
managers to manage these investment products. RETAIL BANKING WORK PLAN IN a. Optimization of the Super App Livin’
Strengthen Collaboration to Boost
The business outlook for Bank Mandiri’s Retail
Banking segment in 2025 is projected to
2025 to acquire business and individual
customers, increasing activation and
Investments in Indonesia remain highly positive, supported by digital daily transaction usage by adding
Bank Mandiri consistently supports the increase of transformation, financial inclusion growth, and To sustain the positive growth trend in retail banking personalized debit card service features
investment especially foreign direct investments increasing demand for diverse banking products. business in 2025, Bank Mandiri will implement the (issuance, replacement, and block/
to Indonesia by strengthening collaboration Indonesia’s expected economic growth will drive following strategies: unblock card), real-time multi-currency
with various stakeholders. In 2024, Bank Mandiri higher income and consumer spending, creating additions for foreign exchange transfers,
partnered with The Ministry of Investment and opportunities for Bank Mandiri to expand its 1. Retail Credit portfolio growth remains and enhancing the use case of Livin’
Downstream Industry/BKPM, formalized through Retail Banking products and services, including focused on the business potential derived Sukha, Livin’ Investasi, and Mandiri Credit
Joint Investment Promotion efforts by Bank consumer loans, savings, and investment from the wholesale customer ecosystem Cards as a source of funds for various
Mandiri’s seven overseas offices (Singapore, Hong products. through synergy between the retail and payment transactions.
Kong, China, United Kingdom, Malaysia, Cayman wholesale segments, while also continuing b. Optimization of the merchant and card
Islands, and Timor-Leste) in cooperation with the The adoption of digital technology continues to to support government strategic projects. business to expand the ecosystem
Indonesia Investment Promotion Center (IIPC) rise, particularly in the use of banking applications The optimization of retail credit customer through merchant acquisition, Integrated
under The Ministry of Investment and Downstream and e-commerce. Bank Mandiri aims to leverage acquisition is carried out through customized Solutions within the business ecosystem,
Industry/BKPM. this trend to expand its retail customer base offerings in line with market conditions, Game Changer: Livin’ Merchant, Digital
through digital services such as Livin’ by Mandiri. leveraging the Branch network to reach Merchant Activation, promoting Cross-
Through this collaboration, investors benefit from The growing number of smartphone users and customers, and optimizing the Livin’ by Border Transactions with competitive
streamlined access to information on current increasing public trust in digital transactions Mandiri application to simplify the retail credit exchange rates, and increasing
investment procedures and opportunities in present opportunities for Bank Mandiri to further application process (such as KSM, Paylater, installment transactions for credit cards.
Indonesia, potential synergies with trusted partners expand the digital ecosystem of Retail Banking. KPR, Credit Cards, and Vehicle Loans).
who are already Bank Mandiri clients, and access This is accompanied by an accelerated On the business operations, the enhancement
to the premium services offered by Mandiri Government support for financial inclusion, such credit analysis process and seamless risk of the distribution network is carried out through
Group. This initiative aims to enhance the quality as digital savings account openings and social management to further facilitate customers branch transformation, network optimization, and
of investment services provided to investors. assistance distribution, presents a significant and ensure that credit growth remains people development to function as a business
sustainable with maintained credit quality. orchestrator.
PT BANK MANDIRI (PERSERO) TBK 380 381 ANNUAL REPORT 2024
Page 58
MANAGEMENT DISCUSSION AND ANALYSIS
HEAD OFFICE GEOGRAPHIC SEGMENT
OPERATIONS REVIEW
The Head Office segment manages assets and liabilities, including those of the Corporate Banking, MANDIRI INDONESIA
Commercial Banking, Institutional Relations, Retail Banking, Treasury, and International Banking segments. The Mandiri Indonesia geographic segment includes the Wholesale segment, comprising Corporate,
It also receives cost allocations for centralized service provision to other segments, as well as income/ Commercial, Financial Institution, and Institutional Relations; and the Retail segment, consisting of
expenses that are not allocated to other segment reporting. However, the productivity and revenue Small and Medium Enterprises, Micro, Wealth Management, and Individual segments. It also includes
of the segments discussed in this Annual Report are recorded separately from the assets and liabilities Subsidiaries, covering Syariah Subsidiaries, Insurance Subsidiaries, and Non-Syariah & Non-Insurance
managed by the Head Office. Subsidiaries, as discussed in the Operating Segments section of this Annual Report.
PRODUCTIVITY AND REVENUE OF THE HEAD OFFICE SEGMENT OVERSEAS BRANCHES (KLN)
The explanation of the Overseas Branches (KLN) segment is presented in the International Banking
Information on the productivity and revenue of the Head Office is presented in the Segment Profitability segment and in the discussion of Syariah Subsidiaries, Insurance Subsidiaries, and Non-Syariah &
Notes within the audited financial statements as part of this Annual Report. Non-Insurance Subsidiaries outside Indonesia, as detailed in the Operating Segments section of this
Annual Report.
Bank Mandiri’s geographic segments include Mandiri Indonesia and Mandiri Overseas Units. The Group’s
main operations are managed in Indonesia, Asia (Singapore, Hong Kong, Dili, Shanghai, Kuala Lumpur),
Western Europe (London), and the Cayman Islands. PRODUCTIVITY & PROFITABILITY OF GEOGRAPHIC SEGMENTS
The net profit attributable to the owners of the parent company for the consolidated geographic
segments increased by 1.87% to Rp61.17 trillion as of December 2024, compared to Rp60.05 trillion as of
December 2023. The Indonesia Geographic Segment remained the largest profit contributor, recording
Rp58.86 trillion as of December 2024, with a growth of 1.80%.
Geographic Segment Profitability 2024
(In Rp million)
Western Cayman
Description Indonesia Asia Consolidated
Europe Islands
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interest and Sharia Income 143,256,544 5,544,063 212,757 2,222,663 151,236,027
Interest and Sharia Expenses (45,035,523) (3,371,107) (137,362) (935,115) (49,479,107)
Interest and Sharia Income - Net 98,221,021 2,172,956 75,395 1,287,548 101,756,920
Premium Income - Net 2,520,813 - - - 2,520,813
Interest and Sharia and Premium
100,741,834 2,172,956 75,395 1,287,548 104,277,733
Income - Net
Other Operating Income:
Provision and Commission
22,913,886 527,229 - 6,405 23,447,520
Income
Others 18,343,628 272,474 9,813 97,580 18,723,495
Total 41,257,515 799,703 9,813 103,985 42,171,015
(Provision)/reversal of allowance
for impairment losses on financial (11,314,308) (615,051) 355 - (11,929,004)
assets and others
Gain on Sale of Securities and
149,256 1,041 - - 150,297
Government Bonds
PT BANK MANDIRI (PERSERO) TBK 382 383 ANNUAL REPORT 2024
Page 59
MANAGEMENT DISCUSSION AND ANALYSIS
GEOGRAPHIC SEGMENT OPERATIONS REVIEW GEOGRAPHIC SEGMENT OPERATIONS REVIEW
Western Cayman Cayman
Description Indonesia Asia Consolidated Description Indonesia Asia Eropa Barat Konsolidasian
Europe Islands Islands
Other Operating Expenses: Other Operating Expenses:
Salaries and Employee Benefits (23,681,058) (254,407) (41,119) (14,179) (23,990,763) Salaries and Employee Benefits (24,154,647) (216,132) (36,322) (15,988) (24,423,089)
Other General and Other General and
(34,386,919) (185,828) (24,756) (22,180) (34,619,683) (29,244,031) (163,475) (17,827) (19,069) (29,444,402)
Administrative Expenses Administrative Expenses
Total (58,067,977) (440,235) (65,875) (36,359) (58,610,446) Total (53,398,678) (379,607) (54,149) (35,057) (53,867,491)
Non-Operating Income/ Non-Operating Income/
1,014,015 (79,245) - (590,879) 343,891 950,259 (427,329) - (479,612) 43,318
(Expense) - Net (Expense) - Net
Tax Expense (14,919,990) (14,919,990) (3,671) - (15,238,365) Tax Expense (14,371,652) (258,604) (2,755) - (14,633,011)
Net Profit 58,860,344 1,524,465 16,017 764,295 61,165,121 Net Profit 57,816,407 1,539,818 12,084 683,561 60,051,870
Net Profit Attributable to Net Profit Attributable to
Noncontrolling interests - - - - 5,382,379 Noncontrolling interests - - - - 4,991,813
Equity holders of the Parent Entity - - - - 55,782,742 Equity holders of the Parent Entity - - - - 55,060,057
Consolidated Statement of Financial Position Consolidated Statement of Financial Position
Loans 1,517,435,476 75,116,822 672,234 29,992,080 1,623,216,612 Loans 1,273,106,236 57,617,329 715,716 28,392,914 1,359,832,195
Total Assets 2,275,077,684 106,434,035 4,210,018 41,501,525 2,427,223,262 Total Assets 2,044,454,812 88,426,438 4,047,572 37,290,627 2,174,219,449
Demand Deposits and Wadiah Demand Deposits and Wadiah
(560,332,344) (8,174,487) (69,178) - (568,576,009) (544,200,253) (7,917,572) (241,331) - (552,359,156)
Demand Deposits Demand Deposits
Saving Deposits and Wadiah Saving Deposits and Wadiah
(576,968,536) (3,223,260) - - (580,191,796) (506,286,183) (3,005,306) - - (509,291,489)
Saving Deposits Saving Deposits
Time Deposits (292,929,427) (4,537,725) - - (297,467,152) Time Deposits (286,387,272) (3,410,232) - - (289,797,504)
Total Deposits from Customers (1,430,230,307) (15,935,472) (69,178) - (1,446,234,957) Total Deposits from Customers (1,336,873,708) (14,333,110) (241,331) - (1,351,448,149)
Total Liabilities (1,751,615,503) (88,871,873) (3,337,396) (16,583,544) (1,860,408,316) Total Liabilities (1,570,259,063) (71,526,098) (3,240,265) (15,417,389) (1,660,442,815)
Tabel Profitabilitas Segmen Geografis Year 2023
(In Rp million)
Cayman
Description Indonesia Asia Eropa Barat Konsolidasian
Islands
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interest and Sharia Income 126,198,202 4,408,807 167,059 1,770,402 132,544,470
Interest and Sharia Expenses (33,676,303) (2,184,649) (103,294) (693,650) (36,657,896)
Interest and Sharia Income - Net 92,521,899 2,224,158 63,765 1,076,752 95,886,574
Premium Income - Net 2,123,046 - - - 2,123,046
Interest and Sharia and Premium
94,644,945 2,224,158 63,765 (1,076,752) 98,009,620
Income - Net
Other Operating Income:
Provision and Commission
19,690,608 421,664 - 36,138 20,148,410
Income
Others 20,043,935 229,068 11,736 89,697 20,374,436
Total 39,734,543 650,732 11,736 125,835 40,522,846
(Provision)/reversal of allowance
for impairment losses on financial (9,868,305) (269,532) (6,513) (4,357) (10,148,707)
assets and others
Gain on Sale of Securities and
125,295 - - - 125,295
Government Bonds
PT BANK MANDIRI (PERSERO) TBK 384 385 ANNUAL REPORT 2024
Page 60
MANAGEMENT DISCUSSION AND ANALYSIS
SUBSIDIARY SUBSIDIARY PERFORMANCE REVIEW
PERFORMANCE REVIEW
Total Assets (Rp Million)** Ownership Percentage
Core Commercial
No. Subsidiary Domicile
Business Operation 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
PT Bank Syariah Sharia
1 1955 Jakarta 408,613,432 353,624,124 51.47 51.47
Indonesia Tbk Banking
Bank Mandiri
2 (Europe) Limited Banking 1999 London 4,210,018 4,047,572 100.00 100.00
(BMEL)*
3 PT Mandiri Sekuritas Securities 1992 Jakarta 4,390,551 3,791,774 99.99 99.99
PT Bank Mandiri
4 Taspen (Bank Banking 1970 Jakarta 66,232,853 60,542,415 51.10 51.10
Mantap
PT Mandiri Tunas Consumer
5 1989 Jakarta 34,425,455 29,727,392 51.00 51.00
Finance (MTF) Financing
Mandiri International
Remittance Kuala
6 Remittance 2009 33,156 24,393 100.00 100.00
Sendirian Berhad Lumpur
(MIR)*
PT AXA Mandiri Life
7 1991 Jakarta 41,914,379 41,114,473 51.00 51.00
Financial Services Insurance
PT Mandiri Utama Consumer
8 2015 Jakarta 15,049,612 10,633,178 99.99 51.00
Finance (MUF) Financing
PT Mandiri Capital Venture
9 2015 Jakarta 5,967,874 5,593,944 99.99 99.99
Indonesia* Capital
*) Subsidiary Unaudited Financial Statements
**) Subsidiary Audited Financial Statements
Subsidiary Productivity and Revenues in 2024
(In Rp Billion)
Business Volume** Growth
Bank Mandiri’s outstanding performance in 2024 was significantly supported by contributions from its No. Subsidiaries 2024
2023 Rp %
Subsidiaries. (Unaudited)
1 Bank Syariah Indonesia (BSI)
Total Funding 327,454 293,776 33,678 11.46
Total Lending 278,481 240,316 38,165 15.88
As of December 2024, the Subsidiaries collectively posted a net
Net Income 7,006 5,704 1,302 22.83
profit of Rp11.76 trillion, reflecting a growth of 10.95% year-on-year
2 Bank Mandiri Taspen
(yoy) compared to the same period in the previous year. This
Total Funding 48,825 44,977 3,848 8.56
contribution led to an increase in Bank Mandiri’s equity portion
Total Lending 46,261 41,351 4,911 11.88
profit to Rp6.24 trillion, representing a growth of 2.90% (yoy).
Net Interest Income 3,442 3,388 54 1.60
Fee Based Income 421 385 36 9.46
Net Income 1,578 1,409 168 11.93
3 Bank Mandiri (Europe) Limited (BMEL)*
Following the signing of the Share Purchase Agreement and Share Sale Agreement between Kimia Farma
and IFG Life on 26 June 2024, IFG Life became the majority shareholder of Mandiri Inhealth with 80% Earning Assets 3,945 3,771 174 4.61
ownership, while Bank Mandiri retained a 20% stake. As a result, Bank Mandiri ceased recognition of Net Income 16,2 13,2 3,0 22.72
Mandiri Inhealth’s net assets at its carrying value. Consequently, Bank Mandiri’s number of Subsidiaries 4 AXA Mandiri Financial Services (AMFS)
became 9 (nine), encompassing a range of following business sectors:
Gross Written Premium 12,052 11,932 120 1.01
Net Income 1,302 1,327 (25) (1.86)
PT BANK MANDIRI (PERSERO) TBK 386 387 ANNUAL REPORT 2024
Page 61
MANAGEMENT DISCUSSION AND ANALYSIS
SUBSIDIARY PERFORMANCE REVIEW SUBSIDIARY PERFORMANCE REVIEW
Business Volume** Growth
No. Subsidiaries 2024
2023 Rp %
(Unaudited)
PT BANK SYARIAH INDONESIA TBK
5 Mandiri InHealth (MI)
Gross Written Premium - 3,436 - -
Net Income Consolidated - 175 - -
6 Mandiri Tunas Finance (MTF) Statement of Financial Position
Baki Debet 60,643 53,061 7,582 14.29 (In Rp Billion)
Net Income 1,172 1,161 11 0.95 Growth
Description 2024 2023
7 Mandiri Utama Finance (MUF) Rp (%)
Baki Debet 35,111 30,822 4,289 13.92 Assets 408,613 353,624 54,989 15.55
Net Income 322 527 (205) (39.00) Liabilities 363,572 314,885 48,687 15.46
8 Mandiri International Remittance (MIR)* Equity 45,042 38,739 6,302 16.27
Frekuensi Transaksi Remittance ('000) 80,863 74,263 6,600 8.89
The assets of Bank Syariah Indonesia (BSI) increased by 15.55% (yoy) as of 31 December 2024, reaching
Net Income 0,54 0,70 (0,15) (23.22) Rp408.61 trillion, up from Rp353.62 trillion in 2023. This asset growth was primarily driven by BSI’s business
9 Mandiri Sekuritas - Konsolidasi expansion, which resulted in net financing of Rp278.48 trillion, rose by Rp38.17 trillion or 15.88% year-to-
Trading Volume 747,126 533,401 213,725 40.07 date (ytd) compared to Rp240.32 trillion in 2023. In addition, third-party funds (TPF) also grew, reaching
Rp327.45 trillion with a recorded growth of 11.46% (yoy).
Underwriting Volume 27,452 39,482 (12,030) (30.47)
Net Income Consolidated 278 288 (9,5) (3.31) BSI’s solid financing performance and TPF growth in 2024 were supported by a strengthening of equity
10 Mandiri Capital Indonesia (MCI) - Konsolidasi* to Rp45.04 trillion as of 31 December 2024, a 16.27% (yoy) increase from Rp38.74 trillion in the previous
Investment Deal*** 19 19 0 0 year. The increase in equity was driven in part by BSI’s net profit achievement of Rp7.01 trillion as of 31
December 2024, representing a significant 22.83% (yoy) growth from Rp5.7 trillion the previous year.
Net Income 104 167 (63) (37.85)
*) Subsidiary Unaudited Financial Statements
**) Subsidiary Audited Financial Statements Statement of Profit or Loss
***) Total Balance Sheet of Investee MCI (In Rp Billion)
Growth
Description 2024 2023
The business volume indicator is the method by which Bank Mandiri measures the productivity of its Rp (%)
subsidiaries. Operating Income 30,855 26,456 4,398 16.63
Expenses* 21,577 18,865 2,712 14.37
As of 31 December 2024, Bank Syariah Indonesia (BSI) achieved the Net Profit/(Loss) 7,006 5,704 1,302 22.83
largest fund accumulation at Rp327.45 trillion, an 11.46% (yoy) growth, *Expenses are profit sharing costs, overhead costs and allowance for impairment losses costs
holding the largest asset ownership compared to other subsidiaries.
Meanwhile, the funds raised by Bank Mandiri Taspen increased to Rp48.83 With increased financing activities, BSI successfully raised its total operating income to Rp30.86 trillion as
trillion, reflecting 8.56% (yoy) growth. of 31 December 2024, an increase of 16.63% (yoy) compared to Rp26.46 trillion achieved in the previous
year. BSI also demonstrated the ability to manage its operating expense growth, keeping it at 14.37%
In terms of profitability as of 31 December 2024, BSI and Bank Mandiri (yoy) as of 31 December 2024, with total operating expenses at Rp21.58 trillion, up from Rp18.87 trillion as
Taspen were the two subsidiaries contributing the largest net profit. BSI’s of 31 December 2023.
net profit rose to Rp7.06 trillion, grew 22.83% (yoy), the highest growth
among the subsidiaries. Bank Mandiri Taspen recorded a net profit
increase to Rp1.58 trillion, reflecting an 11.93% (yoy) growth.
The business volume indicator is the method by which Bank Mandiri measures the productivity of its
subsidiaries.
PT BANK MANDIRI (PERSERO) TBK 388 389 ANNUAL REPORT 2024
Page 62
MANAGEMENT DISCUSSION AND ANALYSIS
SUBSIDIARY PERFORMANCE REVIEW SUBSIDIARY PERFORMANCE REVIEW
PT BANK MANDIRI TASPEN BANK MANDIRI (EUROPE) LIMITED
Statement of Financial Position Statement of Financial Position
(In Rp Billion) (In Rp Billion)
Growth 2024 Growth
Description 2024 2023 Description 2023
Rp (%) (Unaudited) Rp (%)
Assets 66,232 60,542 5,690 9.40 Assets 4,210 4,048 162 4.00
Liabilities 58,444 54,126 4,318 7.98 Liabilities 3,337 3,241 96 2.96
Equity 7,788 6,417 1,372 21.37 Equity 873 807 66 8.17
*Unaudited cut-off 31 December 2023
Bank Mandiri Taspen (Bank Mantap) saw an asset increase of 9.40% (yoy) as of December 2024, reaching
Rp66.23 trillion compared to Rp60.54 trillion in 2023. The growth highlights the bank’s stability and
Bank Mandiri (Europe) Limited posted a 4.00% (yoy) increase in assets, reaching Rp4.21 trillion in December
competitiveness amid the evolving banking industry landscape. The increase in assets was supported by
2024, up from Rp4.05 trillion in 2023. This relatively stable asset growth reflects the bank’s strategic approach
increases in both liabilities and equity.
of selectively expanding assets that offer optimal risk-return amidst global financial market volatility and
slower global economic growth.
Liabilities grew by 7,98% (yoy) to Rp58,44 trillion by December 2024, reflecting enhanced funding activity
from customers and other financing sources, as well as increasing confidence in the bank’s performance.
Meanwhile, the bank’s liabilities and equity stood at Rp3.34 trillion and Rp873 billion as of December 2024,
Equity posted a more significant growth rate, increasing by 21,37%(yoy) to Rp7,79 trillion. With this positive
marking (yoy) increases of 2.96% and 8.17%, respectively, compared to Rp3.24 trillion and Rp807 billion
trajectory, Bank Mantap is better positioned to navigate economic challenges and expand its business
in 2023. These shifts were driven by higher retained earnings and the depreciation of the rupiah against
portfolio in the future.
the USD.
Statement of Profit or Loss
Statement of Profit or Loss
(In Rp Billion)
(In Rp Billion)
Growth
Description 2024 2023 Growth
Rp (%) Description 2024 2023
Rp (%)
Operating Income 6,619 6,076 543 8.93
Operating Income 85.2 77.8 7.4 9.52
Expenses 4,568 4,246 322 7.57
Expenses 65.5 64.6 0.9 1.42
Net Profit/(Loss) 1,578 1,409 168 11.93
Net Profit/(Loss) 16.2 13.2 3.0 22.72
Bank Mandiri Taspen was able to increase its operating income by 8.93% (yoy) to Rp6.62 trillion as of *Unaudited cut-off 31 December 2023
December 2024, up from Rp6.08 trillion in December 2023. This growth was primarily supported by an
uptick in loan disbursement activities throughout 2024. While operating expenses also rose, the increase Bank Mandiri (Europe) Limited’s operating income rose 9.52% (yoy) from Rp77.8 billion in 2023 to Rp85.2
was not as pronounced as the growth in operating income, amounting to Rp322 billion and reaching billion in 2024. This growth resulted from the bank’s strategy to reallocate assets into high-yield loans and
Rp4.57 trillion. By maintaining a positive operating income and effectively managing operating expenses, optimize liquidity to manage interest expenses. In addition, efficiency measures helped limit expense
Bank Mandiri Taspen posted a net profit of Rp1.58 trillion, a growth of 11.93% (yoy) as of December 2024. growth to 0.9% (yoy) in 2024, contributing to a net profit increase of 22.72% (yoy), reaching Rp16.2 billion.
PT BANK MANDIRI (PERSERO) TBK 390 391 ANNUAL REPORT 2024
Page 63
MANAGEMENT DISCUSSION AND ANALYSIS
SUBSIDIARY PERFORMANCE REVIEW SUBSIDIARY PERFORMANCE REVIEW
PT AXA MANDIRI FINANCIAL SERVICES PT MANDIRI TUNAS FINANCE
Statement of Financial Position Statement of Financial Position
(In Rp Billion) (In Rp Billion)
Growth Growth
Description 2024 2023 Description 2024 2023
Rp (%) Rp (%)
Assets 41,914 41,114 800 1.95 Assets 34,425 29,727 4,698 15.80
Liabilities* 38,101 37,495 606 1.62 Liabilities 29,561 25,697 3,864 15.04
Equity 3,813 3,619 194 5.36 Equity 4,864 4,030 834 20.69
*) Liabilities + Participant Funds
In December 2024, Mandiri Tunas Finance (MTF) achieved significant growth in total assets, increased by
AXA Mandiri Financial Services (AMFS) recorded a 1.95% (yoy) growth in total assets, reaching Rp41.91 15.80% (yoy) to Rp34.42 trillion from Rp29.73 trillion in 2023. This growth reflects robust asset management
trillion in December 2024, driven primarily by increased investment assets. expansion, operational efficiency, and the business growth potential of MTF.
Liabilities also rose by 1.62% (yoy), from Rp37.47 trillion in 2023 to Rp38.10 trillion in December 2024, mainly This asset growth was largely supported by a 15.04% (yoy) increase in liabilities, rose from Rp25.70 trillion
due to obligations to non-unit-linked policyholders. Equity posted a more significant increase, grew 5.36% in 2023 to Rp29.56 trillion in December 2024. This surge indicates higher funding activities, whether
(yoy) to Rp3.81 trillion from Rp3.62 trillion the previous year. through loans or other obligations, bolstering the company’s expansion efforts. At the same time, MTF has
strengthened its risk management practices to ensure ongoing operational sustainability.
Statement of Profit or Loss Meanwhile, MTF’s equity posted positive growth, increased by 20.69% (yoy) from Rp4.03 trillion in 2023 to
(In Rp Billion) Rp4.86 trillion in December 2024. This growth reflects improvements in retained earnings or shareholder
Growth investments, enhancing its capital structure.
Description 2024 2023
Rp (%)
Operating Income 12.459 14,024 (1,566) (11.16) Statement of Profit or Loss
Expenses 10.879 12,459 (1,580) (12.68) (In Rp Billion)
Net Profit/(Loss) 1,302 1,327 (25) (1.88) Growth
Description 2024 2023
Rp (%)
From an operational perspective, AMFS recorded operating income of Rp12.46 trillion as of December Operating Income 5,579 4,782 797 16.67
2024, decreased 11.16% (yoy) from Rp14.02 trillion in December 2023, due to a slowdown in unit-linked
Expenses 4,075 3,291 784 23.82
policy premium growth. Conversely, operating expenses fell from Rp12.46 trillion to Rp10.88 trillion,
reflecting an 12.68% (yoy) decline. As a result, AMFS posted a net profit of Rp1,302 billion as of December Net Profit/(Loss) 1,172 1,161 11 0.95
2024, a slight decrease of 1.88% (yoy) compared to Rp1,327 billion in December 2023.
In December 2024, MTF’s operating income rose by 16.67% (yoy), increased from Rp4.78 trillion in
December 2023 to Rp5.58 trillion. This growth reflects MTF’s efforts to expand revenue streams or enhance
the efficiency of its core business operations. The growth in income contributed directly to improved
profitability, as reflected in MTF’s net profit, which increased by 0.95% (yoy), from Rp1.161 trillion in
December 2023 to Rp1.172 trillion in December 2024.
PT BANK MANDIRI (PERSERO) TBK 392 393 ANNUAL REPORT 2024
Page 64
MANAGEMENT DISCUSSION AND ANALYSIS
SUBSIDIARY PERFORMANCE REVIEW SUBSIDIARY PERFORMANCE REVIEW
PT MANDIRI INTERNATIONAL
PT MANDIRI UTAMA FINANCE REMITTANCE SENDIRIAN BERHAD
Statement of Financial Position Statement of Financial Position
(In Rp Billion) (In Rp Billion)
Growth 2024 Growth
Description 2024 2023 Description 2023
Rp (%) (Unaudited) Rp (%)
Assets 15,050 10,633 4,417 41.54 Assets 33.16 24.39 8.77 35.94
Liabilities 13,569 9,246 4,323 46.76 Liabilities 11.45 4.63 6.82 147.30
Equity 1,481 1,387 94 6.78 Equity 21.71 19.76 1.95 9.88
In December 2024, Mandiri Utama Finance (MUF) recorded a significant 41,54% (yoy) growth in assets, Mandiri International Remittance Sendirian Berhad (MIR) recorded a significant 35.94% (yoy) increase in
increased from Rp10.63 trillion in 2023 to Rp15.05 trillion. This surge reflects MUF’s expansion in resource assets as of December 2024, rose from Rp24.39 billion in 2023 to Rp33.16 billion. This growth was mainly
management, driven by increased financing and other operational growth. driven by the addition of operational infrastructure. Meanwhile, MIR’s liabilities also rose significantly to
Rp11.45 billion, up 147.30% from Rp4.63 billion the previous year. On the equity side, MIR reported equity
MUF’s liabilities also posted sharp growth by 46,76%, from Rp9,25 trillion in 2023 to Rp13,57 trillion in of Rp21.71 billion in 2024, a 9.88% increase from Rp19.76 billion in 2023.
December 2024. Meanwhile, equity posted a more moderate increase of 6,78% (yoy), grew from Rp1.39
trillion in 2023 to Rp1,48 trillion in December 2024. Overall, despite its significant asset growth, MUF remains
committed to maintaining a well-balanced approach between liabilities and equity to ensure long-term Statement of Profit or Loss
financial stability. (In Rp Billion)
2024 Growth
Description 2023
(Unaudited) Rp (%)
Statement of Profit or Loss
(In Rp Billion) Operating Income 19.40 17.31 2.09 12.07
Growth Expenses** 18.86 16.61 2.25 13.56
Description 2024 2023
Rp (%) Net Profit/(Loss) 0.54 0.70 (0.16) (23.22)
Operating Income 3.396 3.000 396 13.22
In 2024, MIR reported operating income of Rp19.40 billion, a 12.07% increase from Rp17.31 billion the
Expenses 2.983 2.137 666 28.74 previous year. The increase in operating income combined with an increase in expenses to Rp18.86 billion
Net Profit/(Loss) 300 527 (227) (43.07) in 2024 led to MIR’s net income declining by 23.22% to Rp0.54 billion.
Financing activities that increased throughout 2024 impacted MUF’s profitability performance. Income
grew by 13,22% to Rp3,40 trillion in 2024. MUF’s net profit was Rp300 billion in December 2024, decreased
43,07% (yoy) from Rp527 billion in December 2023.
PT BANK MANDIRI (PERSERO) TBK 394 395 ANNUAL REPORT 2024
Page 65
MANAGEMENT DISCUSSION AND ANALYSIS
SUBSIDIARY PERFORMANCE REVIEW SUBSIDIARY PERFORMANCE REVIEW
PT MANDIRI SEKURITAS PT MANDIRI CAPITAL INDONESIA
Statement of Financial Position Statement of Financial Position
(In Rp Billion) (In Rp Billion)
Growth Growth
Description 2024 2023 Description Sep-2024 2023*
Rp (%) Rp (%)
Assets 4,391 3,792 599 15.79 Assets 5,968 5,594 374 6.68
Liabilities 2,223 1,702 521 30.61 Liabilities 1,166 891 275 30.93
Equity 2,168 2,090 78 3.73 Equity 4,802 4,703 99 2.09
Mandiri Sekuritas posted a significant increase of total assets by 15,79% (yoy), rose from Rp3,8 trillion in Mandiri Capital Indonesia (MCI) recorded a total asset increase of Rp5.97 trillion, grew by 6.68% (yoy) in
2023 to Rp4,4 trillion in 2024. The growth reflects business expansion or increased operational activities, December 2024 from Rp5.60 trillion in 2023. MCI’s liabilities rose by 30.93%, from Rp891 billion in 2023 to
such as the growth of the investment portfolio and an increase in other assets, particularly related to the Rp1.16 trillion in December 2024. Meanwhile, MCI’s equity increased from Rp4.70 trillion in 2023 to Rp4.80
development of the online trading system, Growin’. This increase is a positive signal for the strengthening trillion in December 2024.
of Mandiri Sekuritas’ financial position.
Meanwhile, Mandiri Sekuritas’ liabilities also increased by 30,61% (yoy), from Rp1,7 trillion in 2023 to Rp2,2 Statement of Profit or Loss
trillion in 2024. At the same time, Mandiri Sekuritas’ equity grew by 3,73% (yoy) to Rp2.2 trillion by the end (In Rp Billion)
of 2024. Growth
Description 2024 2023*
Rp (%)
Operating Income 572 625 (53) (8.49)
Statement of Profit or Loss
(In Rp Billion) Expenses 359 316 43 13.59
Growth Net Profit/(Loss) 104 167 (63) (37.85)
Description 2024 2023
Rp (%)
Regarding operating income achievement, MCI’s net operating income as of December 2024 was Rp572
Operating Income 1,581 1,650 (69) (4.19)
billion, a decrease of 8.49% (yoy) compared to Rp625 billion in the previous year. Meanwhile, operating
Expenses 1.229 1,331 (102) (7.64) expenses increased by 13.59% yoy to Rp359 billion from Rp316 billion in 2023. Under these operating
Net Profit/(Loss) 278 288 (10) (3.47) conditions, MCI reported net profit of Rp104 billion, decreased 37.85% from Rp167 billion the previous year.
Mandiri Sekuritas’ operating income declined by 4,19% (yoy), from Rp1.7 trillion in 2023 to Rp1.6 trillion in
2024. However, operating expenses also decreased by 7,64% (yoy) to Rp1,2 trillion in 2024. The reduction
in operating expenses reflects Mandiri Sekuritas’ efforts to control costs effectively amidst declining
revenues. Nevertheless, the reduction in operating expenses was not sufficient to fully offset the impact of
the revenue decline. As a result, net profit recorded a decrease of 3,47% (yoy), from Rp288 billion in 2023
to Rp278 billion in 2024.
PT BANK MANDIRI (PERSERO) TBK 396 397 ANNUAL REPORT 2024
Page 66
MANAGEMENT DISCUSSION AND ANALYSIS
Financial STATEMENT OF
FINANCIAL POSITION
REVIEW
The consolidated statement of December 2024. This reflects a 11.96%, indicating stable growth
financial position of Bank Mandiri significant expansion in several in sharia-based funding sources.
indicates consistent growth strategic assets undertaken by
across all key performance Bank Mandiri throughout 2024. The company’s equity also
indicators from 2022 to 2024. posted healthy growth,
Total assets increased by Meanwhile, liabilities grew increased by 9.04% (ytd) or
11.64% year to date (ytd) from by 12.04% (ytd), or Rp199.97 Rp25.98 trillion to Rp313.47
December 2023 to December trillion to Rp1,860.41 trillion as of trillion as of December 2024,
2024, with a nominal growth December 2024, an increase up from Rp287.49 trillion in
of Rp253.00 trillion. As a result, from Rp1,660.44 trillion in 2023. 2023. This increase reflects the
Bank Mandiri’s total assets Meanwhile, Temporary Syirkah positive contribution of retained
reached Rp2,427.22 trillion as of Fund grew moderately by earnings or shareholder support.
Consolidated Statement of Financial Position
(In Rp million)
Growth
Account Post 2024 2023 2022 2024-2023
Nominal %
Assets 2,427,223,262 2,174,219,449 1,992,544,687 253,003,813 11.64
Liabilities 1,860,408,316 1,660,442,815 1,544,096,631 199,965,501 12.04
Temporary Syirkah Fund 253,340,265 226,281,672 196,202,601 27,058,593 11.96
Equity 313,474,681 287,494,962 252,245,455 25,979,719 9.04
Liabilities, Temporary Syirkah Fund and Equity 2,427,223,262 2,174,219,449 1,992,544,687 253,003,813 11.64
The growth of Bank Mandiri’s total assets was primarily driven by financial assets, which reached Rp2,323.82
trillion as of December 2024, grew by 11.61% (ytd) compared to Rp2,082.01 trillion in 2023. Meanwhile,
total non-financial assets stood at Rp103.41 trillion, increased by 12.14% (ytd) from Rp92.21 trillion at the
The consolidated financial statements of PT Rintis, Jumadi, Rianto & Rekan, a member firm end of 2023.
Bank Mandiri (Persero) Tbk and its subsidiaries of the global PricewaterhouseCoopers (PwC)
as of 31 December 2024, and 2023, which are network. The audit report was signed by auditor As such, the proportion of Bank Mandiri’s total financial assets to total assets from 95.76% in 2023 to 95.74%
included in this annual report, are applied for Lucy Luciana Suhenda, S.E., Ak., CPA, with Public in December 2024. On the other hand, the proportion of total non-financial assets from 4.24% in 2023 to
financial performance analysis and review. Accountant Practice License No. AP. 0229. 4.26% in December 2024.
For the fiscal year ending on these dates, the
consolidated financial statements consist of the According to the opinion of the public accounting
consolidated statement of financial position, firm, the consolidated financial statements of PT
consolidated statement of profit or loss and other Bank Mandiri (Persero) Tbk as of 31 December
comprehensive income, consolidated statement 2024, and 2023, fairly present, in all material
of changes in equity, and consolidated statement respects, the Group’s consolidated financial
of cash flows. position, consolidated financial performance,
and consolidated cash flows for the year then
The consolidated financial statements of PT Bank ended, in accordance with Indonesian Financial
Mandiri (Persero) Tbk and its subsidiaries were Accounting Standards.
audited by the Public Accounting Firm (KAP)
PT BANK MANDIRI (PERSERO) TBK 398 399 ANNUAL REPORT 2024
Page 67
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Cash with other banks reached Marketable Securities
Bank Mandiri recorded cash of Rp46.64 trillion, increased by Bank Mandiri’s net marketable
FINANCIAL ASSETS Rp31.67 trillion as of December 27.52% (ytd) from the end securities increased by 0.99%
2024, an increase of 19.80% of 2023 position. Foreign (ytd), from Rp94.55 trillion
(In Rp million) (ytd) from Rp26.43 trillion at the currency-denominated in 2023 to Rp95.48 trillion in
Growth end of 2023. The main driver current accounts with other December 2024. This growth
Financial Assets 2024 2023 2022 2024-2023 of this increase was the rise in banks rose by 29.42% (ytd) to was driven by an increase in
Nominal % cash in Rupiah by Rp4.76 trillion, Rp46.26 trillion in December third-party securities, which rose
Cash 31,665,082 26,431,740 27,212,759 5,233,342 19.80% reached Rp27.98 trillion, while 2024. According to Bank to Rp75.12 trillion compared to
Current Accounts with Bank Indonesia 105,146,044 108,605,322 107,349,158 (3,459,278) (3.19)% cash in foreign currencies grew Indonesia’s collectibility Rp70.81 trillion in 2023.
Current Accounts with Other Banks 46,668,439 36,606,090 47,809,985 10,062,349 27.49% by Rp476.52 billion to Rp3.69 classification, this account
trillion. remains in good standing, Based on currency, the
Allowance for Impairment Losses (30,755) (32,205) (20,285) 1,450 (4.50)%
with an adequate allowance increase in marketable
Net 46,637,684 36,573,885 47,789,700 10,063,799 27.52%
Current Accounts with for impairment losses (CKPN) securities was mainly driven
Placement with Bank Indonesia and
63,230,054 73,888,157 95,324,112 (10,658,103) (14.42)% Bank Indonesia of Rp30.76 billion, from by a rise in foreign currency-
other Banks
Current accounts with Bank Rp32.21 billion in 2023. The denominated securities, which
Allowance for Impairment Losses (1,679) (957) (3,601) (722) 75.44% Indonesia decreased by 3.19% average annual interest rate grew from Rp20.31 trillion
Net 63,228,375 73,887,200 95,320,511 (10,658,825) (14.43)% (ytd), from Rp108.61 trillion for this account was 0.97% for in 2023 to Rp25.46 trillion in
Marketable Securities 95,341,556 94,582,122 82,820,726 759,434 0.80% in 2023 to Rp105.15 trillion in Rupiah and 2.34% for foreign December 2024. Conversely,
Allowance for Impairment Losses 136,495 (36,281) (20,908) 172,776 (476.22)% December 2024. This decline currencies. Rupiah-denominated securities
was mainly due to a 4.61% decreased from Rp74.38 trillion
Net 95,478,051 94,545,841 82,799,818 932,210 0.99%
(ytd) decrease in Rupiah- Placement with Bank in 2023 to Rp70.07 trillion in
Government Bonds - Net 287,272,659 309,182,971 329,211,764 (21,910,312) (7.09)%
denominated accounts, which Indonesia and Other December 2024.
Other Receivables - Trading Transactions 29,974,117 26,044,553 33,793,264 3,929,564 15.09% fell to Rp91.41 trillion, while Banks
Allowance for Impairment Losses (1,422,889) (1,494,653) (1,604,705) 71,764 (4.80)% USD-denominated accounts As of December 2024, Based on the issuer category,
Net 28,551,228 24,549,900 32,188,559 4,001,328 16.30% increased by 7.49% (ytd) to Bank Mandiri recorded the increase in marketable
Receivables on Securities Purchased Rp13.74 trillion. net placements with Bank securities holdings was
8,290,138 22,692,928 11,705,989 (14,402,790) (63.47)% Indonesia and other banks primarily driven by a rise
Under Agreements to Resale
Derivative Receivables 7,761,508 1,994,931 2,252,141 5,766,577 289.06% As of 31 December 2024, Bank at Rp63.23 trillion, a decrease in holdings of marketable
Mandiri has met the statutory of 14.43% (ytd) from Rp73.89 securities issued by the
Loans and Sharia Receivables/Financing 1,623,216,612 1,359,832,195 1,172,599,882 263,384,417 19.37%
reserve requirement (GWM) trillion in the previous year. central bank, which grew
Allowance for Impairment Losses (49,354,645) (53,098,619) (64,612,645) 3,743,974 (7.05)%
ratios, with a Rupiah GWM ratio This decline was derived by a from Rp30.58 trillion to Rp34.29
Net 1,573,861,967 1,306,733,576 1,107,987,237 267,128,391 20.44% of 5.21%, a Foreign Currency reduction in placements in both trillion, banks from Rp3.12
Consumer Financing Receivables 41,573,306 32,749,796 23,757,727 8,823,510 26.94% GWM ratio of 4.10%, and a Rupiah and foreign currencies, trillion to Rp5.55 trillion, and
Allowance for Impairment Losses (934,353) (713,044) (610,361) (221,309) 31.04% Macroprudential Liquidity which fell to Rp32.54 trillion and the government from Rp11.77
Net 40,638,953 32,036,752 23,147,366 8,602,201 26.85% Buffer (PLM) ratio of 9.17%, in Rp30.69 trillion, respectively, trillion to Rp13.43 trillion.
accordance with regulations decreased from Rp33.88 trillion Meanwhile, Bank Mandiri’s
Net Investment Finance Leases 5,757,076 5,489,242 5,872,560 267,834 4.88%
set by Bank Indonesia. In and Rp40.01 trillion in the marketable securities issued
Allowance for Impairment Losses (103,337) (70,170) (139,173) (33,167) 47.27%
addition, Bank Mandiri has previous year. by corporations decreased
Net 5,653,739 5,419,072 5,733,387 234,667 4.33% also fulfilled the RIM Current from Rp29.82 trillion to Rp27.85
Acceptance Receivables 9,313,865 14,793,888 11,781,581 (5,480,023) (37.04)% Account at 0.25%. Of the total placements with trillion.
Allowance for Impairment Losses (31,340) (122,212) (61,963) 90,872 (74.36)% Bank Indonesia and other
Net 9,282,525 14,671,676 11,719,618 (5,389,151) (36.73)% Current Accounts with banks, third-party placements
Investments in Shares 2,418,734 1,861,487 2,757,594 557,247 29.94%
Other Banks declined to Rp60.12 trillion in
As of December 2024, Bank 2024, decreased from Rp71.84
Allowance for Impairment Losses (1,986) (34,123) (68,640) 32,137 (94.18)%
Mandiri’s net current accounts trillion at the end of the previous
Net 2,416,748 1,827,364 2,688,954 589,384 32.25% year.
Other Assets (Net)* 17,931,411 22,857,709 18,161,912 (4,926,298) (21.55)%
Total Financial Assets 2,323,816,112 2,082,010,867 1,905,268,873 241,805,245 11.61%
*) Other assets consist of accrued income, receivables from pledged government bonds, customer transaction receivables, receivables from pending
securities sales, receivables related to ATM and credit card transactions, and receivables from policyholders.
PT BANK MANDIRI (PERSERO) TBK 400 401 ANNUAL REPORT 2024
Page 68
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Government Bonds
As of 2024, Bank Mandiri’s net government bonds decreased to Rp287.27 trillion, from Rp309.18 trillion Composition of Other Receivables – Trade Transactions
in 2023. The decrease was mainly derived by a reduction in Rupiah-denominated government bond,
which fell from Rp256.39 trillion in 2023 to Rp235.67 trillion in 2024. The proportion of Rupiah-denominated
12.18%
government bond stood at 82.04% in 2024, compared to 82.93% in 2023, as illustrated in the following
11.46%
chart:
68.37%
2023
62.30%
Composition of Government Bonds
19.45%
2024
26.25%
17.96% 17.07%
Usance L/C Payable at Sight Supplier Chain Financing Receivables Others
2024 2023
82.04% 82.93%
Securities Purchased Under Loans and Sharia Receivables/
Agreements to Resell Financing
Bank Mandiri recorded securities purchased under As of December 2024, Bank Mandiri’s total loan
agreements to resell amounting to Rp8.29 trillion disbursement and sharia receivables/financing
in 2024, a decrease of 63.47% (ytd) compared to reached Rp1,623.22 trillion, grew by 19.37% (ytd)
Foreign Currencies Rupiah
Rp22.69 trillion in 2023. As of 31 December 2024 compared to Rp1,359.83 trillion at the end of 2023.
and 31 December 2023, there was no impairment, Based on currency, this increase was primarily
hence no allowance for impairment losses was driven by Rupiah-denominated loans, which grew
established for these receivables. by 21.54% (ytd) to Rp1,337.84 trillion in December
In addition, the decrease in Rupiah-denominated trillion. In terms of currency, other receivables – 2024, up from Rp1,100.74 trillion at the end of
government bond was partly due to a decrease trade transactions denominated in Rupiah grew Derivative Receivables 2023. As a result, the contribution of Rupiah-
in government bonds measured at amortized by 30.23%, from Rp13.97 trillion in 2023 to Rp18.19 Bank Mandiri’s derivative receivables saw a denominated loans increased from 80.95% in 2023
cost, which fell to Rp127.62 trillion in December trillion in December 2024. Meanwhile, other significant increase of 289.06% (ytd), reached to 82.42% in 2024.
2024, decreased 7.78% (ytd) from Rp138.37 trillion receivables – trade transactions denominated in Rp7.76 trillion in 2024, compared to Rp1.99 trillion
in the previous year. Among these, government foreign currencies declined by 2.42%, reached in the previous year. This growth was driven by
bonds with maturities exceeding 10 years saw the Rp11.79 trillion in December 2024 compared to increases from both related parties and third
largest decline, dropping from Rp43.27 trillion to Rp12.08 trillion in 2023. parties, which rose to Rp2.95 trillion and Rp4.81
Rp30.83 trillion. trillion, respectively, in 2024, up from Rp198.16
By type, the increase in this account was partly billion and Rp1.79 trillion in 2023.
Other Receivables - Trade driven by the growth in trade transaction
Transactions receivables from Supplier Chain Financing,
Bank Mandiri recorded a 16.30% (ytd) increase which rose by 22.35% (ytd) from Rp2.98 trillion in
in net other receivables – trade transactions, 2023 to Rp3.65 trillion in December 2024. Supplier
increased from Rp24.55 trillion in 2023 to Rp28.55 Chain Financing receivables contributed 12.18%
trillion in December 2024. This growth was primarily of total other receivables – trade transactions in
driven by third-party receivables, which increased December 2024, up from 11.46% in 2023.
by 24.14% (ytd) from Rp18.46 trillion to Rp22.92
PT BANK MANDIRI (PERSERO) TBK 402 403 ANNUAL REPORT 2024
Page 69
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
The types of loan and Sharia financing which On the other hand, the three economic sectors
Loans and Sharia Receivables/Financing Based on Currency proportions increased in December 2024 with the highest percentage growth in Bank
compared to the end of 2023 were investment Mandiri’s loan and Sharia financing as of
loans, which rose to 30.93% from 28.84%, working December 2024, compared to the end of 2023,
17.58% capital loans, which increased to 28.69% from were the mining sector, which grew by 39.06%
19.05%
28.51%, and export loans, which grew to 1.17% (ytd), the transportation, warehousing, and
from 1.16%. communication sector, which increased by
37.83% (ytd), and the business services sector,
Meanwhile, by economic sector, Bank Mandiri’s which expanded by 26.89% (ytd).
2024 2023 loan and Sharia financing as of December 2024,
compared to the end of 2023, posted the largest However, as of December 2024, the three largest
82.42% nominal growth contributions from three key economic sectors receiving Bank Mandiri’s loan
80.95%
sectors. The mining sector increased by Rp40.89 disbursements remained the industrial sector,
trillion to Rp145.57 trillion, the transportation, which reached Rp198.30 trillion, grew by 13.93%
warehousing, and communication sector grew (ytd) from Rp174.06 trillion at the end of 2023;
by Rp34.80 trillion to Rp126.77 trillion, and the the trade, restaurant, and hotel sector, which
business services sector rose by Rp31.15 trillion to increased by 17.31% (ytd) to Rp180.57 trillion;
Rupiah Foreign Currencies
Rp146.99 trillion. and the agriculture sector, which grew by 10.07%
(ytd) to Rp156.31 trillion. Collectively, these three
sectors accounted for 32.97% of the total loan
portfolio, which stood at Rp1,623.22 trillion.
By loan and financing types, as of December 2024, the growth in Bank Mandiri’s loan disbursement and
Sharia financing was driven by an increase across all categories. The three types of loan and financing Loans and Sharia Receivables/Financing Based on Economic Sector
that contributed the most to the overall loan growth were investment loans, which increased by Rp109.88 (In Rp million)
trillion or grew by 28.02% (ytd) to Rp502.03 trillion; working capital loans, which rose by Rp77.96 trillion, Growth 2024-2023
Description 2024 2023
reflecting a 20.11% (ytd) growth to Rp465.64 trillion; and consumer loans, which grew by Rp40.00 trillion or Nominal %
13.19% (ytd) to reach Rp343.14 trillion. Industry 198,299,361 174,055,460 24,243,901 13.93
Trading, Restaurants and Hotels 180,565,431 153,925,951 26,639,480 17.31
Agriculture 156,305,561 142,001,064 14,304,497 10.07
Business Services 146,987,732 115,840,605 31,147,127 26.89
Loans and Sharia Receivables/Financing by Type Mining 145,571,176 104,681,495 40,889,681 39.06
Transportation, Warehousing and Communications 126,768,881 91,971,475 34,797,406 37.83
Social Services 106,464,061 77,823,432 28,640,629 36.80
Construction 99,883,788 95,176,540 4,707,248 4.95
30.93% 28.84%
Electricity, Gas and Water 62,035,505 50,017,108 12,018,397 24.03
Others 400,335,116 354,339,065 45,996,051 12.98
28.51%
Total 1,623,216,612 1,359,832,195 263,384,417 19.37
28.69% Allowance for impairment losses (49,354,645) (53,098,619) 3,743,974 (7.05)%
1.17% 2024 1.16% 2023 Net 1,573,861,967 1,306,733,576 267,128,391 20.44%
3.01% 3.31%
5.72% 6.32%
9.35% 9.58% 22.29%
21.14%
Investment Working capital Consumer Syndicate Government programs Employee Export
PT BANK MANDIRI (PERSERO) TBK 404 405 ANNUAL REPORT 2024
Page 70
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Government Program Loans MSME Lending The composition of loan restructuring and its collectability
As a state-owned bank, Bank Mandiri actively Regarding Micro, Small, and Medium Enterprises
supports the disbursement of government (MSME) loans, Bank Mandiri actively participates 2.72%
3.04%
program loans. These loans include various types, in loan disbursement with government-backed
such as investment loans, permanent working loan guarantees in accordance with PMK No.
capital loans, working capital loans, and KPR 71/PMK.08/2020, issued on 23 June 2020. The
24.10% 27.40%
Sejahtera under the Housing Financing Liquidity government guarantees these loans through credit
Facility (FLPP). The government may provide guarantee institutions, namely PT Jaminan Kredit
partial or full funding for these programs. Indonesia and PT Asuransi Kredit Indonesia. As of
30 November 2021, MSME loans with government
2024 2023
As part of the National Economic Recovery (PEN) loan guarantees had been disbursed to 13,352
72.87% 69.89%
acceleration program in 2020, Bank Mandiri MSME debtors, with a total loan disbursement
participated in the disbursement of PEN program value of Rp2.84 trillion.
loans in accordance with Minister of Finance
Regulation No. 70/PMK.05/2020, later updated In 2022, the government’s MSME loan guarantee
by PMK No. 104/PMK.05/2020 on 6 August 2020. program continued in accordance with PMK No. Loan term extension Loan term extension and Loan term extension and
interest rate decrease other restructuring schemes
The PEN loan disbursement program was funded 28/PMK.08/2022, issued on 30 March 2022. As of
through the Placement of State Funds in banks, 31 December 2022, MSME loans with government
including Bank Mandiri, in the form of a three- loan guarantees had been disbursed to 3,030
The following is the amount of restructured loans based on collectability as of 31 December 2024, and
month deposit of Rp10 trillion on 25 June 2020. By MSME debtors, with a total loan disbursement
31 December 2023.
the deposit’s maturity on 25 September 2020, the value of Rp0.15 trillion.
government funds had been disbursed as loans Kolektibilitas Restrukturisasi Kredit
totaling Rp39.04 trillion, after which the funds were Loan Restructuring (In Rp million)
returned to the government. As of December 2024, Bank Mandiri has restructured Growth
loans totaling Rp89.20 trillion, compared to Rp96.98 Description 2024 2023 2024-2023
Based on Bank Mandiri’s evaluation and proposal, trillion in the previous year. Loan restructuring Nominal %
and in accordance with Minister of Finance has been carried out through various schemes, Current 41,451,833 48,610,295 (7,158,462) (14.73)
Regulation No. 104/PMK.05/2020, the government including loan tenor extensions, a combination Special Mention 37,974,541 38,001,553 (27,012) (0.07)
carried out the second phase of state fund of tenor extension and interest rate reductions, Substandard 1,038,071 1,967,382 (929,311) (47.24)
placement in banks, including Bank Mandiri. This as well as other restructuring mechanisms. Other Doubtful 601,245 3,201,907 (2,600,662) (81.22)
was in the form of a 110-day deposit of Rp15 trillion restructuring schemes primarily consist of interest Loss 8,133,333 5,203,489 2,929,844 56.31
on 25 September 2020, which was disbursed as rate reductions, rescheduling of overdue interest, Total 89,199,023 96,984,626 (7,785,603) (8.03)
cumulative loans totaling Rp66.63 trillion by the and extending the repayment period for overdue
deposit’s maturity on 13 January 2021. The second interest. Consumer Financing Receivables
phase of state fund placement has ended, and Through its subsidiary, Bank Mandiri successfully expanded its consumer financing receivables operations
the funds were returned to the government on 13 The composition of loan restructuring and its as of December 2024. These receivables grew by 26.94% (ytd), increased from Rp32.75 trillion in 2023 to
January 2021. collectability as of 31 December 2024, and 31 Rp41.57 trillion in December 2024.
December 2023, is presented in the following
As of 31 December 2024, the outstanding chart and table. In addition, Bank Mandiri’s subsidiary has demonstrated its ability to manage earnings assets amid the
government program loans at Bank Mandiri continued positive growth of the financing industry. This is reflected in the collectability composition
stood at Rp92.89 trillion, an 8.14% growth from the of financing receivables, which was predominantly classified as current, accounting for 93.46% as of
previous year’s total of Rp85.90 trillion. December 2024. Meanwhile, the average effective interest rates for consumer financing were 17.17% for
car financing and 34.89% for motorcycle financing in December 2024, compared to 12.31% and 23.72%,
respectively, at the end of the previous year.
Details of consumer financing receivables based on Bank Indonesia collectability
(In Rp million)
Growth
Description 2024 2023 2024-2023
Nominal %
Current 38,852,457 30,685,547 8,166,910 26.61
Special Mention 2,174,092 1,718,882 455,210 26.48
Substandard 214,525 156,031 58,494 37.49
Doubtful 215,860 186,996 28,864 15.44
Loss 116,372 2,340 114,032 4,873.16
Total 41,573,306 32,749,796 8,823,510 26.94
PT BANK MANDIRI (PERSERO) TBK 406 407 ANNUAL REPORT 2024
Page 71
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Net Investment Finance Leases Non-Financial Assets
(In Rp million)
In addition to conducting consumer financing activities, Bank Mandiri’s subsidiary also engages in net
investment in lease financing. As of December 2024, this business activity reached Rp5.76 trillion, reflecting Growth
Description 2024 2023 2022 2023-2022
a 4.88% (ytd) growth compared to Rp5.49 trillion in the previous year. The financing contract terms for
Nominal %
motor vehicles provided by the subsidiary range from 12 months to 60 months.
Prepaid Expenses 4,827,723 2,719,789 1,895,503 2,107,934 77.50
Taxes Prepaid 739,015 436,532 1,164,925 302,483 69.29
The collectability of lease financing as of December 2024 was predominantly classified as current,
Fixed Assets - net 63,030,845 57,977,707 56,540,566 5,053,138 8.72
indicating that the subsidiary continued to manage its earnings assets effectively. The proportion of lease
Intangible Assets 7,044,743 5,874,598 5,093,609 1,170,145 19.92
financing receivables in the current category reached 92.68% in December 2024, compared to 95.78% in
Other assets - net* 19,411,370 15,020,712 10,535,732 4,390,658 29.23
2023, as illustrated in the following table.
Deferred Tax Assets – net 8,353,454 10,179,244 12,045,479 (1,825,790) (17.94)
Total Non-Financial Assets 121,338,561 115,066,291 105,437,726 (6,272,270) 5.45
Collectability of Finance Leases
(In Rp million) *) Other assets other than accrued income, receivables from pledged government bonds, customer transaction receivables, receivables from
pending securities sales, receivables related to ATM and credit card transactions, and receivables from policyholders.
Growth
Description 2024 2023 2024-2023
Nominal % Prepaid Expenses This was followed by an increase in direct
Current 5,335,749 5,257,583 78,166 1.49
As of December 2024, Bank Mandiri recorded ownership of equipment, office equipment,
Special Mention 390,418 212,580 177,838 83.66
prepaid expenses of Rp4.82 trillion, a 77.50% computers by Rp1.79 trillion, reached Rp17.38
Substandard 9,340 5,957 3,383 56.79
(ytd) increase from Rp2.72 trillion at the end of trillion in December 2024. Buildings also increased
Doubtful 12,563 13,122 (559) (4.26)
the previous year. The largest nominal increase by Rp1.33 trillion to Rp13.23 trillion, up from Rp11.90
Loss 9,006 - 9,006 100.00
in this account came from treasury transaction trillion in 2023. In addition, direct ownership of land
Total 5,757,076 5,489,242 267,834 4.88
expenses, which reached Rp1,304.88 billion. assets grew by Rp0.78 trillion, reached Rp42.20
This was followed by an increase in loan trillion in December 2024, compared to Rp41.42
transaction expenses by Rp504.46 billion to trillion in 2023.
The average effective interest rates charged to Investments in Shares Rp893.53 billion and an increase in building
consumers for lease financing as of December Bank Mandiri recorded a 29.94% increase in maintenance expenses by Rp76.84 billion to However, Bank Mandiri’s direct ownership of motor
2024 were 18.75% for cars, 11.12% for heavy investments in shares, grew from Rp1.86 trillion in Rp801.80 billion. vehicles recorded a decline of Rp1.02 billion in
equipment, and 18.01% for machinery. In the 2023 to Rp2.42 trillion in December 2024. Of this December 2024 to Rp246.03 billion from Rp247.04
previous year, the average effective interest amount, investments in shares in third parties grew Meanwhile, the highest percentage growth in billion in 2023. Meanwhile, right-of-use assets
rates for these three types of lease financing were by 15.43% (ytd) to Rp1.40 trillion, while investments prepaid expenses was recorded in promotional increased by Rp606.48 billion, reached Rp3.44 trillion
13.26%, 11.53%, and 11.89%, respectively. in shares in related parties increased by 56.82% expenses, loan transaction expenses, and compared to Rp2.84 trillion in the previous year.
(ytd) to Rp1.02 trillion in December 2024. employee expenses, which grew by 271.19%
Acceptance Receivables (ytd), 150.55% (ytd), and 56.66% (ytd), respectively Intangible Assets
As of December 2024, Bank Mandiri’s acceptance Other Assets in December 2024 compared to the end of the Bank Mandiri’s net intangible assets increased
receivables decreased to Rp9.31 trillion from Bank Mandiri recorded net other assets amounting previous year. by 19.92% (ytd) to Rp7.04 trillion in December
Rp14.79 trillion in 2023. The decline was primarily to Rp17.93 trillion as of December 2024, a 2024 compared to the end of the previous year.
driven by a 38.10% (ytd) drop in receivables from 21.55% (ytd) decreased from Rp22.86 trillion in Prepaid Taxes This growth was driven by a higher increase in
debtors, which fell to Rp8.53 trillion in December the previous year. The decrease was primarily Bank Mandiri’s prepaid taxes reached Rp0.74 acquisition value compared to the increase
2024 from Rp13.78 trillion in 2023. Meanwhile, driven by receivables related to ATM and credit trillion as of December 2024, an increase from in accumulated amortization expenses. The
receivables from other banks decreased to card transactions, which fell to Rp5.11 trillion Rp0.44 trillion at the end of the previous year. The acquisition value and accumulated amortization
Rp0.78 trillion, reflecting a 22.55% (ytd) decline in December 2024 from Rp7.38 trillion in 2023. increase was accompanied by a reduction in of intangible assets rose to Rp15.74 trillion and
from Rp1.01 trillion in 2023. However, this was partially offset by an increase in Bank Mandiri’s share to 32.44%, or Rp0.24 trillion, Rp8.70 trillion, respectively, as of December 2024.
accrued income, grew from Rp10.26 trillion in 2023 while the share of its subsidiaries rose to 67.56%, or
Acceptance receivables from both related to Rp10.92 trillion in December 2024. Rp0.50 trillion. Other Assets
parties and third parties declined to Rp1.70 trillion Bank Mandiri recorded net other assets amounting
and Rp7.62 trillion, respectively, in December Fixed Assets to Rp19.41 trillion as of December 2024, reflecting
2024, from Rp2.25 trillion and Rp12.54 trillion in Bank Mandiri posted net fixed assets of Rp63.03 a 29.23% (ytd) increase from Rp15.02 trillion in the
the previous year. Similarly, in terms of currency, trillion, an increase of 8.72% (ytd) compared previous year. This growth was primarily driven by
acceptance receivables in Rupiah and foreign to Rp57.98 trillion in the previous year. The an increase in ijarah assets, which rose to Rp3.12
currencies decreased from Rp9.19 trillion and growth was primarily driven by an increase in trillion in December 2024 from Rp2.19 trillion in 2023,
Rp5.61 trillion in 2023 to Rp5.51 trillion and Rp3.80 direct ownership of assets under development, an increase in advance payments from Rp0.83
trillion in December 2024. which rose by Rp2.12 trillion to Rp6.56 trillion in trillion in 2023 to Rp1.08 trillion in December 2024,
December 2024, compared to Rp4.44 trillion in and an increase in unit-linked assets from Rp0.23
the previous year. trillion in 2023 to Rp0.44 trillion in December 2024.
PT BANK MANDIRI (PERSERO) TBK 408 409 ANNUAL REPORT 2024
Page 72
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Deferred Tax Assets
Cumulatively, Bank Mandiri recorded net deferred tax assets of Rp8.35 trillion in December 2024, a
decline of 17.94% (ytd) from Rp10.18 trillion in the previous year. This decrease was primarily due to a 21.45%
21.45%
reduction in the allowance for impairment losses on loans and Sharia financing receivables, which fell
by Rp1.31 trillion to Rp3.71 trillion in December 2024. In addition, Bank Mandiri recorded a reduction in
provisions for employee reward expenses, as well as reserves for bonuses, incentives, leave, and holiday 40.87%
39.31%
allowances (THR), which decreased by Rp0.81 trillion to Rp0.77 trillion.Financial Liabilities
2024 2023
(In Rp million)
Growth
Financial Liabilities 2024 2023 2022 2024-2023 37.68%
40.12%
Nominal %
Obligations Due Immediately 5,703,731 4,484,956 4,056,029 1,218,775 27.17
Deposits From Customers 1,446,234,957 1,351,448,149 1,295,575,929 94,786,808 7.01
Deposits From Other Banks 27,042,709 17,684,780 14,847,409 9,357,929 52.92 Demand Deposits and Wadiah Demand Deposits Saving Deposits and Wadiah Saving Deposits Time Deposits
Liabilities To Unit-Linked Policyholders 28,012,886 29,194,702 29,710,227 (1,181,816) (4.05)
Securities Sold Under Agreements to
90,256,225 36,330,064 24,325,475 53,926,161 148.43
Repurchase
Derivative Payables 7,336,998 2,113,853 2,126,769 5,223,145 247.09 Deposits from Customer Currency 2024 2023
Acceptance Payables 9,136,013 14,793,888 11,781,581 (5,657,875) (38.24) Demand Deposits and Wadiah Demand Rupiah 2.71% 2.64%
Deferred Tax Liabilities 9,278 - - 9,278 100.00 Deposits Foreign currency 2.71% 1.95%
Debt Securities Issued 41,141,067 50,517,764 45,774,139 (9,376,697) (18.56) Saving Deposits and Wadiah Saving Rupiah 0.48% 0.50%
Estimated Losses on Commitments and Deposits Foreign currency 0.17% 0.18%
1,114,013 1,143,758 2,073,429 (29,745) (2.60)
Contingencies Rupiah 4.06% 3.53%
Accrued Expenses 5,466,461 4,799,446 6,493,794 667,015 13.90 Time Deposits
Foreign currency 3.48% 3.01%
Other Liabilities 40,131,500 37,399,213 27,336,753 2,732,287 7.31
Fund Borrowings 147,915,981 95,445,459 62,840,118 52,470,522 54.97
Subordinated Loans and Marketable
Securities
403,562 415,171 633,333 (11,609) (2.80) Deposits from Other Banks
Total Financial Liabilities 1,849,905,381 1,645,771,203 1,527,574,985 204,134,178 12,40 Bank Mandiri recorded deposits from other banks in the form of demand deposits, wadiah demand
deposits, and savings; inter-bank call money; and time deposits. Cumulatively, total deposits from other
banks reached Rp27.04 trillion in December 2024, grew by 52.92% (ytd) from Rp17.68 trillion in 2023. Of
this total, inter-bank call money accounted for 36.84%, demand deposits, wadiah demand deposits, and
Obligation Due Immediately Of the total third-party funds, low-cost funds savings made up 33.61%, while time deposits held the largest share at 29.55%. The comparison of each
Bank Mandiri’s obligation due immediately or CASA (including temporary syirkah funds) type of deposit from other banks as of December 2024 against their proportions in 2023 is illustrated in the
reached Rp5.70 trillion in December 2024, a reached 74.83%, equivalent to Rp1,271.21 following chart, along with a table of average annual interest rates.
27.17% increase from Rp4.48 trillion in the previous trillion (including temporary syirkah funds) as of
year. December 2024. In comparison, in 2023, the CASA
ratio (including temporary syirkah funds) stood at
Deposits from Customer 74.30%, equivalent to Rp1,171.71 trillion (including
20.97%
29.55%
Bank Mandiri’s consolidated customer deposits, temporary syirkah funds). The composition of
or third-party funds (TPF) consist of demand TPF and the average annual interest rates on
33.61% 37.85%
deposits and wadiah demand deposits, savings customer deposits are as follows:
and wadiah savings, as well as time deposits. As
of December 2024, total TPF increased by 7.01% 2024 2023
(ytd) to Rp1,446.23 trillion, compared to Rp1,351.45
trillion in the previous year.
36.84% 41.18%
Demand Deposits, Demand Deposits and Saving Deposits Inter - Bank Call Money Time Deposits
PT BANK MANDIRI (PERSERO) TBK 410 411 ANNUAL REPORT 2024
Page 73
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Deposits from Other Banks Currency 2024 2023
Demand Deposits and Wadiah Rupiah 2.71% 2.64%
Demand Deposits Foreign currency 2.71% 1.95%
Rupiah 0.47% 0.50% 57.12% 43.83%
Saving Deposits
Foreign currency 0.17% 0.18%
Rupiah 6.22% 5.96%
Inter-Bank Call Money
Foreign currency 5.15% 4.51%
Rupiah 3.77% 3.41% 2024 2023
Time Deposits 42.88% 56.17%
Foreign currency 3.81% 3.01%
Liabilities to Unit-Link Holders Derivative liabilities with related parties related to
This account represents the subsidiary’s liabilities exchange rates, specifically U.S. Dollar Forward
to policyholders under unit-linked contracts, Sale Contracts, surged by 4,580.66% (ytd), Rupiah Foreign Currencies
which are allocated to unit-linked investments. from Rp3.15 billion in 2023 to Rp147.63 billion in
Cumulatively, liabilities to policyholders under December 2024. Additionally, during the same
unit-linked contracts amounted to Rp28.01 trillion period, related-party derivative liabilities related
in December 2024, a decrease of 4.05% (ytd) from to U.S. Dollar Put Options amounted to Rp1,923.43 Securities issued by Bank Mandiri, both in Rupiah and foreign currencies, are detailed in the following
Rp29.19 trillion in the previous year. billion, a new account that did not exist in the table. Meanwhile, securities issued by subsidiaries can be found in the audited financial statements, Note
previous year. No. 30 of this annual report, or in the financial statements and annual reports of each issuing subsidiary.
Liabilities on Securities Sold under
Agreements to Repurchase Acceptance Payables Nominal Rating
Securities Series Interest Due Date
Bank Mandiri recorded liabilities from securities Bank Mandiri recorded acceptance payables of (Rp Million) 2024 2023
sold under repurchase agreements amounting to Rp9.14 trillion in December 2024, a decrease of Rupiah Denomination
Rp90.26 trillion in December 2024, compared to 38.24% (ytd) from Rp14.79 trillion in the previous 30 September
A 1,100,000 7.95% - -
Rp36.33 trillion in the previous year. This increase year. This decline was driven by a reduction in 2021
was primarily driven by liabilities from securities acceptance payables for both related parties Bank Mandiri Shelf-Registration 30 September
B 1,500,000 8.50% - -
sold under repurchase agreements denominated and third parties, which fell to Rp2.57 trillion and Bond I Phase I Year 2016 2023
in Rupiah, which reached Rp57.59 trillion in Rp6.57 trillion in December 2024, respectively, 30 September
C 2,400,000 8.65% idAAA (Pefindo) idAAA (Pefindo)
2026
December 2024, whereas there were no such from Rp2.61 trillion and Rp12.18 trillion in 2023.
A 1,000,000 8.00% - - 15 June 2022
liabilities at the end of 2023. Meanwhile, those
Bank Mandiri Shelf-Registration B 3,000,000 8.50% - idAAA (Pefindo) 15 June 2024
denominated in foreign currencies amounted to Debt Securities Issued Bond I Phase II Year 2017 C 1,000,000 8.65% idAAA (Pefindo) idAAA (Pefindo) 15 June 2027
Rp32.67 trillion in December 2024, decreased from On a consolidated basis, net debt securities
D 1,000,000 7.80% - - 15 June 2020
Rp36.33 trillion in 2023. issued by Bank Mandiri and its subsidiaries that
Bank Mandiri Shelf-Registration 21 September
have not yet matured reached Rp41.14 trillion in - 3,000,000 8.50% - -
Bond I Phase III Year 2018 2023
Derivative Liabilities December 2024. Of this amount, securities issued Bank Mandiri Shelf-Registration A 350,000 7.75% idAAA (Pefindo) idAAA (Pefindo) 12 May 2025
Bank Mandiri’s derivative liabilities reached Rp7.34 in Rupiah amounted to Rp23.54 trillion, while those Bond II Phase I Year 2020 B 650,000 8.30% idAAA (Pefindo) idAAA (Pefindo) 12 May 2027
trillion in December 2024, surged by 247.09% (ytd) in foreign currencies stood at Rp17.68 trillion, with Bank Mandiri's Sustainable A 1,950,000 5.80% idAAA (Pefindo) idAAA (Pefindo) 4 July 2026
from Rp2.11 trillion in the previous year. Of this the following composition: Environmental Bond I Phase I
Year 2023 B 3,050,000 6.10% idAAA (Pefindo) idAAA (Pefindo) 4 July 2028
amount, third-party derivative liabilities recorded
a significant increase from Rp2.04 trillion in 2023 Foreign Currency Denomination (full value)
to Rp5.20 trillion in December 2024. A similar trend Euro Medium Term Notes I Baa2 (Moody’s) Baa2 (Moody’s)
(Obligasi Euro Medium Term - USD750,000,000 3.75% and BBB- (Fitch and BBB- (Fitch 11 April 2024
was observed in related-party derivative liabilities,
Notes) of 2019 Ratings) Ratings)
which rose sharply from Rp0.08 trillion in 2023 to
Euro Medium Term Notes II Baa2 (Moody’s) Baa2 (Moody’s)
Rp2.13 trillion. (Obligasi Euro Medium Term - USD500,000,000 4.75% and BBB- (Fitch and BBB- (Fitch 13 May 2025
Notes) of 2020 Ratings) Ratings)
Euro Medium Term Notes Baa2 (Moody’s) Baa2 (Moody’s)
III (Sustainability Bond Bank - USD300,000,000 2.00% and BBB- (Fitch and BBB- (Fitch 19 April 2026
Mandiri 2021) of 2021 Ratings) Ratings)
Euro Medium Term Notes Baa2 (Moody’s) Baa2 (Moody’s)
IV (Sustainability Bond Bank - USD300,000,000 5.50% and BBB- (Fitch and BBB- (Fitch 4 April 2026
Mandiri 2023) of 2023 Ratings) Ratings)
PT BANK MANDIRI (PERSERO) TBK 412 413 ANNUAL REPORT 2024
Page 74
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Estimated Losses on Commitments increase in foreign currency-denominated Taxes Payable holiday allowances (THR), which fell to Rp3.66
and Contingencies borrowings, which grew from Rp56.50 trillion in Bank Mandiri’s tax payable increased by trillion in December 2024 from Rp8.34 trillion in
Bank Mandiri recorded an estimated loss on 2023 to Rp97.21 trillion as of December 2024. 14.41% (ytd) to Rp3.08 trillion in December 2024, 2023.
commitments and contingencies of Rp1.11 trillion The Bank also recorded an increase in Rupiah- compared to Rp2.69 trillion at the end of the
in December 2024, decreased 2.60% (ytd) from denominated borrowings, reached Rp50.70 previous year. This increase was in line with the rise Provision
Rp1.14 trillion at the end of the previous year. trillion in December 2024, up 30.19% (ytd) from in tax payables recorded by Bank Mandiri as the Bank Mandiri’s provisions decreased by 7.62%
This decline was in line with the reduction in the Rp38.95 trillion in the previous year. parent entity. (ytd) to Rp264.28 billion. In the previous year, this
beginning balance from Rp2.07 trillion in 2023 to account stood at Rp286.08 billion.
Rp1.14 trillion as of December 2024. Subordinated Loans and Marketable Employee Benefits Liabilities
Securities Bank Mandiri recorded employee benefit liabilities Temporary Syirkah Funds
Accrued Expenses Cumulatively, Bank Mandiri’s borrowings and of Rp7.16 trillion in December 2024, a decrease of Bank Mandiri recorded temporary syirkah funds
Accrued expenses increased by 13.90% (ytd) from subordinated securities reached Rp403.56 billion 39.80% (ytd) from Rp11.89 trillion in the previous derived from customer deposits and deposits from
Rp4.79 trillion in 2023 to Rp5.47 trillion in December in December 2024. Of this amount, Rp100 billion year. This decline was driven by a reduction other banks, as presented in the following table:
2024. This increase was primarily driven by the consists of Bank Mandiri’s Subordinated Medium- in reserves for bonuses, incentives, leave, and
increase in accrued expenses from Rp1.92 trillion Term Notes (MTN) II 2023, issued on June 23, 2023,
in 2023 to Rp2.41 trillion in December 2024. with a five-year tenor and a fixed annual interest
rate of 6.95%. The subordinated securities are (In Rp million)
Other Liabilities rated idAA by Pefindo and are set to mature on Growth
Cumulatively, Bank Mandiri’s other liabilities June 23, 2028. Temporary Syirkah Funds 2024 2023 2022 2024-2023
reached Rp40.13 trillion in December 2024, Nominal %
grew by 7.31% (ytd) from Rp37.39 trillion in 2023. Subordinated MTN II can be recorded as a Deposits from customers 252,661,959 225,501,470 195,268,663 27,160,489 12.04%
This increase was primarily driven by the rise in supplementary capital component (Tier 2) based Deposits from other Banks 678,306 780,202 933,938 (101,896) (13.06)%
unallocated deferred income, which grew from on approval from the OJK through letter No. SR- Total Temporary Syirkah Funds 253,340,265 226,281,672 196,202,601 27,058,593 11.96%
Rp1.13 trillion in 2023 to Rp6.32 trillion in December 51/PB.21/2023 dated 20 July 2023.
2024. In addition, another key contributor to the
increase was liabilities to policyholders, which In additoin, Bank Mandiri has also received a Deposits from Customers
rose from Rp6.83 trillion in 2023 to Rp7.47 trillion in two-step loan from the Asian Development Bank Bank Mandiri’s customer deposits consist of mudharabah demand deposits, mudharabah savings,
December 2024. through the Ministry of Finance of the Republic of mudharabah time deposits, and musytarakah mudharabah demand deposits. Cumulatively, customer
Indonesia, aimed at financing the Micro Credit deposits reached Rp252.66 trillion in December 2024, grew 12.04% (ytd) from Rp225.50 trillion in the
Fund Borrowings Project (PKM). The outstanding balance of this previous year.
Bank Mandiri’s borrowings reached Rp147.92 loan stood at Rp104.02 billion as of December
trillion in December 2024, increased by 54.97% 2024, with a loan period from 15 January 2005, to Among these deposits, mudharabah time deposits remained the largest portion at 51.54% in December
(ytd) from Rp95.45 trillion at the end of the 15 July 2029. 2024, followed by mudharabah savings at 33.74%, and mudharabah demand deposits & musytarakah
previous year. This growth was driven by an mudharabah demand deposits at 14.72%. Compared to the previous year, these figures stood at 51.19%,
34.46%, and 14.35%, respectively.
Liabilitas Non Keuangan
(In Rp million)
Growth
Non-Financial Liabilities 2024 2023 2022 2024-2023
Nominal (%)
Tax Payable 3,078,642 2,690,902 3,590,522 387,740 14.41)%
Employee Benefits Liabilities 7,160,018 11,894,629 12,607,759 (4,734,611) (39.80)%
Provision 264,275 286,081 323,365 (21,806) (7.62)%
Total Non-Financial Liabilities 10,502,935 14,871,612 16,521,646 (4,368,677) (29.38)%
PT BANK MANDIRI (PERSERO) TBK 414 415 ANNUAL REPORT 2024
Page 75
MANAGEMENT DISCUSSION AND ANALYSIS
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION
Equity
Temporary Syirkah Funds – Deposits from Customer
(In Rp million)
14.35%
Growth
14.72%
Description 2024 2023 2022 2024-2023
Nominal %
Issued and Fully Paid-in Capital 11,666,667 11,666,667 11,666,667 - 0.00%
Additional Paid-in Capital/Agio 18,095,274 17,643,264 17,643,264 452,010 2.56%
51,54% 51.19%
2024 2023 Differences Arising from Translation of Financial
Statements in Foreign Currencies
10,289 (146,299) (60,427) 156,588 (107.03)%
(Loss)/Net Unrealized Gain from (Decrease)/
33.74% 34.46% Increase in Fair Value of Marketable Securities
and Government Bonds - Net of Deferred (2,160,850) (1,837,760) (2,768,553) (323,090) 17.58%
Tax Fair Value Through Other Comprehensive
Income
Effective Portion of Cash Flow Hedges (8,885) 1,429 (3,156) (10,314) (721.76)%
Demand Deposits – Restricted Investment, Saving Deposits – Restricted Time Deposits – Mudharabah
Mudharabah Demand Deposits - Unrestricted Investment And Unrestricted – Unrestricted Investment Net Differences in Fixed Assets Revaluation 34,772,745 34,716,693 34,716,693 56,052 0.16%
Investment and Mudharabah Musytarakah Investment - Mudharabah
Net Actuarial Gain from Defined Benefit
Demand Deposits 1,595,606 1,517,183 1,510,016 78,423 5.17%
Program - Net of Deferred Tax
Other Comprehensive Income 85,052 85,052 85,052 - 0.00
Difference In Transactions with Noncontrolling
(309,938) (97,202) (97,202) (212,736) 218.86%
Deposits from Other Banks Parties
Deposits from other banks consist of mudharabah demand deposits, mudharabah savings, and Retained Earnings 220,050,469 197,303,757 166,986,432 22,746,712 11.53%
mudharabah time deposits. Cumulatively, deposits from other banks remained largely dominated by Noncontrolling Interests in Net Assets of
29,678,252 26,642,178 22,566,669 3,036,074 11.40%
mudharabah savings at 79.10% and mudharabah time deposits at 13.93% as of December 2024. In the Consolidated Subsidiaries
previous year, the proportions of these two types of deposits from other banks were 74.35% and 17.52%, Total Equity 313,474,681 287,494,962 252,245,455 25,979,719 9.04%
respectively, as illustrated in the following chart.
Bank Mandiri recorded stronger equity as of December 2024, primarily supported by improved profitability,
which led to an increase in retained earnings during the year. The Bank’s equity reached Rp313.47
Temporary Syirkah Funds – Deposits from Other Banks trillion in December 2024, grew 9.04% (ytd) from Rp287.49 trillion in the previous year. This increase was
mainly driven by a 11.53% (ytd) rise in retained earnings, from Rp197.30 trillion in 2023 to Rp220.05 trillion in
6.97% December 2024.
8.13%
13.93% 17.52%
2024 79.10% 2023 74.35%
Demand Deposits – Mudharabah Mudharabah Savings - Time Deposits – Mudharabah –
– Unrestricted Investment Unrestricted Investment Unrestricted Investment
PT BANK MANDIRI (PERSERO) TBK 416 417 ANNUAL REPORT 2024
Page 76
MANAGEMENT DISCUSSION AND ANALYSIS
CONSOLIDATED STATEMENT OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS
PROFIT OR LOSS AND OTHER AND OTHER COMPREHENSIVE INCOME
COMPREHENSIVE INCOME
Bank Mandiri recorded a 2.59% (yoy) increase in profit for the year, reaching Rp61.61 trillion in 2024 Interest Income
compared to Rp60.05 trillion in 2023. This improved profit for the period profile was primarily supported Bank Mandiri successfully recorded a 13.97% (yoy) increase in interest income, reached Rp129.64 trillion
by a 5.81% (yoy) increase in net interest income and Sharia income, in line with the 19.37% (ytd) growth in 2024. This growth was primarily driven by the expansion of loan disbursement, which grew by 19.37%
in loan disbursement and Sharia financing receivables in 2024. In addition, this business expansion was (ytd) during the period. This was reflected in interest income from loans, which reached Rp100.11 trillion in
complemented by efficiency in interest expense and Sharia expense, along with better management of 2024, an 18.70% (yoy) increase from Rp84.34 trillion in the previous year. In addition, another major source
earnings assets. of interest income came from government bonds, contributed Rp15.19 trillion in 2024. However, interest
income from government bonds declined by 5.47% (yoy) from Rp16.07 trillion in 2023.
(In Rp million)
Growth (In Rp million)
Description 2024 2023 2022 2024-2023 Growth
Nominal % Description 2024 2023 2022 2024-2023
Operating Income and Expenses Nominal %
Net Interest and Sharia Income 101,756,920 95,886,574 87,903,354 5,870,346 6.12 Loans 100.107.075 84.335.234 69.373.441 15.771.841 18,70
Net Premium Income 2,520,813 2,123,046 2,467,698 397,767 18.74 Government Bonds 15.186.343 16.410.277 16.771.870 (879.401) (5,47)
Net Interest, Sharia and Premium Income 104,277,733 98,009,620 90,371,052 6,268,113 6.40 Consumer Financing Income 7.092.516 6.285.050 4.962.803 807.466 12,85
Other Operating Income 42,171,015 40,522,846 34,280,703 1,648,169 4.07 Placements with Bank Indonesia and Other
3.507.428 3.224.536 1.445.773 188.351 5,67
Allowance For Impairment Losses (11,811,786) (11,152,853) (16,096,382) (658,933) 5.91 Banks
Provision For Impairment Losses on Marketable Securities 2.419.111 2.742.203 2.795.951 (75.145) (3,01)
33,829 918,531 255,268 (884,702) (96.32)
Commitments and Contingencies Others 1.326.168 750.321 594.037 77.908 6,24
Provision for Other Allowances (151,047) 85,615 (282,073) (236,662) (276.43) Total Interest Income 129.638.641 113.747.621 95.943.875 15.891.020 13,97
Gains On Sale of Marketable Securities and
150,297 125,295 899,579 25,002 19.95
Government Bonds
Other Operating Expenses (58,610,446) (53,867,491) (53,260,058) (4,742,955) 8.80
Income From Operation 76,059,595 74,641,563 56,168,089 1,418,032 1.90
Sharia Income
Bank Mandiri’s Sharia income also recorded a growth of 14.90% (yoy), increased from Rp18.80 trillion in
Non-Operating Income/(Expense) - Net 343,891 43,318 209,637 300,573 693.88
2023 to Rp21.60 trillion in 2024. This increase was primarily driven by a 33.96% (yoy) increase in profit-sharing
Income Before Tax Expense and
76,403,486 74,684,881 56,377,726 1,718,605 2.30 income from Musyarakah, which reached Rp7.84 trillion in 2024, as detailed in the following table.
Noncontrolling Interest
Tax Expense - Net (15,238,365) (14,633,011) (11,425,358) (605,354) 4.14
Income for The Year 61,165,121 60,051,870 44,952,368 1,113,251 1.85 (In Rp million)
Items that will not be Reclassified to Profit or Loss 259,871 (15,051) 4,929,043 274,922 (1.826.60) Growth
Description 2024 2023 2022 2024-2023
Items that will be Reclassified to Profit or Loss (278,227) 921,140 (4,534,869) (1,199,367) (130.20)
Nominal %
Other Comprehensive Income/(Expense) For
(18,356) 906,089 394,174 (924,445) (102.03) Murabahah and Istishna Income 13,404,056 12,700,105 11,446,687 703,951 5.54
the Year – Net of Income Tax
Total Comprehensive Income for the Year 61,146,765 60,957,959 45,346,542 188,806 0.31 Musharakah Income Sharing 7,841,528 5,853,512 4,727,321 1,988,016 33.96
Net Income Attributable to: Ijarah Income 192,124 145,753 122,195 46,371 31.81
Parent Entity Owner 55,782,742 55,060,057 41,170,637 722,685 1.31 Mudharabah Income Sharing 159,678 97,479 142,040 62,199 63.81
Noncontrolling Interests 5,382,379 4,991,813 3,781,731 390,566 7.82 Total Shariah Income 21,597,386 18,796,849 16,438,243 2,800,537 14.90
61,165,121 60,051,870 44,952,368 1,113,251 1.85
Total comprehensive income for the year
attributable to: Interest Expenses
Parent Entity 55,740,401 55,916,730 41,604,619 (176,329) (0.32) Bank Mandiri’s interest expenses increased to Rp41.59 trillion in 2024, a 35.63% (yoy) growth compared
Noncontrolling Interests 5,406,364 5,041,229 3,741,923 365,135 7.24 to Rp30.66 trillion in the previous year. This increase was primarily driven by a 39.42% (yoy) increase in
61,146,765 60,957,959 45,346,542 188,806 0.31 demand deposit interest expenses, which reached Rp14.78 trillion in 2024, up from Rp10.60 trillion in 2023.
Basic and Diluted Earnings Per Share
Attributable to Equity Holders of the Parent Entity 597.67 589.93 441.26 7.74 1.31
(full amount of Rupiah)
PT BANK MANDIRI (PERSERO) TBK 418 419 ANNUAL REPORT 2024
Page 77
MANAGEMENT DISCUSSION AND ANALYSIS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME
(In Rp million) Other Operating Income
Growth Bank Mandiri recorded other operating income from fees and commissions, income from fair value
Description 2024 2023 2022 2024-2023 through profit or loss – net, and other income. Cumulatively, other operating income grew by 4.07% (yoy)
Nominal % to Rp42.71 trillion in 2024, compared to Rp40.52 trillion in 2023.
Demand Deposits 14,779,962 10,601,021 5,517,701 4,178,941 39.42
Time Deposits 12,920,953 9,480,299 7,130,837 3,440,654 36.29 The increase in other operating income was primarily driven by the growth in fees and commissions, which
Fund Borrowings 6,438,445 4,624,638 2,509,641 1,813,807 39.22 reached Rp23.45 trillion in 2024, a 16.37% (yoy) increase from Rp20.15 trillion in the previous year. Of this
Securities Sold with Repurchase Agreement (Repo) 3,215,029 1,390,571 983,166 1,824,458 131.20 amount, fees and commissions from loans grew by 33.83% (yoy), increased from Rp4.46 trillion in 2023 to
Saving Deposits 2,309,256 2,082,251 1,983,441 227,005 10.90 Rp5.98 trillion in 2024, as detailed in the following table.
Securities Issued 1,925,021 2,484,487 2,320,021 (559,466) (22.52)
Loans and Subordinated Securities 1,413 1,461 1,788 (48) (3.29) (In Rp million)
Total Interest Expense 41,590,079 30,664,728 20,446,595 10,925,351 35.63 Growth
Description 2024 2023 2022 2024-2023
Nominal %
Sharia Expenses Loans 5,975,365 4,464,991 3,954,380 1,510,374 33.83
Bank Mandiri’s Sharia expenses also increased to Rp7.89 trillion in 2024, a 31.63% (yoy) increase from E-Channel Transaction 4,426,297 3,891,213 3,821,188 535,084 13.75
Rp5.99 trillion in 2023. This increase was primarily driven by higher Mudharabah deposit expenses, which Credit card 3,180,165 2,772,976 2,305,867 407,189 14.68
grew by 33.55% (yoy) to Rp4.11 trillion in 2024, compared to Rp5.54 trillion in 2023. Deposits Transactions 3,148,013 3,000,540 2,830,370 147,473 4.91
Remittances, Clearing and Collections 2,228,007 1,717,102 1,104,758 510,905 29.75
(In Rp million) Trade Transactions 1,692,064 1,570,871 1,464,015 121,193 7.72
Growth Marketable Securities 1,100,888 1,274,341 1,337,244 (173,453) (13.61)
Description 2024 2023 2022 2024-2023 Bancassurance and mutual funds 634,330 97,000 171,623 537,330 553.95
Nominal % Financial Advisor 499,656 398,818 1,288,663 100,838 25.28
Mudharabah Deposits 5,539,667 4,148,029 2,874,965 1,391,638 33.55 Custodians and Trustees 254,452 277,576 248,109 (23,124) (8.33)
Musytarakah - Mudharabah Musytarakah 1,120,870 812,767 387,406 308,103 37.91 Restructuring Compensation Income (Ta'wid) 27,467 32,214 31,530 (4,747) (14.74)
Mudharabah Savings 432,774 466,655 564,411 (33,881) (7.26) Others 280,816 650,768 244,401 (369,952) (56.85)
Accepted Financing 405,816 254,035 12,603 151,781 59.75 Total Provisioning and Commission Revenue 23,447,520 20,148,410 18,802,148 3,299,110 16.37
Sharia Securities Issued 209,236 192,366 132,936 16,870 8.77
Restricted Investments 180,665 119,316 59,848 61,349 51.42
Total Sharia Expenses 7,889,028 5,993,168 4,032,169 1,895,860 31.63 Allowance for Impairment Losses
Supported by effective management of earnings assets and a lower NPL ratio, Bank Mandiri recorded
an allowance for impairment losses (CKPN) of Rp11.81 trillion in 2024, reflecting a controlled increase of
Interest Income and Sharia Income – Net 5.91% (yoy) from Rp11.15 trillion in 2023, in line with the growth of the Bank’s earnings assets. The increase in
In 2024, Bank Mandiri’s net interest income and Sharia income reached Rp101.76 trillion, a 6.12% (yoy) CKPN was primarily driven by an increase in CKPN loans expenses, which grew from Rp9.79 trillion in 2023
growth from Rp95.89 trillion in 2023. This growth was primarily driven by an increase in interest income to Rp10.34 trillion in 2024, in line with the 19.37% (ytd) expansion in loan disbursement.
and Sharia income, while at the same time, Bank Mandiri effectively managed the increase in interest
expenses and Sharia expenses. Reversal of Allowance for Estimated Losses on Commitments and
Contingencies
Premium Income – Net Bank Mandiri recorded a reversal of allowance for estimated losses on commitments and contingencies
Cumulatively, Bank Mandiri’s net premium income reached Rp2.52 trillion in 2024, an increase of 18.74% amounting to Rp33.83 billion in 2024, a decline from Rp918.53 billion in 2023.
(yoy) from Rp2.12 trillion in the same period of the previous year. This growth was primarily driven by a
decline in claim expenses, which decreased by 8.83% (yoy) to Rp10.57 trillion in 2024 from Rp11.60 trillion Establishment of Other Allowances and Losses of Operational Risk
in 2023. Bank Mandiri recorded a decline in the reversal of other allowances and operational risk losses, shifting
from Rp85.61 billion in 2023 to an allowance expense of Rp151.05 billion in 2024. This decline was primarily
Interest, Sharia and Premium Income – Net influenced by the increase in allowances for operational risk losses due to external fraud, which rose to
Bank Mandiri successfully recorded net interest, Sharia, and premium income of Rp104.28 trillion in 2024, a Rp106.05 billion in 2024, compared to Rp22.08 billion in 2023.
6.40% (yoy) growth from Rp98.01 trillion in 2023.
PT BANK MANDIRI (PERSERO) TBK 420 421 ANNUAL REPORT 2024
Page 78
MANAGEMENT DISCUSSION AND ANALYSIS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS CONSOLIDATED STATEMENT
OF CASH FLOWS
AND OTHER COMPREHENSIVE INCOME
Gains on Sale of Marketable Income Before Tax and
Securities and Government Bonds Noncontrolling Interest
Bank Mandiri recorded a 19.95% (yoy) increase in After adding net non-operating income of
gains from the sale of securities and government Rp343.89 billion, Bank Mandiri recorded an Bank Mandiri recorded cash and cash equivalents of Rp244.04 trillion at the end of December 2024. This
bonds, grew from Rp125.30 billion in 2023 to income before tax and non-controlling interest achievement reflects a higher growth compared to the same period in the previous year, which stood
Rp150.30 billion in 2024. of Rp76.40 trillion in 2024. This achievement was at Rp243.80 trillion.
higher than the same period in the previous year,
Other Operating Expenses which stood at Rp74.68 trillion. (In Rp million)
Other operating expenses consist of salaries and Growth
2024-2023
benefits, general and administrative expenses, Income for The Year Description 2024 2023 2022
Nominal %
and other expenses – net. Bank Mandiri recorded Bank Mandiri recorded an income for the year
Net Cash (Used for)/Provided by
an increase in total operating expenses from of Rp61.17 trillion in 2024, a 1.85% (yoy) growth (79,558,278) (69,803,958) 99,975,305 (9,754,320) 13.97
Operating Activities
Rp53.87 trillion in 2023 to Rp58.61 trillion in 2024, compared to Rp60.05 trillion in the same period of
Net Cash Provided by/(Used for)
grew 8.80% (yoy). This increase was primarily the previous year. 17,730,695 17,884,187 (41,889,931) (153,492) (0.86)
Investing Activities
driven by a 16.66% (yoy) increase in general and Net Cash Provided by Financing Activities 57,849,151 21,778,486 13,329,320 36,070,665 165.63
administrative expenses, which reached Rp26.52 Total Comprehensive Income for the Net (Decrease)/Increase in Cash and
trillion in 2024 compared to Rp22.73 trillion in 2023. Year Cash Equivalents
(3,978,432) (30,141,285) 71,414,694 26,162,853 (86.80)
Bank Mandiri’s total comprehensive income for Effect of Exchange Rate Changes on
4,214,862 (946,566) 9,843,138 5,161,428 (545.28)
Operating Income the year increased by 0.31% (yoy) to Rp61.15 Cash and Cash Equivalent
Cumulatively, Bank Mandiri recorded a 1.90% (yoy) trillion in 2024, compared to Rp60.96 trillion in the Cash and Cash Equivalents, Beginning
243,801,693 274,889,544 193,631,712 (31,087,851) (11.31)
of The Year
increase in operating profit, reached Rp76.06 trillion same period of the previous year.
Cash and Cash Equivalents, End of The Year 244,038,123 243,801,693 274,889,544 236,430 0.10
in 2024, up from Rp74.64 trillion in 2023. This growth
was in line with the increase in interest income and Basic and Diluted Earnings Per Share
Sharia income throughout 2024. Bank Mandiri’s basic and diluted earnings per
share grew by 1.31% (yoy) from Rp589.93 in 2023 Cash Flow from amounting to Rp17.73 trillion in in liabilities from securities sold
to Rp597.67 in 2024, supported by the increase in Operating Activities 2024. This was mainly due to under repurchase agreements
profit for the year. Bank Mandiri recorded net the purchase of fixed assets and proceeds from borrowings
cash used for operating and the acquisition of right-of- received.
activities amounting to use assets. In the previous year,
Rp79.56 trillion in 2024. This net cash provided by investing Cash and Cash
Bank Mandiri Earnigns (2022-2024) was primarily driven by an activities was Rp17.88 trillion as Equivalents at the End
increase in operational assets, of December 2023. of the Year
including loans disbursed and Bank Mandiri recorded a net
76.40
Cash Flow from
74.68
other receivables from trade decrease in cash and cash
transactions. In the previous Financing Activities equivalents of Rp3.98 trillion in
61.17
61.15
60.96
60.05
year, Bank Mandiri recorded Bank Mandiri recorded net December 2024. However, the
56.38
net cash used for operating cash provided by financing Bank was still able to maintain
45.35
44.95
activities of Rp69.80 trillion as of activities amounting to Rp57.85 cash and cash equivalents
December 2023. trillion in December 2024. In the at the end of the period at
same period of the previous Rp244.04 trillion in December
Cash Flow from year, net cash provided by 2024, slightly higher than
Investing Activities financing activities stood at Rp243.80 trillion in the same
Bank Mandiri recorded net cash Rp21.78 trillion. This increase was period of the previous year.
provided by investing activities primarily driven by an increase
Income Before Tax and Income for the Year Total Comprehensive Income
Noncontrolling Interest for the Year
2024 2023 2022
PT BANK MANDIRI (PERSERO) TBK 422 423 ANNUAL REPORT 2024
Page 79
MANAGEMENT DISCUSSION AND ANALYSIS
SOLVENCY AND RECEIVABLES SOLVENCY AND RECEIVABLES COLLECTIBILITY
COLLECTIBILITY
SOLVENCY Long-term Debt Repayment Ability Debt Payment Ability from Issued
(Bank Solvency) Securities
From Bank Mandiri’s internal perspective, its ability to repay debt can be observed through its liquidity and Bank Mandiri’s Capital Adequacy Ratio (CAR) Bank Mandiri has issued debt securities or
solvency profile. Meanwhile, from an external perspective, related to MTN and bonds issued, Moody’s and stood at 20.10% in 2024, down from 21.48% in the corporate bonds in Rupiah, which are listed on
Fitch have assigned ratings to Bank Mandiri for MTN issuances in foreign currencies listed on the Singapore same period the previous year. This ratio indicates the Indonesia Stock Exchange. The Bank has also
Stock Exchange. On the other hand, Pefindo has assigned ratings for corporate bonds in Rupiah listed on that Bank Mandiri’s solvency remains strong, issued foreign currency debt securities (U.S. Dollar)
the Indonesia Stock Exchange as follows: exceeding the minimum CAR requirement set by in the form of global bonds, which are listed on
the regulator, thereby covering credit, market, the Singapore Stock Exchange and offered to
Lembaga Pemeringkat Kriteria Peringkat Peringkat and operational risks. investors outside the United States in compliance
Internasional Rating Agency with Regulation S under the U.S. Securities Act.
Moody's (as of 19 February 2024) Long-Term Counterparty Risk Rating Baa1 Bank Mandiri forecasts its future liquidity position
Long-Term Deposit Baa2 using a liquidity gap methodology. This involves The issued securities have been rated by rating
Long-Term Debt Baa2
Fitch Ratings (as of 21 May 2024) International Long-Term Rating BBB
assessing the maturity mismatch between asset agencies, and these ratings will be periodically
National Long Term Rating AAA(idn) and liability components (including off-balance reviewed until the debt securities mature. The
National Short-Term Rating F1+(idn) sheet items), which are organized into time buckets quality of these securities is highly dependent
Standard & Poor's (as of 18 January 2024) Issuer Credit Rating BBB/STABLE/A-2 based on their contractual or behavioral maturities. on the issuing company’s ability to repay the
National Rating Agency securities upon maturity and to meet interest
PT Pemeringkat Efek Indonesia (as of 15 February 2024) Long Term General Obligation idAAA For the upcoming 12 months, Bank Mandiri expects or coupon payments throughout the issuance
liquidity conditions to remain in surplus. Nevertheless, period.
The credibility of these ratings can be coming month. As of the end of December alternative funding options are prepared in case
demonstrated by Bank Mandiri’s ability to repay 2024, Bank Mandiri’s liquidity reserves market liquidity tightens or deviates from predictions. The structure of the debt securities issued by Bank
maturing bonds promptly. remained above this safety level. Mandiri, both in Rupiah and foreign currencies,
• RIM is calculated as the ratio of loans In addition, Bank Mandiri regularly conducts liquidity along with their credit ratings, is detailed in the
Short-Term Debt Payment Ability extended and qualifying corporate securities risk stress tests to evaluate the impact of market and financial review section on issued securities.
(Bank Liquidity) held, compared to third-party funds (TPF), internal factors under extreme (crisis) conditions on
Bank Mandiri’s liquidity adequacy can be qualifying securities issued by the Bank, and its liquidity position. The Bank has reported that it
assessed using several liquidity indicators, such qualifying loans received. can withstand a liquidity crisis based on these stress Bank Earnings
as the statutory reserve requirement (GWM), the • LCR measures the ratio of High Quality Liquid test results. Beyond the stress tests, Bank Mandiri has Bank Mandiri uses Return on Assets (ROA), Return
Macroprudential Liquidity Buffer (PLM), liquidity Assets (HQLA) to the estimated net cash established a Liquidity Contingency Plan (LCP) that on Equity (ROE), Net Interest Margin (NIM), the
reserves, the Macroprudential Intermediation outflows over the next 30 days under a stress outlines funding strategies and pricing strategies Operating Expenses to Operating Income Ratio
Ratio (RIM), the Liquidity Coverage Ratio (LCR), scenario. Its purpose is to strengthen the during a crisis, including interbank loans, repos, (BOPO), and the Cost Efficiency Ratio (CER)
and the Net Stable Funding Ratio (NSFR). Bank’s short-term liquidity resilience in crisis bilateral loans, FX swaps, and wholesale funding. to assess the Bank’s profitability performance.
situations. Regulators require a minimum LCR This plan sets out liquidity conditions and funding The Bank’s achievements for these ratios as of
• The statutory reserve requirement is set by compliance of 100%. strategies while taking both internal and external December 2024 are as follows:
the central bank as a percentage of third- • NSFR measures the ratio of available factors into account.
party funds collected by the banking sector, stable funding to required stable funding.
which must be maintained by banks in Regulators mandate a minimum NSFR of
current accounts at the central bank. 100%. Earnings 2024 2023 2022
• Bank Mandiri has set a safety level limit in the Return on Assets (ROA) 3,59% 4,03% 3,30%
Return on Equity (ROE, Avg Tier 1 Capital) 24,19% 27,31% 22,62%
form of projected liquidity reserves for the The achievements of these ratios are as follows:
Net Interest Margin (NIM) 4,93% 5,25% 5,16%
Operating Expenses to Operating Income (BOPO) 56,46% 51,88% 57,35%
Liquidity 2024 2023 2022 Cost Efficiency Ratio (CER) 35,85% 35,08% 38,90%
Rupiah Reserve Requirement 5.21% 7.32% 8.53% Cost to Income Ratio (CIR) 35,01% 34,31% 38,16%
Macroprudential Intermediation Ratio (MIR) 94.83% 83.73% 75.98%
Liquidity Coverage Ratio (LCR) 139.21% 176.24% 191.02%
Net Stable Funding Ratio (NSFR) 107.65 % 116.59% 119.93%
PT BANK MANDIRI (PERSERO) TBK 424 425 ANNUAL REPORT 2024
Page 80
MANAGEMENT DISCUSSION AND ANALYSIS
SOLVENCY AND RECEIVABLES COLLECTIBILITY CAPITAL STRUCTURE
Bank Mandiri’s business expansion, primarily through loan disbursement amid an improving economy, MANAGEMENT POLICY ON • SEOJK No. 23/SEOJK.03/2022 on the
including operational efficiency, particularly the reduction in interest and Sharia expenses and better CAPITAL STRUCTURE Calculation of Risk-Weighted Assets for Market
management of earnings assets, has contributed to enhancing the Bank’s profitability performance. Risk for Commercial Banks.
The Bank’s ROE and ROA reached 24.19% and 3.59%, respectively, as of December 2024, supported In managing its capital structure, Bank Mandiri
by operational efficiency reflected in the BOPO and CIR ratios of 56.46% and 35.01%, respectively, in implements a capital policy that includes Bank Mandiri also applies the Basel II
December 2024. Meanwhile, the Bank’s NIM stood at 4.93% as of December 2024. the prudent fulfillment of regulatory capital Standardized Approach for Credit Risk and has
requirements, diversification of capital sources to incorporated the External Rating component in
anticipate long-term strategic plans, and efficient calculating Risk-Weighted Assets (RWA).
BANK RECEIVABLES COLLECTIBILITY capital allocation to business segments with the
potential to deliver an optimal risk-return profile. Bank Mandiri is gradually conducting simulations
The collectibility of the Bank’s receivables is measured by the timeliness of loan repayments. Bank Mandiri This also includes placements and investments of the Internal Ratings-Based Approach. The
reports the collectibility of receivables from its loan disbursement activities (bank only) as follows: in subsidiaries to meet stakeholder expectations, method used by the Bank to measure market
including those of investors and regulators. risk follows the Basel III Standardized Approach –
(In Rp million)
Additionally, the Bank continuously ensures Fundamental Review of the Trading Book (FRTB).
Category 2024 2023 2022 2021 2020 adequate capital to cover credit risk, market Currently, internal measurement utilizes the
Current 1,253,085,593 1,027,406,545 874,645,487 764,469,150 701,951,159 risk, and operational risk, supporting business Value at Risk (VaR) method, while a parallel study
Special Mention 45,084,568 47,381,346 40,549,922 40,525,825 36,796,337
expansion in both normal conditions and stress is being conducted to implement the Expected
Substandard 1,448,335 2,289,310 1,280,514 1,913,657 2,065,985
scenarios. Shortfall (ES) method as a replacement for VaR.
Doubtful 2,207,252 4,322,560 5,402,034 4,369,540 938,038
Meanwhile, for operational risk measurement,
Loss 8,953,652 4,387,666 10,761,094 16,835,691 21,851,897
In assessing capital adequacy, Bank Mandiri the Bank applies the Basel II Basic Indicator
Total Loans 1,310,779,400 1,085,787,427 932,639,051 828,113,863 763,603,416
refers to regulations issued by the Financial Approach.
NPL gross*) 12,609,239 10,999,536 17,443,642 23,118,888 24,855,920
NPL (%) 0.97% 1.02% 1.88% 2.81% 3.29%
Services Authority (Otoritas Jasa Keuangan/OJK),
including: The Bank’s consolidated capital adequacy ratio
*) NPL ratio is calculated excluding Loans to Other Banks
as of 31 December 2024, and 2023, considering
• POJK No. 27 of 2022 dated 28 December credit, operational, and market risks, was 20.82%
Indonesia’s economy in 2024 continued to credit risk rating, spreadsheets, CPA, NAK, and 2022 on the Second Amendment to POJK and 21.48%, respectively. When considering
face challenges, including external factors others. The final credit decision is made by the 11/POJK.03/2016 concerning the Minimum only credit and operational risks, the ratios were
such as tariff wars and domestic factors such as Authorized Credit Decision Maker through the Capital Requirement for Commercial Banks. 21.14% and 21.69%, respectively.
declining consumer purchasing power. Amid Credit Committee Meeting, applying the four- • POJK No. 34/POJK.03/2016 dated 22
these uncertainties, Bank Mandiri successfully eyes principle, which ensures independent September 2016 on the Amendment to POJK The following tables present the calculation
maintained sustainable loan growth at a high involvement of both the Business Unit and the No. 11/POJK.03/2016 concerning the Minimum results of Risk-Weighted Assets (RWA) for credit,
level of 20.72%, while maintaining its NPL ratio by Credit Risk Management Unit. Capital Requirement for Commercial Banks. operational, and market risks, as well as the
5 bps to 0.97% compared to the previous year. • SEOJK No. 26/SEOJK.03/2016 on the Minimum Capital Adequacy Ratio as of 31 December
Bank Mandiri’s growth strategy, which focuses on Meanwhile, for the retail or mass market segment, Capital Requirement Based on Risk Profile 2024, and 2023, for Bank Mandiri on a standalone
prospective debtors both sectorally and within the credit management process is more and Fulfillment of Capital Equivalency basis.
the value chain of existing debtors, has driven automated, utilizing a credit risk scorecard based Maintained Assets.
improvements in credit quality and efficiency in on the Risk Acceptance Criteria for each product.
debtor provisioning formation. The process is carried out through an automated
workflow (loan factory). Bank Mandiri Capital Structure 2022-2024
Bank Mandiri has established standard procedures (In Rp million)
for end-to-end credit management. In the Furthermore, for credit monitoring process, Capital 2024 2023 2022
wholesale segment, the credit process begins Bank Mandiri routinely conducts a Portfolio Core Capital 229.932.670 209.724.274 181.072.852
with market targeting based on prospective Quality Review for each segment and product. Supplemental Capital 14.325.962 12.264.005 10.771.601
sectors outlined in the Loan Portfolio Guideline, Meanwhile, for non-performing loan portfolios, Total Capital for Credit Risk, Operational Risk and Market Risk 244.258.632 221.988.279 191.844.453
which categorizes industries as attractive, neutral, collection and recovery processes are carried out Credit Risk-Weighted Assets (RWA) 1.132.192.033 964.706.719 846.394.763
selective, or cautious. The Bank then selects as part of the strategy to reduce exposure to non- Operational Risk-Weighted Assets (RWA) 62.675.961 58.720.278 133.826.964
and screens target customers using tools such performing loans. The Bank also conducts what-if Market Risk-Weighted Assets (RWA) 20.289.449 9.980.215 5.829.558
as the Industry Acceptance Criteria and Name analysis on wholesale and retail portfolios through Total RWA for Credit Risk, Operational Risk and Market Risk 1.215.157.443 1.033.407.212 986.051.285
Clearance to generate a high-quality debtor stress testing using various macroeconomic
pipeline. This process is followed by a credit risk scenarios to anticipate potential macroeconomic
assessment using various credit risk tools, including downturns.
PT BANK MANDIRI (PERSERO) TBK 426 427 ANNUAL REPORT 2024
Page 81
MANAGEMENT DISCUSSION AND ANALYSIS
STRUKTUR PERMODALAN STRUKTUR PERMODALAN
31-Dec-24 31-Dec-23
Capital Adequacy Ratio Capital
Bank Consolidated Bank Consolidated
Capital 2024 2023 2022 1.4.7 Other Deduction of CET 1 – – – –
CAR for Core Capital 18.92% 20.29% 18.36% 1.4.7.1 Placement of Funds in Instrument AT 1 and/or
– – – –
CAR for Credit Risk 21.57% 23.01% 22.67% Tier 2 to Other Bank
1.4.7.2 Cross-Ownership in Another Entity Acquired by
CAR for Credit Risk and Operational Risk 20.44% 21.69% 19.57% – – – –
the Transition Due to Law, Grants, or Grants Will
CAR for Credit Risk and Market Risk 21.19% 22.78% 22.51% 1.4.7.3 Exposures that Give Rise to Credit Risk Due the
CAR for Credit Risk, Operational Risk and Market Risk 20.10% 21.48% 19.46% Settlement Risk (Settlement Risk) - Non-Delivery Versus – – – –
CAR Minimum Core Capital 6.00% 6.00% 6.00% Payment
CAR Minimum Based on Risk Profile 9.69% 9.76% 9.86% 1.4.7.4 Exposures in Subsidiaries that do Business Activity
– – – –
Based on Sharia Principles (if Available)
2. Additional Tier 1 (AT 1) – – – –
2.1 Instrument which Comply with AT 1 Requirements – – – –
Quantitative Disclosure of Capital Structure of Commercial Banks
2.2 Agio/Disagio – – – –
(In Rp million)
2.3 Deduction Factor of AT 1 – – – –
31-Dec-24 31-Dec-23 2.3.1 Placement of Funds in Instrument AT 1 and/or Tier
Capital – – – –
Bank Consolidated Bank Consolidated 2 to Other Bank
I. Core Capital (Tier 1) 229,932,670 286,910,930 209,724,274 258,956,049 2.3.2 Cross-Ownership in Another Entity Acquired by
– – – –
1. Common Equity Tier 1 (CET 1) 229,932,670 286,910,930 209,724,274 258,956,049 the Transition Due to Law, Grants, or Grants Will
1.1 Paid-in capital (net of Treasury Stock) 11,666,667 11,666,667 11,666,667 11,666,667 II. Supplemental Capital (Tier 2) 14,325,962 17,374,792 12,264,005 14,966,831
1. Capital Instrument in the Form of Stock or others
1.2 Disclosed Reserves 243,295,646 269,544,562 224,692,846 246,380,061 173,562 333,562 205,171 405,171
which Comply with Tier 2 Requirements
1.2.1 Additional Factor 246,404,152 273,337,976 227,600,355 249,758,383
2. Agio/Disagio – – – –
1.2.1.1 Other Comprehensive Income 34,566,487 35,192,233 34,582,623 34,811,362
3. General Provision on Earning Assets (max. 1.25%
1.2.1.1.1 Excess Differences Arising from Translation of 14.152.400 17.041.230 12,058,834 14,561,660
47,779 388,734 27,284 27,284 Credit Risk - Weighted Assets)
Financial Statement
4. Deduction Supplemental Capital – – – –
1.2.1.1.2 Potential Gain of the Increase in the Fair Value
30,754 30,754 67,385 67,385 4.1 Sinking Fund – – – –
of Financial Assets Available for Sale
4.2 Placement of Funds in instrument AT 1 and/or Tier 2
1.2.1.1.3 Surplus of Fixed Assets Revaluate 34,487,954 34,772,745 34,487,954 34,716,693 – – – –
to Other Bank
1.2.1.2 Other Disclosed Reserves 211,837,665 238,145,743 193,017,732 214,947,021
4.3 Cross-Ownership in Another Entity Acquired by the
1.2.1.2.1 Agio 19,661,550 18,095,274 18,941,550 17,643,264 – – – –
Transition Due to Law, Grants, or Grants Will
1.2.1.2.2 General Reserves 2,333,333 2,333,333 2,333,333 2,333,333 III. TOTAL CAPITAL (I+II) 244,258,632 304,285,722 221,988,279 273,922,880
1.2.1.2.3 Previous Year Profit 138,706,819 161,934,394 120,645,971 139,910,367
1.2.1.2.4 Current Year Profit 51,135,963 55,782,742 51,096,878 55,060,057
Quantitative Disclosure of Capital Structure of Commercial Banks
1.2.1.2.5 Funds for Paid-in Capital – – – –
(In Rp million)
1.2.1.2.6 Others – – – –
31-Dec-24 31-Dec-23
1.2.2 Deduction Factors (3,108,506) (3,793,414) (2,907,509) (3,378,322) Description
1.2.2.1 Other Comprehensive Income (2,520,758) (2,464,896) (2,432,966) (1,971,613) Bank Consolidated Bank Consolidated
1.2.2.1.1 Negative Differences Arising from Translation Risk-Weighted Assets (Rwa)
(378,445) (378,445) (461,721) (173,583) Credit Risk RWA 1,132,192,033 1,363,298,397 964,706,719 1,164,932,800
of Financial Statement
1.2.2.1.2 Potential Losses from the Decrease in the Fair Market Risk RWA 20,289,449 22,445,193 9,980,215 12,359,269
(2,142,313) (2,086,451) (1,971,245) (1,798,030)
Value of Financial Assets Available for Sale Operational Risk RWA 62,675,961 75,849,894 58,720,278 68,332,364
1.2.2.2 Other Disclosed Reserves (587,748) (1,328,518) (474,543) (1,406,709) Total RWA 1,215,157,443 1,461,593,484 1,033,407,212 1,245,624,433
1.2.2.2.1 Disagio – – – – CAR BASED ON RISK PROFILE (%) 9.69% 9.73% 9.76% 9.82%
1.2.2.2.2 Previous Year Loss – – – – Capital Allocation For Car Based On Risk Profile
1.2.2.2.3 Current Year Loss – – – – From CET 1 (%) 8.51% 8.54% 8.57% 8.62%
1.2.2.2.4 Negative Difference in Allowance for Possible From AT 1 (%) 0.00% 0.00% 0.00% 0.00%
Losses and Allowance for Impairment on Earning – – – –
From Tier 2 (%) 1.18% 1.19% 1.19% 1.20%
Assets
1.2.2.2.5 Negative Difference in Adjustment Amounts CAR Ratio
– – – – CET 1 Ratio (%) 18.92% 19.63% 20.29% 20.79%
from Fair Value of financial Assets in Trading Book
1.2.2.2.6 Required Allowance for Non-Earning Asset (587,748) (1,328,518) (474,543) (1,406,709) Tier 1 Ratio (%) 18.92% 19.63% 20.29% 20.79%
1.2.2.2.7 Others – – – – Tier 2 Ratio (%) 1.18% 1.19% 1.19 1.20%
1.3 Noncontrolling Interests – 25,425,527 – 21,864,452 Capital Adequacy Ratio (%) 20.10% 20.82% 21.48% 21.99%
1.4 Deduction Factor of CET 1 (25,029,643) (19,725,826) (26,635,239) (20,955,131) CET 1 FOR BUFFER (%) 10.41% 11.09% 11.72% 12.17%
1.4.1 Deferred Tax Calculation (5,840,877) (8,342,819) (7,874,700) (10,100,735) Percentage of Buffer Mandatory Filled By Bank (%)
1.4.2 Goodwill – (482,091) – (482,091) Capital Conservation Buffer (%) 2.50% 2.50% 2.50% 2.50%
1.4.3 Other Intangible Assets (4,207,868) (6,525,458) (3,808,411) (5,068,755) Countercyclical Buffer (%) 0.00% 0.00% 0.00% 0.00%
1.4.4 Investments in Share (14,980,898) (4,375,458) (14,952,128) (5,303,550) Capital Surcharge for Systemic Banks (%) 2.50% 2.50% 2.50% 2.50%
1.4.5 Shortfall of Capital on Insurance Subsidiaries – – – –
1.4.6 Securitization Exposure – – – –
PT BANK MANDIRI (PERSERO) TBK 428 429 ANNUAL REPORT 2024
Page 82
MANAGEMENT DISCUSSION AND ANALYSIS
MATERIAL COMMITMENT FOR CAPITAL INVESTMENT
CAPITAL GOODS INVESTMENT IN FISCAL YEAR 2024
Bank Mandiri does not have a material bond for capital goods investment in the 2024 financial year. As Capital Investment Rp8.75 trillion as of 31 December 2024. In addition,
such, the Bank does not present information related to this matter, including: Bank Mandiri makes capital investments annually, Bank Mandiri invested in intangible assets, such
1. The name of the contracting party; which involve expenditures used to acquire assets as software and assets under development,
2. The purpose of the engagement; or investments expected to generate future value. amounting to Rp2.40 trillion. These capital
3. Source of funds prepared to fulfill the engagement; investments were made in line with the Bank’s
4. The currency denomination in the bond; and Types and Value of Capital ongoing business expansion efforts.
5. The Bank’s planned measures to hedge the risks of the related foreign currency position. Investment
Bank Mandiri’s capital investments in fixed assets, The capital investments in both fixed assets and
including land, buildings, equipment, office and intangible assets made during the period ending
computer hardware, motor vehicles, assets under 31 December 2024, with their comparison to the
construction, and right-of-use assets, reached previous year-end, are as follows:
Types and Value of Capital Investment
(In Rp million)
Value of Capital Investment
Types of Capex
2024 2023
Capital Goods - Fixed Assets
Land 242,038 33,518
Building 266,238 154,831
Supplies, Office Equipment and Computers 768,293 403,071
Motor vehicle 1,705 11,322
Construction in Progress 4,863,277 2,483,635
Right of Use Assets 2,605,544 1,998,278
Total 8,747,095 5,084,655
Capital Goods – Intangible Assets
Software 345,015 322,542
Goodwill - -
Yokke brand assets - -
Construction in Progress 2,057,330 1,612,117
Total 2,402,345 1,934,659
Purpose of Capital Investment
Bank Mandiri undertakes capital investments to support and enhance the Bank’s overall operational
activities.
PT BANK MANDIRI (PERSERO) TBK 430 431 ANNUAL REPORT 2024
Page 83
MANAGEMENT DISCUSSION AND ANALYSIS
TRANSACTION INFORMATION RELATED TRANSACTION INFORMATION RELATED TO INVESTIMENT, EXPANSION,
TO INVESTIMENT, EXPANSION, DIVESTMENT, MERGER, ACQUISITION, AND RESTRUCTURING
DIVESTMENT, MERGER, ACQUISITION,
AND RESTRUCTURING
Investment Expansion before Mala Mukti, S.H., LL.M., a notary in Jakarta.
As part of its business activities in the banking industry, the Bank invests in debt securities issued by both In line with the growth of digital banking services, The notification of this change was recorded
the Government and corporations. The details of Bank Mandiri’s investments in debt securities as of 31 Bank Mandiri has reduced the number of branch in the Legal Entity Administration System of the
December 2024, are as follows: offices by 51 sub-branches. This measure was Ministry of Law and Human Rights of the Republic
taken to optimize banking services for customers, of Indonesia via a letter dated 27 June 2024, No.
(In Rp million) factoring in the level of digital penetration in AHU-AH.01.09-0219371.
Value each location. This step reflects Bank Mandiri’s
Types of Securities
2024 2023 commitment to consistently providing the public The share transfer transaction of Mandiri
Related parties with wider access to banking services and products Inhealth constitutes a business combination of
Measured at Fair Value Through Profit and Loss 4,285,159 3,138,746 through the development of digital platforms and entities under common control, as the ultimate
Measured at Fair Value Through Other Comprehensive Income 9,586,379 10,625,541 Mandiri Agents (branchless banking). shareholder of the shareholders of Mandiri
Measured at Amortized Cost of Acquisition 3,139,468 3,668,508 Inhealth namely Bank Mandiri, Kimia Farma, and
Measured at Cost of Acquisition*) 79,569 309,017 Divestment IFG Life, is the Government of the Republic of
17,090,575 17,741,812 On 7 February 2024, Bank Mandiri and PT Asuransi Indonesia. As such, the divestment transaction
Third parties Jiwa IFG (IFG Life) signed a Sale and Purchase was recorded using the pooling of interest
Measured at Fair Value Through Profit and Loss 17,604,380 16,116,963
Agreement (PPJB) for shares in PT Asuransi Jiwa method in accordance with the Statement of
Measured at Fair Value Through Other Comprehensive Income 37,408,046 38,208,496
Inhealth Indonesia (Mandiri Inhealth) concerning Financial Accounting Standards (PSAK) No. 338
Measured at Amortized Cost of Acquisition 5,842,595 2,231,038
the planned transfer of 60% ownership of Mandiri (Revised 2014), “Business Combination of Entities
Measured at Cost of Acquisition *) 3,161,962 991,866
Inhealth from Bank Mandiri to IFG Life. Under Common Control.”
64,016,983 57,548,363
Investments in Unit-Link**)
Related Parties: On 21 February 2024, Bank Mandiri submitted an Acquisition
Measured at Fair Value Through Profit and Loss 3,132,500 6,032,327 application to the Financial Services Authority 1. Capital Injection into PT Kliring Penjaminan
Third Parties: (OJK) for approval regarding the divestment of Efek Indonesia (KPEI)
Measured at Fair Value Through Profit and Loss 11,101,498 13,259,620 Mandiri Inhealth. On 13 May 2024, Bank Mandiri
14,233,998 19,291,947 received approval from the OJK through letter To support the development of a Central
Total 95,341,556 94,582,122 No. S-73/PB.21/2024 on Phase 1 Approval for Counterparty (CCP) for transactions in the
Add/(Less): the Divestment of the Subsidiary PT Asuransi Money Market and Foreign Exchange Market,
Unamortized Discounts (27,018) 8,829 Jiwa Inhealth Indonesia (Mandiri Inhealth). particularly for Over-The-Counter Derivatives
Unrealized Gains on Increases in the Fair Value of Marketable Securities 215,010 105,165 Subsequently, on 7 June 2024, Mandiri Inhealth Transactions on Interest Rates and Exchange
Allowance for Impairment Losses (51,497) (150,275) obtained approval from the OJK through letter Rates, as part of the implementation of Law
136,495 (36,281) No. S-15/D.05/2024 on Approval for the Change of No. 4 of 2023 on Financial Sector Development
Net 95,478,051 94,545,841 Ownership of PT Asuransi Jiwa Inhealth Indonesia. and Strengthening and Bank Indonesia
*) Marketable securities owned by Subsidiaries.
**) Investments in unit-link contracts are investments owned by policyholders of unit-link contracts of Subsidiary’s which are presented at fair value
Regulation No. 6 of 2024 on Money Market
On 26 June 2024, the Share Acquisition Deed No. and Foreign Exchange Market, Bank Mandiri
88 between Bank Mandiri and IFG Life and the has made a capital injection for 2,500 Series B
The details of Bank Mandiri’s investment in bonds are as follows: Share Sale and Purchase Deed No. 89 between shares (representing a 1.11% ownership stake)
(In Rp million) Kimia Farma and IFG Life were signed, both to KPEI, which functions as the CCP operator
Value before Mala Mukti, S.H., LL.M., a notary in Jakarta. in Indonesia.
Types of Securities
2024 2023 Following the signing of the Share Acquisition
Related parties Deed and the Share Sale and Purchase Deed, In relation to this capital injection, Bank
Government Bonds the shareholder structure of Mandiri Inhealth Mandiri obtained approval from the OJK
Measured at Amortized Cost of Acquisition 153,035,870 163,194,756 changed, with IFG Life owning 80% of the shares through letter No. SR-108/PB.21/2024 dated
Measured at Fair Value Through Other Comprehensive Income***) 82,065,670 90,640,924 and Bank Mandiri holding 20%. Consequently, 16 August 2024, regarding Approval for
Measured at Cost of Acquisition*) 22,560,953 34,541,812 Bank Mandiri lost control over Mandiri Inhealth, Bank Saudara’s Capital Injection into PT
Measured at Fair Value Through Profit and Loss 17,761,405 12,078,509 resulting in the cessation of recognition of Mandiri Kliring Penjaminan Efek Indonesia for the
Investment in unit-link **)
Inhealth’s net assets at their carrying value. This Implementation of Central Counterparty
Measured at Fair Value Through Profit and Loss 11,848,761 8,726,970
share transfer was previously approved during for Interest Rates and Exchange Rates. In
287,272,659 309,182,971
Mandiri Inhealth’s GMS, formalized in the Deed addition, KPEI received approval from OJK
*) Government Bonds owned by Subsidiaries classified in accordance with PSAK No. 410 “Sukuk Accounting”.
**) Investment in unit-linked is an investment owned by the policyholder in the unit-linked contract of the Subsidiary presented at fair value. of Shareholders’ Resolutions No. 90, executed through letter No. S-127/D.04/2024 dated
***) This includes sukuk, project-based sukuk, and retail sukuk that are classified as measured at fair value through other comprehensive income.
PT BANK MANDIRI (PERSERO) TBK 432 433 ANNUAL REPORT 2024
Page 84
MANAGEMENT DISCUSSION AND ANALYSIS
TRANSACTION INFORMATION RELATED TO INVESTIMENT, EXPANSION, COMMITMENT
AND CONTINGENCY
DIVESTMENT, MERGER, ACQUISITION, AND RESTRUCTURING
13 September 2024, regarding Approval of The additional capital injection by Bank
Other Parties as Shareholders of PT Kliring Mandiri into MUF received all required
Penjaminan Efek Indonesia, and approval approvals and met the conditions for capital
Bank Mandiri reported commitment and contingency transactions throughout 2024 as follows:
through letter No. S-287/PM.01/2024 dated participation in accordance with applicable
24 September 2024, concerning Approval for regulations. These included approval from (In Rp million)
Amendments to the Articles of Association of the Ministry of State-Owned Enterprises of the Values
Description
the Clearing and Guarantee Institution. Republic of Indonesia, as the holder of Series 2024 2023
A Dwiwarna Shares, via Letter No. S-459/ Commitment
The capital injection became effective on MBU/09/2024 dated 20 September 2024, Commitment Liabilities
26 September 2024, based on the Decree regarding Approval for Additional Capital Unused Loan Facility *)
of the Minister of Law and Human Rights of Injection into PT Mandiri Utama Finance, and Related Parties (107,740,421) (82,892,633)
the Republic of Indonesia No. AHU-0061216. approval from the OJK via Letter No. SR-167/ Third Parties (159,489,452) (133,451,445)
AH.01.02. Tahun 2024 dated 26 September PB.21/2024 dated 29 October 2024, regarding Total (267,229,873) (216,344,078)
2024, regarding Approval of Amendments Approval for Capital Injection into PT Mandiri Outstanding Irrevocable Letters of Credit
to the Articles of Association of PT Kliring Utama Finance. Related Parties (9,905,951) (8,039,096)
Penjaminan Efek Indonesia. Third Parties (12,533,712) (12,842,876)
To comply with Article 7 paragraph (1) of Law Total (22,439,663) (20,881,972)
2. Additional Capital Injection into Mandiri No. 40 of 2007 on Limited Liability Companies, Commitment Liabilities – Net (289,669,536) (237,226,050)
Utama Finance (MUF) as amended by Government Regulation in Contingency
Lieu of Law No. 2 of 2022 on Job Creation, Contingency Receivables:
To strengthen synergy and transform its which was established as law through Law No. Guarantees Received from Other Banks 50,383,762 29,226,582
business in the multifinance segment, Bank 6 of 2023, PT Mandiri Sekuritas also participated Interest Income in Progress 10,912,104 10,576,751
Mandiri carried out additional capital in the capital injection by purchasing 1 (one) Others 34,411 34,338
injection into MUF through the purchase share owned by PT Asco Investindo. This share Total 61,330,277 39,837,671
of 2,449,999,999 (two billion four hundred purchase became effective on 28 November Contingent Liabilities:
forty-nine million nine hundred ninety-nine 2024, as documented in Share Sale and Guarantees are Given in the Form of:
thousand nine hundred ninety-nine) MUF Purchase Deed No. 45 between Mandiri Bank Guarantee
shares owned by PT Asco Investindo and Sekuritas and PT Asco Investindo. Related Parties (37,567,187) (38,002,449)
PT Tunas Ridean. This transaction increased Third Parties (100,990,316) (76,598,004)
Bank Mandiri’s ownership in MUF from 51% to Total (138,557,503) (114,600,453)
99.9999999998%. Debt and Capital Restructuring Standby Letter of Credit
Bank Mandiri did not conduct any debt and/or Related Parties (5,281,006) (6,810,499)
The share purchase became effective on 28 capital restructuring transactions during 2024. Third Parties (7,027,683) (7,948,783)
November 2024, as stated in Share Sale and Total (12,308,689) (14,759,282)
Purchase Deed No. 44 between Bank Mandiri Use of Third-Party Services Others (4,072,541) (3,268,517)
and PT Asco Investindo and Share Sale The use of third-party services for assessing the Total (154,938,733) (132,628,252)
and Purchase Deed No. 46 between Bank fairness of investment, acquisition, divestment, Contingent Liabilities – Net (93,608,456) (92,790,581)
Mandiri and PT Tunas Ridean, both executed and restructuring transactions is carried out in (383,277,992) (330,016,631)
before Ashoya Ratam, S.H., M.Kn., a Notary compliance with applicable capital market
*) Including unused committed and uncommitted loan facilities.
in South Jakarta. The deeds confirm the new regulations.
shareholder composition of MUF following the
capital injection transaction. The notification
of the corporate data changes for MUF was
acknowledged by the Ministry of Law and
Human Rights of the Republic of Indonesia
through Letter No. AHU-AH.01.09-0281917
dated 29 November 2024, regarding the
Receipt of Notification on Corporate Data
Changes of PT Mandiri Utama Finance.
PT BANK MANDIRI (PERSERO) TBK 434 435 ANNUAL REPORT 2024
Page 85
MANAGEMENT DISCUSSION AND ANALYSIS
COMPARISON OF 2024 COMPARISON OF 2024 TARGET & REALIZATION
TARGET & REALIZATION
Comparison of Financial Targets and from Rp98.01 trillion in December 2023. In addition, Assumptions Used in Preparing the 2025 Projections
Realization for 2024 consolidated fee-based income stood at Rp42.32 Bank Mandiri utilizes several macro and microeconomic assumptions in drafting its 2025 Bank Business Plan
Bank Mandiri recorded strong performance amid trillion in 2024, grew by 4.12% (yoy) from Rp40.65 as follows:
global economic dynamics, as reflected in its trillion in December 2023.
consolidated total assets reaching Rp2,427.22 trillion Asumsi Makro ekonomi Projection 2025
as of December 2024, an increase of 11.64% (yoy) Bank Mandiri has consistently maintained efficiency, Macroeconomics Assumptions
from Rp2,174.22 trillion in 2023. This figure exceeded as reflected in its bank-only Cost to Income Ratio, GDP Growth (%) 5.13%
the 2024 RKAP target of Rp2,358.45 trillion. which stood at 35.01% as of December 2024. Inflation (%) 2.38%
Through prudent credit distribution and regular USD/IDR Exchange Rate (Rp) 15.974
Bank Mandiri’s consolidated net profit reached monitoring, the Bank successfully improved credit Microeconomic Assumptions
Rp55.78 trillion in 2024, grew by 1.31% (yoy) from quality, with the bank-only gross NPL ratio declining BI Rate (%) 5.50%
Rp55.06 trillion in 2023. This achievement exceeded to 0.97% in December 2024 from 1.02% in the same Loan Growth (%) 10.47%
the 2024 RKAP target of Rp55.18 trillion. The key period in 2023. This NPL ratio remains below the 2024 Third-Party Funds Growth (%) 6.13%
drivers behind this net profit growth include RKAP target of 1.14%, demonstrating Bank Mandiri’s
consolidated net interest income, which reached strong risk management and commitment to
Rp104.28 trillion in 2024, an increase of 6.40% (yoy) maintaining asset quality. Comparison of 2024 Marketing Targets and Actual Results
Overall, Bank Mandiri’s marketing activities have successfully contributed to its performance. The Bank’s
third-party funds (TPF) increased to Rp1,326.88 trillion as of December 2024. Meanwhile, Bank Mandiri’s
December 2024 loan disbursement also grew to Rp1,310.78 trillion in December 2024, surpassing the initial target of
Financial Parameter and Ratio
Target Realization
Total Assett (Rp billion) 1,839,537 1,877,322
Rp1,207.71 trillion. Fee-based income also increased to Rp31.5 trillion in December 2024.
Total Loans (Rp billion) 1,207,712 1,310,779
Laba Bersih (Rp billion) 50,372 51,136 Comparison of 2024 Marketing Targets and Actual Results
Core Capital (Rp billion) 221,826 229,933 (In Rp Billion)
CAR 20,12% 20,10%
Description 2024 Target 2024 Realization
ROE 24,24% 24,19%
ROA 3,59% 3,59% Third-Party-Funds 1,353,247 1,326,888
NIM 5,14% 4,93% Loans 1,207,712 1,310,779
BOPO 56,93% 56,46% Fee Based Income 31,761 31,650
CIR 33,91% 35,01%
CASA Ratio 79,21% 80,31%
LDR 88,64% 98,04%
NPL Gross 1,14% 0,97%
Comparison of Target and Realization of HR Development in 2024
NPL Net 0,34% 0,33%
Bank Mandiri’s commitment to providing equal opportunities for its employees in competency development
is reflected in the comparison data of the target and realization of human capital development. In 2024,
Projection for 2025 the number of Bank Mandiri employees who participated in competency development training reached
Bank Mandiri has set its financial projections for 2025. The consolidated financial projections are presented 40,034 employees, exceeding the target with a realization rate of 121.4% of the set target of 80% of the
as follows: total 41,231 employees.
Description 2025 Projection Meanwhile, the actual training expenses amounted to Rp397.1 billion, representing a 13.1% increase
Net Interest Margin 5.0-5.2% compared to the previous year’s realization.
Cost of Credit 1.0-1.2%
Loans 11.0-13.0%
TPF 12.0-14.0%
Comparison of Target and Realization of HR Development in 2024
Net income 4.0-6.0% Target Realization Target Realization
Description
Operating Expense 10.0-12.0% 2024 2024 2023 2023
Gross NPL (%) 1.1-1.3% Training (employee) 32,984 40,034 31,131 37,779
Cost to Income Ratio (%) 38.0-40.0% Training Cost (in Rp Billion) 425.00 397.10 313.75 351.94
PT BANK MANDIRI (PERSERO) TBK 436 437 ANNUAL REPORT 2024
Page 86
MANAGEMENT DISCUSSION AND ANALYSIS
MATERIAL INFORMATION DIVIDEND POLICY AND
AND SUBSEQUENT EVENTS DISTRIBUTION
Based on Bank Mandiri’s consolidated audited financial statements for the period ended 31 December Dividend Policy Bank’s financial health, capital adequacy levels,
2024, which were prepared by Management and audited by the Public Accounting Firm Rintis, Jumadi, In general, Bank Mandiri’s dividend distribution and funding requirements for further business
Rianto & Rekan (formerly Tanudiredja, Wibisana, Rintis & Rekan, a member firm of the PwC global policy refers to Law No. 40 of 2007 on Limited expansion, without limiting the AGMS’s authority
network), with Lucy Luciana Suhenda, S.E., Ak., CPA as the responsible partner, there were no subsequent Liability Companies and Bank Mandiri’s Articles to decide in accordance with the Company’s
events after the financial position date of 31 December 2024, up to the issuance date of the consolidated of Association. According to this law, the Articles of Association.
financial statements on 5 February 2025, that would require adjustments or additional disclosures under entire net profit, after deducting reserves, is
the applicable Financial Accounting Standards in Indonesia. distributed to shareholders as dividends unless Furthermore, dividends from net profit are paid by
otherwise determined by the General Meeting of Bank Mandiri in compliance with prevailing laws
Shareholders (GMS). in Indonesia. Dividends (if any) are paid in cash
in Rupiah and are always in adherence to stock
Bank Mandiri distributes dividends once a exchange regulations, ensuring timely payment.
year following the Annual General Meeting of Bank Mandiri does not have any negative
Shareholders (AGMS), which holds the authority covenants related to third-party restrictions that
to determine and approve the dividend might harm the rights of public shareholders
distribution. Bank Mandiri’s dividend policy aims concerning dividend distribution.
to maintain a payout ratio of around 45% or more
of the annual net profit unless the AGMS decides Dividend Announcement and
otherwise, based on various considerations Payment
regarding the performance in that particular Bank Mandiri announces and distributes dividends
year. In determining the dividend payout, Bank as determined in the AGMS over the past five
Mandiri considers several key factors such as the years as follows:
Dividend Announcement and Payment for Financial Year 2020-2024
Description 2024 2023 2022 2021 2020
AGMS
AGMS Resolution AGMS Resolution AGMS Resolution AGMS Resolution
Resolution
Legal Basis dated 14 March dated 10 March dated 15 March dated 19
dated 7 March
2023 2022 2021 February 2020
2024
Audited
financial Audited financial Audited financial Audited financial Audited financial
Financial Year
statements statements 2022 statements 2021 statements 2020 statements 2019
2023
Net Profit (Rp billion) 55,060,057 41,170.64 28,028.16 17,119.25 27,482.13
Dividend (Rp billion) 33,036,034 24,702.38 16,816.89 10,271.55 16,489.28
Dividend by Share
353.96 529.34 360.64 220 353.34
(Rp)
Dividend Pay Out
60% 60% 60% 60% 60%
Ratio
Cash Dividend
7 March 2024 14 March 2023 10 March 2022 15 March 2021 19 February 2020
Announcement Date
Cash Dividend
28 March 2024 12 April 2023 6 April 2022 12 April 2021 20 March 2020
Payment Date
PT BANK MANDIRI (PERSERO) TBK 438 439 ANNUAL REPORT 2024
Page 87
MANAGEMENT DISCUSSION AND ANALYSIS
DIVIDEND POLICY AND DISTRIBUTION EMPLOYEE AND/OR
MANAGEMENT SHARE
OWNERSHIP PROGRAM
Announcement and Payment of hundred eighty thousand three hundred
Dividends for Fiscal Year 2023 ninety-four rupiah forty cents) was
Bank Mandiri held its AGMS on 7 March 2024, deposited into the State General Treasury
which approved and determined the allocation Account. Based on the Extraordinary shares on 11 March 2004, of 309,416,215 stock options.
of consolidated net profit attributable to the b. The dividends for Fiscal Year 2023 GMS decision on 29 May 2003, through a private placement. The GMS also authorized the
owners of the parent entity for the 2023 Fiscal Year were distributed proportionally to as stated in the notarial deed Board of Commissioners to
amounting to Rp55,060,057,307,434.00 (fifty-five all shareholders whose names were of Sutjipto, S.H., No. 142 dated At the time of the IPO on 14 determine the policy for the
trillion sixty billion fifty-seven million three hundred recorded in the Shareholders’ Register as 29 May 2003, Bank Mandiri’s July 2003, Bank Mandiri offered implementation and oversight
seven thousand four hundred thirty-four Rupiah) of the recording date. shareholders also approved share purchase options to of MSOP Phase 3 (three) and
as follows: c. The Board of Directors was granted a plan for employees and management through MSOP to report it at the next GMS.
authority and power, with substitution Directors to own shares through Phase 1 for a total of 378,583,785 The exercise price per share
1. A total of 60% or Rp33,036,034,384,460.40 rights, to set the schedule and the Employee Stock Allocation options, with an exercise price of MSOP Phase 3 (three) was
(thirty-three trillion thirty-six billion thirty-four distribution procedures related to the (ESA) and Management Stock of Rp742.50 per share (nominal Rp1,495.08 (full amount), with
million three hundred eighty-four thousand payment of dividends for Fiscal Year Option Plan (MSOP). The ESA value of Rp500 per share). These a nominal value of Rp500 (full
four hundred sixty rupiah forty cents) or 2023 in accordance with applicable program consists of a Share Plan stock options were recorded amount) per share. These stock
Rp353.957511267 (three hundred fifty-three regulations, to withhold dividend taxes in Bonus and a Share Purchase at under the Equity–StockOptions options were recorded under
point nine five seven five one one two six accordance with prevailing tax laws, and Discount program. Meanwhile, account at a fair value of the Equity – Stock Options
seven rupiah) per share was designated as a to address any related technical matters the MSOP is intended for Rp69.71 per share. The options account at a fair value of
Cash Dividend, to be paid under the following in compliance with applicable rules. Directors and employees in exercised under MSOP Phase Rp593.89 (full amount) per
conditions: certain grades or criteria. The 1 amounted to 375,365,957 share. The exercised options
2. The remaining 40% or Rp22,024,022,922,973.60 costs and discounts associated shares, resulting in an increase from MSOP Phase 3 (three)
a. The dividend portion for the (twenty-two trillion twenty-four billion twenty- with the ESA program are in issued and paid-in capital of totaled 309,415,088 shares,
Republic of Indonesia amounting to two million nine hundred twenty-two thousand borne by Bank Mandiri, funded Rp187,683 and an increase in resulting in an increase in
Rp17,178,737,880,394.40 (seventeen nine hundred seventy-three rupiah sixty cents) from established reserves. share premium of Rp117,193. issued and paid-in capital of
trillion one hundred seventy-eight billion was allocated to Retained Earnings. The implementation and Rp154,707 and an increase in
seven hundred thirty-seven million eight administration of ESA and Subsequently, at the Annual share premium of Rp491,651.
MSOP programs are managed GMS held on 16 May 2005,
by the Board of Directors, while the issuance of MSOP Phase 2 On 27 December 2010, the Bank
oversight is conducted by the (two) for a total of 312,000,000 registered its first submission
Board of Commissioners. stock options was approved. with the OJK (formerly the
The exercise price per share Capital Market and Financial
On 14 July 2003, the Government was Rp1,190.50 (full amount) Institutions Supervisory Agency
of the Republic of Indonesia for the first year and Rp2,493 (Bapepam and LK)) in relation
released 4,000,000,000 shares, (full amount) for the second to the Limited Public Offering
representing 20.00% of its year and subsequent years. (Rights Issue) to the Bank’s
ownership in Bank Mandiri, The nominal value per share shareholders for the issuance
through an Initial Public Offering was Rp500 (full amount). These of Preemptive Rights (HMETD)
(IPO). Following Government stock options were recorded amounting to 2,336,838,591
Regulation No. 27/2003 dated under the equity - stock options Series B shares. This Rights Issue
2 June 2003, which allowed account at a fair value of was approved by the Board
divestment of up to 30.00% Rp642.28 (full amount) per of Commissioners through a
of the Government’s stake share. Options exercised from letter dated 29 April 2010. The
in Bank Mandiri, and based MSOP Phase 2 (two) amounted Bank submitted notification
on the Privatization Policy to 311,713,697 shares, resulting regarding the Rights Issue to
Team’s decision No. Kep-05/ in an increase in issued and Bank Indonesia through a
TKP/01/2004 dated 19 January paid-in capital of Rp155,857 letter dated 17 September
2004, the Government of and an increase in share 2010. This Rights Issue was also
Indonesia conducted a premium of Rp425,233. promulgated by Government
subsequent divestment of Regulation of the Republic
an additional 10.00% stake in The Annual GMS held on 22 May of Indonesia No. 75 of 2010
Bank Mandiri, amounting to 2006, approved the issuance of dated 20 November 2010. The
2,000,000,000 Series B common MSOP Phase 3 (three) for a total Rights Issue received effective
PT BANK MANDIRI (PERSERO) TBK 440 441 ANNUAL REPORT 2024
Page 88
MANAGEMENT DISCUSSION AND ANALYSIS
EMPLOYEE AND/OR MANAGEMENT REALIZATION OF PROCEEDS FROM
SHARE OWNERSHIP PROGRAM
PUBLIC OFFERINGS
approval from Bapepam and As a continuation of the auditor and the Annual Report
LK through letter No. S-807/ previously distributed ESOP and is approved by/endorsed at the
BL/2011 dated 27 January MSOP programs, Bank Mandiri GMS. The performance target On 14 July 2003, Bank Mandiri conducted an IPO In addition to the public offering of shares, Bank
2011, and became effective extended a similar program to achievements are calculated of 4,000,000,000 Series B Common Shares with a Mandiri also conducted public offerings for debt
after receiving approval employees and management as a three-year average (2023– nominal value of Rp500 (full amount) per share, securities or corporate bonds. The most recent
from shareholders at the under predetermined grant 2025) based on indicators such offered at a price of Rp675 (full amount) per share. bond series issued by Bank Mandiri was the
Extraordinary General Meeting and vesting conditions. as Total Shareholder Return This public offering represented a divestment Continuous Bond II Bank Mandiri Phase I Year 2020,
of Shareholders held on 28 (TSR), Return on Equity (RoE), of 20.00% of Bank Mandiri shares owned by the which was listed on the Indonesia Stock Exchange
January 2011. Bank Mandiri has a and Non-Performing Loan Government. on 13 May 2020.
Management Stock Ownership (NPL).
HMETD totaling 2,336,838,591 Program (MSOP) in the form As of 14 July 2003, a total of 19,800,000,000 Series B Both the public offerings of shares and bonds
shares were traded from 14 to of a Long Term Incentive Bank Mandiri also has an Common Shares of Bank Mandiri had been listed have been completed, and all proceeds from
21 February 2011 at an exercise (LTI) measured by achieving Employee Stock Ownership on the Jakarta Stock Exchange and the Surabaya these offerings have been utilized and reported in
price of Rp5,000 (full amount) company performance targets Program (ESOP) designed to Stock Exchange, based on approval letters from accordance with applicable regulations.
per share, resulting in an (Performance Share Plan) for foster a sense of ownership the Jakarta Stock Exchange No. S-1187/BEJ.
increase in issued and paid-up the Board of Directors and non- and motivate employees to PSJ/07-2003 dated 8 July 2003, and the Surabaya
capital of Rp1,168,420. Based Independent Commissioners, contribute their best over the Stock Exchange No. JKT-028/LIST/BES/VII/2003
on the resolution of EGMS dated and in the form of an long term. ESOP is granted to dated 10 July 2003.
21 August 2017, Bank Mandiri’s escrow current account for certain grades and job levels
shareholders approved, Independent Commissioners. that meet criteria approved
among other matters, a stock This aims to motivate higher by management, including
split of Bank Mandiri shares performance in the future individual performance, talent
from Rp500 (full amount) per and to recognize efforts in classification, and employee
share to Rp250 (full amount) maintaining and/or increasing track record. Between 2015
per share. Consequently, the company’s long-term and 2022, Bank Mandiri
the issued capital increased share value. The LTI program distributed 96,003,800 shares
to 46,666,666,666 shares, for the Board of Directors with a vesting period of 3–5
comprising 1 (one) Series and Commissioners covers years. In 2023, Bank Mandiri did
A Dwiwarna share and the 2023–2025 performance not have an Employee Stock
46,666,666,665 Series B shares. period. The performance/ Ownership Program (ESOP).
The stock split did not result in vesting period is annual
any changes to the authorized, (January–December) for three Bank Mandiri plans to
issued, and paid-up capital. The years (2023–2025). LTI vests fully implement a similar stock
stock split became effective on in the fourth year (2026) once ownership program for
13 September 2017. the financial statements are employees and management
audited by an independent in future years.
PT BANK MANDIRI (PERSERO) TBK 442 443 ANNUAL REPORT 2024
Page 89
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION ON MATERIAL INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST
TRANSACTIONS WITH CONFLICTS OF AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES
INTEREST AND/OR TRANSACTIONS WITH
AFFILIATED/RELATED PARTIES c. Both entities are joint ventures of the the board of commissioners, major shareholders,
same third party; or Controllers, including any activity and/or
d. One entity is a joint venture of a third transaction conducted by the public company
entity, and the other entity is an associate or controlled company for the benefit of
of the third entity; Affiliates of the public company or Affiliates of
e. The entity is a post-employment benefit members of the board of directors, members of
plan for the benefit of employees of either the board of commissioners, major shareholders,
the reporting entity or an entity related to or Controllers.
the reporting entity;
f. The entity is controlled or jointly controlled
by a person identified in point 1); PRESENTATION OF AFFILIATED
g. A person identified in point 1) sub-point TRANSACTIONS IN 2024
a) has significant influence over the entity
or is key management personnel of the Referring to Article 22 of POJK 42/2020, it is stated
entity; or that in the event that Affiliated Transactions and/
h. The entity is controlled, jointly controlled, or Conflict of Interest Transactions are conducted
or significantly influenced by the by a Controlled Company that is not a Public
Government, such as the Ministry of Company and whose financial statements
Finance or Regional Government, which are consolidated with a Public Company, the
are shareholders of the entity. Public Company must follow the procedures as
stipulated in POJK No. POJK 42/2020. The affiliated
In Article 1 paragraph (1) of POJK 42/2020, the transactions at Bank Mandiri during 2024 generally
term “Affiliate” refers to: consist of 2 (two) types of affiliated transactions as
a. familial relationship due to marriage and follows:
descent up to the second degree, both
horizontally and vertically; • Bank Mandiri with its subsidiaries - as stated
b. relationship between a party and employees, in Article 1, Paragraph (1-d) of the relevant
directors, or commissioners of that party; POJK, which reads: “the relationship between
c. relationship between two companies where a company and a party that, either directly
one or more members of the board of or indirectly, controls or is controlled by that
directors or board of commissioners are the company.”
same; • Bank Mandiri with its affiliated companies -
d. relationship between a company and a party as stated in Article 1, Paragraph (1-e) of the
that, either directly or indirectly, controls or is relevant POJK, which reads: “the relationship
controlled by that company; between two companies that are controlled,
AFFILIATED TRANSACTIONS 1. Individuals who: e. relationship between two companies that are either directly or indirectly, by the same
a. Have control or joint control over the directly or indirectly controlled by the same party.”
Bank Mandiri and its subsidiaries engage in reporting entity; party; or
transactions with related parties as defined under b. Have significant influence over the f. relationship between a company and its As of December 2024, Bank Mandiri has
PSAK No. 224 on “Related Party Disclosures” reporting entity; or major shareholder. conducted several affiliated transactions with its
Bapepam and the Financial Services Authority c. Are key management personnel of the affiliated companies, which essentially fall into 2
Regulation No. 42/POJK.04/2020 dated 2 July reporting entity or the parent entity of the The definition of Affiliate Transaction in Article (two) types of affiliated transactions as outlined
2020 (POJK 42/2020) on Affiliated Transactions reporting entity. 1 paragraph (3) of POJK 42/2020 refers to any below, along with a brief explanation:
and Conflict of Interest Transactions. activity and/or transaction conducted by a
2. An entity is related to the reporting entity if public company or controlled company with 1. Realization of Affiliated Transactions
A related party is a person or entity related to any of the following conditions apply: Affiliates of the public company or Affiliates of Conducted by Bank Mandiri with Its
the entity preparing its financial statements (the a. The entity and the reporting entity are members of the board of directors, members of Subsidiaries and Other Affiliated Companies.
reporting entity). The following are considered members of the same business group;
related parties: b. One entity is an associate or joint venture
of the other entity;
PT BANK MANDIRI (PERSERO) TBK 444 445 ANNUAL REPORT 2024
Page 90
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST
AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES
Table 1 Detailed of Bank Mandiri Affiliated Transaction Type 1 IFG Life is part of the state-owned insurance Jakarta. This amendment was notified to
No. Date Transaction Type Affiliated Party Transaction Value Nature of Relations and guarantee holding, established based the Minister of Law and Human Rights of the
on the Ministry of SOEs Letter No. S-921/ Republic of Indonesia through Notification of
1 26 Sale of Shares Subsidiary, Mandiri Rp1.710 billion The divestment of Mandiri Inhealth
June in the Subsidiary Inhealth*. involves Bank Mandiri and IFG Life as MBU/10/2020 dated 21 October 2020, Amendment to the Articles of Association No.
2024 Mandiri Inhealth entities that are directly and indirectly regarding the Approval for the Establishment AHU-AH.01.09-0162541 dated 25 April 2024.
IFG Life, Subsidiary controlled by the same party, namely of a Life Insurance Subsidiary. The company
IFG, SOE Insurance. the Government of the Republic
of Indonesia through the Ministry of
was incorporated through the Deed of IFG Life is headquartered at Graha CIMB
State-Owned Enterprises (KBUMN). Establishment of PT Asuransi Jiwa IFG No. Niaga II, 5th & 6th Floor, Jalan Jenderal
Following the divestment, BMRI holds 39 dated 22 October 2020, which was last Sudirman Kavling 58, South Jakarta 12190,
200,000 shares, representing 20% of amended by Deed No. 33 dated 24 April Indonesia.
the total shares in Mandiri Inhealth.
2024, notarized by Hadijah, S.H., M.Kn., in
2 22 July The acquisition MUF – Subsidiary n.a The signing of the Conditional Share
2024 of MUF shares, Purchase Agreement (“CSPA”)
together with Mandiri Sekuritas- regarding the planned acquisition of
Mansek, in other Subsidiary MUF shares between Bank Mandiri, Capital Structure and Shareholder Composition
companies, its subsidiary Mansek, and two other
Par Value of Rp1,000,000 per Share
namely PT Asco companies, PT Asco Investindo and PT
Investindo and PT Tunas Ridean. Description Total Shares Par Value Percentage
Tunas Ridean. Following the acquisition, Bank Mandiri (Share) (Rupiah) (%)
and Mansek jointly own 100% of MUF
shares. Authorized Capital 80,000,000 80,000,000,000,000
*) As of October 2024, Mandiri Inhealth is no longer a subsidiary of Bank Mandiri. 1. PT Bahana Pembinaan Usaha Indonesia (Persero) 31,665,976 31,665,976,000,000 99.999997%
2. PT Bahana Kapital Investa 1 1,000,000 0.000003%
Explanation: The object of the affiliated transaction Issued and Paid-Up Capital 31,665,977 31,665,977,000,000 100%
1) The sale of Bank Mandiri’s shares in its consists of 600,000 shares, representing 60% Shares in Protepel 48,334,023 48,334,023,000,000
subsidiary, PT Asuransi Jiwa Inhealth Indonesia of the total issued shares of Mandiri Inhealth
(Mandiri Inhealth), to PT Asuransi Jiwa IFG (IFG owned by Bank Mandiri, which were sold by
Management and Supervisory (Position as of 27 June 2024)
Life) (Divestment of Mandiri Inhealth). Bank Mandiri to IFG Life at the agreed price
in the Mandiri Inhealth Acquisition Deed, Board of Directors
Explanation of Date, Value, and Object of amounting to Rp1,710,000,000,000 (one trillion President Director Vacant*
Transaction seven hundred ten billion Rupiah).
Vice President Director Eli Wijanti
The divestment of Mandiri Inhealth was
carried out on 26 June 2024, in which Bank • Name of Parties Involved in the Transaction Director Iskak Hendrawan
Mandiri and IFG Life signing the Mandiri Bank Mandiri – Brief Description Director Mufri Dharmawan
Inhealth Acquisition Deed. Bank Mandiri is a state-owned enterprise
Director Ryan Diastana Firman
(SOE) engaged in the banking sector,
Referring to the valuation report dated with the Indonesian government holding Director Fabiola Noralita
2 February 2024, No. 00114/2.0018-00/ a majority ownership of 52%. The detailed Director Bugi Riagandhy
BS/09/0149/1/II/2024, prepared by KJPP history, complete shareholder structure, and
Board of Commissioners
NDR, regarding the valuation of 600,000 management composition are presented in
shares, equivalent to 60% of the total issued the "Company Profile" section of this Annual President Commissioner Rianto Ahmadi
shares of Mandiri Inhealth owned by Bank Report. Commissioner Maliki Heru Santosa
Mandiri as of 31 December 2023, including
Independent Commissioner Yasril Rasyid
Mandiri Inhealth's shareholding in PT FitAja IFG Life – Brief History
Digital Nusantara (FDN) of 4,794,500 shares, IFG Life is a company operating in the life and Independent Commissioner Linggarsari Suharso
or 45.14% of FDN's total issued shares, the health insurance sector and has obtained a * The position of Acting President Director is held by Eli Wijanti
transaction value for the Mandiri Inhealth license from the Financial Services Authority
divestment amounted to Rp1,710,000,000,000 (OJK) through Decree No. KEP-19/D/05/2021
(one trillion seven hundred ten billion Rupiah) dated 7 April 2021.
or Rp2,850,000 (two million eight hundred fifty
thousand Rupiah) per share.
PT BANK MANDIRI (PERSERO) TBK 446 447 ANNUAL REPORT 2024
Page 91
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST
AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES
• Nature of Affiliation 600,000 shares or 60.00% of the total 2) The purchase/acquisition of shares in aims to acquire up to 100% ownership of
The affiliation in connection with the issued shares of Mandiri Inhealth owned the subsidiary, PT Mandiri Utama Finance MUF after the transaction while ensuring
divestment of Mandiri Inhealth arises from by Bank Mandiri to IFG Life, valued at (MUF), together with another subsidiary, PT seamless operational continuity during
a control relationship by the same party, Rp1,710,000,000,000 (one trillion seven Mandiri Sekuritas (Mansek), from two other and after the acquisition.
either directly or indirectly, over the entities hundred ten billion Rupiah) as of 31 companies.
involved in the transaction. Bank Mandiri December 2023, is fair. As part of Mandiri Group, the Company
and IFG Life, as the parties conducting the Explanation of Date and Object of Transaction has invited Mansek to participate as a
Mandiri Inhealth divestment transaction, The assessment was conducted by The Company signed a Conditional Share partner in the ownership of MUF. The
are both directly and indirectly controlled Public Appraiser Dewi Apriyanti, S.E., Purchase Agreement (CSPA) related to the acquisition of MUF shares by the Company
by the Government of the Republic of MAPPI (Cert.), a Managing Partner at planned acquisition of shares in PT Mandiri and Mansek is also intended to comply
Indonesia. KJPP NDR, holding Appraiser License Utama Finance (MUF) on 22 July 2024. The with ownership regulations as stipulated
No. PB-1.09.00149 issued by the Ministry agreement was signed by the Company with in Article 7, Paragraph 1 of Law No. 40
The detailed explanation of the affiliation of Finance of the Republic of Indonesia several parties, including PT Mandiri Sekuritas of 2007 on Limited Liability Companies,
between Bank Mandiri and IFG Life is as and registered with the Financial Services (Mansek), PT Asco Investindo (Asco), and PT which requires that a company must
follows: Authority in the Capital Market Sector of Tunas Ridean (Turi). be established by at least two or more
the Republic of Indonesia under No. STTD. shareholders.
Bank Mandiri PB-23/PJ-1/PM.02/2023. • Nature of Affiliated Relationship
The Government of the Republic of The Company, MUF, and Mansek have an • Compliance with Relevant Regulations
Indonesia holds 52% of the shares in Bank In the evaluation of the Fairness affiliated relationship. MUF is a subsidiary The signing of the CSPA is classified
Mandiri, 8% of the shares are owned by Opinion for this Planned Transaction, of Bank Mandiri, with a pre-acquisition as an affiliated transaction that only
the Indonesia Investment Authority (INA), KJPP NDR performed analyses using ownership structure of 51% held by Bank requires reporting to the Financial
and the remaining 40% of the shares are various approaches and procedures, Mandiri, 37% by PT Asco Investindo, and Services Authority (OJK), in accordance
owned by the public other than INA. With including transaction analysis, qualitative 12% by PT Tunas Ridean Tbk. Meanwhile, with Article 6, Paragraph 1, Letter b,
this ownership structure, Bank Mandiri is analysis, quantitative analysis, analysis of Mansek is also a subsidiary of the Number 1 of POJK No. 42/2020. This is
directly controlled by the Government of transaction value fairness, and analysis of Company, with 99.99% ownership directly because Mansek’s shares are directly
the Republic of Indonesia. other relevant factors. held and controlled by the Company. owned by the Company with a stake
exceeding 99% of Mansek’s paid-up
IFG Life • Compliance with Relevant Provisions Post transaction, Bank Mandiri and capital, and the transaction value does
IFG owns 99.999997% of the shares in IFG Bank Mandiri issued a Disclosure of Mansek will jointly own 100% of MUF’s not exceed 0.5% of the paid-up capital
Life, while 0.000003% of the shares are held Information on 27 June 2024, to fulfill shares. of the public company or the amount
by PT Bahana Kapital Investa. Since IFG the requirements of Financial Services of Rp5,000,000,000 (five billion Rupiah).
is directly controlled by the Government Authority Regulation (POJK) No. 42/2020. • Considerations and Reasons for Therefore, the Company is not required to
of the Republic of Indonesia, IFG Life is This regulation mandates Bank Mandiri to Conducting the Affiliated Transaction follow the procedures stipulated in Article
therefore indirectly controlled by the disclose information regarding Affiliated The Company has a vision to transform 3 and Article 4, Paragraph 1 of POJK No.
Government of the Republic of Indonesia. Transactions conducted between Bank the auto loan business model within 42/2020.
Mandiri and its affiliate, IFG Life. Bank its multifinance subsidiary by focusing
• Explanation of Transaction Fairness Mandiri is required to announce the on captive customers, as they have
(Arms-Length Principle) Affiliated Transaction to the public no better asset quality and more efficient 2. Realization of Affiliated Transactions
Based on the fairness opinion analysis later than the end of the second business management costs. To increase the Conducted by BMRI Together with Other
conducted by KJPP NDR (Public day after the transaction occurs. proportion of captive financing and Affiliated Companies with the Same Majority
Appraisal Firm Nirboyo Adiputro, Dewi enhance the value gained from optimizing Shareholding
Apriyanti & Partners), as outlined in the • In the Case of Affiliation Relationships the multifinance business, the Company
KJPP NDR report dated 21 June 2024, Given that the parties involved in the
No. 00344/2.0018-00/BS/09/0149/1/ divestment of Mandiri Inhealth, namely
VI/2024 regarding the fairness opinion Bank Mandiri and IFG Life, are companies
report on the planned transaction for directly or indirectly controlled by the
the sale of 600,000 shares, equivalent to Government of the Republic of Indonesia,
60.00% equity of Mandiri Inhealth owned the divestment of Mandiri Inhealth
by Bank Mandiri to IFG Life, KJPP NDR qualifies as an Affiliated Transaction.
concluded that the transaction of selling
PT BANK MANDIRI (PERSERO) TBK 448 449 ANNUAL REPORT 2024
Page 92
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST
AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES
Table of Detailed of Bank Mandiri Affiliated Transaction Type 2 • Compliance with Relevant Regulations Jakarta, referring to Presidential Decree
Transaction The transaction complies with Article 6, No. 25 of 1995 on the Development of
No. Date Transaction Type Affiliated Party Nature of Relations Paragraph (1), Letter c of POJK 42/2020, the Medan Merdeka Area in the Special
Value
as the signing of the MoU does not create Capital Region of Jakarta. The form
1 18 March Collaboration on the Bank Mandiri n.a Bank Mandiri, together with BNI and
2024 development of a BRI, are state-owned banks with the obligations or commitments exceeding of cooperation in the management
Central Counterparty for BNI and BRI same majority ownership, namely 0.5% of the company's paid-up capital or of these SOE assets still requires further
Over-the-Counter Interest the Government of Indonesia, Rp5,000,000,000. Therefore, the Company identification, study, and analysis by
Rate and Exchange Rate through the Ministry of State-Owned is not required to follow the procedures each SOE.
Derivative Transactions Enterprises.
stipulated in Article 3 and Article 4,
(CCP SBNT)
Paragraph (1) of POJK 42/2020. • Compliance with Relevant Regulations
2 28 August Signing of the Heads Bank Mandiri n.a Bank Mandiri with 19 other SOEs, are The transaction complies with Article 6,
2024 of Agreement (HoA) state-owned enterprises with the 2) The signing of a Preliminary Agreement/Heads Paragraph (1), Letter c of POJK 42/2020,
regarding the plan to 19 (nineteen) same majority ownership, namely of Agreement (“HoA”) regarding the plan as the signing of the HoA requires further
explore the management other SOEs the Government of Indonesia, to explore the management or optimization discussion among the parties and is not
or optimization of state- through the Ministry of State-Owned
owned enterprise (BUMN) Enterprises.
of State-Owned Enterprise (SOE) assets in intended to be a binding agreement
assets. collaboration with 19 (nineteen) other SOEs. (non-binding) nor does it create
responsibilities, rights, or obligations/
Explanation of Date and Object of Transaction commitments for any party to engage
Explanation: • Considerations and Reasons for On 28 August 2024, Bank Mandiri signed in a specific transaction of a certain
Conducting the Affiliated Transaction a Heads of Agreement (HoA) regarding value. Therefore, the signing of the HoA is
1) The signing of a Memorandum of The signing of the MoU is part of the plan to explore the management or valued at Rp0 or does not exceed 0.5% of
Understanding (“MoU”) regarding the Indonesia's commitment to supporting optimization of state-owned enterprise (SOEs) the company’s paid-up capital and does
planned collaboration for the development of the G20 OTC Derivative Market Reforms. assets together with 19 other SOEs. not exceed Rp5,000,000,000. As a result,
a Central Counterparty for Over-the-Counter The establishment of CCP SBNT is the Company is not required to follow
Interest Rate and Exchange Rate Derivative expected to help address segmentation • Nature of Affiliated Relationship the procedures outlined in Article 3 and
Transactions (“CCP SBNT”). and fragmentation in the money and The Company with the 19 SOEs, has an Article 4, Paragraph (1) of POJK 42/2020.
foreign exchange markets in Indonesia affiliated relationship, as all 20 companies
Explanation of Date and Object of Transaction by mitigating counterparty credit risk and involved in the HoA are majority-owned
On 18 Mxarch 2024, Bank Mandiri signed promoting more efficient transaction by the Government of Indonesia through In addition to the aforementioned Affiliated
a Memorandum of Understanding (MoU) settlements. the Ministry of State-Owned Enterprises. Transactions, there are affiliated transactions that
regarding the planned collaboration for the As a result, all entities fall under the same meet the criteria of Article 8 of POJK 42/2020,
development of a Central Counterparty Additionally, the initiative aims to controlling shareholder. including affiliated transactions involving financial
for Over-the-Counter Interest Rate and accelerate the development of instruments such as Securities, Money Market
Exchange Rate Derivative Transactions (CCP CCP SBNT as a key financial market • Considerations and Reasons for transactions, and Repurchase Agreement/
SBNT) together with two other state-owned infrastructure with systemic importance. Conducting the Affiliated Transaction Reverse Repurchase Agreement transactions with
banks, BNI and BRI. To ensure the sustainability of CCP SBNT, The signing of the HoA was carried out several affiliated companies and other SOEs. The
the participation and role of banks as to assess the plan for optimizing SOE affiliated parties are presented in the following
• Nature of Affiliated Relationship both shareholders and clearing members assets, particularly those located within table:
The Company with BNI and BRI, has an are essential. Ring 1 or the Medan Merdeka area in
affiliated relationship, as the majority
shares of all three companies are owned The implementation of CCP SBNT
by the Government of Indonesia through has previously been regulated under
the Ministry of State-Owned Enterprises. Bank Indonesia Regulation No. 21/11/
As a result, all three entities are under the PBI/2019 on the Operation of a Central
same controlling shareholder. Counterparty for Over-the-Counter
Interest Rate and Exchange Rate
Derivative Transactions.
PT BANK MANDIRI (PERSERO) TBK 450 451 ANNUAL REPORT 2024
Page 93
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST INFORMATION ON MATERIAL TRANSACTIONS WITH CONFLICTS OF INTEREST
AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES AND/OR TRANSACTIONS WITH AFFILIATED/RELATED PARTIES
Transaction Objects Affiliated Parties Nature of Affiliated Relations
Transaction Value STATEMENT BY THE BOARD The Board of Commissioners of Bank Mandiri
(IDR)
Securities PT BANK SYARIAH
OF DIRECTORS REGARDING assumes full responsibility for the accuracy of all
Transactions INDONESIA TBK
Bank Mandiri Subsidiary 16,449,256,400,000 ADEQUATE PROCEDURES FOR information related to this affiliated transaction. In
compliance with Article 10(i) of POJK No. 42/2020,
Securities
SOE Subsidiaries (directly or indirectly AFFILIATED TRANSACTIONS the Board of Commissioners confirms that, after
Transactions
PT BAHANA SEKURITAS controlled by the Government of the
Republic of Indonesia)
11,437,337,000,000
(ARMS-LENGTH PRINCIPLE) conducting sufficient examination and to the best
of its knowledge and belief, this transaction does
PT BANK RAKYAT
Securities
INDONESIA (PERSERO)
SOEs (directly or indirectly controlled by the
11,285,469,410,000
The Board of Directors of Bank Mandiri affirms not involve any conflict of interest. Furthermore,
Transactions Government of the Republic of Indonesia) that, in accordance with Article 3 of POJK all information disclosed in this announcement is
TBK
Securities No. 42/2020, the Affiliated Transaction has accurate, with no material or relevant information
BANK MANDIRI TASPEN Bank Mandiri Subsidiary 7,381,463,000,000 undergone adequate procedures to ensure that omitted that could render the provided
Transactions
PT BANK NEGARA it is conducted in accordance with prevailing information false or misleading.
Securities SOEs (directly or indirectly controlled by the general business practices and adheres to the
INDONESIA (PERSERO) 5,594,600,000,000
Transactions Government of the Republic of Indonesia)
TBK arm’s-length principle. Further information regarding the affiliated
Securities PT BANK TABUNGAN SOEs (directly or indirectly controlled by the transaction of Mandiri Inhealth share divestment
4,495,063,745,000
Transactions NEGARA (PERSERO) TBK Government of the Republic of Indonesia) The Board of Directors of Bank Mandiri takes full can also be found in the Audited Financial
Securities DANA PENSIUN BANK responsibility for the accuracy of all information Statements, Note No. 1g, as attached in this
Related Parties of Bank Mandiri 877,866,000,000
Transactions MANDIRI related to these affiliated transactions, as has Annual Report.
Securities BANK MANDIRI been thoroughly explained. In accordance
Bank Mandiri Subsidiary 298,585,000,000
Transactions (EUROPE) LTD. LONDON with the provisions of Article 10 letter (i) of POJK The affiliated transaction of Mandiri Inhealth
Securities DANA PENSIUN BANK
Related Parties of Bank Mandiri 57,000,000,000
No. 42/2020, the Board of Directors of Bank divestment, along with other affiliated transactions
Transactions MANDIRI DUA Mandiri affirms that, after conducting adequate previously mentioned, does not fall under the
Money Market
PT BANK NEGARA
SOEs (directly or indirectly controlled by the examination and to the best of their knowledge category of significant transactions as stipulated
INDONESIA (PERSERO) 5,827,195,000,000 and belief, these transactions do not involve any in Article 3, Paragraph 2 of POJK No. 17/2020, and
Transactions Government of the Republic of Indonesia)
TBK
Conflict of Interest. Furthermore, all information therefore does not require shareholder approval
Money Market disclosed in this announcement is accurate, through a General Meeting of Shareholders
BANK MANDIRI TASPEN Bank Mandiri Subsidiary 4,150,000,000,000
Transactions
and there are no other material and relevant (GMS).
Money Market BANK MANDIRI
Bank Mandiri Subsidiary 2,798,477,000,000 undisclosed details that would render the
Transactions (EUROPE) LTD. LONDON
information in this announcement incorrect and/ The Board of Directors and Board of Commissioners
Money Market PT BANK TABUNGAN SOEs (directly or indirectly controlled by the
1,375,000,000,000 or misleading. of Bank Mandiri take full responsibility for the
Transactions NEGARA (PERSERO) TBK Government of the Republic of Indonesia)
accuracy of all information related to this affiliated
PT BANK RAKYAT
Money Market SOEs (directly or indirectly controlled by the transaction. In accordance with Article 10, letter
INDONESIA (PERSERO) 1,114,150,000,000
Transactions
TBK
Government of the Republic of Indonesia) ROLE OF THE BOARD OF (i) of POJK No. 42/2020, the Board of Directors
Repurchase COMMISSIONERS AND AUDIT and Board of Commissioners of Bank Mandiri
Agreement/
Reverse Repurchase
PT BANK NEGARA
INDONESIA (PERSERO)
SOEs (directly or indirectly controlled by the
71,225,000,000,000
COMMITTEE IN ENSURING affirm that, after conducting due examination
and to the best of their knowledge and belief, this
Agreement TBK
Government of the Republic of Indonesia)
ADEQUATE PROCEDURES transaction does not contain a Conflict of Interest.
Transactions
(ARMS-LENGTH PRINCIPLE)
Repurchase
Agreement/ PT BANK RAKYAT
SOEs (directly or indirectly controlled by the The Board of Commissioners of Bank Mandiri affirms
Reverse Repurchase INDONESIA (PERSERO) 50,250,000,000,000
Government of the Republic of Indonesia) that, in accordance with Article 3 of POJK No.
Agreement TBK
Transactions 42/2020, the Affiliated Transaction has undergone
Repurchase adequate procedures to ensure it is conducted in
Agreement/ line with prevailing general business practices and
PT BANK TABUNGAN SOEs (directly or indirectly controlled by the
Reverse Repurchase 3,455,000,000,000 adheres to the arm’s-length principle.
NEGARA (PERSERO) TBK Government of the Republic of Indonesia)
Agreement
Transactions
Repurchase
Agreement/
Reverse Repurchase BANK MANDIRI TASPEN Bank Mandiri Subsidiary 200,000,000,000
Agreement
Transactions
PT BANK MANDIRI (PERSERO) TBK 452 453 ANNUAL REPORT 2024
Page 94
MANAGEMENT DISCUSSION AND ANALYSIS
TRANSACTIONS REVIEW OF MECHANISM POLICY ON
TRANSACTIONS AND COMPLIANCE
WITH RELATED PARTIES WITH RELATED RULES AND REGULATIONS
In the course of its normal business operations, Bank Mandiri engages in significant transactions with
related parties, as follows:
• Related party relationship as the majority shareholder Bank Mandiri has internal policies related to transactions involving conflicts of interest and/or transactions
The Government of the Republic of Indonesia through the Ministry. with affiliated and related parties. In lending transactions that involve affiliated or related parties, such
• Related party relationship due to ownership and/or management transactions must receive approval from the Board of Commissioners.
The nature of transactions with related parties includes equity participation, loans granted and
receivables/Islamic financing, customer deposits, bank guarantees, issued securities, borrowings, and The policy for providing funds to related parties must not violate the general procedures for fund provision
subordinated securities. and must offer fair benefits to Bank Mandiri. Additionally, such provisions must be approved by the Board
of Commissioners.
No. Related Parties Nature of Relationships
1 Bank Mandiri Pension Fund Bank Mandiri as founder
2 Bank Mandiri Pension Fund 1 Bank Mandiri as founder
3 Bank Mandiri Pension Fund 2 Bank Mandiri as founder
4 Bank Mandiri Pension Fund 3 Bank Mandiri as founder
LOAN POLICY FOR THE BOARD OF
5 Bank Mandiri Pension Fund 4 Bank Mandiri as founder
6 PT Bumi Daya Plaza Controlled by Bank Mandiri Pension Fund (since 19 December 2013)
COMMISSIONERS AND DIRECTORS
7 PT Pengelola Investama Mandiri Controlled by Bank Mandiri Pension Fund (since 19 December 2013)
8 PT Usaha Gedung Mandiri Controlled by Bank Mandiri Pension Fund (since 19 December 2013)
9 PT Estika Daya Mandiri Controlled by Bank Mandiri Pension Fund 1
PT Asuransi Staco Mandiri (formerly PT
10 Controlled by Bank Mandiri Pension Fund 2
Asuransi Staco Jasapratama)
11 PT Mulia Sasmita Bhakti Controlled by Bank Mandiri Pension Fund 3
12 PT Krida Upaya Tunggal Controlled by Bank Mandiri Pension Fund 4
Bank Mandiri has internal provisions governing loans to the Board of Commissioners and Directors, adhering
13 PT Wahana Optima Permai Controlled by Bank Mandiri Pension Fund 4
to prudential principles through the generally accepted lending process applied to other debtors.
Bank Mandiri Employee and Pension
14 Significantly influenced by Bank Mandiri
Health Cooperative (Mandiri Healthcare)
Loans Exceeding the Legal Lending Limit Violation of Legal Lending Limit
Description
(Rp Million) (LLL) (LLL)
• Related Parties with Government Entities Further details on related parties with
Board of Commissioners 529 Nil Nil
The nature of transactions with related government entities can be found in the
government entities includes current accounts audited financial statements, Note No. 56, as Board of Directors 126,177 Nil Nil
with other banks, placements with other banks, attached in this Annual Report.
securities, government bonds, other receivables
from trading transactions, receivables • Management relationship or key employees of
from securities purchased under resale Bank Mandiri
agreements, derivative receivables, loans Salaries and benefits, bonuses and tantiem,
granted and receivables/Islamic financing, long-term compensation for the Board of
consumer financing receivables, acceptance Commissioners, Board of Directors, Audit
receivables, equity participation, customer Committee, Risk Oversight Committee, Sharia
deposits, deposits from other banks, derivative Supervisory Board, as well as Senior Executive
liabilities, acceptance liabilities, issued Vice Presidents and Senior Vice Presidents
securities, borrowings received, subordinated (Note 49 in the Audited Consolidated Financial
loans and securities, temporary syirkah funds, Statements) for the years ended 31 December
unused credit facilities, outstanding irrevocable 2024 and 2023, amounted to Rp2.71 trillion and
letters of credit, and guarantees provided Rp2.03 trillion, respectively, or 4.62% and 3.77%
in the form of bank guarantees and standby of total consolidated other operating expenses.
letters of credit.
• Realization of Related Party Transactions
In conducting its business activities, the Group The details of transaction balances with related
also engages in transactions for the purchase parties as of 31 December 2024, and 2023,
or use of services, such as telecommunications are further explained in Note No. 56 of the
expenses, electricity costs, and other expenses, Audited Consolidated Financial Statements, as
with related government entities. attached in this Annual Report.
PT BANK MANDIRI (PERSERO) TBK 454 455 ANNUAL REPORT 2024
Page 95
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
A SIGNIFICANT IMPACT ON
THE COMPANY
Changes in Laws and Regulations and Its Impact on the Bank
The following are changes in laws and regulations that affected the Bank, including their impacts and the
adjustments made by Bank Mandiri in response to these changes during 2024:
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
1. Regulation of the Financial This POJK came into effect on the date of enactment, 8 November 2024. The issuance of the POJK on Amendments to POJK Number 50/POJK.03/2017 • Bank Mandiri remains obligated to
Services Authority of the Republic concerning the Obligation to Fulfill the Net Stable Funding Ratio (NSFR) for comply with the calculation and
of Indonesia Number 20 of 2024 This regulation governs, among other things, the scope of banks required to report Commercial Banks (POJK NSFR) was motivated by updates to the standards of reporting requirements for NSFR as
Concerning Amendments to NSFR, adjustments to the scope of Allowance for Impairment Losses (CKPN), and the Basel Committee on Banking Supervision (BCBS) as well as updates to financial stipulated in this POJK.
the Financial Services Authority reporting procedures. accounting standards, necessitating adjustments to the applicable NSFR regulations.
Regulation Number 50/ • Bank Mandiri is required to publish
POJK.03/2017 on the Obligation to The obligation for reporting and publishing NSFR for banks categorized as Tier 1 banks, The legal basis for this POJK is Law No. 7 of 1992 as amended several times, most NSFR reports both on an individual
Fulfill the Net Stable Funding Ratio excluding foreign banks, must be implemented for the first time for the position at the recently by Law No. 4 of 2023; Law No. 21 of 2011 as amended by Law No. 4 of 2023; and consolidated basis.
(NSFR) for Commercial Banks end of December 2024, both on an individual and consolidated basis. and POJK No. 50/POJK.03/2017.
Adjustments have been made to the group of banks required to monitor, calculate, There is an expansion of the scope of obligations for monitoring, calculating, and
and report NSFR. Previously, this obligation was limited to BUKs (Commercial Banks) in reporting NSFR to apply to all Commercial Banks (BUKs), whereas previously, BUKs
Tier 3, 4, and 5, excluding foreign banks. It now applies to all Commercial Banks (BUKs), categorized as Tier 1 banks, excluding foreign banks, were not included in the NSFR
including branches of banks domiciled overseas. regulatory scope. This expansion was implemented considering that maintaining
the NSFR ratio is aimed at supporting the strengthening of banking liquidity, requiring
data that is consistent, reliable, and comparable across all BUKs.
2. Regulation of the Financial This POJK came into effect on the date of enactment, November 8, 2024. The issuance of the POJK on Amendments to POJK Number 42/POJK.03/2015 • Bank Mandiri needs to adjust
Services Authority of the Republic concerning the Obligation to Fulfill the Liquidity Coverage Ratio (LCR) for Commercial the components of the LCR
of Indonesia Number 19 of The POJK applies to all Commercial Banks (BUKs), including branch offices of banks Banks (POJK LCR) was motivated by updates to the standards of the Basel calculation.
2024 concerning Amendments domiciled overseas. Committee on Banking Supervision (BCBS), including tools for monitoring liquidity risk
to the Financial Services and additional clarifications on LCR components. In line with the OJK Destination • Bank Mandiri is required to conduct
Authority Regulation Number 42/ This regulation governs, among others, the scope of banks required to report Statement 2022–2027, aimed at strengthening prudential regulations aligned with ILAAP to ensure the bank has
POJK.03/2015 on the Obligation to the Liquidity Coverage Ratio (LCR), criteria for High-Quality Liquid Assets (HQLA), international standards while considering national interests, adjustments to the adequate liquidity.
Fulfill the Liquidity Coverage Ratio obligations related to the Internal Liquidity Adequacy Assessment Process (ILAAP), applicable LCR provisions were deemed necessary.
(LCR) for Commercial Banks and reporting procedures. • Bank Mandiri needs to adjust its
The legal basis for this POJK includes Law No. 7 of 1992, as amended several times, internal regulations governing the
The obligation for daily LCR calculations for banks categorized as Tier 1 banks, most recently by Law No. 4 of 2023; Law No. 21 of 2011, as amended by Law No. 4 of calculation of LCR in accordance
excluding foreign banks, must be implemented starting from 1 December 2024. 2023; and POJK No. 42/POJK.03/2015. with the provisions of this POJK.
Meanwhile, the obligation for report submission and publication for these banks must
be implemented for the position as of the end of December 2024. There is an expansion of the scope of obligations for monitoring, calculating, and
reporting LCR to apply to all Commercial Banks (BUKs), whereas previously, BUKs
An additional obligation requires banks to conduct ILAAP to monitor liquidity and categorized as Tier 1 banks, excluding foreign banks, were not included in the LCR
ensure the bank maintains adequate liquidity under various market conditions and regulatory scope. This expansion was implemented because maintaining the LCR
periods of stress that the bank may face. ratio aims to support the strengthening of banking liquidity, requiring data that is
consistent, reliable, and comparable across all BUKs.
PT BANK MANDIRI (PERSERO) TBK 456 457 ANNUAL REPORT 2024
Page 96
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
3. Regulation of the Financial This POJK came into effect on its enactment date, 9 October 2024. The integrity of financial information and financial reports is a primary aspect that • Develop policies and procedures
Services Authority of the Republic must be ensured to maintain the trust of regulators and the public in the banking for internal controls in the Bank's
of Indonesia Number 15 of 2024 The POJK applies to Conventional Commercial Banks, Sharia Commercial Banks, industry, as well as to support decision-making by market participants and the financial reporting process.
concerning the Integrity of Bank Branch Offices of Banks Domiciled Overseas, Rural Banks, and Sharia Rural Banks. public. To achieve financial information and reports with integrity, it is necessary to
Financial Reporting strengthen the implementation of governance and internal controls in the bank's • Establish a dedicated work unit
The preparation, determination, and implementation of internal control policies and financial reporting process. responsible for preventing fraud
procedures in the bank's financial reporting process must be completed no later than or manipulation in the financial
three (3) months after the enactment of this POJK. This POJK aims to prevent fraudulent practices and maintain public confidence in information and/or financial reports
financial reports, accelerate the detection and resolution of bank issues by the OJK, of Commercial Banks.
The establishment of a dedicated work unit or the appointment of an executive strengthen data input for the OJK's supervisory processes, and clarify sanctions in the
officer responsible for preventing fraud or manipulation in financial information and/or event of fraud in financial reporting. • Submit the Internal Control Report
financial reports must be completed no later than six (6) months after the enactment in the Bank's financial reporting
process as part of the Financial
of this POJK. The legal basis for this POJK includes Law No. 7 of 1992, as amended several times,
Publication Report and Annual
most recently by Law No. 4 of 2023; Law No. 21 of 2008, as amended by Law No. 4 of
Financial Performance Information.
For Commercial Banks, internal control reports in the bank's financial reporting process 2023; and Law No. 21 of 2011, as amended by Law No. 4 of 2023.
must be submitted as part of the financial publication report and annual financial
performance information in accordance with the Financial Services Authority
Regulation on transparency and publication of bank reports.
4. Regulation of the Financial This POJK came into effect on its enactment date, 12 August 2024. To implement the mandate of Article 8A of Law Number 7 of 1992 concerning • Bank Mandiri adjusts the
Services Authority Number 13 of Banking, as amended several times, most recently by Law Number 4 of 2023 on the components of the SBDK
2024 concerning Transparency The regulation applies to all conventional commercial banks, including branch offices Development and Strengthening of the Financial Sector, it is necessary to apply the Publication Report and the
and Publication of Prime of banks domiciled overseas. Financial Services Authority Regulation on Transparency and Publication of Prime Detailed SBDK Report in
Lending Rates for Conventional Lending Rates for Conventional Commercial Banks. accordance with the latest POJK.
Commercial Banks (POJK SBDK Banks are required to:
BUK) a. Announce the latest Prime Lending Rate (SBDK) Publication Report on the bank’s The legal basis for this POJK is: Law No. 7 of 1992, as amended several times, most • Bank Mandiri needs to make
website and in each bank office whenever there is a change, effective 1 October recently by Law No. 4 of 2023; and Law No. 21 of 2011, as amended by Law No. 4 of adjustments to its internal
2024. 2023. regulations governing the SBDK
b. Submit the Detailed SBDK Report to the OJK on a monthly basis, with the first report Report.
due no later than 7 November 2024.
c. For banks with digital channels and/or other electronic media, announce the latest
SBDK Publication Report through these media.
d. Maintain the announcement of the SBDK Publication Report on the website for at
least the last five (5) years.
PT BANK MANDIRI (PERSERO) TBK 458 459 ANNUAL REPORT 2024
Page 97
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
5. Regulation of the Financial This POJK applies to all Financial Services Institutions (LJK). The increasing complexity of business activities within financial services institutions Bank Mandiri has established Anti-
Services Authority of the Republic (LJK) has led to heightened risk exposure for LJKs to potential fraud. The risk of Fraud Strategy guidelines and adheres
of Indonesia Number 12 of 2024 The POJK was enacted on 31 July 2024, and comes into effect three (3) months from fraud is significant because it can result in losses to the financial services industry, to the regulations by implementing:
concerning the Implementation the date of enactment. the government, and society. To minimize the occurrence of fraud, it is necessary • Adjustments to internal provisions
of Anti-Fraud Strategies for to strengthen the internal control systems of LJKs, which also supports the related to the Anti-Fraud Strategy.
Financial Services Institutions This POJK regulates, among others: implementation of risk management within LJKs. Currently, anti-fraud strategies are • Submission of reports related to the
(POJK SAF LJK) a. The types of actions categorized as fraud, including corruption, asset already in place within the commercial banking industry, the insurance industry, and Anti-Fraud Strategy.
misappropriation, financial statement fraud, deceit, disclosure of confidential the financing company industry through regulations issued by the OJK, although
information, and/or other actions equivalent to fraud as defined by laws and there are differences in the complexity of the standards regulated. Therefore, the
regulations. provisions on the implementation of anti-fraud strategies for commercial banks,
b. The scope of involved parties, including Financial Services Institutions (LJK) and insurance companies, and financing companies need to be refined into a single
controlled organizations, consumers, and other parties collaborating with LJK Financial Services Authority Regulation on the implementation of anti-fraud strategies
(including the private sector). for LJKs to ensure applicability across all financial service sectors in Indonesia.
c. The obligation to conduct education, competency development, and/or
socialization on the implementation of the Anti-Fraud Strategy for internal and The legal basis for this POJK is:
external parties at least once a year. Law No. 7 of 1992, as amended several times, most recently by Law No. 4 of 2023; Law
d. The addition of qualifications for heads of work units or officials overseeing the Anti-
No. 25 of 1992, as amended by Law No. 4 of 2023; Law No. 8 of 1995, as amended by
Fraud Strategy function, requiring experience in anti-fraud practices.
Law No. 4 of 2023; Law No. 40 of 2004, as amended by Law No. 4 of 2023; Law No. 21
e. Adjustments to the submission of the Anti-Fraud Strategy, reports or corrections to
of 2008, as amended by Law No. 4 of 2023; Law No. 2 of 2009, as amended by Law No.
the Anti-Fraud Strategy Implementation Report, and reports on significant fraud
4 of 2023; Law No. 21 of 2011, as amended by Law No. 4 of 2023; Law No. 24 of 2011, as
incidents based on the type of Financial Services Institution.
amended by Law No. 6 of 2023; Law No. 1 of 2013, as amended by Law No. 4 of 2023;
Law No. 40 of 2014, as amended by Law No. 4 of 2023; Law No. 1 of 2016, as amended
by Law No. 4 of 2023; Law No. 4 of 2016, as amended by Law No. 4 of 2023; and Law
No. 4 of 2023.
6. Regulation of the Financial This POJK came into effect on its enactment date, 27 March 2024. With the enactment of Law Number 4 of 2023 on the Development and Strengthening Bank Mandiri has established
Services Authority Number of the Financial Sector, it is necessary to align and update the provisions related regulations governing the calculation
5 of 2024 concerning the The regulation applies to Conventional Commercial Banks, Islamic Commercial Banks, to the determination of supervision status and resolution of bank issues currently in of the Capital Surcharge and the
Determination of Supervision and Branch Offices of Banks Domiciled Overseas. effect. This alignment is achieved by formulating a single Financial Services Authority Recovery Action Plan.
Status and Resolution of Issues in Regulation (POJK), namely the POJK on the Determination of Supervision Status
Commercial Banks POJK Number 11/POJK.03/2016 concerning the Minimum Capital Requirement for and Resolution of Issues in Commercial Banks. This POJK covers four main regulatory
Commercial Banks, as amended several times, most recently by POJK Number 27 of topics: the determination of systemically important banks and capital surcharge,
2022 concerning the Second Amendment to POJK Number 11/POJK.03/2016, remains in recovery action plans, determination of bank supervision status and follow-up
effect as long as it does not conflict with the provisions of this POJK. actions, and bridge banks.
This POJK regulates, among others: This POJK aims to achieve a robust financial system stability through the development
a. The OJK establishes a Capital Surcharge in five (5) buckets, as follows: and strengthening of the financial sector in Indonesia to support sustainable
1. 1.0% of risk-weighted assets for Systemically Important Banks (SIBs) classified and contributive economic growth, with regulatory aspects that enhance bank
in bucket 1. supervision and follow-up actions, address bank issues, and improve inter-agency
2. 1.5% of risk-weighted assets for SIBs classified in bucket 2. coordination in accordance with their respective authorities.
3. 2.0% of risk-weighted assets for SIBs classified in bucket 3.
4. 2.5% of risk-weighted assets for SIBs classified in bucket 4. The legal basis for this POJK is Law No. 7 of 1992, as amended several times, most
5. 3.5% of risk-weighted assets for SIBs classified in bucket 5. recently by Law No. 4 of 2023; Law No. 21 of 2008, as amended by Law No. 4 of 2023;
b. Banks designated as Systemically Important Banks (SIBs) that are unable to meet Law No. 21 of 2011, as amended by Law No. 4 of 2023; Law No. 9 of 2016, as amended
the Capital Surcharge requirement must submit a Capital Surcharge Fulfillment by Law No. 4 of 2023; and Law No. 4 of 2023.
Plan to the OJK no later than 14 (fourteen) working days.
c. Banks are required to prepare and submit a Recovery Action Plan to the OJK and
must obtain shareholder approval in the General Meeting of Shareholders (GMS).
d. d. Bank supervision status consists of Banks under normal supervision, Banks under
recovery, and Banks under resolution.
PT BANK MANDIRI (PERSERO) TBK 460 461 ANNUAL REPORT 2024
Page 98
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
7. Circular Letter of the Financial This SEOJK came into effect on its enactment date, 24 October 2024. The Circular Letter on the Preparation and Submission of Financial Literacy and Bank Mandiri has adjusted the report
Services Authority Number 13/ Inclusion Plan and Realization Reports was drafted to fulfill the mandate of Article components in the Financial Literacy &
SEOJK.08/2024 concerning the Upon the enactment of this SEOJK: 13, paragraph (6) of POJK Number 22 of 2023 concerning Consumer and Community Inclusion Plan Report and the Financial
Preparation and Submission of a. SEOJK Number 1/SEOJK.07/2014 concerning the Implementation of Education to Protection in the Financial Services Sector. This SEOJK provides guidelines for Financial Literacy & Inclusion Realization Report
Financial Literacy and Financial Improve Financial Literacy for Consumers and/or the Public; Services Business Actors (PUJK) regarding the format and guidelines for preparing in accordance with this SEOJK.
Inclusion Plan and Realization b. SEOJK Number 30/SEOJK.07/2017 concerning the Implementation of Activities to plan and realization reports aimed at improving financial literacy and inclusion.
Reports Improve Financial Literacy in the Financial Services Sector; and
c. SEOJK Number 31/SEOJK.07/2017 concerning the Implementation of Activities The legal basis for this SEOJK is POJK Number 3 of 2023 and POJK Number 22 of 2023.
to Improve Financial Inclusion in the Financial Services Sector are repealed and
declared no longer in effect. This SEOJK regulates the preparation and submission of financial literacy and inclusion
plan and realization reports, including:
Subsequently, Financial Services Institutions (PUJK) shall submit financial literacy and a. the format and preparation of financial literacy and inclusion reports;
financial inclusion plan and realization reports in accordance with the formats and b. the submission of financial literacy and inclusion reports;
guidelines provided in the annex, which forms an integral part of this SEOJK. c. the party responsible for the reports;
d. the procedure for report submission; and
This POJK regulates, among others: e. the submission of exemption requests for activities aimed at improving financial
a. Adjustments to the components of the Financial Literacy Plan Report, literacy and inclusion.
including activity name, activity category, activity objective, activity scope,
implementation format, implementation method, materials, target audience
and/or number of participants, schedule, region, frequency of implementation,
source and amount of funding, cooperation/collaboration in implementation,
activity initiator, activity indicators, and evaluation format.
b. Adjustments to the components of the Financial Inclusion Plan Report,
including activity name, activity category, activity objective, activity
scope, implementation format, activity target, number of target consumers,
schedule, region, frequency of implementation, cooperation/collaboration in
implementation, evaluation indicators, and evaluation format.
c. Adjustments to the components of the Financial Literacy Realization Report,
including activity name, activity category, activity objective, activity scope,
implementation format, implementation method, materials, target audience
and/or number of participants, schedule, region, frequency of implementation,
source and amount of funding, cooperation/ collaboration in implementation,
activity initiator, activity indicators, evaluation format, evaluation results, and
documentation.
d. Adjustments to the components of the Financial Inclusion Realization
Report, including activity name, activity category, activity objective, activity
scope, implementation format, activity target, number of target consumers,
schedule, region, frequency of implementation, cooperation/collaboration in
implementation, evaluation indicators, evaluation format, evaluation results, and
documentation.
e. Financial Literacy & Inclusion Plan Reports must be submitted annually no later
than November 30 of the year preceding the implementation year.
f. Financial Literacy & Inclusion Realization Reports must be submitted
semiannually, on July 31 of the current year and January 31 of the following year.
PT BANK MANDIRI (PERSERO) TBK 462 463 ANNUAL REPORT 2024
Page 99
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
8. Law of the Republic of Indonesia This law came into effect on its enactment date, 2 January 2024. To maintain a digital space in Indonesia that is clean, healthy, ethical, productive, Bank Mandiri will adjust its internal
Number 1 of 2024 concerning and fair, it is necessary to regulate the utilization of Information Technology and policies and procedures in
the Second Amendment to Law This law regulates, among other things: Electronic Transactions to provide legal certainty, fairness, and protection of accordance with the latest Electronic
Number 11 of 2008 on Electronic a. Electronic Certification Providers may offer services including but not limited to: public interests from all types of disruptions resulting from the misuse of Electronic Information and Transactions (ITE) Law.
Information and Transactions 1. Electronic signatures; Information, Electronic Documents, Information Technology, and/or Electronic
2. Electronic seals; Transactions that disturb public order.
3. Electronic time stamps;
4. Registered electronic delivery services;
5. Website authentication;
6. Preservation of electronic signatures and/or electronic seals;
7. Digital identities; and/or
8. Other services utilizing electronic certificates.
b. Electronic System Providers are required to provide protection for children
regarding the use of products, services, and features developed and provided by
the Electronic System Providers.
c. In providing child protection, Electronic System Providers must offer:
1. Information about the minimum age restrictions for children to use their
products or services;
2. Mechanisms for verifying child users; and
3. Mechanisms for reporting misuse of products, services, and features that
violate or potentially violate children's rights.
9. Regulation of the Financial This POJK came into effect on its enactment date, 19 February 2024. To implement Law Number 4 of 2023 on the Development and Strengthening of the Bank Mandiri needs to develop a
Services Authority Number Financial Sector and to address inconsistencies in POJK Number 13/POJK.02/2018 strategy to accommodate the use of
3 of 2024 concerning the This regulation governs, among others: on Digital Financial Innovation in the Financial Services Sector, amendments were OJK's regulatory sandbox, ensuring the
Implementation of Financial a. ITSK operators must comply with licensing requirements stipulated by the Financial deemed necessary. Bank complies with the requirement
Sector Technology Innovation Services Authority (OJK). to participate in and submit reports to
(ITSK) b. Prospective participants intending to join the Sandbox must submit an application OJK regarding sandbox utilization.
to OJK, accompanied by an application form, testing plan, and supporting
documents.
c. Participants are required to conduct trials and develop innovations according to
the testing plan and submit periodic reports on the trial implementation results.
d. The trial period must be conducted within a maximum of one (1) year from the
date of approval, and a final trial implementation report must be submitted no
later than 20 (twenty) working days before the end of the trial period.
e. Participants who pass the Sandbox must apply for a business license from OJK
within the validity period of the Sandbox completion letter, which is six (6) months,
and this period may be extended based on OJK's consideration.
f. ITSK operators who have registered and/or obtained a business license are required
to conduct self-evaluations.
g. ITSK operators who have registered and/or obtained a business license are required
to submit periodic reports (monthly and annual reports) and incidental reports to
OJK.
PT BANK MANDIRI (PERSERO) TBK 464 465 ANNUAL REPORT 2024
Page 100
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
10. Regulation of the Financial This POJK came into effect on its enactment date, 28 August 2024. The issuance of this POJK aims to improve the quality of information disclosure by Bank Mandiri has submitted share
Services Authority Number 4 certain shareholders and the supervision of share ownership reports, align with ownership reports in accordance
of 2024 concerning Reports on This regulation governs, among others: international standards/comparative studies from other countries, and expand the with applicable regulations and has
Ownership or Any Changes in a. voting rights, directly or indirectly, are required to report their share ownership and regulatory scope to include other types of transactions conducted by shareholders established provisions governing this
Ownership of Shares of Public any changes to the Financial Services Authority (OJK) no later than five (5) working of Public Companies, such as activities involving the pledging of shares. matter. These provisions need to be
Companies and Reports on days from the acquisition of voting rights or any changes to them. adjusted to align with the prevailing
Activities of Pledging Shares of b. In addition to members of the Board of Directors or Board of Commissioners, the regulations.
Public Companies following parties are required to report to OJK:
1. Any party holding at least 5% (five percent) of voting shares.
2. Parties who are controllers of the Public Company.
c. Shareholders who engage in activities of pledging shares of a Public Company
(PT) must report such activities to OJK if the pledged shares represent at least 5%
(five percent) of voting rights, and the report must be submitted no later than five
(5) working days after the agreement is signed.
11. Government Regulation Number This Government Regulation came into effect on its enactment date, 5 November • To enhance national economic resilience through the empowerment of MSMEs, Bank Mandiri has adjusted its internal
47 of 2024 concerning the Write- 2024. it is necessary to provide easier access to MSME financing. regulations governing the write-off of
Off of Non-Performing Loans receivables.
for Micro, Small, and Medium This regulation governs, among others: • To facilitate access to financing, the management of non-performing loans for
Enterprises (MSMEs) • The write-off of non-performing loans is carried out by Banks and/or non-Bank MSMEs must include write-offs, conditional write-offs of state receivables, and
financial institutions under the following conditions: absolute write-offs of receivables.
1. Non-performing loans have undergone restructuring efforts.
2. State-owned Banks and/or non-Bank financial institutions have made
optimal collection efforts, including restructuring, but the loans remain
uncollectible.
3. The write-off of non-performing loans does not eliminate the right of the Bank
and/or non-Bank financial institution to collect the debt.
• State-owned Banks and/or non-Bank financial institutions write off non-performing
loans that have been written off the books in the following cases:
1. MSME loans or financing under government programs funded by state-
owned Banks and/or non-Bank financial institutions, whose programs have
ended when this Government Regulation takes effect.
2. MSME loans or financing outside government programs funded by the
respective state-owned Banks and/or non-Bank financial institutions.
3. MSME loans or financing affected by natural disasters such as earthquakes,
liquefaction, or other natural disasters declared by the central government,
regional government, and/or authorized agencies.
• State-owned Banks and/or non-Bank financial institutions must submit reports on
the realization of non-performing loan write-offs to the minister responsible for
state-owned enterprises (SOEs).
• Conditional write-off of state receivables is applied to:
1. Revolving fund receivables declared to have been optimally managed and
categorized as PSBDT by PUPN or PPNTO.
2. Program credit receivables declared to have been optimally managed
with an official optimization certificate issued by the Program Credit
Administrator.
• Absolute write-off of state receivables is applied to revolving fund receivables
and program credit receivables that have undergone a write-off.
• Absolute write-offs must occur at least three (3) months after the decision on
conditional write-off is issued and no later than the expiration of this Government
Regulation.
PT BANK MANDIRI (PERSERO) TBK 466 467 ANNUAL REPORT 2024
Page 101
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
12 Regulation of the Members of This PADG came into effect on its enactment date, 30 September 2024. • To increase the use of local currencies in bilateral transactions, Bank Indonesia Bank Mandiri adjusts the regulatory
the Board of Governors Number and the Bank of Korea have collaborated to promote bilateral transactions reporting columns for LBUT and LLD
10 of 2024 concerning Bilateral This regulation governs, among othes: between Indonesia and South Korea using rupiah and won. reports by including transactions
Transactions Between Indonesia • The designation of Appointed Cross Currency Dealer (ACCD) Banks is based on related to bilateral transactions
and South Korea Using Rupiah considerations of: • To ensure the effective and structured implementation of the cooperation between the Rupiah and Won
and Won. a. Size; between Bank Indonesia and the Bank of Korea, implementing regulations currencies.
b. Interconnectedness; and are necessary as guidelines for banks and market participants in the financial
c. Complexity. market.
• Financial activities in Rupiah and Won bilateral transactions:
a. Opening a new SNA Rupiah account at an Indonesian ACCD Bank or
designating an existing account owned by a South Korean ACCD Bank at
an Indonesian ACCD Bank.
b. Opening a new SNA Won account at a South Korean ACCD Bank or
designating an existing account owned by an Indonesian ACCD Bank at a
South Korean ACCD Bank.
c. Opening a new Sub-SNA Won account at an Indonesian ACCD Bank or
designating an existing account owned by an Indonesian customer at an
Indonesian ACCD Bank to become a Sub-SNA Won account.
• Indonesian ACCD Banks may provide financing in won to Indonesian customers in
the form of trade financing.
• Financial transactions of Indonesian ACCD Banks include:
a. Domestic Non-Deliverable Forward transactions.
b. Won-to-Rupiah transactions, including:
1. Spot transactions;
2. Forward transactions;
3. Swap transactions;
4. Cross-currency swap transactions;
5. Domestic non-deliverable forward transactions; and/or other
transactions.
• Adjustments for won-to-rupiah transaction settlements:
a. Transaction extension;
b. Early settlement of transactions; and/or
c. Termination of transactions.
These may be conducted through:
a. Netting;
b. Without underlying transaction documents;
c. Up to the nominal value of the initial underlying transaction.
• Indonesian ACCD Banks must publish and display won-to-rupiah price quotations
through information platforms at least once per day, with quotations reflecting
fair and executable or tradable prices.
• Indonesian ACCD Banks are required to submit reports on the implementation of
Rupiah and Won bilateral transactions to Bank Indonesia through:
a. Integrated general bank reports;
b. Foreign exchange traffic reports; and other reports.
PT BANK MANDIRI (PERSERO) TBK 468 469 ANNUAL REPORT 2024
Page 102
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
13. Regulation of the Members of This PADG came into effect on its enactment date, 30 September 2024. To promote a modern and advanced foreign exchange market, it is necessary to • There is an obligation to submit
the Board of Governors Number establish regulations that consider global economic dynamics and the needs of reports on activities in the Foreign
11 of 2024 concerning Foreign This regulation governs, among others: market participants while adhering to prudential principles. Exchange Market to Bank
Exchange Market Transactions. a. Foreign exchange market participants conducting derivative transactions must Indonesia, including periodic
use financial contracts supported by written confirmation. reports and incidental reports.
b. Derivative transactions in the foreign exchange market may use smart contracts.
c. If a Bank uses smart contracts, it must first consult with Bank Indonesia. • Bank Mandiri needs to adjust its
d. The reference exchange rates for foreign exchange transactions are the Jakarta internal regulations governing
Interbank Spot Dollar Rate (JISDOR) and the Non-US/IDR Reference Rate. foreign exchange market
e. Banks may conduct foreign exchange transactions against the rupiah with non- transactions.
residents, such as overseas banks, using the underlying transactions held by the
customers of those banks for the purpose of cover hedging. • Prohibitions and limitations on
foreign exchange transactions.
f. Banks must ensure that foreign exchange transactions against the rupiah with a
nominal value exceeding a certain amount have an underlying transaction.
14. Regulation of the Members of the This PADG came into effect on its enactment date, 30 September 2024. A modern and advanced Money Market (PU) can be realized through Bank Mandiri needs to adjust its internal
Board of Governors Number 13 of comprehensive (end-to-end) regulation, development, and supervision of the regulations governing money market
2024 concerning Money Market This regulation governs, among others: Money Market, including the regulation, development, and supervision of products, transactions.
Transactions a. Money Market Products: reference prices (pricing), Money Market participants, and Money Market
• Money Market Instruments; and transactions. This ensures that the Money Market is well-organized and functions
• Financial contracts and/or written confirmations in the Money Market. effectively (well-functioning money market). Based on this, Bank Indonesia deems
b. Forms of Money Market: it necessary to issue a Regulation of the Members of the Board of Governors
• Promissory notes; concerning Money Market Transactions.
• Payment orders;
• Debt securities; and other forms.
c. Types of Instruments:
• Commercial Papers;
• Other Money Market Instruments.
d. Money Market Products may utilize smart contracts, provided that the smart
contract agreement is stored.
e. Money Market participants must use reference prices provided by Bank
Indonesia, such as IndONIA and/or other reference prices.
f. Types of Money Market Transactions:
• Trading of financial instruments in the Money Market;
• Lending and borrowing transactions other than credit;
• Repo (repurchase agreement) transactions;
• Interest rate derivative transactions;
• Other transactions based on Money Market characteristics as determined
by Bank Indonesia.
g. Settlement of Money Market Transactions can be conducted by:
• Full transfer of principal funds (gross); or
• Transfer of funds by calculating the net difference in obligations from the
transaction (netting).
h. Money Market Transactions may include:
• Transaction rollovers (extensions);
• Early terminations; or
• Transaction unwinds (final closures).
PT BANK MANDIRI (PERSERO) TBK 470 471 ANNUAL REPORT 2024
Page 103
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
15. Circular Letter of the Financial This SEOJK came into effect on its enactment date, 2 October 2024. • Industry needs, specifically the provision of more comprehensive debtor Bank Mandiri adjusts its internal
Services Authority Number 11/ information through the inclusion of risk coverage/management, guarantees, regulations in accordance with the
SEOJK.01/2024 concerning This regulation governs, among others: and peer-to-peer lending services (LPBBTI) offered by the insurance, guarantee, latest provisions.
Reporting and Requesting Debtor a. The expansion of mandatory SLIK (Financial Information Service System) reporting and LPBBTI industries, to improve the quality of risk management within the
Information Through the Financial to include insurance companies, Islamic insurance companies, guarantee industry.
Information Service System companies, Islamic guarantee companies, and peer-to-peer lending operators • Adding references by considering the development of applicable regulations.
(LPBBTI). • Accommodating guidelines previously regulated through the Chief Executive's
b. Debtor Reports must include information on: Circular Letter.
• Debtors;
• Financing facilities, risk coverage/management, guarantees, or LPBBTI
services, in both rupiah and foreign currency;
• Collateral;
• Guarantors;
• Managers and owners; and
• Debtors’ financial details.
c. Reporting entities that have had their business licenses revoked or are in
liquidation cannot update Debtor Reports in SLIK. In such cases, OJK may update
Debtor Reports based on written requests from:
• Parties designated to settle the reporting entity's obligations, such as the
Deposit Insurance Corporation or a liquidation team; or
• Debtors of the reporting entity whose business license has been revoked,
accompanied by supporting documents, including:
1. Proof of identity; and
2. Supporting documents, such as a Letter of Debt Settlement (SKL)
or a debtor's statement declaring no outstanding facilities with the
revoked entity and willingness to take legal responsibility if the provided
documents are later found to be false, signed on stamped paper.
d. The scope of debtor information has been expanded. Debtor Reports from
reporting entities that:
• Have had their business licenses revoked, meeting criteria such as:
1. No designated party to settle their obligations; or
2. Inactivity of the designated party to settle their obligations.
• Have had their resignation approved by OJK; or
• Have had their approval as reporting entities revoked by OJK, will no longer
be presented in Debtor Information.
e. SLIK consists of four (4) applications: SLIK Reporting, SLIK Web, Host-to-Host SLIK,
and iDeb Viewer.
f. Debtor Reports can be used for:
• Supporting the seamless process of providing financing facilities, risk
coverage/management, guarantees, or LPBBTI services;
• Implementing credit or financing risk management and/or insurance or
guarantee risk management;
• Identifying debtor quality to meet OJK or other authorized party
requirements;
• Managing human resources within the reporting entity; and/or
• Verifying cooperation between the reporting entity and third parties.
g. Applications for debtor information requests through Host-to-Host SLIK:
• Reporting entities requiring access to debtor information requests via
interactive connectivity between their application and OJK can submit an
application to OJK for host-to-host SLIK access approval.
• Applications must be submitted to the department managing data and
statistics.
• Approval will be granted to the reporting entity once the host-to-host SLIK
system and/or application is available and ready for use.
PT BANK MANDIRI (PERSERO) TBK 472 473 ANNUAL REPORT 2024
Page 104
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
16 Decree of the Deputy for This SOE Decree came into effect on its enactment date, 11 November 2024. In connection with the issuance of Minister of SOE Regulation Number PER-2/ • Bank Mandiri adjusts the roles and
Finance and Risk Management MBU/03/2023 concerning Guidelines for Governance and Significant Corporate responsibilities of the three lines in
of the Ministry of State-Owned This decree governs, among others: Activities of State-Owned Enterprises, it is stated that the Internal Control System in risk the implementation of ICoFR.
Enterprises Number SK-5/DKU. • Basic principles for implementing ICoFR: management implementation includes, among other things, control over financial
MBU/11/2024 of 2024 concerning a. COSO Internal Control Framework: Used to help companies monitor the reporting and operational activities that are accurate and timely. Based on this • Bank Mandiri determines the scope
Technical Guidelines for Internal quality of internal control management, consisting of five interrelated Ministerial Regulation, internal control over financial reporting (ICoFR) becomes a of ICoFR using a top-down and risk-
Control Over Financial Reporting components: crucial aspect aimed at providing reasonable assurance that financial statements based approach.
(ICoFR) 1. Control Environment are prepared reliably and free from material misstatements, thereby offering greater
2. Risk Assessment confidence to financial statement users.
3. Control Activities
4. Information and Communication
5. Monitoring.
b. COBIT 2019: A component for building and maintaining governance
systems, including processes, corporate structures, policies and procedures,
information flows, culture and behavior, skills, and infrastructure to minimize IT
risk, realize IT benefits, and optimize IT resources.
COBIT 2019 divides IT activities and risks into five major domains:
1. Evaluate, Direct, and Monitor (EDM)
2. Align, Plan, and Organize (APO)
3. Build, Acquire, and Implement (BAI)
4. Deliver, Service, and Support (DSS)
5. Monitor, Evaluate, and Assess (MEA)
• Determination of the ICoFR scope is conducted by:
1. Top-Down: A focus on risks that could lead to material misstatements in the
company's financial statements.
2. Risk-Based Approach: This approach involves the following stages:
a) Determination of materiality;
b) Identification of significant financial statement accounts and
disclosures;
c) Identification of significant locations/entities;
d) Identification of significant business processes; and
e) e) Identification of significant applications and IT General Controls
(ITGC).
17 Decree Number SK-275/ This SOE Decree came into effect on its enactment date, 18 November 2024. To ensure optimal cybersecurity within State-Owned Enterprises, it is necessary to Bank Mandiri is required to implement
MBU/11/2024 concerning establish policies regarding the prioritization of cybersecurity implementation within cybersecurity controls and conduct risk
Cybersecurity Implementation This decree governs, among others: the environment of State-Owned Enterprises. assessments for any minimum controls
Priorities within State-Owned a. Fifteen cybersecurity controls covering the processes of identification, protection, that cannot be implemented.
Enterprises detection, response, and recovery.
b. SOEs are required to conduct a risk assessment for any minimum controls that
cannot be implemented.
c. Tools to support the implementation of cybersecurity measures.
d. Reporting on the implementation of the fifteen controls to the Ministry of SOEs on
an annual basis as part of the SOE Annual Report.
18 Regulation of the Deposit This PLPS came into effect on its enactment date, 16 October 2024. To support the implementation of deposit insurance for customers and the handling Bank Mandiri is required to submit
Insurance Corporation Number 3 of banks, the Deposit Insurance Corporation has the authority to obtain complete, Periodic Reports and Other Reports
of 2024 concerning Reports from This PLPS regulates, among others: accurate, up-to-date, comprehensive, and timely bank deposit data and financial to the Deposit Insurance Corporation
Deposit Insurance Participant reports. (LPS).
Banks. Banks are required to submit:
1. Periodic Reports, including annual financial statements, summary SCV data
reports per Bank, SCV data reports per customer, self-assessment reports on the
Bank's compliance with its obligations, and resolution plans.
2. Other Reports, including Integrated Reports, reports on changes to the Bank's
principal data information, and detailed SCV data reports per customer.
PT BANK MANDIRI (PERSERO) TBK 474 475 ANNUAL REPORT 2024
Page 105
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
19 Regulation of the Members of the This PADG came into effect on its enactment date, 18 September 2024. In accordance with the mandate of the law on the development and strengthening Bank Mandiri needs to adjust its internal
Board of Governors Number 9 of of the financial sector, the operation of markets in the financial sector must be regulations regarding transactions
2024 concerning the Operation of This regulation governs, among others: supported by financial market infrastructure that keeps pace with technological conducted by the CCP.
Central Counterparty a. The framework for the regulation, development, and supervision of Central advancements.
Counterparty (CCP). Bank Mandiri is already a member
b. The operation of CCP activities. One such financial market infrastructure that can be operated by parties other of the CCP and complies with this
c. The operation of Tri-Party Agent activities. than Bank Indonesia is the central counterparty, which is a systemic financial market regulation.
d. CCP connectivity arrangements. infrastructure.
e. CCP membership.
f. Qualifying CCP criteria.
g. Licensing of CCPs.
h. Provision of recommendations and consultation processes.
i. Data and information management.
j. Implementation of prudential principles, risk management, and governance.
20 Circular Letter of the Financial This SEOJK came into effect on its enactment date, 18 September 2024. In connection with the enactment of Financial Services Authority Regulation Number If Bank Mandiri engages in ITSK
Services Authority Number 7/ 3 of 2024 concerning the Implementation of Financial Sector Technology Innovation activities or acts as an Information
SEOJK.07/2024 concerning This SEOJK regulates, among others: (State Gazette of the Republic of Indonesia of 2024 Number 5/OJK, Supplement to Technology Service Provider, it is
Reporting by Financial Sector Reports by Registered Financial Sector Technology Innovation (ITSK) Operators consist the State Gazette of the Republic of Indonesia Number 73/OJK), it is necessary to obligated to submit Monthly Reports
Technology Innovation Operators of: further regulate the implementation provisions regarding the reporting obligations and Incidental Reports for those
Registered with the Financial 1. Periodic Reports, which include: of financial sector technology innovation operators registered with the Financial activities.
Services Authority a) Monthly Reports for the periods of March, June, September, and December, Services Authority.
to be submitted no later than 10 (ten) working days after the reporting
period ends.
b) Annual Reports, which include:
1) Reports on the realization of the Annual Business Plan.
2) Annual financial statements, both of which must be submitted no later
than April 30 of the following year.
2. Incidental Reports, which include:
a. Reports on changes in business activities.
b. Reports on organizational matters.
c. Reports on incidents.
d. Other reports.
21 Regulation of the Deposit This PLPS came into effect on its enactment date, 13 August 2024. To enhance the effectiveness of handling Banks designated as Banks in Resolution, Bank Mandiri is obligated to prepare
Insurance Corporation Number 2 the Deposit Insurance Corporation (LPS) requires a Resolution Plan that includes, and submit a Resolution Plan to the
of 2024 This regulation governs, among others: among other things, detailed characteristics of the Bank and a prioritized resolution Deposit Insurance Corporation (LPS).
Resolution Plans for Commercial a. Banks are required to prepare and submit a Resolution Plan to the Deposit strategy. This strategy aims to ensure the continuity of the Bank's critical economic
Banks Insurance Corporation (LPS) every two (2) years. functions without causing disruptions to financial system stability if resolution actions
b. Banks must prepare a Resolution Plan consisting of: are taken by LPS.
1. An executive summary;
2. A general overview of the Bank; and
3. A resolution strategy.
c. Banks must submit to LPS:
1. A recovery action plan approved by the Financial Services Authority (OJK)
no later than 15 (fifteen) calendar days after receiving approval from OJK;
and
2. Data, information, and other documents required by LPS.
d. Banks are required to follow up on corrective actions by updating the Resolution
Plan approved by LPS no later than 60 (sixty) calendar days from the date of the
written request by LPS.
PT BANK MANDIRI (PERSERO) TBK 476 477 ANNUAL REPORT 2024
Page 106
MANAGEMENT DISCUSSION AND ANALYSIS
REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY REGULATORY CHANGES WITH A SIGNIFICANT IMPACT ON THE COMPANY
Key Provisions in the New Regulation or Significant Changes
No. Laws and Regulations Background for the Issuance of the Regulation or Changes to the Regulation Impact on Bank Mandiri
from the Previous Regulation
22 Bank Indonesia Regulation This Bank Indonesia Regulation (PBI) came into effect on its enactment date, 16 July The direction of payment system policies, along with technological and information Bank Mandiri has a reporting obligation
Number 5 of 2024 concerning 2024. system developments in the field of payment systems, is inseparable from various to Bank Indonesia.
Competency Standardization in risks that need to be mitigated, including fraud, cybercrime, and money laundering
the Payment System Area This regulation governs, among others: and/or terrorism financing. Therefore, payment system operators must continuously Bank Mandiri must ensure that
a. Competency Standardization in the Payment System (SK SP): enhance the competence of human resources (HR) to establish a payment system its human resources involved in
1. SK SP Actors, consisting of: that is fast, easy, affordable, secure, and reliable, while ensuring the availability Payment System activities possess a
a) Payment service providers; of high-quality and trustworthy rupiah currency throughout the entire territory of Payment System PBK Certificate and/
b) Payment system infrastructure operators; Indonesia. or a Payment System Competency
c) Providers of rupiah currency processing services; and Certificate.
d) Non-bank foreign exchange business operators.
2. SK SP Organizers, consisting of:
a) Payment System Training Institutions (LPK); and
b) Payment System Professional Certification Institutions (LSP).
b. Payment System Qualification Levels:
1. Payment System Qualification Level 4 for operators;
2. Payment System Qualification Level 5 for supervisors; and
3. Payment System Qualification Level 6 for executive officers and board
members.
c. SK SP actors must ensure that personnel conducting Payment System
activities possess a Payment System PBK Certificate and/or a Payment System
Competency Certificate.
d. SK SP actors must ensure the implementation of Payment System Competency
Maintenance at least once every three (3) years.
e. SK SP actors must submit a funding provision plan based on funding needs
assessment and its realization to Bank Indonesia for the first time no later than 13
December 2024, for the 2025 funding provision plan.
f. Reports submitted to Bank Indonesia must include:
1. Periodic reports; and/or
2. Incidental reports,
submitted in a complete, accurate, current, comprehensive, and timely manner.
23 Bank Indonesia Regulation This Bank Indonesia Regulation (PBI) came into effect on its enactment date, 22 April • The authority of Bank Indonesia to regulate and supervise Financial Sector • Organizers conduct periodic
Number 2 of 2024 concerning 2024. Business Actors (PUSK) and the implementation of Financial Sector Technology evaluations of their strategic plans
Information System Security and Innovation to ensure information system security and cyber resilience, as for Information System Security and
Cyber Resilience for Payment This regulation governs, among others: stipulated in Law Number 4 of 2023 concerning the Development and Cyber Resilience (KKS).
System Operators, Money Market a. Entities subject to the regulation and supervision of Information System Security Strengthening of the Financial Sector (P2SK Law).
and Foreign Exchange Market and Cyber Resilience (KKS): • Bank Indonesia's efforts to mitigate cyber risks in the financial sector, which • Bank Mandiri establishes policies,
Participants, and Other Parties Includes Payment Service Providers (PJP), Payment System Infrastructure can lead to financial losses and disrupt financial system stability as a result of standards, and procedures for KKS
Regulated and Supervised by Providers (PIP), Money Market and Foreign Exchange Market Settlement Centers increased digitalization in the financial sector. and conducts periodic evaluations
Bank Indonesia (PUSK PUVA), Money Market Supporting Institutions, Foreign Exchange Market • Encouraging strengthened supervision and collaboration in the prevention and of those policies, standards, and
Supporting Institutions, Non-Bank Foreign Exchange Business Operators, and other handling of cyber incidents in the financial sector. procedures.
parties regulated and supervised by Bank Indonesia.
b. Scope of KKS regulation and supervision:
1. Governance of entities in implementing KKS strategies and policies as well as
fostering a KKS culture.
2. Prevention measures by entities to anticipate cyber incidents, covering
identification, protection, and detection.
3. Cyber incident handling by entities, covering response and recovery.
4. Supervision, including mechanisms for supervision by Bank Indonesia and the
submission of data and/or information from entities to Bank Indonesia.
5. Collaboration between Bank Indonesia and entities.
PT BANK MANDIRI (PERSERO) TBK 478 479 ANNUAL REPORT 2024
Page 107
MANAGEMENT DISCUSSION AND ANALYSIS
CHANGES IN ACCOUNTING BANK SOUNDNESS
POLICIES AND IMPACTS LEVEL
IMPLEMENTED IN 2024
The accounting policy changes were made to comply with applicable PSAK regulations relevant to the Bank Mandiri routinely assesses its risks and performance through the self-assessment of the Bank Soundness
operations of the Bank and its Subsidiaries. Level (TKB) using a risk-based approach (Risk-Based Bank Rating) and in accordance with OJK Regulation
No. 4/POJK.03/2016 on the Assessment of Commercial Bank Soundness. The final result of the TKB self-
Changes in Accounting Policy and Its Impact (Effective 1 January 2024) assessment is the Composite Rating (PK), which evaluates the following factors:
No. Description of Changes in Quantitative Impact of Changes in Exposure to Consequences
Accounting Policy Accounting Policy on Financial Statements and Adjustments Made 1. Risk Profile
2. Good Corporate Governance (GCG)
1. The Indonesian Financial KSPKI regulates the pillars of SAK applicable Updating Bank Mandiri's
3. Earnings
Reporting Standards in Indonesia, the criteria, and the transition internal accounting policies
Framework (KSPKI) and the between SAK pillars, while the renumbering in accordance with the 4. Capital
renumbering of PSAK and adjusts the numbering of PSAK and ISAK to requirements set by the
ISAK within the Indonesian align with IFRS Accounting Standards, local, amendments.
Financial Accounting and sharia standards.
Bank Mandiri Soundness Level As of 31 December 2024 and 2023 Individually (Self-Assessment)
Standards (formerly known
as Financial Accounting The impact of the implementation of these Assessment (Rating)
Assessmen Factors
Standards) new standards, adjustments, or amendments Per 31 December 2024 Per 31 December 2023
is not material to the group's consolidated Risk Profile 1 1
financial statements.
Good Corporate Governance (GCG) 1 1
2. Amendment to PSAK 201 on The implementation of this amendment Updating Bank Mandiri's Earnings 1 1
"Presentation of Financial aligns with the revised effective date of the internal accounting policies Capital 1 1
Statements" regarding Amendment to PSAK 201 on "Presentation of in accordance with the Bank Soundness Level Composit Raring PK-1 PK-1
"Long-Term Liabilities with Financial Statements" regarding "Classification requirements set by the
Covenants” of Liabilities as Current or Non-Current," which amendments.
was previously set to take effect on January As of 31 December 2024, the results of Bank Mandiri’s Individual Bank Soundness Level Self-Assessment
1, 2023, and has been changed to January placed it at Composite Rating 1 (PK-1). This reflects the Bank’s overall very sound condition, indicating
1, 2024. This amendment establishes the its strong ability to withstand significant negative impacts from changes in business conditions and other
requirements for classifying liabilities as either
external factors. This assessment is supported by excellent ratings across key evaluation factors, including
current or non-current.
risk profile, governance implementation, profitability aspects, and capital adequacy. Any identified
The impact of the implementation of these weaknesses are generally manageable within normal business activities.
new standards, adjustments, or amendments
is not material to the group's consolidated
financial statements.
3. Amendment to PSAK 116 The amendment fully adopts the provisions Updating Bank Mandiri's
on "Leases" regarding of the Amendment to IFRS 16 on "Leases" internal accounting policies
Lease Liabilities in Sale and regarding "Lease Liability in a Sale and in accordance with the
Leaseback Transactions Leaseback." requirements set by the
amendments.
The impact of the implementation of these
new standards, adjustments, or amendments
is not material to the group's consolidated
financial statements.
4. Amendments to PSAK 207 The amendments to PSAK 207 and PSAK 107 Updating Bank Mandiri's
and PSAK 107 on Supplier refer to the provisions in the amendments internal accounting policies
Financing Arrangements. to IAS 7 and IFRS 7 on "Supplier Finance in accordance with the
Arrangements." requirements set by the
amendments.
The impact of the implementation of these
new standards, adjustments, or amendments
is not material to the group's consolidated
financial statements.
PT BANK MANDIRI (PERSERO) TBK 480 481 ANNUAL REPORT 2024
Page 108
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS CONTINUITY BUSINESS CONTINUITY INFORMATION
INFORMATION
On the other hand, Bank Mandiri also reinforces platforms has enhanced financial inclusion and
its commitment to sustainability through various provided more efficient services for both retail
community empowerment programs. One and corporate customers. To stay competitive in
such initiative is “Mandiri Sahabatku”, designed the digital era, Bank Mandiri remains committed
to enhance financial literacy and foster new to continuous investment in IT infrastructure,
entrepreneurs among Indonesian Migrant cybersecurity, and technology-driven financial
Workers. This program reflects Bank Mandiri’s product innovation.
efforts not only to focus on profit growth but
also to create a significant social impact. With As a financial institution, Bank Mandiri is firmly
a combination of strong financial performance, committed to complying with regulations set
a solid growth strategy, and a firm commitment by the Financial Services Authority (OJK), Bank
to sustainability, Bank Mandiri is well-positioned Indonesia (BI), and other relevant regulators.
to maintain its business continuity and serve as a Adherence to banking regulations, customer data
key driver of Indonesia’s economic growth in 2025 protection, and transparent financial reporting
and beyond. are top priorities in maintaining stakeholder trust.
Management Assessment of Bank Mandiri’s management also recognizes that
Significant Factors Affecting Business business sustainability is not solely determined
Continuity by financial performance but also by social and
Bank Mandiri’s management consistently environmental contributions. The Bank actively
conducts a comprehensive evaluation of factors supports sustainability initiatives through green
influencing business continuity. This is carried out financing, environmentally friendly investments,
to ensure sustainable operations amid evolving and community empowerment programs. These
economic, social, and technological landscapes. efforts aim to create a long-term positive impact
Additionally, Bank Mandiri recognizes that both that aligns with societal needs.
national and global economic stability have
Indonesia’s positive economic growth throughout 2024 serves a direct impact on business sustainability. Key The intense competition in the national banking
as a crucial foundation for navigating 2025. Economic recovery indicators such as economic growth, inflation, industry, particularly from digital banks and fintech
exchange rate fluctuations, benchmark companies, remains a key focus for Bank Mandiri.
continues, with GDP growth projected to remain stable at around interest rates, and fiscal/monetary policies are The Bank recognizes that product innovation,
5%, supported by increased domestic consumption, expansion in continuously monitored. Indonesia’s strong customer experience, and operational efficiency
economic resilience serves as a foundation for are critical factors in maintaining market share
the manufacturing sector, and inflows of foreign investment. reinforcing Bank Mandiri’s business portfolio. and competitiveness. To strengthen its position,
Bank Mandiri continues to expand collaborations
As one of the largest banks in Indonesia, Bank within the technology ecosystem, enabling
A healthy macroeconomic Bank Mandiri has a positive This target is reflected in the Mandiri’s sustainability heavily relies on the broader market reach and enhanced service
environment, characterized business continuity outlook Bank’s Business Plan (RBB), solidity of its financial performance. Consistent offerings.
by controlled inflation and for 2025, supported by strong which prioritizes financing consolidated net profit achievements, operational
exchange rate stability, financial performance in for productive sectors such efficiency, and growth in fee-based income On the other hand, Bank Mandiri consistently
provides a strong foundation previous years, including as MSMEs and infrastructure. remain key priorities. Management also places implements comprehensive risk management
for the banking sector to consolidated net profit Furthermore, ongoing digital strong emphasis on credit risk management by to address potential external risks, such as
continue its growth. Amid this reaching Rp55.78 trillion as transformation through the maintaining a low non-performing loan (NPL) ratio global economic fluctuations and geopolitical
momentum, Bank Mandiri of December 2024. With an super app Livin’ by Mandiri and ensuring healthy loan growth. uncertainties. Additionally, internal risks, including
positions itself as a leading aggressive credit growth and the Wholesale Kopra compliance, operational, and credit risks, are
player in the national banking strategy, Bank Mandiri is platform strengthens Bank Digital technology continues to be a cornerstone managed through a robust risk framework. This
industry with a solid strategy optimistic about achieving Mandiri’s competitiveness of Bank Mandiri’s business continuity. The approach enables Bank Mandiri to remain resilient
and a strong focus on loan growth above the national in delivering innovative and development of Livin’ by Mandiri and Kopra in the face of challenges.
sustainability. banking industry average. efficient financial services.
PT BANK MANDIRI (PERSERO) TBK 482 483 ANNUAL REPORT 2024
Page 109
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS CONTINUITY INFORMATION PRIME LENDING RATE
Bank Mandiri’s management remains proactive f. Bank Mandiri is the first KBMI 4 bank in Bank Mandiri discloses information on the Prime Lending Rate (SBDK) in accordance with OJK Circular
in identifying and managing various factors that Indonesia to receive ISO 22301 certification Letter No. 9/SEOJK.03/2020 on Transparency and Publication of Conventional Commercial Bank Reports,
significantly impact business continuity. With for its Business Continuity Management which requires conventional commercial banks to report and publish the SBDK in Rupiah.
strong financial performance, progressive digital System (BCMS) from the global certification
transformation, regulatory compliance, and a body British Standard Institution. This The Prime Lending Rate serves as the basis for determining the loan interest rates charged by the Bank to
focus on social and environmental impact, Bank international standard certification customers. The SBDK does not include the estimated risk premium component, which varies depending
Mandiri is well-positioned to sustain its business covers key functions, including payment, on the Bank’s assessment of the risk associated with each debtor or debtor group. Therefore, the actual
amid an ever-evolving business landscape. settlement, cash processing, treasury, and loan interest rate charged to a debtor may differ from the SBDK.
information technology.
Assumptions Used by Management g. Recognition of Bank Mandiri’s implementation
in the Assessment of Good Corporate Governance (GCG) Basic Rupiah Lending Rate Based on Business Segment (Effective % per annum)
Bank Mandiri considers several key assumptions in from various institutions in 2024 includes: Year Consumer Loans
Period Corporate Loans Retail Loans Micro Loans
assessing business continuity, including: • Corporate Governance Perception Mortgages Non-Mortgages
Index – Bank Mandiri was awarded the March 2024 8.05% 8.30% 11.30% 7.30% 8.80%
a. Stronger economic growth is expected to title of “The Most Trusted Company” for June 2024 8.05% 8.30% 11.30% 7.30% 8.80%
2024
support greater financial system stability. the 18th consecutive year, achieving Sep 2024 8.05% 8.30% 11.30% 7.30% 8.80%
b. Internal analysis conducted by Bank Mandiri a score of 95.30 in the Corporate Dec 2024 8.50% N/A 13.50% 12.50% 12.00%
to determine its position in the Indonesian Governance Perception Index (CGPI), 2023 Dec 2023 8.05% 8.30% 11.30% 7.30% 8.80%
banking industry through a Strength, an increase from the previous score of
Weakness, Opportunity, and Threat (SWOT) 95.22.
analysis. • The 15th IICD Corporate Governance DEPOSIT INTEREST RATE
c. Bank Mandiri is in a generally sound condition, Award 2024 – Bank Mandiri was
with a composite rating of 1, reflecting the recognized as a “Top 50 Big The interest rates for Bank Mandiri’s deposit, savings and current demand deposits as of 31 December
Bank’s strong ability to withstand significant Capitalization Public Listed Company.” 2024 are as follows:
negative impacts from changes in business This award is given to the largest publicly
conditions and other external factors. listed companies in Indonesia based Deposit Interest Rate as of 31 December 2024
d. Bank Mandiri has a strong capital adequacy on assessments using the ASEAN CG (In%)
position, with core capital of Rp229.93 trillion Scorecard standard. Tenor (Month)
Tier
and a Capital Adequacy Ratio (CAR) (Bank • The Most Trusted Company by SWA – 1 3 6 12 24
only) of 20.10% as of December 2024. Bank Mandiri received this recognition Rupiah Deposits with Monthly Interest and Maturity
e. Bank Mandiri is classified under the ASEAN for the 16th consecutive year, scoring < Rp100 million 2.25 2.25 2.50 2.50 2.50
Asset Class in the ASEAN Corporate 95.11 in the Corporate Governance & ≥ IDR 100 million - < Rp 1 billion 2.25 2.25 2.50 2.50 2.50
Governance Scorecard (ACGS) rankings by Perception Index, an improvement from ≥ IDR 1 billion - < Rp 2 billion 2.25 2.25 2.50 2.50 2.50
the ASEAN Capital Market Forum (ACMF). the previous score of 95.01. ≥ IDR 2 billion - < Rp 5 billion 2.25 2.25 2.50 2.50 2.50
≥ IDR 5 billion 2.25 2.25 2.50 2.50 2.50
Rupiah Deposits with Prepaid Interest
< Rp100 million 2.24 2.23 2.46 2.43 2.37
≥ IDR 100 million - < Rp 1 billion 2.24 2.23 2.46 2.43 2.37
≥ IDR 1 billion - < Rp 2 billion 2.24 2.23 2.46 2.43 2.37
≥ IDR 2 billion - < Rp 5 billion 2.24 2.23 2.46 2.43 2.37
≥ IDR 5 billion 2.24 2.23 2.46 2.43 2.37
USD Deposits with Monthly Interest and Maturity
≤ USD100 thousand 0.75 0.75 0.75 0.75 0.75
≥ USD100 thousand - < USD1 million 1.00 1.25 1.25 1.25 1.25
≥ USD1 million - < USD10 million 1.00 1.50 1.50 1.50 1.50
≥ USD10 million 1.00 1.75 1.75 1.75 1.75
USD Deposits with Prepaid Interest
≤ USD100 thousand 0.70 0.69 0.69 0.68 0.66
≥ USD100 thousand - < USD1 million 0.95 1.19 1.18 1.17 1.14
≥ USD1 million - < USD10 million 0.95 1.44 1.43 1.41 1.38
≥ USD10 million 0.95 1.69 1.67 1.65 1.61
PT BANK MANDIRI (PERSERO) TBK 484 485 ANNUAL REPORT 2024
Page 110
MANAGEMENT DISCUSSION AND ANALYSIS
PRIME LENDING RATE PRIME LENDING RATE
Savings Interest Rate as of 31 December 2024 Tier Interest
(In%) Foreign Exchange/USD Premium Forex Savings
≤ USD100 0.00
Tier Interest
≥ USD100 ribu - < USD10,000 0.10
Rupiah Savings
≥ USD10,000 - < USD200,000 0.20
0 - < Rp1 million 0.00
≥ USD200,000 0.20
Rp1 million - < Rp50 million 0.00
USD Foreign Exchange Business/USD Investor Savings
Rp50 million – < Rp500 million 0.10
≤ USD100 0.00
Rp500 million - < Rp1 billion 0.60
≥ USD100 ribu - < USD10,000 0.08
≥ 1 billion 0.60
≥ USD10,000 - < USD200,000 0.20
Business Savings
≥ USD200,000 0.20
0 - < Rp1 million 0.00
USD Plan Savings
Rp1 million - < Rp50 million 0.40
< USD100 0.20
Rp50 million – < Rp500 million 0.60
≥ USD100 0.20
Rp500 million - < Rp1 billion 0.80
TabunganKu
≥ 1 billion 1.00
Rp0 s/d Rp500,000 0%
Rupiah Investor Savings
Rp500,001 - s/d Rp1,000,000 0.10%
0 - < Rp1 million 0.00
> Rp1,000,000 0.10%
Rp1 million - < Rp50 million 0.00
SiMakmur (Branchless Banking Savings / TabBB)
Rp50 million – < Rp500 million 0.10
All Tier 0.10%
Rp500 million - < Rp1 billion 0.60
Student Savings
≥ 1 billion 0.60
All Tier 0%
NOW Savings
0 - < Rp1 million 0.00
Rp1 million - < Rp50 million 0.00 Current Account Interest Rate as of 31 December 2024
Rp50 million – < Rp500 million 0.05 (In%)
Rp500 million - < Rp1 billion 0.35 Tier Interest
≥ 1 billion 0.40 Rupiah Regular Current Accounts
Rupiah Plan Savings/SiMuda RumahKu Plan Savings 0 - < Rp10 million 0.00
Term 1-3 years 1.10 Rp10 million - < Rp100 million 0.25
Term 4-9 Years 1.35 Rp100 million - < Rp500 million 1.00
Term 10-14 years 1.60 Rp500 million - < Rp1 Billion 1.25
Term ≥ 15 Years 1.85 ≥ 1 Billion 1.90
Payroll Savings USD Regular Current Accounts
0 - < Rp1 million 0.00 <100,000 USD 0.00
Rp1 million - < Rp50 million 0.00 ≥ 100,000 USD 0.10
Rp50 million – < Rp500 million 0.05 SGD Regular Current Accounts
Rp500 million - < Rp1 billion 0.35 <1,000 SGD 0.00
≥ 1 billion 0.40 ≥ 1,000 SGD - < 20,000 SGD 0.15
Business Partner Savings ≥ 20,000 SGD - < 200,000 SGD 0.25
0 - < Rp1 million 0.00 < 200,000 SGD 0.25
Rp1 million - < Rp50 million 0.00 CNY Regular Current Accounts
Rp50 million – < Rp500 million 0.05 ≤ 10,000 CNY 0.00
Rp500 million - < Rp1 billion 0.35 > 10,000 CNY - 100,000 CNY 0.15
≥ 1 billion 0.40 > 100,000 CNY 0.20
Indonesian Labour Savings Non-USD, SGD, and CNY Regular Current Accounts
0 - < Rp1 million 0.00 AUD 0.00
Rp1 million - < Rp50 million 0.00 CHF 0.00
Rp50 million – < Rp500 million 0.05 EUR 0.10
Rp500 million - < Rp1 billion 0.35 GBP 0.10
≥ 1 billion 0.40 HKD 0.00
JPY 0.00
PT BANK MANDIRI (PERSERO) TBK 486 487 ANNUAL REPORT 2024
Page 111
MANAGEMENT DISCUSSION AND ANALYSIS
TAXATION LEGAL LENDING LIMIT AND
ASPECTS LARGE EXPOSURES FOR
COMMERCIAL BANKS
TAX PAYMENT DISCLOSURE LEGAL LENDING LIMIT (LLL) REPORT AS OF 31 DECEMBER 2024
Bank Mandiri consistently complies with the prevailing laws and regulations in Indonesia, including tax In accordance with Financial Services Authority Regulation No. 32/POJK.03/2018 dated December 26,
regulations. In this regard, the Bank manages its tax rights and obligations transparently and accountably 2018, as last amended by POJK No. 38/POJK.03/2019 concerning amendments to Financial Services
in accordance with applicable regulations. Authority Regulation No. 32/POJK.03/2018 on Legal Lending Limit (LLL) and Large Exposure for Commercial
Banks, we hereby present the LLL Report as of 31 December 2024, with the following details:
TAX PAYMENTS 1. Based on the balance sheet data as of 31 December 2024, obtained from the Accounting Group,
the following information is available:
The realization of tax payments as part of Bank Mandiri’s commitment to contributing to national a. The Bank’s capital for LLL calculation amounts to Rp244,839,742 million.
development through tax compliance as of 31 December 2024, is as follows: b. The Bank’s Core Capital (Tier 1) for LLL calculation, excluding Related Parties, amounts to
Rp230,516,850 million.
Amount (in full Rupiah)
Description
2024 2023 2. In accordance with the LLL calculation provisions under Financial Services Authority Regulation No.
Income Tax Article 25 9,232,433,920,158 10,018,626,986,438 32/POJK.03/2019, the Bank’s LLL value as of 31 December 2024, is as follows:
Income Tax Article 21 2,775,850,523,720 2,354,191,405,701
Income Tax Article 22 20,739,308,213 23,563,276,960 (In Rp million)
Income Tax Article 23 113,550,637,918 131,385,090,461 Allowance of
LLL Value
Income Tax Article 26 2,144,372,163,912 1,611,185,901,195 Description LLL Percentage Funding Fund Preparation
Limit
Against LLL
Income Tax Article 4 paragraph (2) 5,456,200,210,594 4,879,403,643,811
Related Parties LLL 10% of Bank Capital 24,483,974 11,353,506 13,130,468
VAT 1,938,625,264,616 2,019,046,891,031
LLL of Un-Related Parties - Borrowers/ 25% of the Bank's Core
Regional Tax and Other Taxes 87,826,653,195 60,438,433,316 57,629,213 40,824,646 16,804,567
Borrower Groups Capital (Tier 1)
Total 21,769,598,682,326 21,097,841,628,913
LLL of SOEs for development purposes 30% of Bank Capital 73,451,923 – –
List of Largest Debtors Un-Related Parties
NON-COMPLIANCE IN TAX PAYMENTS Information List of Related Parties Getting Funding
(Borrowers)
Leeway LLL NIHIL NIHIL
As of 31 December 2024, there were no instances of non-compliance by Bank Mandiri in fulfilling its tax Exceeding LLL NIHIL NIHIL
payment obligations (NIL).
Bank Mandiri confirms that there is no leeway and/or exceeding of the Legal Lending Limit regarding
fund provisions to Related Parties of Bank Mandiri. The LLL calculation is conducted in accordance with
Financial Services Authority Regulation No. 32/POJK.03/2018 on the Legal Lending Limit (LLL) and Large
Exposure for Commercial Banks, as last amended by POJK No. 38/POJK.03/2019.
PT BANK MANDIRI (PERSERO) TBK 488 489 ANNUAL REPORT 2024
Page 112
MANAGEMENT DISCUSSION AND ANALYSIS
MAXIMUM LIMIT FOR LENDING AND LARGE EXPOSURES MAXIMUM LIMIT FOR LENDING AND LARGE EXPOSURES
FOR COMMERCIAL BANKS FOR COMMERCIAL BANKS
List of Funding to Related Parties by 31 December 2024 List of 20 Largest Debtors Based on LLL Report to OJK
(Which is included in the calculation of the Bank’s Related Party LLL) Position As of 31 December 2024
(In Rp million) (In Rp million)
Provision of Funds (Recorded Value) Funding Participation* Allowance
No. Borrower’s Name Bank Mandiri LLL Funding
Inhouse for Funding
Rupiah Forex Total Rupiah Forex No. Group Core Capital Percentage LLL Limit (Recorded
Limit to 25% Core
(Tier 1) (%) Value)
I. Related Parties - Subsidiaries Capital
1 Axa Mandiri Financial Services PT. 334 0 334 98,109 - MINISTRY OF FINANCE
1 230,516,850 Excluded from LLL calculation
GROUP
2 Kustodian Sentral Efek Indonesia PT. 0 0 0 3,000 -
3 Mandiri Sekuritas PT. 102,686 0 102,686 640,482 - 2 BANK INDONESIA 230,516,850 Excluded from LLL calculation
4 Mandiri Tunas Finance (MTF) 4,136,033 0 4,136,033 290,000 - 3 SINAR MAS GROUP 230,516,850 25 57,629,213 51,866,291 40,824,646 16,804,567
5 Bank Syariah Indonesia 62,151 0 62,151 7,442,650 - 4 SALIM HOLDING GROUP 230,516,850 25 57,629,213 51,866,291 35,553,006 22,076,207
6 Bank Mandiri Taspen Pos 1,545,214 0 1,545,214 1,118,480 - 5 ASTRA GROUP 230,516,850 25 57,629,213 51,866,291 28,760,386 28,868,827
7 Asuransi Jiwa Inhealth Indonesia 107 0 107 330,000 - 6 MEDCO GROUP 230,516,850 25 57,629,213 51,866,291 27,480,713 30,148,500
8 Mandiri Utama Finance (MUF) 3,080,604 0 3,080,604 1,274,000 - 7 PLN GROUP 230,516,850 25 57,629,213 51,866,291 24,037,758 33,591,455
9 Mandiri Capital Indonesia 77 0 77 3,358,400 - 8 JASA MARGA GROUP 230,516,850 25 57,629,213 51,866,291 22,648,965 34,980,248
10 Mandiri Europe Ltd. 0 2,137,753 2,137,753 - 414,227 9 PEGADAIAN GROUP 230,516,850 25 57,629,213 51,866,291 19,255,115 38,374,098
11 Mandiri International Remittance. 0 0 0 - 25,191 10 WILMAR GROUP 230,516,850 25 57,629,213 51,866,291 19,023,676 38,605,537
12 Mandiri Manajemen Investasi 117 0 117 - - 11 PERTAMINA GROUP 230,516,850 25 57,629,213 51,866,291 16,487,912 41,141,301
13 Mitra Transaksi Indonesia 19,745 0 19,745 - - PEMBANGUNAN
12 230,516,850 25 57,629,213 51,866,291 15,351,359 42,277,854
PERUMAHAN GROUP
Total 8,947,068 2,137,753 11,084,821 14,555,121 439,418
13 KALLA GROUP 230,516,850 25 57,629,213 51,866,291 14,354,013 43,275,200
II. Related Parties - Individuals
14 PELINDO GROUP 230,516,850 25 57,629,213 51,866,291 13,532,969 44,096,244
Total 268,685 0 268,685 - -
15 WIJAYA KARYA GROUP 230,516,850 25 57,629,213 51,866,291 13,219,249 44,409,964
Total Related Parties Overall 9,215,753 2,137,753 11,353,506 14,555,121 439,418
16 BARITO PACIFIC GROUP 230,516,850 25 57,629,213 51,866,291 12,836,501 44,792,712
* Based on data obtained from the Accounting Group and for investments excluded from the BMPK calculation in accordance with
17 TRAKINDO GROUP 230,516,850 25 57,629,213 51,866,291 12,806,596 44,822,617
Compliance Group Memorandum Number KPS.CPL/CSS.1223/2022 dated October 11, 2022, regarding the Minutes of the Meeting
on the Adjustment of the BMPK Report. 18 PUPUK INDONESIA GROUP 230,516,850 25 57,629,213 51,866,291 12,747,363 44,881,850
19 DJARUM GROUP 230,516,850 25 57,629,213 51,866,291 12,552,664 45,076,549
20 PTPN 3 HOLDING GROUP 230,516,850 25 57,629,213 51,866,291 12,117,520 45,511,693
PT BANK MANDIRI (PERSERO) TBK 490 491 ANNUAL REPORT 2024
Page 113
MANAGEMENT DISCUSSION AND ANALYSIS
DERIVATIVES AND DERIVATIVES AND HEDGING FACILITIES
HEDGING FACILITIES
Derivative receivables are financial assets from changes in the fair value of the hedged Derivatives Transaction Highlights as of 31 December 2024
classified as measured at fair value through profit assets and liabilities, are recognized as profit (In Rp Million)
or loss, while derivative liabilities are financial or loss and offset within the same accounting Fair Value
liabilities classified as measured at fair value period. Any differences arising indicate hedge Transaction Contract Value (absolute Derivative
Derivative Liabilities
equivalent to Rupiah) Receivables
through profit or loss. ineffectiveness and are directly recognized
Related Parties
as current year consolidated profit or loss.
Related exchange rates
Bank Mandiri presents derivative receivables at 2. The effective portion of gains or losses on
Futures-buy contracts United States Dollar 642,915 3,407 2,179
the amount of unrealized gains from derivative derivative contracts designated as cash flow
Futures-sell contracts United States Dollar 17,607,910 80,799 147,628
contracts, net of allowance for impairment losses. hedges is reported as other comprehensive
Swap-buy 3,750,222 21,744 12,457
Meanwhile, derivative liabilities are presented at income. The ineffective portion of the hedge United States Dollar
the amount of unrealized losses from derivative is recognized as current year consolidated Swap-sell 5,368,475 14,872 47,810
contracts. profit or loss. United States Dollar
3. Gains or losses from derivative contracts Option-buy 37,420,875 2,671,196 –
Gains or losses from derivative contracts designated as hedges of net investment United States Dollar
are presented in the consolidated financial in foreign operations are reported as other Others 570,000 156,977 –
statements based on the Bank’s objective for the comprehensive income, provided that the
transactions, namely for (1) fair value hedging, (2) transaction is considered effective as a Option-sell 37,420,875 – 1,923,430
United States Dollar
cash flow hedging, (3) hedging of net investment hedging transaction.
Total Related Parties – 2,948,995 2,133,504
in foreign operations, and (4) trading instruments, 4. Gains or losses from derivative contracts that
Third Parties
as follows: are not designated as hedging instruments
Related exchange rates
(or derivative contracts that do not meet
Futures-buy contracts United States Dollar 39,755,137 397,798 109,406
1. Gains or losses from derivative contracts the criteria as hedging instruments) are
Others 5,741,043 30,333 81,928
designated and qualifying as fair value recognized as current year consolidated
Futures-sell contracts United States Dollar 5,058,184 15,569 39,642
hedging instruments, along with gains or losses profit or loss.
Others 268,758 2,757 96
Swap-buy 70,295,306 542,780 301,752
United States Dollar
Others 1,504,351 4,784 16,190
Swap-sell 74,831,830 309,055 700,374
United States Dollar
Others 607,985 28,356 16,595
Option-buy 38,121,008 2,021,158 –
United States Dollar
Option-sell 38,121,008 – 2,731,496
United States Dollar
Related interest rates
Swap-interest rate 33,205,257 497,518 411,091
United States Dollar
Others 30,258,157 961,457 785,848
Bond forward-buy 7,400,000 948 9,076
Others
Total Third Parties – 4,812,513 5,203,494
PT BANK MANDIRI (PERSERO) TBK 492 493 ANNUAL REPORT 2024
Page 114
MANAGEMENT DISCUSSION AND ANALYSIS
EARNINGS ASSET QUALITY EARNINGS ASSET QUALITY REPORT AND OTHER INFORMATION
REPORT AND OTHER
INFORMATION
Statements Of Assets’ Quality And Other Information as of 31 December 2024 and 31 December 2023
(In Millions of Rupiah)
INDIVIDUAL
No. Description 31 December 2024 (Audited) 31 December 2023 (Audited)
L DPK KL D M TOTAL L DPK KL D M TOTAL
I RELATED PARTIES
1 Placements with other banks
a. Rupiah - - - - - - 22 - - - - 22
b. Foreign currencies 1,325,822 - - - - 1,325,822 966,553 - - - - 966,553
2 Spot and derivative receivables/forward
a. Rupiah – – – – – – – – – – –
b. Foreign currencies – – – – – – – – – – –
3 Securities
a. Rupiah 745,890 - - - - 745,890 72,010 - - - - 72,010
b. Foreign currencies - - - - - - - - - - - -
4 Securities sold with agreement to repurchase (Repo)
a. Rupiah – – – – – – – – – – –
b. Foreign currencies – – – – – – – – – – –
5 Securities purchased with agreement to resell
a. Rupiah – – – – – – – – – – –
b. Foreign currencies – – – – – – – – – – –
6 Acceptances receivables 1,437 - - - - 1,437 3,017 - - - - 3,017
7 Loans and financing provided
a. Micro, small and medium loans (UMKM) – – – – – – – – – – –
i. Rupiah – – – – – – – – – – –
ii. Foreign currencies – – – – – – – – – – –
b. Non UMKM 10,141,851 384 - - - 10,142,235 6,486,387 2,282 - - - 6,488,669
i. Rupiah 9,338,367 384 - - - 9,338,751 5,718,521 2,282 - - - 5,720,803
ii. Foreign currencies 803,484 - - - - 803,484 767,866 - - - - 767,866
c. Restructured loans*) – – – – – – – – – – –
i. Rupiah – – – – – – – – – – –
ii. Foreign currencies – – – – – – – – – – –
8 Investments in shares 14,555,122 - 414,227 25,191 - 14,994,540 14,526,121 - 414,227 25,191 - 14,965,539
9 Other receivables - – – – – - - – – – –
10 Commitments and contingencies
a. Rupiah 979,613 1,066 - - - 980,679 687,397 25 - - - 687,422
b. Foreign currencies – – – – – – – – – – –
PT BANK MANDIRI (PERSERO) TBK 494 495 ANNUAL REPORT 2024
Page 115
MANAGEMENT DISCUSSION AND ANALYSIS
EARNINGS ASSET QUALITY REPORT AND OTHER INFORMATION EARNINGS ASSET QUALITY REPORT AND OTHER INFORMATION
INDIVIDUAL
No. Description 31 December 2024 (Audited) 31 December 2023 (Audited)
L DPK KL D M TOTAL L DPK KL D M TOTAL
II THIRD PARTIES
1 Placements with other banks
a. Rupiah 565,924 - - - - 565,924 26,641,841 - - - - 26,641,841
b. Foreign currencies 66,085,059 - - - - 66,085,059 61,782,892 - - - - 61,782,892
2 Spot and derivative receivables/forward
a. Rupiah 7,413,352 - - - - 7,413,352 1,836,519 - - - - 1,836,519
b. Foreign currencies 178,704 - - - - 178,704 132,374 - - - - 132,374
3 Securities
a. Rupiah 122,845,700 - - - 8,674 122,854,374 190,965,202 - - - 39,496 191,004,698
b. Foreign currencies 50,684,467 - - - - 50,684,467 50,895,465 - - - - 50,895,465
4 Securities sold with agreement to repurchase (Repo)
a. Rupiah 80,499,885 - - - - 80,499,885 27,164,767 - - - - 27,164,767
b. Foreign currencies 9,785,348 - - - - 9,785,348 12,540,968 - - - - 12,540,968
5 Securities purchased with agreement to resell (reverse repo)
a. Rupiah 7,166,266 - - - - 7,166,266 16,205,580 - - - - 16,205,580
b. Foreign currencies - - - - - - - - - - - -
6 Acceptances receivables 9,154,828 5,457 - - - 9,160,285 14,452,865 7,059 - - - 14,459,924
7 Loans and financing provided
a. Micro, small and medium loans (UMKM) 128,086,629 3,643,861 357,927 497,332 962,727 133,548,476 119,540,357 4,266,991 438,406 716,981 531,957 125,494,692
i. Rupiah 127,038,542 3,643,861 357,927 497,332 962,727 132,500,389 119,029,329 4,266,991 438,406 716,981 531,957 124,983,664
ii. Foreign currencies 1,048,087 - - - - 1,048,087 511,028 - - - - 511,028
b. Non UMKM 1,114,857,115 41,440,323 1,090,408 1,709,920 7,990,925 1,167,088,691 901,379,800 43,112,073 1,850,904 3,605,579 3,855,710 953,804,066
i. Rupiah 849,013,943 30,646,682 1,090,408 1,709,920 6,602,705 889,063,658 663,887,055 29,263,150 1,850,904 3,093,362 2,823,353 700,917,824
ii. Foreign currencies 265,843,172 10,793,641 - - 1,388,220 278,025,033 237,492,745 13,848,923 - 512,217 1,032,357 252,886,242
c. Restructured loans*) 31,531,725 35,036,854 420,576 388,192 6,089,000 73,466,347 36,548,105 34,776,121 1,044,617 2,677,760 3,150,180 78,196,783
i. Rupiah 24,964,809 24,243,213 420,576 388,192 4,700,876 54,717,666 28,421,570 21,387,995 1,044,617 2,165,543 2,123,759 55,143,484
ii. Foreign currencies 6,566,916 10,793,641 - - 1,388,124 18,748,681 8,126,535 13,388,126 - 512,217 1,026,421 23,053,299
8 Investments in shares 20,000 - - - 1,955 21,955 - - - - 34,093 34,093
9 Other receivables 29,528,032 101,066 - - 1,264,092 30,893,190 25,024,252 245,783 - - 1,215,601 26,485,636
10 Commitments and contingencies
a. Rupiah 267,619,804 1,460,912 506 1,609 7,083 269,089,914 234,773,930 1,155,346 4,184 51,879 36,315 236,021,654
b. Foreign currencies 166,998,266 1,129,953 - - - 168,128,219 120,707,932 5,865,049 - 1,978 330 126,575,289
III OTHER INFORMATION
1 Value of bank’s assets pledged as collateral:
a. To Bank Indonesia – –
b. To others – –
2 Repossessed assets**) – –
*) Include restructured loans due to Covid-19
**) Repossessed assets are presented net after the allowance for impairment of assets. .
PT BANK MANDIRI (PERSERO) TBK 496 497 ANNUAL REPORT 2024
Page 116
MANAGEMENT DISCUSSION AND ANALYSIS
EARNINGS ASSET QUALITY REPORT AND OTHER INFORMATION EARNINGS ASSET QUALITY REPORT AND OTHER INFORMATION
Allowance For Impairment And Asset Quality Assessment
(In Millions of Rupiah)
31 December 2024 (Audited)
Allowance for Impairment (CKPN) Allowance for Asset Quality Assessment (PPKA)
No. Description
Total Allowance for Asset
Stage 1 Stage 2 Stage 3 Total CKPN General Specific
Quality Assessment
1 Placements with other banks 17,537 - - 17,537 567,103 - 567,103
2 Spot and derivative receivables/forward - - - - 74,915 - 74,915
3 Securities*) 12,102 - 6,921 19,023 320,716 8,674 329,390
4 Securities sold with agreement to repurchase (Repo) - - - - 8,635 - 8,635
Securities purchased with agreement to resell
5 - - - - 71,086 - 71,086
(Reverse Repo)
6 Acceptances receivables 25,737 3,751 - 29,488 91,563 273 91,836
7 Loans and financing provided*) 9,094,305 16,664,969 12,581,110 38,340,384 12,530,856 12,528,756 25,059,612
8 Investments in shares 30 - 12,597 12,627 145,752 76,685 222,437
9 Other receivables 44,397 68,290 1,264,119 1,376,806 295,280 1,269,145 1,564,425
10 Commitments and contingencies 412,129 672,971 4,863 1,089,963 2,235,014 47,765 2,282,779
Total 9,606,235 17,409,980 13,869,610 40,885,828 16,340,919 13,931,298 30,272,218
31 December 2023 (Audited)
Allowance for Impairment (CKPN) Allowance for Asset Quality Assessment (PPKA)
No. Description
Total Allowance for Asset
Stage 1 Stage 2 Stage 3 Total CKPN General Specific
Quality Assessment
1 Placements with other banks 12,329 - - 12,329 486,240 - 486,240
2 Spot and derivative receivables/forward - - - - 19,501 - 19,501
3 Securities*) 14,614 - 24,850 39,464 334,859 39,496 374,355
4 Securities sold with agreement to repurchase (Repo) - - - - 7,425 - 7,425
Securities purchased with agreement to resell
5 - - - - 47,804 - 47,804
(Reverse Repo)
6 Acceptances receivables 29,916 87,984 - 117,900 144,559 353 144,912
7 Loans and financing provided*) 11,201,507 15,660,142 15,473,730 42,335,379 10,274,065 9,261,410 19,535,475
8 Investments in shares 30 - 44,505 44,535 145,261 108,823 254,084
9 Other receivables 55,293 178,637 1,215,609 1,449,539 250,243 1,227,890 1,478,133
10 Commitments and contingencies 471,778 476,059 163,893 1,111,730 1,945,865 321,732 2,267,597
Total 11,785,467 16,402,822 16,922,587 45,110,876 13,655,822 10,959,704 24,615,526
*) Stage 1 Allowance for Impairment includes allowance for impairment for financial assets
that are measured at fair value through other comprehensive income which booked in equity.
PT BANK MANDIRI (PERSERO) TBK 498 499 ANNUAL REPORT 2024
Page 117
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL HUMAN CAPITAL
FRAMEWORK
MANAGEMENT
In 2024, Bank Mandiri’s Human Capital management focused on cultivating an ecosystem-based
In 2024, Human Capital focused on cultivating an ecosystem- business mindset and developing strategic leaders to drive sustainable growth. By implementing targeted
based business mindset and enhancing strategic leadership programs, we aim to create a resilient and adaptive workforce, supporting the Bank’s strategic purspose
of “Leading Today, Championing the Future” and solidifying its position as the market leader in domestic
capabilities, ensuring that Bank Mandiri maintains its growth and regional markets.
momentum and market leadership position. As such, we
urge all Mandirian personnel to consistently embody
the core value of “AKHLAK,” which serves as a guiding 3-3-1 STRATEGY
principle for SOEs, both within the workplace and beyond.
Additionally, we have embedded the Wholesale Banker Aligned with the vision and mission of the Corporate Plan 2020-2024, Bank Mandiri Human Capital remains
mindset, characterized by the distinctive Mandirian DNA, focused on nurturing top talent through its 3-3-1 strategy, emphasizing the pivotal role of People & Culture.
across our entire organization, reinforcing our commitment
to achieving the Company’s long-term targets and Strength 1 People
aspirations. Wholesale Banking & Value Chain Cultivating Strategic Business Leaders
Strength 2 Aggressive System
but Prudent
Regional Sector Champion Strengthening Core Banking Svstem
Gesture
Strength 3 Culture
Liquidity and Financial Institution Nurturing Strong Business Mindset
To drive sustainable business growth, Bank Mandiri implements two main focus areas in its Human Capital
management programs, namely:
1. People: The Bank focuses on enhancing the ability to seize business opportunities by managing a
productive workforce.
2. Culture: To be able to realize sustainable business growth, the Bank transforms its business mindset.
PT BANK MANDIRI (PERSERO) TBK 500 501 ANNUAL REPORT 2024
Page 118
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL FRAMEWORK HUMAN CAPITAL FRAMEWORK
BANK MANDIRI HUMAN CAPITAL ARCHITECTURE h. Training and capability development of d. Standalone EASy
employees to support business needs. Systems to support the goal setting
i. APPRAISE (Performance – Individual process, performance management
Performance Management) and processes in the compensation
j. Employee performance appraisal and cycle.
feedback system that is accountable e. Mandiri TaMS (Talent Management
and transparent. System)
k. AWARD (Reward – Reward System (Total Bank Mandiri Talent Management
Reward)) is related to talent profile, successor
8 1 l. Competitive and accurate employee pipeline, assessment result and
ARCHITECT
reward system. centralized top talent management.
ADIEU
Retire & Exit Org. Structure
& Capacity
m. ACTUALIZE (Talent and Succession) f. Recruitment Platform System
7
n. Quality and timely talent and succession Recruitment and application
2
ACTUALIZE ATTRACT management system. tracking system to accelerate and
Talent & Succession
EMPLOYEE VALUE
Recruitment
o. ADIEU (Retire and Exit) support the recruitment process and
PROPOSITION
PURPOSE p. Employee termination system and candidate tracking.
ALIGN
AWARD
CULTURE
Onboarding pension plan
6
Reward
& Employee
Relation • Leadership
3
3. Human Capital Platform Bank Mandiri Human Capital annually
ADVANCE
APPRAISE Learning & The management of the Human Capital holds a Co-creating Future Mandirian
Performance Development
Life Cycle is carried out through the forum, which is a collaboration forum
5 4 implementation of an operating model between all Leaders and Human Capital
supported by technological infrastructure in order to align and communicate
and leaders who are also responsible for programs that require the involvement of
managing Human Capital. all Leaders.
The following is the Human Capital Platform • HC Policy & Strategy
that supports Bank Mandiri Human Capital Each Human Capital policy is listed in
management: SPSDM in accordance with the Employee
Life Cycle. Human Capital Strategy is
Bank Mandiri Human Capital Architecture consists The Human Capital Life Cycle includes: • HC Technology & People Analytic prepared in alignment with the direction
of 3 (three) key components: a. Human Capital Information System of the Bank’s strategy and is reviewed
a. ARCHITECT (Organization Structure and (HCIS) annually. The purpose of implementing
1. Employee Value Proposition (EVP) & Culture Capacity) – Organization Development Core human capital system to support the 3-3-1 Human Capital strategy is to
The foundation of Mandiri’s Human Capital b. Organizational development which administrative processes, databases, increase productivity, increase employee
development is built upon the purpose of includes organizational structure verification and employee payroll engagement, in addition to continuing to
fostering the AKHLAK Mandirian culture and design and position evaluation, career integrated with the finance system. nurture and develop new leaders in order
positioning Bank Mandiri as an employer development, and employee needs b. Mandiri CLiCK to ensure sustainable business growth.
that offers an Employee Value Proposition planning (capacity planning). Platform for digitizing personnel
focused on opportunities for learning, growth, c. ATTRACT (Recruitment – Human Resource administration processes and • HC Operating Model
collaboration, and meaningful contribution to Fulfillment) information centers related to Human Bank Mandiri Human Capital Architecture
both Bank Mandiri and Indonesia. d. A reliable Human Resources fulfillment Capital provisions. is designated as the HC Operating Model
system both through internal and external c. New Learning Management System by the Bank in order to facilitate ongoing
2. Human Capital Life Cycle sources, and employee attraction (MY Learn) organizational development and align
The Employee Value Proposition (EVP) (strategies to attract employees). End-to-end digital learning and with current business developments.
is realized through comprehensive e. ALIGN (Onboarding & Employee capability development solutions
management of all stages of the employee Relation – Employee Onboarding and that are integrated with more than
lifecycle, encapsulated in the “Human Employment Relations System) 9,000 learning courses both internally
Capital Life Cycle.” This process begins f. A friendly system of employee onboarding and externally to provide a better
with organizational structure and capacity and relations for employees and new employee learning experience.
design, followed by recruitment, onboarding, employees.
recognition, development, and finally, g. ADVANCE (Learning and Development)
retirement and exit.
PT BANK MANDIRI (PERSERO) TBK 502 503 ANNUAL REPORT 2024
Page 119
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL STRATEGY ORGANIZATION STRUCTURE
OF BANK MANDIRI HUMAN
CAPITAL MANAGEMENT
Bank Mandiri implements its Human Capital Strategy as a key component of its focus on
shaping the Bank’s People and Culture, as outlined below:
ORGANIZATIONAL STRUCTURE OF DIRECTORATE OF COMPLIANCE & HR
Compliance & HR
OUR ENGAGED AND PRODUCTIVE EMPLOYEES WHO DRIVE GROWTH.
GOALS SUSTAINABLE BUSINESS AND DEVELOP NEW LEADERS
HC ENGAGEMENT SR HCBP
COMPLIANCE & DISTRIBUTION SR HCBP IMPROVEMENT
HC SERVICES PROJECT
& AML - CFT OUTSOURCING & RETAIL SUPPORTING
MANAGEMENT BANKING
STRATEGY #1
ACCELERATED
STRATEGY #2
ACCELERATED
STRATEGY #3
DEEPENING EMPLOYEE
HUMAN HC
CAPITAL OFFICE OF PERFORMANCE HC STRATEGY MANDIRI SR HCBP
CAPACITY CAPABILITY ENGAGEMENT WITH THE BOARD & & TALENT UNIVERSITY WHOLESALE
AKHLAK & EVP REMUNERATION MGMT BANKING
FULFILMENT &
BOOST PRODUCTIVITY
DEVELOPMENT
STRATEGY
Based on the structure, the Directorate of Compliance & HR consists of:
• Compliance & AML – CFT Group that manage the functions of Anti Money Laundering (AML) System
& Development, AML Advisory, Financial Crime Analysis, AML Reporting & Data Analyst, Compliance
MANDATES #1 FOR MANDIRI
TO SUPPORT &
#2 FOR NATION
TO CONTRIBUTE
#3 FOR EMPLOYEE
TO CREATE
System, Corporate Governance, QA & LEA, IT Compliance, and Compliance Officer.
AS HC ENABLE IN DEVELOPING TALENT MEANINGFUL • HC Engagement & Outsource Management Group that manage the functions of Industrial Relations,
FOR INDONESIA EMPLOYEE EXPERIENCE
Outsourcing Management, Outsourcing Operations & Supporting, Pension Fund & Alumni Relations,
Employee Special Assignment.
• HC Performance & Remuneration that manage the functions of Reward Management, Performance
Management, Organization Development, Strategic Workforce Program.
• HC Strategy & Talent Management that manage the functions of Talent Management, HC
Strategy & Analytics, HC Digital & Employee Experiences, Culture Activation, HC Communication
& Employer Branding, Leadership & Management Development, Emerging Leaders Development,
The purpose of Bank Mandiri Human Capital is to elevate employee engagement and productivity in and Talent Exchange.
order to be able to foster sustainable business growth and develop new leaders. To achieve this goal, • HC Services that manage the functions of Talent Acquisition, HC Information System, HC Operations,
Bank Mandiri Human Capital has 3 Strategies and 3 Mandates. Quality Assurance & Effectiveness Improvement, and Improvement Project.
• Mandiri University that in charge of Operation & Strategic Projects including Learning Operations
The 3 strategies are: & Monitoring, Branding, Partnership & Communication, Registered Training Organization (RTO),
1. Strategy #1: Increase productivity Certification, and Academies.
2. Strategy #2: Accelerate capability improvement • Human Capital Business Partner that includes:
3. Strategy #3: Deepen Employee Engagement with AKHLAK & EVP - Distribution & Retail Banking: HCBP Business & Network (1-2) and HCBP Retail Banking.
- Wholesale Banking: HCBP Institutional Relations, HCBP Commercial Banking, HCBP Treasury &
Below are 3 mandates of Human Capital: International Banking, HCBP Subsidiaries, HCBP SAM, HCBP Corporate Banking.
1. For Mandiri: To support and activate the Strategy and Corporate Plan - Supporting: HCBP Wholesale Risk, HCBP Retail Risk, HCBP Enterprise Risk & Internal Audit, HCBP
2. For Our Nation: To contribute to building talent for Indonesia Compliance & HC, HCBP Finance & Corporate Transformation, HCBP Information Technology,
3. For Our Employee: To create a meaningful Employee Experience. HCBP Operations.
PT BANK MANDIRI (PERSERO) TBK 504 505 ANNUAL REPORT 2024
Page 120
MANAGEMENT DISCUSSION AND ANALYSIS
DIVERSITIES AND EQUAL HUMAN CAPITAL MANAGEMENT
OPPORTUNITIES PROGRAMS IN 2024
Bank Mandiri implements a robust and consistently applied Human Capital management program to
support the realization of its Corporate Plan and strategic objectives, as outlined below:
In line with its human resource Bank Mandiri ensures that This commitment to equality
management policy, Bank Human Capital management is reflected in the relatively
Mandiri consistently upholds is based on competencies, balanced percentage of INTERNALIZATION OF CORPORATE CULTURE
its commitment to valuing providing equal opportunities female employees, accounting
diversity and ensuring equal for all employees in for 52.37% (2023: 52.32%) of the Bank Mandiri consistently and continuously implements the AKHLAK Core Values through unique
opportunities for all employees career development, skill total workforce. Meanwhile, the characteristics known as the Mandirian DNA (m-DNA) as a Way of Working at Bank Mandiri.
to grow and develop, enhancement, remuneration, percentage of women in top-
regardless of ethnicity, religion, and other aspects. level management positions, Mandirian DNA (m-DNA) is defined as a form of embodiment of AKHLAK’s Core Values, which consists of:
race, or other distinctions in its from Assistant Vice President to
Human Capital practices. Director, reached approximately
35.47% in the 2024 reporting year Uphold the trust given
(2023: 33.17%).
“Trustworthy” value code of conduct:
• Deliver on agreements and commitments
• Responsible for the duties, decisions and actions performed
Trustworthy • Firmly upholding the moral and ethical values
Continue to learn and develop capabilities.
“Competent” value code of conduct:
• Improving self-competence to overcome ever-changing challenges
• Helping others learn
Competent • Complete tasks of the highest quality
Care for each other and respect differences.
“Harmonious” value code of conduct:
• Respect everyone regardless of background
• Fond to help others
Harmonious • Building a favourable work environment
Dedicated and to first put the interests of the nation and the country.
“Loyal” value code of conduct:
• Maintaining the good name of fellow employees, leaders, SOEs, and the Nation
• Willing to sacrifice to achieve greater goals
Loyal • Be obedient to the leadership as long as it does not conflict with law and ethics
Continue to innovate & be enthusiastic in enforcing or overcoming change.
“Adaptive” value code of conduct:
• Quickly adjust to perform better
• Constantly make improvements following technological developments
Adaptif • Act proactively
Build synergistic cooperation.
“Collaborative” value code of conduct:
• Provide opportunities for various parties to contribute
• Open to working together to generate added value
Collaborative • Drive the utilization of multiple resources for a common goal
PT BANK MANDIRI (PERSERO) TBK 506 507 ANNUAL REPORT 2024
Page 121
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
Bank Mandiri Culture Implementation Framework:
To strengthen the sustainable implementation of AKHLAK core values, Bank Mandiri developed a framework
Board of Directors & SEVP (L1)
as unique characteristics of all Bank Mandiri employees called Mandirian DNA (m-DNA). m-DNA is as a Provide input and direction to the culture squad leader
CULTURE SQUAD
manifestation of core values (Trustworthy, Competent, Harmonious, Loyal, Adaptive, and Collaborative). in determining and implementing work culture and main
CHIEF
These unique characteristics are actualized through Gerakan Bersama Mandirian to realize Mandirian behaviors in each work unit.
who always deliver & ahead (m-DNA) in realizing Bank Mandiri’s vision and aspirations.
Regional CEO, Group Head and Relevant Executives (L2)
CULTURE SQUAD As a role model and foster work culture practices in
LEADER each work unit.
CULTURE SQUAD ROH/RCBDH/RTCH (L3), Department Head, Area Head
CAPTAIN and Relevant Executives (L3)
Coordinator in the preparation, implementation and
evaluation of work culture programs in each work unit.
CULTURE COMMUNITY Culture Squad (L4) & Community Squad (Mandiri
SQUAD SQUAD Influencer, Mandiri Writer, Mandiri Movie Creator,
Mandiri Dancer)
Take an active role in ensuring that the work culture
program consistently performs in each work unit.
*) Provisions related to Culture Network Team refer to:
• Memorandum No. PPP.HCE/CMD.273/2021 & PPP Letter No. HCE/CMD.141/2021 dated 30 April 2021 on the
adjustment of the organizational structure of the Culture Network Team in order to strengthen work culture
practices in 2021.
• Decree of the Board of Directors No. KEP. DIR/34/2022 dated 23 September 2022 on Appointment and
Determination as Culture Squad.
• Decree of the Board of Directors No. KEP. DIR/33/2022 dated 23 September 2022 on Appointment and
Determination as Culture Squad Captain.
Bank Mandiri has established a Culture Network Culture Network Team (CNT) is a strategic
Team (CNT) which has a strategic role as an partner of Human Capital that engages all levels FLAGSHIP PROGRAMS
enabler in shaping the Super Happy Super of employees both at the Top Management
Productive work culture through cultural programs level, Senior Management to the junior level The following bankwide flagship programs have been implemented during 2024, as follows:
that are embedded with daily work to deliver an of employees. CNT carries out its role by
impact on the formation of employee mindset implementing culture through programs hosted No. Program Description Purpose
and behavior. both within work units and across bank-wide, such
1 Well-being Covering the aspects of Physical, Enhancing the implementation of employee
as events, campaigns, and cultural programs, to Program Psychological, Financial, and well-being initiatives and exploring measures to
deliver management and motivation messages Workplace well-being, which are maintain well-being while performing daily work
to employees across all work units. structured around three main pillars: tasks.
Employee Assistance, Well-being
Program, and Well-being Campaign.
2 AKhLAK Townhall As part of the series of activities The management’s directives to all employees
Mandiri Group commemorating the 4th Anniversary of focused on:
AKHLAK, the management organized • Optimizing the implementation of AKHLAK
a townhall meeting involving the Board values to sustainably enhance employee
of Directors and all employees under performance
the theme: “AKHLAK as the Foundation • Raising awareness and reinforcing employee
of SOEs for Sustainable Performance adherence to the Respectful Workplace
Growth and Improved Services.” Policy (RWP) within the work environment
PT BANK MANDIRI (PERSERO) TBK 508 509 ANNUAL REPORT 2024
Page 122
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
No. Program Description Purpose No. Program Description Purpose
3. Culture The strategy involves launching a The goal is to communicate management’s 8 Mandiri Best A training program designed for all top • Enhancing the capabilities of candidates with
Campaign campaign program that utilizes an directives and focus areas, such as Mandirian Employee (MBE) employees of Bank Mandiri (Mandiri strong national awareness and high integrity,
Multichannel integrated approach to various DNA characteristics and employee well-being, in Best Employees) to serve as role models enabling them to become role models within
internal communication platforms and a way that is easily understood and embraced in embodying AKHLAK values and their respective units.
channels. This includes disseminating by the target employees. fostering a strong sense of national • Fostering a deep sense of love and pride for
messages and reinforcing the identity as professional bankers. Indonesia.
company’s cultural values through
narratives, presentations, posters, 9 Mandirian Ber- A program aimed at supporting • Enhancing employees’ awareness of the
videos, and interactive podcasts. NYALI (Mandirian Bank Mandiri's Sustainable Finance importance of environmental care (eco-
Each channel is tailored to its unique Bergerak Action Plan (RAKB), particularly in friendly acts).
context, packaging, and audience Nyata untuk fostering sustainable operations by • Pulse checks on cultural program
characteristics to ensure the delivery is Lingkungan) encouraging eco-friendly behaviors implementation within work units through the
effective and engaging. among employees. These include Culture Network Team (CNT).
reducing plastic use, minimizing paper
4 Corporate This program forms part of the • Establish a clear understanding of the AKHLAK consumption, conserving electricity,
Culture Training internalization process for AKHLAK core core values and their impact on accelerating and separating organic from non-
values and the Mandirian DNA (m-DNA) business transformation. organic waste.
as unique characteristics, targeting • Building knowledge about the unique
both new hires (ODP) and existing characteristics of the Mandirian DNA 10 ABC in Mandiri An educational and socialization The program serves as a fun and engaging
employees (SDP) through core module (m-DNA) and how these traits are shaped by (Asyiknya Bahas program delivered in podcast medium to increase employee awareness of
training sessions before they commence AKHLAK core values. Culture) format that provides information culture, wellbeing, and management concerns,
their assignments. • Instill a sense of ownership among about various culture-related topics, making these topics more accessible and
participants, ensuring that the core values of wellbeing initiatives, and other matters relatable.
AKHLAK and the m-DNA are seen as personal currently prioritized by Bank Mandiri’s
responsibilities that must be demonstrated in management.
employees’ behaviors.
11 Mandiri An innovation incubation program This initiative provides employees with the space
5 AKhLAK Blusukan An informal communication forum To deliver motivation and conduct monitoring Innovation designed to foster experimentation and resources to engage in innovative activities,
Culture between management and employees (pulse check) regarding how the implementation and cultivate a culture of innovation, thereby accelerating the innovation process
that focuses on the topics of AKHLAK of AKHLAK and well-being programs supports enabling the creation of a competitive within the Bank.
core values and employee well-being. bank-wide initiatives and creates the Mandirian edge at Bank Mandiri.
Joint Movement “Always Deliver & Always
Ahead.”
12 Mandiri Young A development program for Top Talent This initiative aims to accelerate the career
Leader (MYLead) at the L4 level that involves three years growth of L4 employees, preparing them to
6 AKhLAK Culture A discussion forum for the Culture • To gather feedback as an area of of stretch and challenging assignments. become successor-ready for the next level (L3).
Visit Network Team (CNT) at Regional and improvement for the implementation of
Headquarters units, held regularly both cultural programs.
13 Future ME A development program for active • Enhance students’ knowledge in financial
online and offline. • To conduct a pulse check on cultural
(Mandirian students from first to fourth year who management, career preparation, and
program implementation within the units
Excellence) have been selected through a rigorous leadership.
through CNT.
process, designed to accelerate • Provide insight and a clearer picture of a
and build their career in the banking career path at Bank Mandiri.
7 Edutainment A development program for Bank • Enhancing engagement and psychological industry.
Mandiri Best Mandiri’s top employees delivered in an well-being to foster closer connections with
Employee (MBE) edutainment format. the Creator.
14 My Digital My Digital Academy is an early This serves as a platform to attract the best
• Providing spiritual experiences for MBE winners
Academy (MDA) engagement and hiring program for digital talents in support of the Corporate Plan
to deepen their understanding of religious
final-year students and fresh graduates to become The Best Modern Digital Bank, while
values and embrace the principles within
from selected universities and faculties. also positioning Bank Mandiri as an employer of
AKHLAK core values, thereby strengthening
The program includes a one-month IT choice among students from various universities.
purpose of work.
capability development innovation
• Providing new knowledge and networks,
bootcamp.
allowing participants to bring back positive
insights from the program and shaping them
into Strategic Business Leaders Who Always
Deliver and Always Ahead (mDNA).
PT BANK MANDIRI (PERSERO) TBK 510 511 ANNUAL REPORT 2024
Page 123
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
RECRUITMENT Description 2024 2023
SDP Recruitment 579 2,959
Bank Mandiri has established several stages in the employee recruitment process, as outlined below:
Internal recruitment is carried out through rotation, secondment, promotion, and demotion as part of
Bank Mandiri Recruitment Stages the employee career development process. The Bank adopts a holistic approach, considering not only
promotions but also capability enhancement, expansion of responsibilities, individual development, and
improved remuneration.
• Rotation refers to the transfer of employees within the same unit or across different units.
• Secondment is a temporary assignment of employees for a specific period.
• Promotion involves moving an employee to a higher-ranking position, either within the same unit or
Online Profile Interview Tes Final Medical across different units, where the new role has a higher level of responsibility or job grade.
Registration Screening Awal Psikometri Interview Test
• Demotion is the transfer of an employee from a higher position to a lower one, aimed at providing
coaching and learning opportunities to help improve productivity in line with the Bank’s business and
organizational needs.
An elimination system is applied at each stage of selection.
Bank Mandiri Employee Promotion, Demotion and Rotation
Description 2024 2023
Promotions (MPC and SPC)* 10.388 9,210
Employee recruitment at Bank Mandiri is 7. Maximum age of 45 years at the time of initial Demotion 14 5
conducted through two main channels: internal selection. Rotation 15.525 13,440
and external sources. Internal recruitment is carried 8. Minimum Individual Grade of PP2. MPC is a Main Promotion Cycle and SPC is a Secondary Promotion Cycle.
out through internal development programs 9. Not in the process of audit/ investigation due
targeting leadership positions, while external to violations of employee discipline.
recruitment involves hiring fresh graduates and 10. Not sanctioned in the last 1 year and not External Recruitment • Graduates of Overseas Universities: Pass
experienced professionals (pro hire) for both currently under sanctions. External recruitment is conducted to fill positions or based on certain standards according
managerial and operational roles. All recruitment 11. Have never participated in the SDP selection within the “Officer Development Program (ODP).” to the origin of the University
activities are aligned with the Bank’s needs and more than 3 (three) times. The implementation guidelines for the ODP are f. Unmarried and willing to be unmarried during
follow established policies and guidelines. 12. Have never participated in the SDP selection outlined in Bank Mandiri’s internal policies, as the program.
in the previous year. detailed below: g. Have no Criminal record from the Police or
Internal Recruitment a record of misconduct from the previous
Internal recruitment is managed by Human Capital Specifically for security officer: a. Minimum of Bachelor Degree Education company.
Services for the “Staff Development Program Implementing Authority Holder Employees (P3K) Level
(SDP)” positions. The guidelines for implementing Security/Security Supervisor. b. Candidates from the graduates of universities In 2024, the total recruitment of ODP programs
the SDP are outlined in Bank Mandiri’s internal with the best reputation in Indonesia and was 829 personnel, an increase of 30% from
regulations, as detailed below: Specifically for officers of Branch Sales Staff, overseas set by Bank Mandiri. previous year’s recruitment of 640 personnel. This
Branch Sales Supervisor and Unit Supervisor: c. Courses: increase was due to an increase in the need for
1. Officers and Security Officers with the top 1. Minimum working period of 2 (two) years is • Study Programs required by the Bank leadership employees in Bank Mandiri work units.
priority of the Authority Holder Employees calculated from PKWT as Branch Sales Staff, d. Maximum age at the time of following the
(P3K). Branch Sales supervisor and Unit Supervisor. initial selection: In 2024, the recruitment of leadership candidates
2. Minimum education of Diploma 4 or Bachelor 2. No minimum Individual Grade. • 26.0 years for Bachelor Degree/ through ODP Program was sourced through job
degree. equivalent graduates fairs, campus hiring events attended by Bank
3. Have a professional disposition, namely: speak In 2024, the number of employees participating • 28.0 years for Master Degree graduates Mandiri, the “Talent Hunt” program, the “Future
with respect, well dressed, well mannered, in recruitment from internal sources was 579 e. Minimum Grade Point Average (GPA): Me” program, internship opportunities, and the use
self-confidence. personnel, an increase of 8% from 538 personnel • Bachelor Degree graduates: 2.75 – 3.00 of an Applicant Tracking System in collaboration
4. Minimum Performance Level of PL2 in the last in 2023. This increase was caused by the number (4.00 scale) with “Talentics.”
2 years. of employees who were eligible to take part in the • Master Degree graduates: 3.20
5. Minimum service period of 5 years from the development process and there was a need for
effective date of employment. leadership employees from the SDP pathway in Description 2024 2023
6. HIPO/CR Talent Classification. work units. Rekrutmen ODP 829 640
PT BANK MANDIRI (PERSERO) TBK 512 513 ANNUAL REPORT 2024
Page 124
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
CPDK (Special Regional Leadership Candidate) Recruitment Internship Recruitment the banking industry. Learning Magenta Internship Program,
This recruitment program is specifically targeted at fresh graduates from local region communities. The purpose of the Internship modules include back-office as well as the Ministry of
Employees hired through the CPDK pathway will undergo a comprehensive and intensive development Program is to equip and tasks, call center, customer Education, Culture, Research,
program, which includes both in-class and on-the-job training. This training aims to provide a thorough develop the competencies service, and teller roles. For and Technology for the Certified
understanding of standard operations and business processes within the unit, equipping them to effectively of graduates from schools contact center positions, the Internship Program under
perform their roles in their respective local areas. In 2024, a total of 68 employees were recruited through and universities, preparing Bank offers a special internship Kampus Merdeka (MBKM). The
the CPDK pathway, marking an increase of 100% from zero recruitment in the previous year. them to enter the workforce. program for differently-abled Magenta Internship Program
Interns who demonstrate individuals with a minimum started in 2023, while the MBKM
Description 2024 2023 strong skills and competencies high school education, known program has been ongoing
CPDK Recruitment 68 Nil are considered as potential as Kriya Mandiri Contact since 2021. These internships are
candidates in Bank Mandiri’s Center. Participants undergo offered to students from public
CPDK recruits are assigned to various Bank units, including Regional 9 (Kalimantan and surrounding areas), recruitment pool. The Bank’s three stages of training; basic, and private universities as part
Regional 10 (Sulawesi and Maluku), Regional 11 (Bali and Nusa Tenggara), and Regional 12 (Papua and internship programs, which intermediate, and advanced, of the “SOEs for the Nation”
West Papua). serve as a recruitment source, over a comprehensive initiative. The aim is to support
consist of two main types: three-year period based the government’s efforts in
Regions Total Kriya Mandiri and Partnership on a structured syllabus. In preparing a competitive and
Region II/South Sumatra 21 Internship Programs, including 2024, there were 3,029 Kriya skilled workforce and to bridge
Region IX/Kalimantan 11 Magang Generasi Bertalenta Mandiri participants, of which the gap between university
Region X/Sulawesi & Maluku 17 (MAGENTA) and the Certified 273 became full-time Bank curricula and industry needs.
Region XI/Bali & Nusa Tenggara 10 Internship Program under Mandiri employees. This was Interns participating in these
Region XII/Papua 9 Kampus Merdeka (MBKM). a decrease of 67% from last programs gain comprehensive
Grand Total 68 year’s total of 817 participants. and structured knowledge and
Kriya Mandiri is an integrated skills, particularly in banking. In
internship program introduced The Partnership Internship 2024, the program successfully
in 2012 for high school Program is conducted in recruited 521participants,
Recruitment of The recruitment process for Indonesia), which serves as a graduates, Diploma 3 (D3), collaboration with two representing an increase of
Employees With employees with disabilities is platform for Human Capital and Bachelor’s (S1) degree ministries: the Ministry of State- 8.31% compared to last year’s
Disabilities conducted independently managers and practitioners students. It aims to provide Owned Enterprises (SOEs) and total of 481 participants.
As a commitment to equal by the respective units in within SOEs to engage, learn, knowledge, skills, and hands- the Forum Human Capital
opportunities, Bank Mandiri coordination with Human and synergize for better Human on experience, particularly in Indonesia (FHCI) for the
also upholds employees with Capital. One example is the Capital management.
disabilities recruitment policy. Mandiri Call 14000 service at the
Currently, the recruitment of Mandiri Contact Center, which In 2024, the Bank hired 67 Internship Program 2024 2023
employees with disabilities is handles its own recruitment. employees with disabilities, MBKM 293 152
aimed at roles such as Contact marking an increase/decrease Magenta and General Internship 228 329
Center staff, Mandiri University In addition, the recruitment of of 27% from 2023, when 18 Total 521 481
staff, and IT staff. employees with disabilities is employees were recruited, as
carried out in collaboration with detailed below.
FHCI (Forum Human Capital
Description 2024 2023
Recruitment of Employee with
9 2
Disabilities
PT BANK MANDIRI (PERSERO) TBK 514 515 ANNUAL REPORT 2024
Page 125
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
The talent management and
succession process is divided into 4
(four) main processes, as follows:
1. Talent Identification
TC Identification Process
(Talent Classification) based
Learning Agility on performance, Leadership
Characteristics, Ability, Agility and
Engagement.
2. Talent Profiling
Talent assessment process based
on track record, technical
capability, leadership capability
Purpose and personality aspects.
3. Talent Development
Plan and execute talent
development based on capability
gaps.
4. Strategic Talent Review
Review development progress
and prepare an incumbent
Super Happy, Super Productive, succession plan.
Sustainable Business
Bank Mandiri Talent Management Process
EMPLOYEE Employee Career Bank Mandiri’s Talent
DEVELOPMENT Development Management and Succession
1 2 3 4
Bank Mandiri’s approach to strategy is structured around the
To enhance employee career development is grounded Mandirian Propeller framework,
competencies and achieve in its Talent Management and which encompasses five key Talent Identification Talent Profiling Talent Development Strategic Talent Review
global competitiveness, Bank Succession program, which elements: Technical Capability, Identification of TC based on Talent assessment based Identification of TC based on Review the development
Performance, Leadership on Track Record, Technical Performance, Leadership process and prepare a plan
Mandiri has implemented a adheres to the principle of fair Leadership Capability, Characteristics, Ability, Agility Aspects Capability, Leadership Characteristics, Ability, Agility incumbent success
series of ongoing development opportunity. This ensures that Culture, Learning Agility, as well as Engagement Capability and Personality as well as Engagement
initiatives aimed at cultivating every employee has an equal and Purpose. This framework High
Potential
exceptional talent. The focus chance to grow and progress, serves as the foundation for (HIPO)
High
Under
Achiever
on improving employee while also taking into account talent development, ensuring (UA) Critical
Moderated
Capacity
Resources
(CR)
skills is closely tied to the the Bank’s needs, individual that all five aspects are
overall importance of career capabilities, performance implemented in a balanced
Limited
Limited Key
Contributor Contributor
and comprehensive manner.
(LC) (KC)
development. evaluations, potential, talent
Limited Moderated High
classifications, roles, and other Performance (3 Year terakhir)
relevant factors. The program is
designed to prepare employees
Output Output Output
for key management positions Output Talent Profile & Gap Talent Development Plan Progress Development Plan
Talent Classification
within the Bank. Competency & Execution & Succession Plan
Managers: Talent Employees, Human Capital, Head of Work Units, Field Directors
PT BANK MANDIRI (PERSERO) TBK 516 517 ANNUAL REPORT 2024
Page 126
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
Employee Competency Development The employee development training programs identified implementation (learning
Bank Mandiri’s approach to employee competency development is facilitated through its corporate program managed by Mandiri based on business and individual delivery and deployment),
university, known as Mandiri University. This is driven by an operating model based on the Strategic University aims to support employee needs, Bank Mandiri and measuring the impact of
Learning Process, a comprehensive learning chain that starts with analyzing business needs and employee the implementation of Bank has been focusing on Reskilling, learning (learning impact). The
competencies, followed by the implementation of learning solutions, and concludes with measuring the Mandiri’s Corporate Plan Upskilling & Redeployment. This APDP is developed by Mandiri
impact on business outcomes. The Strategic Learning Process can be illustrated as follows: by enhancing employee includes initiatives tied to Smart University in collaboration
competencies aligned with Branch implementation and with relevant working units
the Bank’s vision. To ensure digital capability building for and Human Capital Business
alignment with Bank Mandiri’s all employees. Development Partners (HCBP), with top-down
strategic goals, competency within each Directorate at training programs tailored to
Learning Acquiring Delivery Learning development is focused on Bank Mandiri is systematically organizational needs (Thematic
Needs Learning & Impact leadership, managerial, and planned to meet business Learning). In addition to this
Diagnosis Solutions Deployment Measurement technical skills, particularly needs, communicated early top-down approach, Bank
in areas such as wholesale to stakeholders, resource Mandiri also plans employee
banking, retail banking, risk allocations are efficiently development from a bottom-
management, IT, digital managed, and progress is up perspective, addressing
banking, and other essential regularly monitored. Specific Personal Learning
Learning culture, infrastructure, administration, support system
fields like banking operations, gaps, discussed in development
finance, and human resources. The employee development dialogues with supervisors.
Organizational Learning blue print & Learning program/ Data outcome of The development of leadership plan is outlined in the Annual Bottom-up training programs
capability roadmaps module learning (survey.
and technical competencies People Development Plan are organized as Individual
competency questionnaires.
INPUT requirements based
(blended/non-
observation. is guided by the Leadership (APDP) for each Directorate Development Plans (IDP) for
blended)
on business plan & interviews. etc Capability Model (LCM) and based on its specific needs. This each employee.
strategy the Technical Capability Model plan is systematically prepared,
(TCM). beginning with a learning needs The employee development
• Core competency • Decide/choose: • Program/module • Evaluate: analysis, identifying learning scheme is illustrated in
analysis makeborrow- buy- Campaign • The quality of In the area of technical solutions in the form of training the following Capability
• Development reuse • Implement (deliver/ the outcome of
competencies, in addition to modules, scheduling program Development Framework:
needs analysis • Analyze program/ deploy) by corporate learning
module requirements teacher (on job &
PROCESS • Training needs • The learning
analysis • design program/ work place trainer. solutions
module framework classroom/virtual
• The learning system
facilitator. coaching.
• Develop program/ • The performance of
consulting.
module content employee
The employee development flow is described in the following
mentoring)
Capability Development Framework:
• Development ISD Toolkit: Trainer’s Toolkit: • Participant’s
needs analysis • Learning requirements • instructional design evaluation ROI
forms form toolkit
• Design window analysis
• Training needs • course structure • Data collection Need Analysis Capability Structure Development
• course structure & Strategic People
analysis forms plan and Plan
TOOLS lesson plan • facilitator’s guideline Management Implementation Review
• ROI analysis plan Corporate & Competency
• Learning & evaluation • Teaching slide’s Business Strategy Technical APDP
• Monetary Capability Model Assessment (Thematic Learning) Talent Pool
materials
Conversion
• Test & pilot course Job Analysis Blended Learning:
Leadership & IDP
• Cost analysis Educate,
Managerial Specific Personal Employee
Key Required Capability Model Engage, Expose, Learning Review
• Organizational Learning program/ Outcome of learning Learning evaluation Capabilities Experience
learning blue print module (L1, L2, L3, L4 return on
(company wide) (blended/non-blended) training investment)
OUTPUT • Learning roadmaps
(proactive)
• Training additional
program (reactive)
PT BANK MANDIRI (PERSERO) TBK 518 519 ANNUAL REPORT 2024
Page 127
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
Mandiri University has established dedicated academies for each business segment of the Bank, enabling Mandiri’s Leadership Pipeline Framework
employees in each respective unit to receive training and development specifically tailored to their roles
OBOARDING EQUIPPING DEVELOPING
and responsibilities. The following academies are available at Bank Mandiri:
Onboarding for newly & promoted Equipping with practical managerial Talent acceleration program to
people leaders to perform gesture skills which refers to leadership capability enhance capabilities for next level
Academy Segment “passion to deliver beyond expectation’ in empowering team to deliver beyond and being mDNA Role Model
Focus on the development of Wholesale Banking, Trade Finance, Treasury,
Wholesale Banking Academy
International Banking and Overseas Unit segments. Leading
Organization Onboarding for MASLP
Focus on developing the Small Medium Enterprise, Retail Banking, Consumer Deposit, (BOD & SEVP) Executive Leaders Mandiri Advanced Senior Leaders Program
Retail Banking Academy
Financial Services and Investment Management segments.
Focus on competency development in Business Continuity Management, Credit
Operations Academy
Operations, e-Channel Operations, Trade Services Operations and Customer Care.
Leading Functions Strategic Business Leader MASLP
Mandiri People Manager
Risk Academy
Focus on developing competencies in Risk Management, Audit and Control (Setara GH/L2) MPM Executive for L2 Leading for Impact Mandiri Advanced Senior
Function, Compliance and Legal. Leaders Program
Digital Banking and
Focus on competency development in Digital Banking, Information Technology,
Information Technology
Enterprise Data Management. MALP Graduates
Academy Leading Leaders Mandiri People Manager
Strategic Business Leader
Mandiri Advanced Scholarship
Human Capital and Finance Focus on competency development in Finance, Corporate Transformation and (Setara DH/L3) MPM Mastery for L3 Leading for Impact Leaders Program (for L3)
Academy Human Capital. women Leadership
Program
Leadership and Management
Focus on leadership and managerial development at Bank Mandiri.
Development Academy MAFLP
Leading Teams Mandiri People Manager
(Setara Team MPM Fundamental
Mandiri Advanced
First Leaders Program
Leader)
Managerial
Series Program MYLead
Mandiri Young Leaders
Bank Mandiri’s employee a. Leadership Development skills as they assume new
Leading Self ODP/SDP
competency development Program roles. Equipping aims to (Officer) Officer/staff Development Program Graduates Scholarship (for L4)
programs are divided into This is a structured, tiered provide employees with
the Leadership Development leadership development specific leadership skills to
Program and the Technical program designed to support their roles based
Development Program, each align with the leadership on identified competency
structured around the core capacity required gaps. Developing The tiered programs in the leadership development • Staff Development Program
competencies of each job at each employee focuses on preparing and program are as follows: An employee onboarding development
family and capability model. level. The program is accelerating employees program promoted from staff level to
These programs are designed divided into three main for the next level of • Officer Development Program (ODP) leadership employee level. The focus of
to support employees’ career phases for each level of leadership. This program An onboarding development path intended development includes briefing related to
progression, enhance their organizational leadership: targets all employees at for fresh graduate candidates or candidates leadership, managerial, and technical
agility in facing challenges, Onboarding, Equipping, various leadership levels, who have less than 4 (four) years of work skills needed by an officer: self-leadership,
foster cultural values, and align and Developing. The from officers to directors. experience. Candidates who pass the business banking, general banking, IT, risk
with the shared purpose of goal of Onboarding is recruitment and selection stage will be management, and culture. The learning
nation-building. The details of to prepare employees determined as prospective employees and program lasts for 3 months in class and 3
each program are as follows: with essential leadership are required to attend an intensive ODP months On the Job Training in the placement
education program for 1 year, consisting of 3 unit. During 2024, the number of employees
months of classroom learning, 5 months on the participating in the SDP was 611 employees
job training, and 3 month’s probation before with 19 batches.
becoming a permanent employee. To meet
business needs, competency development • SESPIBANK Program
in ODP includes aspects of Information The Bank Staff and Leadership College
Technology (IT), Risk Management, wholesale (SESPIBANK) is a development program in
banking, retail banking, and support collaboration with the Indonesian Banking
functions. In 2024, a total of 827 prospective Development Institute for Bank Mandiri Level
employees in 27 batches participated in the L3 leaders to prepare employees to the next
ODP development. level. The SESPIBANK curriculum consists of
classical classes, general banking certification
tests, benchmarking, and making papers as
PT BANK MANDIRI (PERSERO) TBK 520 521 ANNUAL REPORT 2024
Page 128
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
final evaluation material. After participating • Mandiri People Manager (MPM) Executive MALP is held for ±3 months, consisting of 2 Educate - S2 Scholarship Program Abroad
in this program, participants are expected to This leadership program is designed for L2 modules, each lasting 5 days. An S2 scholarship program overseas that
develop more advanced banking technical (BOD-2) and BOD-1 employees, aiming to aims to increase the exposure, networking
skills, as well as network with official participants develop Mandirian leaders with deep insights By participating in this program, the participants skills and knowledge of participants
from various other banks in Indonesia. In 2024, and knowledge, excellent skills, and strong are expected to have strategic leadership skills related to global insights relevant to Bank
4 Bank Mandiri employee participated in the motivation to help Bank Mandiri achieve that are capable to lead organizations and teams Mandiri’s needs. In 2024, there were 30
SESPIBANK program. its aspiration of becoming the Undisputed to achieve the vision. During 2024, 2 (two) MALP (thirty) employees that currently studying
Industry Leader. In 2024, a total of 213 cohorts have been held with a total of 60 top L3 Post Graduate scholarships in the Top
• Mandiri People Manager (MPM) Fundamental employees participated in the MPM Executive talent participants. 15 Universities around the world. The
A training program for employees of L4 program. fields of study taken are Digital Business,
(officer) levels to equip leadership skills. The • Mandiri Advanced First Leaders Program Advanced Finance, Technology, and
curriculum includes the preparation of a • Mandiri Advanced Senior Leaders Program (MAFLP) Enablers (Human Resources & Laws).
SMART work plan, prioritization of tasks based (MASLP) Mandiri Advanced First Leaders Program
on PDCA, performance monitoring, and The Mandiri Advanced Senior Leaders (MAFLP) is a Leadership development program b. Technical Development Program
communication. The duration of the program Program (MASLP) is a leadership development that prepares BOD-3 top talents (Team A technical employee competency
is 1 day. In 2024, a total of 163 employees program tailored for top BOD-1 talent, Leaders, Branch Managers or equivalent) improvement program in accordance
have participated in the MPM Fundamental. preparing them for the next level of leadership. to the next level of leadership. The focus of with the managed business segment. This
This program focuses on intrapreneurship, this program development is People Focus, technical capability development program
• Mandiri People Manager (MPM) Mastery strategic leadership, people-focus, and Digital Mindset, Strategy & Innovation. During is held thematically and specifically with
A training program for employees at the L3 digital leadership, aligned with the Bank’s 2024, 10 MAFLP cohorts have been held with the aim of increasing the knowledge and
level (Department Head level and equivalent) strategic needs and objectives. a total of 498 top L4 talent participants. skills of employees in business units which
with the aim of improving leadership include wholesale banking, retail banking, risk
capabilities in managing, motivating, • Mandiri Advanced Leaders Program (MALP) • Mandiri Executive Leaders Program (MAELP) management, IT and digital banking, as well
and improving team performance. The Mandiri Advanced Leaders Program (MALP) Mandiri Executive Leaders Program (MAELP) as other fields, including banking operations,
curriculum includes building effective work is a leadership development program for is a leadership development program for finance, and human resources. In 2024, 896
teams, managing change to achieve goals, top BOD-2 talents, aimed at preparing them Commissioners, Directors and SEVP levels. technical program modules were carried out
planning, mentoring and execution, as well for the next level. The program focuses on This program aims to improve leadership and with 168,292 participants.
as managing energy and prioritizing team intrapreneurship, strategic leadership, people technical capabilities in accordance with
goals. During 2024, 1,027 employees have focus, and digital leadership, aligning with the Bank Mandiri’s business needs, as well as build The following are several technical programs
participated in the PM Mastery program. Bank’s needs and strategy. relationships with other stakeholders. In 2024, training held in 2024:
6 (six) Commissioners and 7 (seven) Directors
have participated in this program at various • Strategic Business Leaders (SBL) Program
Top Global Universities. To realize Bank Mandiri’s aspiration to
become an Undisputed Industry Leader,
• Post Graduate Scholarship Program (S2) one of the focuses carried out by
Educate Engage A development program for top talents Bank Mandiri is to develop Mandirian’s
employees who are selected to attain capabilities as strategic business leaders.
postgraduate formal education both
Learning through classroom training, business cases, overseas and domestically. The purpose of the Strategic Business
coaching, and business simulations. - Mandiri Executive Scholarship for Leaders program is to equip all L3 Level
Journey duration: approximately 3 months. Includes
Postgraduate (MESP) employees, particularly Bank Mandiri
Learning through
interactive virtual sessions, assessments, reading collaborative interactions A domestic S2 scholarship program to Leaders at the head office and regions
materials, business simulations, and individual and improve the knowledge and skills of top with the skills and capabilities to be
with role models, mentors,
group coaching
and colleagues. talents employees at the BOD-2 level able to lead in implementing the 3-3-1
Modul 1 which focuses on developing future skills corporate strategy in achieving market
Always Ahead - Future Now (Leading Mandiri from
the future) needed in the Bank’s long-term strategy. dominance by creating own game in
In 2024, there were 21 (twenty-one) L3+ their work units. In 2024, this program was
Modul 2
and L3 employees (Department Head attended by 3,737 employees.
Always Deliver – Making it Happen (Executing an
Mandiri Strategy) and equivalent) participating in the
program.
PT BANK MANDIRI (PERSERO) TBK 522 523 ANNUAL REPORT 2024
Page 129
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
Competencies Development by Program
2024 2023
Development Program
Batch Participants Batch Participants
Leadership Development Program
Officer Development Program 27 827 21 640
Staff Development Program 19 611 16 568
SESPIBANK Program 2 3 1 1
Mandiri People Manager (MPM) Fundamental 3 163 2 615
Strategic Strong Winning Intensive Group Project Active Learning:
Mandiri People Manager (MPM) Advance 1 1,027 0 0
Leadership Camp Ecosystem Mentoring Assignment Online + Offline
Mandiri People Manager (MPM) Mastery 1 213 3 81
Build participants’ Strengthening the role Build a discussion forum Building capabilities Building capabilities Mandiri Advanced Leaders Program (MALP) 2 60 2 65
understanding of of RCEO, Regional between mentors and through real practice through subject
Branch Manager profiles Head & Area Head to participants in preparing based on case from matter experts related
Mandiri Advanced First Leaders Program (MAFLP) 10 498 5 364
covering 5 aspects of become an ecosystem branch business RCEO in currently to leaderships and Mandiri Executive Leaders Program (MAELP) 15 13 5 14
strategic business leader driving BM’s success plans and quick win managed branches technical capability S2 Program 3 51 2 73
implementation
Women Leadership Program - - 2 280
Other Leaderships 65 9,670 58 6,529
Technical Development Program 2,839 168,292 2,718 300,228
HOW? HOW? HOW? HOW? HOW?
E-learning & Podcast 9,071 768,204 3,369 483,598
Briefing of the president Equip Mentor Group Mentoring Individual Assignment 4+4
director and directors debriefing class for Based on cluster Sharing case study, Leaderships session and
on the expectations of mentors to be able unggulan tiap region branch business plan technical virtual class
the profile of a strategic to act as a learning yang dilaksanakan & quick wins Group based on curriculum Competency Development Based on Position Level
business leader ecosystem in order tiap minggu Assignment Creating of strategic business
to create a winning breakthru by cluster leaders from branch
Bank Mandiri consistently upholds the principle of equality in its employee competency development
ecosystem manager program programs, providing equal opportunities for all employees to enhance their potential. In 2024. a total of
38,002 employees participated in training. accounting for 97.8% of the active workforce. This included
18,193 male employees (98.2%) and 19,809 female employees (97.4%). The number of employees
attending training in 2024 increased by 97.5% compared to 2023. which saw participation from 37,084
employees.
Competency Development by Position Level in 2023-2024
Total Training
No. Employee Levels
• Wholesale RM Coverage Program • Digital Talent Readiness for Future 2024 2023
Wholesale RM Coverage is a program to Digital Talent Readiness for Future is a digital 1. Commissioner 10 12
develop RM Wholesale capabilities to support talent program for Bank Mandiri employees, 2. Director 12 12
the Wholesale Banking business and Value which is implemented through 2 programs to 3. SEVP - SVP 154 158
Chain for employees to be able to provide improve the digital capabilities of Bank-wide 4. VP - AVP 4,120 3,965
end to end transaction solutions to customers. employees as Digital Leaders, such as: 5. SM - FAM 13,993 13,822
become ecosystem enablers and maintain - IT Bootcamp 6. Officer 19,659 19,751
relationships with customers both at head - MSJD - Mandirian Ready to Go Digital 7. Non Officer 55 59
office and regions through training programs. 8. Pension/Terminate 2,032 1,738
In 2024. this program was attended by 10,016 As of December 2024, the Digital Talent Grand Total 40,035 39,517
employees. Readiness for Future Program has been
implemented with a total of 8,726 participants. Total Days and Hours of Training (Man Hour) by Gender in 2023-2024
Total Training Duration Average Training Hours
Total Trainees
Gender (hours) per Employee
2024 2023 2024 2023 2024 2023
Female 20,916 20,623 2,140,788 2,664,804 102,4 124.4
Male 19,119 18,894 2,175,159 2,674,432 113,8 136.6
Grand Total 40,035 39,517 4,315,947 5,339,236 107,8 135.1
PT BANK MANDIRI (PERSERO) TBK 524 525 ANNUAL REPORT 2024
Page 130
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
Total Days and Hours of Training (Man Hour) by Gender in 2023-2024
Total Training Duration Average Training Hours
Total Trainees
No. Employee Level (hours) per Employee Pre-arrival Arrival
2024 2023 2024 2023 2024 2023
1. Commissioner 10 12 179 1,008 17.9 0.0 Prior to work After work
2. Director 12 12 70 146 6.3 64.0 commencing commencing
3. SEVP - SVP 154 158 9,532 15,558 61.9 117.5
4. VP - AVP 4,120 3,965 533,885 807,516 129.6 174.3
5. SM - FAM 13,993 13,822 1,947,625 2,553,630 139.2 162.0 Accomodating Assimilating Accelerating
6. Officer 19,659 19,751 1,743,310 1,839,932 88.7 84.2
7. Non Officer 55 59 649 808 11.8 30.3
8. Terminate 2,032 1,738 80,698 120,638 39.7 58.7 The process to prepare The process to make The process where
Grand Total 40,035 39,517 4,315,947 5,339,236 107.8 118.5 for employee arrival employees quickly employees have
(pre-arrival) to speed understand what to adapted to their
up employees to catch expect from their work environment and
up with their work and and adapt to their have been able to
EMPLOYEE The General Principles of the 4. Connection make employees feel environment. innovate and work
ONBOARDING implementation of employee The Bank ensures that accepted by their work
environment.
more effectively and
productively.
SYSTEM onboarding are as follows: employees can maintain
good and positive
1. Compliance relationships between
New employees at Bank The Bank prepares employees
Mandiri, whether joining employees to understand
through the New Hire program the basics of the provisions Onboarding for
or transitioning via the New and policies applicable at New Hire The objectives of Onboarding 4. Building a Resilient by a Buddy. The Buddy’s
Promote (Onboarding for New the Bank. The Onboarding Program is for New Hire are as follows: Independent spirit with a role in implementing the
at Level) program, are required designed to help New Hires 1. Accelerate the pattern of Resilient Learners Onboarding Program is
to undergo an onboarding 2. Culture adapt to their new work process of employees’ who are willing to learn very important, particularly
system designed to equip them The Bank prepares environment, enabling them comprehension of their proactively from various in introducing the work
with the necessary knowledge, employees to be able to to quickly understand the work so as to increase sources (build proactive environment thereby able
skills, and behaviors as Bank accept and implement the behaviors and tasks specific to Speed to Productivity, learner). to speed up the New
Mandiri employees. Bank’s norms including the their new unit. The onboarding which begins by providing Hire adaptation process.
Bank’s work culture and process begins as soon as the facilities and infrastructure The supporting facilities A Buddy must have an
To support the digitalization core values. New Hire joins their designated that can support work provided during Onboarding adequate understanding
of the onboarding process, unit. It consists of two stages: explanation on Job for New Hire are as follows: related to the work unit
the Bank has introduced 3. Clarification Pre-Arrival and Arrival, each Description and Goals. 1. Welcome Kit Onboarding and Bank Mandiri as its
an enhanced, interactive The Bank ensures that comprising two integrated 2. Introducing Bank Mandiri A package that contains function is to always be
onboarding experience using employees understand processes as outlined below: Culture in order to gain an equipment to support the able to provide positive
a gamification-based learning and aware on the duties understanding of aligned performance and general and precise information to
approach. This new process and responsibilities of their values for employees to information about Bank New Hire.
covers 10 learning topics over new job and the expected quickly adapt to their work Mandiri provided to New
a three-month period and is performance results. environment (attach to Hire. The Welcome Kit 3. Onboarding Mission
accessible online. new culture). Onboarding is given to Checklist
3. Introducing the applicable increase understanding The Mission Checklist is
provisions and systems for of Bank Mandiri and the a guide to onboarding
employees to attain risk productivity and work activities to assist New Hire
awareness thereby able to motivation of New Hire. in the process of adapting
measure and manage the 2. Buddy System to the work environment
risks encountered during During Onboarding, New during the Onboarding
their work. Hire will be accompanied implementation.
PT BANK MANDIRI (PERSERO) TBK 526 527 ANNUAL REPORT 2024
Page 131
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
Onboarding for New EMPLOYEE • Level 3 (L3) is an Evaluation Type Results
at Level COMPETENCE evaluation to assess the Level 1, Reaction The average participant satisfaction level (NPS) reached a score of +75.74 on a scale
of -100 to +100, and the average evaluation score was 5.54 on a scale of 1-6.
To support new employees
in quickly adapting to their
DEVELOPMENT implementation of learning
materials and changes in
Level 2, Learning The average understanding level of participants was 85.59, on a scale of 0-100.
work environment and EVALUATION behavior before and after
Level 3, Behaviour The average behavioral change of employees after training was reflected in their
performance, with an average evaluation score of 5.05 on a scale of 1-6.
understanding their new learning with the multirater Level 4, Performance The average impact of training on employee performance reached 80.88%.
roles, Bank Mandiri offers the To enhance the quality of method, namely asking for
Onboarding for New at Level employee competency opinions/ assessments from
program. This program is development programs, employees, supervisors,
tailored for employees joining Mandiri University conducts colleagues, subordinates EMPLOYEE COMPETENCE DEVELOPMENT COSTS
through the New Promote continuous evaluations of the of employees who are the
initiative, helping them gain a content, instructor quality, and training participants. This Throughout 2024. Bank Mandiri allocated a total of Rp397.1 billion billion for employee competency
clear understanding of their job learning methodologies. This evaluation is carried out at development. This amount represents an increase from the 2023 budget realization of Rp382.83 billion.
descriptions, set performance ongoing assessment ensures least 3 (three) months after
goals, and familiarize that the training programs learning. The table below provides a summary of Bank Mandiri’s employee competency development expenses.
themselves with the company remain relevant, effective, • Level 4 (L4) is an
culture, Code of Conduct, and and aligned with the evolving evaluation to assess the Employee Competence Development Cost
Business Ethics. needs of the business. impact of learning on the Employee Development Cost
resulting performance. No. Realization Program 2024 Budget 2022 Realization 2023 Realization 2024 Realization
The objectives of the Mandiri University implements This evaluation uses the (Rp Million)
Onboarding for New at Level a comprehensive evaluation performance assessment 1 Executive Development Program 5,006 3,681 5,800 2,015
Program are as follows: process for its employee method and is carried out 2 Leadership Development Program 193,226 88,702 176,135 212,065
1. Understand leadership & development programs, at least 3 (three) months 3 Culture Development Program 2,725 3,695 1,342 398
bank-wide expectations including the following stages: after learning period. 4 Pre-Retirement 5,672 8,896 1,882 6,878
2. Understand specific 5 5 Strategic & Technical Skill Program 204,769 241,305 151,436 163,660
missions & responsibilities • Level 1 (L1) is an evaluation In 2024. Bank Mandiri held 6 Elearning 13,602 17,467 15,343 12,108
79,101 training with various Total 425,000 363,746 351,938 397,124
3. Integrity Reminder & to assess participants’
Awareness reactions to the learning media. both face-to-
4. Understand the conditions implementation of learning face. virtual classroom and
& objectives of the unit to carried out using the Net e-learning with a total of 9,952
be led Promoter Score (NPS) training modules attended by
5. Understand the method, which includes the 949,438 participants.
preparation of a New Unit suitability of the material,
strategic plan (including the ability of teachers to For the training conducted
Quick Win & improvement) deliver the material, and in 2024, Bank Mandiri has
the availability of learning carried out an evaluation of
Stages of Onboarding for New facilities. its employee competency
at Level program: • Level 2 (L2) is an development programs,
1. Onboarding Development evaluation to assess the summarized in the following
Dialog level of understanding of table:
2. Onboarding Briefing participants during learning
3. Onboarding Learning using written examination
4. Mid-Review methods (theory) and
5. Evaluation of Probation practical exams.
Period
PT BANK MANDIRI (PERSERO) TBK 528 529 ANNUAL REPORT 2024
Page 132
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
KNOWLEDGE MANAGEMENT • KMP Let’s Grow is a community consisting mechanisms in the Final Performance Review to
of Bank Mandiri’s learning partners and recognize the best of the best.
Bank Mandiri implements knowledge management to ensure that both explicit and tacit knowledge of facilitators who have an interest in increasing
employees and the organization can be captured, documented, and distributed effectively. This initiative knowledge and competencies related to the Performance Assessment System
aims to maintain and enhance the organization’s competitive advantage. learning process strategy. The employee performance assessment system
• KMP Mandiri Facilitator Squad is a community is based on the achievement of agreed Key
Knowledge management activities at Bank Mandiri involve a series of ongoing processes, including: of Bank Mandiri facilitators who are expected Performance Indicators (KPI) (Achievement)
to improve the knowledge, skills of community and the implementation of behaviour based on
members in carrying out their role as a core values and core behaviour (Attitude). The
facilitator. elements of performance assessed consist of
Acquire Knowledge
• KMP FMCG Ecosystem Zone is a community process and result elements. Process indicates
Gaining and updating
knowledge activities of Bank Mandiri employees who focus on how to achieve targets (lead measure) and Results
managing customers within the Fast-Moving indicate the results of employee achievement
Consumer Goods (FMCG) sector. over targets (log measure).
• KMP Construction Ecosystem Zone is a
community of Bank Mandiri employees The following are performance appraisal
dedicated to managing customers in the categorized based on 5 (five) ratings that have
construction sector. been refined:
Apply Knowledge 1. Beyond Expectations, indicates exceptional/
Store Knowledge
Applying knowledge into
daily works and sharing best
Knowledge
Management Storing knowledge in the Mandirian Learners Community extraordinary performance.
practices in the platforms
provided by the Bank.
Process platforms provided by
the Bank.
Platform 2. Exceed Expectations, indicates satisfactory/
Bank Mandiri uses MY Learn as one of KMP’s excellent performance.
platforms for the community members to be able 3. Meet Expectations, indicates good
to connect, and build relationships with each performance/ meeting expectations
other, facilitate community related activities and 4. Below Expectations, indicates the need
data management related activities. for improvement to help enhance the
performance.
5. Required Significant Attitude Improvement,
Share Knowledge EMPLOYEE PERFORMANCE indicates performance that does not align
Sharing knowledge attained among others
through the platforms provided by the Bank APPRAISAL with or meet the expectations.
to employees.
Bank Mandiri conducts employee performance Starting from 2024, adjustments are made to the
assessments to measure both Achievement components of Individual KPIs, which is divided
Mandirian Learners Community to Currently, the following are several Mandirian (results) and Attitude (the application of culture into three components: Core Responsibilities
Facilitate Knowledge Management Learners Community that specifically address and leadership characteristics in daily work). Objectives, Value-Added Objectives, and
Activities certain fields: Capability Development Objectives. These
Bank Mandiri established the Mandirian • KMP Smart Branch Knowledge (SBK) Corner In 2024, through the enhancement of the employee aim to provide room for employees to have
Learning Community as part of its knowledge is a community of general bankers to share performance appraisal system, Bank Mandiri their contributions beyond their core tasks
management efforts. This community of practice knowledge, experience, and best practices continued to encourage every employee to “Think to be considered in their Final Performance
consists of groups of Bank Mandiri employees in Smart Branch. Big & Deliver Beyond Expectations” in achieving Review, to encourage all employees to have
who share similar professions, skills, or interests, • KMP Legal Warrior is a community of legal the Bank’s aspirations, as well as to establish extra miles contribution, and ensure employee
with the goal of exchanging specific knowledge officers and employees of Bank Mandiri with individual assessments that can map employees’ development as part of the objectives. The
and best practices. Through these exchanges, legal education backgrounds to discuss legal contributions, thereby motivating, fostering optimal process of determining these KPIs will be discussed
the community fosters innovation and generates knowledge and practice. employee engagement, and identifying capability and agreed upon jointly by the employee and
new ideas, knowledge, and work practices or • KMP KOPRA Community Network (KoCoNet) is gaps to determine appropriate development their Employee Manager through development
enhances existing ones. The knowledge and a community of Bank Mandiri employees who programs. dialogue during the Goal Setting phase, which
practices created by the Mandirian Learning have an interest in sharing knowledge and will be the basis for the Final Performance Review.
Community are then curated, stored, and experience related to KOPRA. The enhancements include a New KPI Structure that
redistributed through the Bank’s platform, • KMP Data Quality is Bank Mandiri’s data encourages all employees to go the extra mile, a Mid- The performance appraisal process of Bank
enabling adoption across the organization. inputer community that has the same interest/ Year Review as a platform for providing feedback Mandiri employees consists of 3 (three) stages that
concern regarding efforts to improve data and monitoring performance achievements during has been refined to foster the Bank’s aspiration
accuracy. the first semester, and the refinement of criteria and achievements, as follows:
PT BANK MANDIRI (PERSERO) TBK 530 531 ANNUAL REPORT 2024
Page 133
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
1. Goal Setting 3. Final Performance Review EMPLOYEE ENGAGEMENT a decrease of 15% from the previous year’s total
Bank Mandiri employees first set goals at the At the end of the year, a final appraisal is of 1,633 employees (1,007 female and 603 male
beginning of the year through development conducted in which employees are given To foster employees’ emotional connection to employees).
dialogue between employees and Employee the opportunity to conduct a self-assessment the Company, Bank Mandiri undertakes several
Manager. of their achievements. The results of the self- initiatives, including enhancing employee welfare Of those who took parental leave, 100% returned
2. Mid-Year Review assessment are further discussed, reviewed, to drive optimal productivity. Employee welfare to work after their leave ended. Additionally, 100%
Mid-Year Review is carried out by employees and validated by the Employee Manager improvements are provided in both material of employees who took parental leave in the
in the middle of the year to readjust to the to be further calibrated by the Employee and non-material forms. Below is an overview of previous year also returned to Bank Mandiri after
Bank’s business conditions, as a tool to give Manager’s Manager. The parties engage in some of the employee engagement programs their leave. The high return rate after parental
feedback and monitor on the employees’ the employee performance appraisal are implemented by Bank Mandiri. leave reflects Bank Mandiri’s commitment to
performance throughout Semester 1. described in the following chart. being an ‘employer of choice’ and providing
Employee Remuneration strong support for the development of its female
Bank Mandiri’s employee remuneration is employees.
determined in accordance with applicable
regulations. The remuneration levels are governed Retirement Program
Which Parties Play a Role in Individual Assessment based on internal policies set above the highest Bank Mandiri’s retirement program includes both
Indonesia’s Minimum Wage standards and pension funds and pre-retirement training. The
applicable in all of the Bank’s operational areas. Bank’s pension fund is managed by an established
Bank Mandiri applies a total reward principle, Pension Fund, offering a defined contribution plan
ensuring that employees receive both financial as well as a defined benefit plan derived from the
and non-financial compensation fully. The Bank pension funds of merged banks.
also strives to maintain employee remuneration at
a competitive level, aligned with its remuneration As a token of appreciation for dedicated service,
strategy. Bank Mandiri provides pre-retirement training to
employees approaching retirement to support
Bank Mandiri prioritizes gender equality by their well-being and productivity in retirement.
ensuring equal base salary and remuneration This training covers various topics, including
1 Employee
Employee carries out a self-
2 Employee Manager
Direct supervisor provides final scores and initial
between men and women at every position level.
The salary and remuneration ratio between male
entrepreneurship, health, and psychology.In 2024,
43 batches participated in the pre-retirement
assessment. performance level. and female employees is 1:1, with compensation training, with a total of 693 employees set to retire
and benefits based on position and performance within the next 2 year. This training is conducted
rather than gender differences. offline over 3 days.
Allowances Awards
Bank Mandiri provides allowances as part of its One of the ways Bank Mandiri enhances employee
efforts to maintain employee loyalty. Employee engagement is by recognizing outstanding
allowances are offered based on employment employees through the Mandiri Excellence Award
status (permanent, contract, trainee), level, and (MEA). This annual awards event is held regularly,
type of job. with the following award categories:
3 Employee Manager Manager
Employee Manager’s Manager provides
4 Matrix Manager
Head of Work Unit as a Mentor for the system or Maternity and Paternity Leave Policy • Mandatory Award
final performance level by taking into segment of employee assigned in the region for Bank Mandiri provides maternity leave for The Mandiri Best Employee (MBE) award
account the normal distribution several positions. Employee Manager will receive female employees and paternity leave for male is the highest form of recognition given by
inputs/ reviews/ comments and Matrix Manager
employees whose spouses have given birth, management to outstanding employees
in determining the employee performance
assessment. maintaining all employee rights in accordance who consistently demonstrate exceptional
with applicable laws and regulations. After the performance and embody the company
leave period, employees are welcomed back to culture through behaviors aligned with the
In 2024, approximately 38,000 employees participated in the performance appraisal. The results of these their previous positions. AKHLAK Core Values. This award aims to boost
evaluations are used as key factors in determining compensation, talent categories, promotion decisions, motivation and engagement, encouraging
and employee development. Through the enhancement of the performance appraisal system, it is In the 2024 reporting year, a total of 1.420 employees to continue making their best
expected to continuously drive employee performance improvements and recognize the contributions employees took parental leave, comprising 900 contributions.
made by employees. female and 520 male employees. This represents
PT BANK MANDIRI (PERSERO) TBK 532 533 ANNUAL REPORT 2024
Page 134
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
In 2024, a total of 121 employees and 15 During the competition, participants
subsidiary employees received the MBE demonstrated their skills through
award. a series of tests, including a digital
mindset test, sales advisory test, and To enhance employee engagement
• Thematic Award individual presentation. The highest- and support the well-being of its female
This award recognizes Business Units or scoring winners also underwent a workforce, Bank Mandiri provides
Employees who have contributed significantly 360-degree validation process to
dedicated lactation rooms for nursing
and achieved excellence in supporting ensure that the competition results
bank-wide initiatives. These initiatives include align with the service standards mothers, available at both the Head Office
executing corporate strategies, driving implemented in their respective work and regional/branch offices. These rooms
business growth and sustainability, fostering a units. are designed to offer a comfortable,
resilient learning mindset, and implementing clean, and private environment, equipped
the company culture. Details are as follows: 2. Work Unit Category: Branch Service with all essential facilities to meet the
Award
needs of breastfeeding mothers. Amenities
a. Best Strategy Bankwide The Branch Service Award (BSA)
Appreciation to Work Units that have the is an appreciation event for work include comfortable area, refrigeration for
best performance achievements through units, categorized into Conventional
R o oms milk storage, and other necessary supplies,
the implementation of 3-3-1 strategies, 8 Branches, Smart Branches, Priority
n ensuring that nursing employees have a
Strategic Goals, and LUNAR Outlets, the best Areas in each Region,
and the best Region at the National
Lact atio supportive and convenient space to care
for their needs.
b. Best Collection & Recovery of The Year level.
Appreciation to Mandirian that exceeds
the target in billing and in line with The assessment for BSA 2024 in all
applicable ethics. categories is based on survey results
conducted by external surveyors,
c. Mandiri Service Award and validated against the business
Mandiri Service Award (MSA) 2024 is an contribution achievements of each EMPLOYEE ENGAGEMENT Bank Mandiri’s Resignation Rate Trend 2022-2024
appreciation event for individuals and work unit throughout 2024. SURVEY Total Total
work units, with the assessment process Year Resignation Employee Percentage
focused on services that contribute to Through the MSA 2024 event, Bank In the 2024 reporting year, Bank Mandiri conducted (person) (person)
sustainable business achievements. The Mandiri hopes that all individuals and an employee engagement survey with 80.81% 2024 1,024 38,847 2.63%
main activities of MSA 2024 consist of two work units will be further motivated to response rate, resulting in a score of 89.93%, 2023 1,044 38,940 2.68%
categories: enhance their awareness in creating an increase from the 2023 score of 89.65%. This 2022 1,102 38,176 2.89%
a remarkable customer experience survey, carried out by an independent consultant,
1. Individual Category: National that positively impacts Bank Mandiri’s measured various aspects, including organization, In 2024, the total number of employees resigning
Frontliner Championship market share while continuously being leadership, career development, relationships from the Bank was 1,024 personnel with an
The National Frontliner Championship the Preferred Financial Partner for and communication, compensation benefits, employee turnover rate of 2.63%.
(NFC) is a national-level competition customers. job alignment, opportunities for contribution, and
for Bank Mandiri Frontliners, covering teamwork. Employee Resignation Trend
the categories of General Banker, d. Mandiri Innovation eXperience (MIX) Description 2024 2023 2022
Customer Service, Teller, Security, and MIX is Bank Mandiri’s innovation platform Employee Turnover Total resignation
2,411 2,048 1,840
RM Priority Banking. NFC 2024 was to address future business challenges. To assess employee engagement, Bank Mandiri (person)
held on 28-29 October 2024, with 60 Bank Mandiri will give appreciation to this regularly monitors the Resignation Rate annually. Total employees at
38,847 38,940 38,176
top Frontliners selected as national- innovation. This measurement provides insight into the profiles year end (person)
level participants from approximately of departing employees, particularly the reasons Turnover
6.21% 5.26% 4.82%
percentage (%)
17,500 Frontliners across Indonesia. behind their resignations, enabling the Bank to
develop targeted engagement programs. The
turnover rate trend for Bank Mandiri from 2022 to
2024 is presented in the following table.
PT BANK MANDIRI (PERSERO) TBK 534 535 ANNUAL REPORT 2024
Page 135
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024 HUMAN CAPITAL MANAGEMENT PROGRAMS IN 2024
harmonious industrial relations industrial relations, Bank Mandiri and key areas of business
between management and has reached its 10th CLA, development aligned with the
employees. effective for the 2023-2025 Bank’s vision and mission. The
period. It has been registered Employee Union is also given
The provisions UU No. 21/2000 and approved by the Ministry the opportunity to provide
have been ratified and of Manpower of the Republic suggestions, feedback, and
are incorporated into Bank of Indonesia, as documented communicate employee
Mandiri’s Collective Labor in the Decision of the Director aspirations to management.
Agreement, emphasizing that General of Industrial Relations
no one is permitted to obstruct and Social Security No. KEP.4/ Complaints Handling
or coerce employees to form HI.00.01/00.0000.231228008/ To foster a positive and
or refrain from forming, to B/I/2024, dated 10 January conducive work environment,
serve or refrain from serving as 2024. Bank Mandiri is committed to
administrators, to join or refrain comprehensively managing
from joining, or to participate Internal and External employee concerns through
or refrain from participating in Regulations effective communication
labor union activities. Bank Mandiri consistently forums. Bank Mandiri provides
adheres to all applicable various platforms that
Collective Labor regulations, both external employees can use to voice
Agreement and internal. This includes the their concerns, which are
Bank Mandiri has established updated Operational Policy promptly addressed by the
a Collective Labor Agreement (Human Resources), approved Bank. By maintaining open
(CLA) with the mandate of UU on 3 April 2023, and the most and effective communication
Ketenagakerjaan (Labor Law). recent Human Resources channels, the Bank aims to
In compliance with Pasal 116 UU Standard Guidelines, revised in strengthen employee relations,
INDUSTRIAL employees, the Bank To support these industrial 13/2003, Bank Mandiri and the January 2024. resolve issues promptly, and
RELATIONS Employee Union, and relations objectives, the Bank employee’s union jointly draft enhance overall workplace
recognized employee provides several mechanisms, the CLA through negotiations Bipartite Cooperation harmony.
Bank Mandiri manages industrial organizations. including: to reach mutual agreement. Institute
relations in accordance 2. Enhancing Employee The CLA incorporates the The Bipartite Cooperation Industrial Relations
with Law No. 13 of 2003 on Engagement: The Bank Employee Unions aspirations and working Institution (LKS Bipartit) at Bank Dispute Resolution
Employment, as amended implements activities Bank Mandiri has only one conditions, including the rights Mandiri was established in 2005 Bank Mandiri manages
by Law No. 6 of 2023, which and programs designed labor union, known as Serikat and obligations of both parties, and is registered with the South industrial disputes in
establishes the Government to effectively increase Pegawai Bank Mandiri (SPBM), as stipulated by prevailing laws Jakarta Office of Manpower accordance with Law No. 2
Regulation in Lieu of Law No. 2 of employee engagement, which was established in 2000 and regulations. and Transmigration. of 2004 on the Settlement of
2022 on Job Creation as a formal positively influencing and is officially registered with Industrial Relations Disputes,
law, along with its implementing attitudes, behaviors, and the Ministry of Manpower In line with Pasal 123 UU Pursuant to the mandate of prioritizing communication to
regulations. This approach overall performance, thus and Transmigration of the Ketenagakerjaan (Labor Law No. 13/2003 and the terms achieve mutually beneficial
aims to foster a comfortable, contributing to the Bank’s Republic of Indonesia under Law), The CLA is valid for of the 2023-2025 CLA, Bank agreements that safeguard the
transparent, positive, and success. No. KEP.804/M/BW/2000 and maximum 2 (two) years from Mandiri and the Employee interests of all parties involved.
progressive work environment. listed with the Ministry under the date of signing and may Union regularly hold LKS Bipartite This approach helps create
To achieve the best outcomes, The Bank’s industrial relations No. 45/V/P/V/2001. be extended for a maximum of meetings. This forum serves as a calm working environment
the Bank employs the following are founded on the principle one additional year, with only a a platform for communication for employees, fostering
approaches: of mutual respect, trust, and The SPBM was established as single extension allowed. and consultation on matters harmonious industrial relations
cooperation among Bank a platform to accommodate related to industrial relations. and ultimately enhancing work
1. Fostering Harmonious Mandiri, its employees, and the employees’ aspirations, which The first CLA covered the period During these meetings, Bank productivity.
Industrial Relations: Employee Union. This shared are subsequently conveyed to from 2004 to 2006. As of today, Mandiri shares updates on
The Bank builds and commitment aims to ensure management through various as part of fostering harmonious Human Capital policies
maintains well-managed business continuity, growth, forums regulated by labor
industrial relations with and the improvement of laws. The union aims to foster
active participation from employee welfare.
PT BANK MANDIRI (PERSERO) TBK 536 537 ANNUAL REPORT 2024
Page 136
MANAGEMENT DISCUSSION AND ANALYSIS
HUMAN CAPITAL DEVELOPMENT HUMAN CAPITAL DEVELOPMENT &
MANAGEMENT PLANS IN 2025
& MANAGEMENT PLANS
IN 2025
In 2025, Bank Mandiri’s human capital strategy • Digital Talent Development: Expanding digital
will continue to focus on aligning employee capabilities among employees to support
development with the corporate plan and the Bank’s digital transformation agenda,
business objectives to drive sustainable growth. including initiatives for upskilling, reskilling, and
The key aim is to build a strong talent base, building expertise in emerging technologies.
develop top-tier leaders, and nurture a culture of
continuous learning and innovation throughout The 2025 plan will continue leveraging a
the organization. To achieve these goals, the blended learning model that combines multiple
human capital development plan is structured teaching methods for optimal impact, includes
around three key strategic pillars: traditional classroom sessions, virtual learning,
and e-learning modules tailored to meet specific
• Capability Enabler aims to enhance existing training needs. Emphasizes learning from others
competencies for current productivity while through development dialogues, mentoring,
developing new skills to anticipate future and coaching sessions. Focuses on hands-
challenges. on experience through on-the-job training,
job rotations, and project-based assignments,
• Learning-to-Business Alignment focuses on enabling employees to apply new skills in real-
ensuring that all development and training world scenarios.
programs have a positive impact on the
business, particularly in achieving the set In 2025, Bank Mandiri will further expand its digital
business targets aligned with the Bank’s learning initiatives, building on the foundation
strategic objectives. established in previous years. This includes
enhancing the digital learning platform, offering
• Learning Experience Design aims to cultivate interactive and gamified content, and integrating
a learning mindset and foster a strong learning knowledge management systems to capture and
culture among all employees, while also share best practices. The Bank will strengthen
providing an engaging learning experience. its knowledge-sharing framework through the
By developing a solid learning mindset, development of communities of practice, where
culture, and experience, employees are employees can collaborate, exchange ideas,
empowered to take the initiative in building and drive innovation in specific business areas.
their competencies independently.
The 2025 human capital development and
Based on these strategic pillars, Bank Mandiri’s management plan is designed to support
human capital development plan for 2025 Bank Mandiri’s strategic vision of becoming a
includes a comprehensive suite of training market leader by investing in its most valuable
and development programs focused on both asset, its Mandirian. By focusing on capability
leadership and technical competencies. The enhancement, aligning learning with business
initiatives will cover key areas such as: needs, and delivering a superior learning
• Leadership Development: Cultivating future experience, the Bank aims to build a highly skilled,
leaders through targeted programs designed adaptable, and engaged workforce that drives
to build strategic business acumen, enhance excellent business performance and sustains long-
decision-making skills, and develop effective term growth.
people management capabilities.
• Technical Competency Enhancement:
Strengthening core technical skills across
various business segments, with a focus on
wholesale banking, digital innovation, IT, and
risk management.
PT BANK MANDIRI (PERSERO) TBK 538 539 ANNUAL REPORT 2024
Page 137
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION INFORMATION TECHNOLOGY
STRATEGIC PLAN
TECHNOLOGY
In the dynamic era of digital transformation, Bank Mandiri positions technology
Bank Mandiri IT continues to accelerate digital transformation through development and utilization strategies as a fundamental pillar in driving
competitive advantage. This strategy is implemented through a planned,
the implementation of IT Strategic Plan, including continuous innovation
structured, and effective approach to technology adoption, as outlined in the
in key digital initiatives such as Kopra, Livin’, and Livin’ Merchant. The
IT Strategic Plan (RSTI). The RSTI is designed in alignment with the Corporate
execution of IT development and operations consistently adheres to the
Strategy and executed with discipline to ensure that each IT initiative significantly
principles of good IT Governance, supported by a governance structure contributes to sustainable and sound business growth.
for strategic decision-making, an IT organization strengthened by a
systematic talent development program for IT and digital professionals,
Bank Mandiri’s IT Strategic Plan, as outlined in the IT Strategy & Execution Plan 2020-2024, is guided by an
and disciplined management and implementation of IT policies to IT Vision aimed at becoming a technology strategic partner that is “Always Deliver, Always Ahead.” This
ensure compliance. Furthermore, Bank Mandiri has also implemented a vision reflects the commitment to consistently delivering value and driving innovation for all stakeholders.
comprehensive cybersecurity strategy covering people, processes, and To realize this vision, Bank Mandiri focuses its efforts on three main pillars: Fit For Growth, Drive Digital
Transformation, and Transform IT.
technology to safeguard data security and IT service operations from
cyber threats. As such, Bank Mandiri IT consistently delivers innovative, IT Strategy & Execution Plan 2020-2024
reliable, and secure technology solutions to meet customer needs.
IT VISION 2020-2024
Becoming a technology strategic partner that is “Always Deliver, Always
Ahead” to provide added value and enforce innovation to all stakeholders in
promoting sound and sustainable business growth.
IT MISSION 2020-2024
Drive Digital
A Fit For Growth B C Transform IT
Transformation
Providing reliable, Providing adaptive Build the best and
available, scalable & technology to drive digital sustainable operating
secure technology in transformation & business model, organization,
accommodating business innovation. and people capability
growth. to support IT strategy
execution.
PT BANK MANDIRI (PERSERO) TBK 540 541 ANNUAL REPORT 2024
Page 138
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION TECHNOLOGY STRATEGIC PLAN IMPLEMENTATION OF
INFORMATION TECHNOLOGY
STRATEGIC PLAN 2024
A. Fit For Growth including the development of Livin’ by
As a manifestation of its commitment to Mandiri as a digital channel to enhance
providing reliable digital services, Bank customer experience for retail customers,
Mandiri ensures the availability of technology transforming branches through Smart
that is reliable, available, scalable, and Branch, and expanding the Livin’
secure through: ecosystem to offline merchants via Livin’
Merchant.
1. Modernizing core banking to ensure 3. IT capability development to support
that features, capacity, and scalability business strategies in the SME & Micro
can support a healthy and sustainable segments, such as the development of
business with controlled risk while sales tools to accelerate loan acquisition
enhancing operational excellence. and improve Relationship Manager
2. Enhancing IT reliability, availability, and productivity.
scalability, as well as strengthening 4. Capability enhancement to support
cybersecurity to support the Bank’s enterprise-wide application usage and
services and business. operations, covering HR management,
3. Implementing regulatory & compliance financial recording, risk and fraud
initiatives to prepare systems to meet the monitoring, and operations improvement.
needs of regulators and principals.
4. Developing and optimizing data analytics C. Transform IT
to drive the Bank’s business growth. Building fundamental IT aspects consisting
of operating model, organization, and
B. Drive Digital Transformation best-in-class and sustainable people
Providing adaptive technology to drive capability, to support the execution of
digital transformation and business innovation the IT strategy through:
through: 1. Enhancing quality and governance to
improve the delivery quality of IT solutions. In 2024, Bank Mandiri IT continues the execution business needs through the development
1. Wholesale digitalization to accelerate 2. Increasing the capacity and competency of the 2020-2024 IT Strategic Plan, focusing on key of the Wealth Management Core System
digital transformation and business of IT resources to support digitalization strategic initiatives such as the implementation (WM Core) and Treasury Core System, as
innovation in the wholesale segment, and enhance the quality of IT service of modern and reliable IT infrastructure, well as improving the capabilities of the
such as the development of KOPRA as delivery. enhancement of cybersecurity, and optimization Core Banking eMAS through in-house
a single access platform for all business 3. Strengthening collaboration and synergy of customer experience through innovative development.
customer transaction needs. within Mandiri Group through knowledge digital services. Below are the key highlights of the 2. Strengthening system reliability,
2. Retail digitalization by strengthening sharing and the establishment of a IT Strategic Plan implementation for 2024: availability, and scalability to maintain
capabilities and developing IT systems dedicated IT Business Partner under the system performance stability and
to optimize fast, easy, and user-friendly Mandiri Group IT Synergy initiative. A. Fit For Growth reliability, as well as enhancing IT security
banking services across all channels, Bank Mandiri continuously modernizes its core to detect cyber threats through the
banking as the primary foundation of banking implementation of Threat Intelligence
operations by ensuring the availability Automation.
of technology that is reliable, available, 3. Implementing regulatory and compliance
scalable, and secure to deliver dependable initiatives to ensure system readiness for
digital services. Through core banking reporting requirements, as well as a data
modernization and the implementation of privacy management system initiative to
robust technology, Bank Mandiri provides support compliance with the Personal
digital services that are seamless, fast, and Data Protection Law.
secure for customers in their transactions, 4. Developing and enhancing system
through several key initiatives, as follows: capabilities for Big Data analytics and
1. Modernizing core banking to enhance improving Data Warehouse capabilities
scalability, strengthen features, and meet as a reporting data source.
PT BANK MANDIRI (PERSERO) TBK 542 543 ANNUAL REPORT 2024
Page 139
MANAGEMENT DISCUSSION AND ANALYSIS
IMPLEMENTATION OF INFORMATION TECHNOLOGY
STRATEGIC PLAN 2024 INFORMATION TECHNOLOGY
GOVERNANCE
B. Drive Digital Transformation 4. Automation and improvement of internal
Bank Mandiri continues to drive digital system processes to enhance operational
transformation and business innovation to effectiveness and efficiency through the
enhance customer experience through implementation of the Straight-Through In the continuously evolving digital era, Bank B. Digital Organization and Talent Development
service personalization, ease of access, Processing Integrated Reconciliation Mandiri recognizes that sound Information An adaptive organization and continuous
and transaction speed, aiming to deliver a System and the development of systems to Technology governance is one of the key talent development are key aspects in
seamless banking experience for customers. accommodate inventory management foundations for delivering reliable and innovative IT driving digital transformation. Bank Mandiri’s
Additionally, Bank Mandiri automates and processes via the e-channel inventory services. Therefore, Bank Mandiri’s IT governance is IT organization is designed and continuously
improves internal system processes to achieve management platform and e-channel supported by a governance structure (Committees developed to remain relevant to evolving
operational excellence. delivery platform. and Cross-Functional Forums) for strategic decision- business needs. This is reflected in the IT
making, an organizational framework, and talent Directorate, which includes functions for digital
1. Continuous development of KOPRA C. Transfor IT development to drive digital transformation. product development supported by data
to establish it as a platform that Bank Mandiri continuously optimizes internal In addition, IT policy implementation serves as analytics, end-to-end IT management, and IT
provides comprehensive solutions for processes to enhance the quality of solution the rules of the game for IT processes, ensuring operational risk management.
wholesale customers through feature delivery, including the optimization of the IT adaptability to the latest technology trends and
enhancements aimed at improving Business Partner role and improvements in regular evaluation. The key aspects are explained In addition, the fulfillment of digital talent
customer experience, including a IT planning processes to refine business and as follows: capacity in the IT Directorate is carried out
personalized dashboard, personalized technical requirements. through the My Digital Academy program,
payment experience, and facilitating A. Governance Structure which equips selected digital talents from
transactions within a closed-loop business In terms of people development, internal To ensure prudent IT-related decision-making reputable universities in Indonesia during final
ecosystem. development capabilities are strengthened involving stakeholders across business units, IT year of study, to become a pipeline Officer
2. Continuous innovation in the retail through the implementation of the Digital Bank Mandiri is supported by committee and Development Program (ODP). Meanwhile,
segment to provide seamless, fast, and Product Developer Bootcamp program to forum mechanisms, including the following: capability development is carried out through
user-friendly digital services, including: enhance application development in line globally recognized training and certifications,
• Development of the Super App with business requirements and the required 1. IT & Digital Banking Committee (ITDC), as well as a rotation program to enrich
Livin’ by Mandiri, with the addition of technology stack. chaired by the President Director employee exposure.
several features such as investment and comprising the IT Director, Risk
transactions, cross-border QR To enhance collaboration and synergy within Management Director, Directors/SEVPs C. IT Policy
payment transactions, and Livin’ Mandiri Group, Bank Mandiri has established representing IT user units, SEVP IT, and IT Bank Mandiri manages and implements IT
loyalty to enhance customer a dedicated IT Business Partner under the the Compliance and Human Resources Policy as the rule of the game for IT operations
engagement. New features also Sinergi IT Mandiri Group initiative, serving Director. ITDC has the authority to across the following areas:
include Livin’ Auto and Livin’ KPR for as a single point of contact to improve approve the IT Strategic Plan, strategic IT • IT Planning, including the formulation of
digital lending services. Additionally, alignment between Bank Mandiri’s IT and its initiatives with specific investment values, the IT Strategic Plan, IT project portfolio
to facilitate transactions for individual subsidiaries. Furthermore, the Special Interest IT development plans, and other related aligned with the Bank’s strategy,
customers in Dili, Timor-Leste, Bank Group (SIG) program acts as a platform matters. technology standards as a development
Mandiri has developed Livin’ by for knowledge sharing and collaboration 2. Project & Change Steering Committee, reference, and others.
Mandiri Timor-Leste. across Mandiri Group, with this year’s focus comprising Directors/SEVPs from project • IT Development, including the Software
• As a digital service for business on the implementation of standardized owner units, the IT Director/SEVP, and the Development Lifecycle process using
owners, Livin’ Merchant continues to IT governance in the areas of planning, Compliance & Human Resources Director. waterfall, agile, and DevSecOps
innovate by introducing key features development, security, and operations. This committee is responsible for discussing methodologies for intensive collaboration.
such as tailored solutions for the F&B Moreover, shared services synergy has and making decisions on IT initiatives at • IT Operations, covering all activities to
sector, card payment acceptance been implemented for several subsidiaries, the planning and development stages. ensure IT systems perform efficiently,
capabilities, as well as stock ordering including the use of the Business Continuity 3. Release Control Board (RCB), comprising including the management of data
and financing solutions for merchants. Management (BCM) system and interbank the IT Director/SEVP, Risk Management centers (DC) and disaster recovery
3. Development of IT capabilities to support fund transfer services as part of the Business Director/SEVP, and the Compliance and centers (DRC), systems, backup and
the SME and Micro segments, including Continuity Plan (BCP). Human Resources Director (for initiatives restore processes, networks, and IT system
the development of an early warning related to Bank Product Implementation). monitoring.
system to enhance credit portfolio This forum is responsible for ensuring a • IT Security, encompassing security
monitoring for SME debtors and business smooth migration process into the Bank mechanisms within the cybersecurity
process re-engineering for the micro and Mandiri IT production environment. framework, which includes aspects of
SME segments. governance, protection, and operations.
PT BANK MANDIRI (PERSERO) TBK 544 545 ANNUAL REPORT 2024
Page 140
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION TECHNOLOGY GOVERNANCE INFORMATION TECHNOLOGY
SECURITY
Bank Mandiri IT also maintains the quality of IT services by adhering to best practice standards in quality
management, such as:
a. ISO 9001:2015 for the operation and development of data centers, disaster recovery centers (DRC), Bank Mandiri navigates complex challenges in data security and
and IT infrastructure.
cyber threats, given the complexity of technology integration and
b. ISO 20000-1:2018 for IT service management.
c. ISO/IEC 27001:2022 for the provision and development of infrastructure and operational data centers stringent regulatory requirements. To mitigate these risks, the Bank
(DC) and disaster recovery centers (DRC).
implements proactive measures such as process automation and
stringent cybersecurity policies, supported by regular software
updates and employee training. Moreover, a dedicated team is in
place to monitor regulatory changes and ensure timely compliance.
In addressing resource constraints, Bank Mandiri optimizes resource
allocation, fosters strategic partnerships, and invests in IT talent
development. These initiatives ensure the Bank remains resilient,
innovative, and competitive in an ever-evolving industry.
It has also established a unit to identify cybersecurity To ensure service availability
dedicated team to monitor risks, determine mitigation and minimize downtime, Bank
regulatory changes and ensure strategies, and monitor their Mandiri conducts capacity
timely compliance. Addressing implementation, including planning as part of its proactive
resource constraints, Bank ensuring compliance with measures. In terms of cyber
Mandiri optimizes resource regulations and best practices incident handling, the Bank has
allocation, fosters strategic in data security management. established comprehensive
partnerships, and invests in IT To raise awareness of the cyber incident response
a. ISO 9001:2015 for the operation and development of data b. ISO 20000-1:2018 for c. ISO/IEC 27001:2022 for the talent development. These importance of data security procedures and regularly tests
centers, disaster recovery centers (DRC), and IT infrastructure. IT service management. provision and development of measures ensure the Bank and the potential risks of its readiness through activities
infrastructure and operational remains resilient, innovative, data protection failures, the such as tabletop exercises,
data centers (DC) and disaster
and competitive in a rapidly risk management unit also switchover simulations, and
recovery centers (DRC).
evolving industry. conducts awareness programs Adversarial Attack Simulation
for employees through facilities Exercises (AASE).
Bank Mandiri has designated such as podcasts, posters, and
a dedicated risk management other materials.
PT BANK MANDIRI (PERSERO) TBK 546 547 ANNUAL REPORT 2024
Page 141
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION TECHNOLOGY SECURITY INFORMATION TECHNOLOGY SECURITY
As part of its commitment to improving information becomes the Bank’s culture. Bank b. Human Resource Development (HR) of development, implementation
security quality, Bank Mandiri has developed and Mandiri conducts security awareness Strengthening the people aspect is carried to system/application operations.
implemented a layered IT security strategy. This certification every year to all levels of out by continuous skills development - Services, developing, reviewing
approach adheres to regulatory requirements employees in domestic and overseas (capacity and capability) on human and disseminating standard
(Bank Indonesia and OJK regulations, including offices. Routine security awareness resources. Bank Mandiri provides training procedures, awareness programs
POJK No. 11/POJK.03/2022 on IT Implementation campaign programs are also carried & certification to regularly develop soft and risk management. IT also
by Commercial Banks), aligns with international out in various media, namely newsletters skills and hard skills to all employees, and implements security controls in
standards (ISO 27001), and incorporates best (monthly), posters (quarterly), podcasts vendors/ contractors. the IT planning and development
practices such as the NIST Cybersecurity (quarterly), and phishing drills (quarterly). process.
Framework, COBIT Framework, and PCI Security Security awareness campaign program 1. Training & certification for employees: - Operations, conducting 24/7
Standards. The Bank has also established a delivered in the form of newsletters has CISM (Certified Information Security monitoring, detecting attack
24/7 operational capability to detect and been provided to Mandiri Group entities Manager), CISSP (Certified Information threat anomalies and handling
respond to cyberattacks and conducts periodic as a reference for implementing security Systems Security Professional), CRISC information security incidents
cybersecurity resilience and security testing. awareness campaign. Some of the topics (Certified in Risk and Information which include identification,
of security awareness campaigns include Systems Control), ISO 27001 Lead protection, detection, response
The implementation of this layered IT security data security protection, maintaining Implementer, ISO 27001 Lead and recovery of cyber security
strategy and the development of an information data confidentiality, the latest cyber- Auditor, CISA (Certified Information incidents.
security management system are categorized attack trends, how to identify and avoid Systems Auditor), CEH (Certified • 2nd line of defense - Operational Risk
into three main areas: People, Process, and phishing, and online transaction security. Ethical Hacker), CHFI (Computer Group, responsible for developing
Technology. A detailed concise explanation of Hacking Forensic Investigator), and the bank-wide operational risk
these areas is as follows: Bank Mandiri also continues to increase product-based knowledge training to management framework.
customer security awareness with deepening and expertise on the Bank • 3rd line of defense – Internal Audit,
1. People educational programs through various security system. responsible for carrying out assurance
a. Security Awareness official Bank channels such as websites, 2. Training for vendors/contractors: functions on operational activities
The Security Awareness Program is carried social media (Instagram, Facebook, Internal training for vendor employees in accordance with internal and
out to foster awareness on information Twitter), and other specific channels. who work for operational support. regulatory regulations.
security in daily behavior which ultimately
Soft skill development is provided
through training such as leadership b. Security Policy & Procedure
mindset, strategic thinking, creative To continuously strengthen cybersecurity
thinking, design thinking, problem solving, processes and infrastructure, Bank
Campaign Security Awareness presentation skill, and negotiation skill. Mandiri has designed, implemented,
and regularly reviewed its information
Training & certification is provided through security strategy through policies and
various methods, both onsite and online regulations that not only comply with
(virtual) training through public platforms. national regulations-such as those set
by Bank Indonesia and the Financial
2. Process Services Authority (OJK)-but also align
a. Three Lines of Defense (3LoD) with international standards and industry
Bank Mandiri has implemented a risk best practices, including ISO 27001,
management mechanism consisting of the NIST Cybersecurity Framework, CIS
three levels of defense: Benchmark, and PCI Security Standards.
• 1st line of defense - CISO Office
Group, responsible for bank These information security policies and
information security through three procedures have also been disseminated
main functions, namely: to Mandiri Group entities as a reference
- Design, designing security to strengthen information security
architecture and security governance by tailoring the complexity
requirements that are of each entity’s systems.
embedded from the beginning
PT BANK MANDIRI (PERSERO) TBK 548 549 ANNUAL REPORT 2024
Page 142
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION TECHNOLOGY SECURITY INFORMATION TECHNOLOGY SECURITY
c. Security Operation Center (SOC) authorities. Furthermore, Bank Mandiri has f. Third Party Security Review 3. Technology
As part of its preparedness in facing cyber built internal capabilities to conduct threat To anticipate information security risks from Bank Mandiri maximizes the implementation
threats, Bank Mandiri has developed hunting, providing online protection for its third parties (supply chain) collaborating of industry-leading security solutions to
the capability to detect and respond brand and website against threats such with the Bank, Bank Mandiri routinely safeguard information and digital assets
to cyber attacks through its Security as phishing, online scams, unauthorized conducts reviews of the information through a multi-layered architecture and
Operation Center (SOC), which operates access, and counterfeits. security measures implemented by best-in-class practices, including:
24/7. The Bank proactively monitors and these third-party organizations (people, a. Applications accessed by customers and
mitigates risks related to cyber attack d. Cyber Security Forum processes, and technology) according employees: Implementation of Multi-
trends using reputable Threat Intelligence Bank Mandiri’s seriousness in monitoring to the scope of their involvement with Factor Authentication (MFA) and Web
Services and conducts threat hunting on information security is expressed by Bank Mandiri. These reviews are carried Application Firewall (WAF).
its brand and website to provide online the direct involvement of the Board of out through various methods, including b. Network security: Deployment of firewalls
protection against phishing, malware, Commissioners and Directors in this topic questionnaires, interviews, and/or site equipped with Intrusion Prevention
ransomware, online scams, unauthorized through the Risk Oversight Committee, visits. System (IPS) and Network Access Control
access, and counterfeit threats. Bank Audit Committee and Integrated (NAC).
Mandiri has also established a Computer Governance Committee which are Furthermore, to measure and evaluate c. Endpoint protection (personal
Security Incident Response Team (CSIRT), carried out regularly. The agenda of the optimization of the information security computers/ laptops, servers): Use of
registered with the National Cyber and discussion at the committee meeting process, Bank Mandiri conducted a series Endpoint Detection & Response (EDR),
Crypto Agency (BSSN), to ensure a swift included reporting on ESG initiatives in of assessment activities by the dependent antivirus and antimalware solutions, and
and effective response to cyber incidents. the quarterly Privacy & Data Security external assessor, namely the State Cyber regular security patches.
The bank’s cyber incident response aspect, multi-layer defense mechanism, and Encryption Agency (BSSN) related: d. Access management: Implementation of
mechanism is governed by internal and updates related to the cyber Identity Access Management (IAM) and
policies in accordance with SEOJK No. security posture fulfillment across Mandiri a. Cyber Security Maturity (CSM) assessment Privileged Access Management (PAM)
29/SEOJK.03/2022 on Cyber Resilience Group including the implementation with maturity level 5 – “Optimal” with Privileged Threat Analysis (PTA).
and Security for Commercial Banks, of non-negotiable controls to prevent (highest score). CSM Assessment is an e. Data protection: Adoption of encryption
which includes the following stages: cyberattacks. instrument from BSSN to assess the level of and Data Loss Prevention (DLP) solutions.
i. Identification and analysis of the cybersecurity maturity of an organization,
incident scope to determine e. Cybersecurity Testing including the assessment of the maturity of As part of its commitment to continuous
appropriate countermeasures. To maintain and evaluate cyber management and protection of personal improvement, Bank Mandiri consistently
ii. Containment through mitigation resilience and security while enhancing data confidentiality (data privacy). enhances its IT security capabilities through
measures to prevent further incident response readiness, Bank strategic investments across all security
damage. Mandiri regularly conducts cybersecurity b. Measurement of Incident Handling layers, further strengthened by the utilization
iii. Eradication and recovery, including resilience testing in compliance with Maturity Level (TMPI) with the result of of artificial intelligence (AI) and machine
actions to stop the incident and applicable regulations (SEOJK No. 29/ maturity level 5 – “Optimise” (highest learning technologies.
restore affected systems. SEOJK.03/2022 on Cyber Resilience and value). TMPI is a tool to map the level of
Security for Commercial Banks), covering: organizational readiness in responding to
To mitigate the impact of incidents and 1. Penetration Testing: Assessment and recovering cybersecurity incidents,
restore system security, Bank Mandiri based on vulnerability analysis of including detecting and responding if
has developed a recovery strategy operational and business-supporting there is an incident of personal data
and business continuity management devices and applications. leakage due to system security gaps.
framework, which is governed by the 2. Phishing Drill: A social engineering
bank’s internal policies. attack simulation targeting
employees through phishing emails
SOC proactively follows up on updates to evaluate their readiness in
regarding cyberattack trends from responding to phishing attempts
reputable Threat Intelligence Services. securely.
Following our commitment to monitoring 3. Adversarial Attack Simulation
and mitigating cyber risks within Mandiri Exercise (AASE): A real-life hacker
Group, we regularly share insights from attack simulation conducted by an
reputable Threat Intelligence Services independent consultant to identify
to all entities. Each entity is responsible potential security gaps in Bank
for taking appropriate actions based Mandiri’s IT operations.
on its specific operational needs and
PT BANK MANDIRI (PERSERO) TBK 550 551 ANNUAL REPORT 2024
Page 143
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION SECURITY INFORMATION SECURITY MANAGEMENT
MANAGEMENT
IMPLEMENTATION IN 2024
IMPLEMENTATION IN 2024
With the enactment of Law No. 17 of 2022 on Efforts to address these challenges:
Personal Data Protection, Bank Mandiri has a. Carefully planning every process in system
designed and implemented a program to development, migration, or integration.
strengthen information security as part of its efforts b. Improving communication and
to protect personal data. The Bank applies Data coordination between IT teams and
Loss Prevention systems and data encryption business units to ensure alignment with
technologies, following best practices, to business expectations.
enhance data security initiatives, particularly for
personal data protection. 4. Resource Constraints: Challenges related to
limited human, financial, or technological
ADDRESSING AND ENHANCING DATA resources can restrict the ability to expand
SECURITY AGAINST CYBER THREATS teams, adopt the latest technologies, or carry
out necessary innovations.
1. Data Security and Cyber Threats: Cyber Efforts to address these constraints:
threats such as malware, ransomware, or a. Reviewing budgets and allocating
data theft are major concerns. resources more efficiently.
Efforts to address these threats: b. Seeking collaborative solutions or
a. Adopting strict security policies, regularly partnerships with technology providers
updating software, and conducting or fintech companies to expand service
security training for employees to raise coverage at lower costs.
awareness about cyber risks. c. Enhancing recruitment and training of IT
b. Implementing automation and personnel to tackle new technological
integration in development and security challenges.
processes to minimize security risks or
errors in technology use. Bank Mandiri recognizes the critical role of
cybersecurity resilience and security in supporting
2. Regulations and Compliance: The banking reliable and trustworthy digital banking services for
industry is constantly under pressure to customers. As part of its continuous improvement
comply with increasingly complex regulations. efforts to enhance customer trust and protect Some of the certifications and accreditations obtained by Bank Mandiri include:
Changing rules and evolving compliance its reputation, Bank Mandiri adopts information a. ISO 27001:2013 Information security services provisioned by the Security Operation Center to manage
demands can hinder the implementation of security management practices based on cybersecurity threats in banking systems and cyber operations.
new innovations. regulations, global standard operations aligned b. ISO 27001:2013 Provision of application development and IT operations related to Livin’ by Mandiri.
with International Standards and Best Practices, c. ISO 27001:2022 Provision of application development and IT operations related to Kopra by Mandiri.
Efforts to address these challenges: complete with certifications. These certifications d. ISO 27001 Provision of infrastructure and operational data center and disaster recovery center
a. Establishing teams focused on monitoring demonstrate the Bank’s consistency in exploring services.
regulatory changes and creating potential, developing transformative innovations e. ISO/IEC 17025:2017 Digital Forensics Laboratory certification for the CISO Office Group.
strategies to adapt quickly. in services, digitalization, and products such as
b. Strengthening monitoring and reporting Livin’, Kopra, and Smart Branch, while prioritizing
systems to ensure timely compliance with security and quality to meet customer needs.
existing regulations.
3. Technology Complexity and System
Integration: Developing new technologies
often requires integration with complex
legacy systems, which can be challenging
and time-consuming.
PT BANK MANDIRI (PERSERO) TBK 552 553 ANNUAL REPORT 2024
Page 144
MANAGEMENT DISCUSSION AND ANALYSIS
IT HR DEVELOPMENT MANDIRI DIGITAL TOWER AS BANK
MANDIRI’S INTEGRATED INFORMATION
TECHNOLOGY INNOVATION CENTER
Mandiri Digital Tower stands as a manifestation
Bank Mandiri remains committed to developing • Digital Regulatory Training to understand
of Bank Mandiri’s commitment to leading digital
IT human resources competencies to support compliance aspects of the latest digital
innovation in the banking sector. This building
business strategies and address increasingly regulations.
serves not only as a collaboration hub for Bank
complex industry challenges. Through the Annual • Cybersecurity training focused on
Mandiri’s digital talent but also as a catalyst for
People Development Plan (APDP) 2024, IT human meeting POJK standards related to digital
the creation of innovative solutions that enhance
resources development programs are focused on banking services.
efficiency, productivity, and contribute to the
five main areas:
development of an inclusive and competitive
D. Leadership and Managerial
digital ecosystem.
A. Business Challenges/Targets A skills enhancement program for
Enhancing in-house technical competencies leadership and effective communication,
Mandiri Digital Tower is also designed as a
to ensure readiness in supporting the specifically for employees with strategic
new icon of sustainable green buildings. This
development of the bank’s digital solutions. roles in team management and technology
recognition is affirmed by a platinum certification
The key focus areas include: implementation. The key focus areas include: The inauguration of the Mandiri Digital Tower by the Minister
from the Green Building Council Indonesia,
• Cyber Security: Training in cybersecurity • Critical & Strategic Thinking for data- of SOEs, Erick Thohir, on 18 September 2024.
positioning Mandiri Digital Tower among the
such as Security Operation Center, driven decision-making.
leading environmentally friendly buildings in
Customer Identity and Access • Business Presentation & Storytelling to
Indonesia. This certification is proof that the • Use of Low-E glass on the building façade to
Management, and Penetration Test. improve the ability to convey ideas and
construction and operation of the building meet minimize heat transfer from outside, thereby
• Application Development: Enhancing strategies effectively.
high standards in energy efficiency, responsible reducing cooling requirements.
skills in the development of applications
resource utilization, and environmental impact • Implementation of an automatic sensor-
and digital banking systems. Through this program, Bank Mandiri aims to
reduction. based lighting system to ensure efficient
• UI/UX for the development of Digital develop outstanding, innovative IT talent
energy usage.
Retail & Wholesale Banking applications. ready to tackle future industry challenges.
Several energy efficiency initiatives at Mandiri
Digital Tower are implemented through various The combination of these features and
B. IT Leaders Programs E. Signature Program
eco-friendly features and technologies, such as: technologies makes Mandiri Digital Tower not
A development program for all Department Enhancing employee competencies in
• Installation of solar panels with a capacity of only a modern and innovative building but also
Heads and IT Team Leaders to serve as role application development through the
81 kWp as a renewable energy source. an environmentally friendly and sustainable one.
models in implementing Mandirian DNA. following training programs:
This program aims to build strategic thinking, • Wealth Management Core System
critical thinking, and effective communication To enhance technical capabilities in
skills in team management and technology developing features for the Wealth
implementation. It will be delivered through Management application.
a Development Bootcamp, talent exchange, • Power Platform Developer
and mentoring sessions. To improve skills in building application
features according to business needs
C. Regulatory Training using the Power Apps and Power
Enhancing employees’ understanding of the Automate programming languages.
latest regulations in IT and banking, including:
• Personal Data Protection Law (UU PDP)
and its implementation at Bank Mandiri.
PT BANK MANDIRI (PERSERO) TBK 554 555 ANNUAL REPORT 2024
Page 145
MANAGEMENT DISCUSSION AND ANALYSIS
INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY PLAN 2025
PLAN 2025
The development of Information Technology in 2025 will be executed in alignment with
the IT Strategic Plan outlined in the IT Strategy & Execution Plan (ISP) for the 2025-2029
period. The ISP 2025-2029 has been formulated based on a comprehensive analysis of
internal and external factors, including alignment with the Corporate Plan 2025-2029,
evolving technology trends, and prevailing regulatory dynamics. The ISP 2025-2029
encompasses the IT Vision as follows:
STRENGTHENED IT CAPABILITIES IN ALL DISCIPLINES
THROUGH CENTER OF EXCELLENCE TO ACCELERATE
SUSTAINABLE BUSINESS GROWTH BY LEVERAGING
WHOLESALE ECOSYSTEM AND ITS VALUE CHAIN.
To achieve this vision, the main IT focus areas that will be continuously implemented
include:
1. Business Focus, through key digital initiatives such as:
• Development of Kopra to connect customers with their business ecosystems
through Bank Mandiri’s digital channels.
• Development of Livin’ by Mandiri to enhance customer engagement and
expand customer acquisition segments, supporting Livin’ as the primary
transaction channel for the retail segment.
• Development of Livin’ Merchant to expand service reach by leveraging Bank
Mandiri’s merchant network.
2. Enablers, to ensure IT system availability and security, supported by efficient
IT operations, and to drive innovation through AI implementation to create a
seamless customer experience, improve operational process efficiency, and apply
better risk management.
3. People Aspect, through comprehensive internal capability development to
support the execution of all initiatives under Business Focus and Enablers.
PT BANK MANDIRI (PERSERO) TBK 556 557 ANNUAL REPORT 2024
Names mentioned 60 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Bank Indonesia
p.4 ×18
unresolved
org
Bank Indonesia Foreign Exchange Securities
p.5
unresolved
org
Bank Indonesia Foreign Exchange Sukuk
p.5
unresolved
org
Financial Services Authority
p.6 ×7
unresolved
org
Bank Mandiri Performance
p.7
unresolved
org
Bank Mandiri’s Published
p.7
unresolved
org
Bank Mandiri As
p.8 ×3
unresolved
org
Bank Mandiri Amid
p.9
unresolved
org
Bank Mandiri Publication
p.9
unresolved
org
Bank Mandiri’s CASA
p.9
unresolved
org
Bank Mandiri’s Capital Adequacy Ratio
p.9
unresolved
org
Ministry of SOEs Regulation
p.10
unresolved
org
Bank Mandiri Vision
p.11
unresolved
org
Ministry of SOEs
p.11 ×2
unresolved
org
Bank Bank Mandiri Vs Industry
p.13
unresolved
org
Bank Mandiri’s LaR
p.13
unresolved
org
Bank Mandiri’s FBI
p.14
unresolved
org
Bank Mandiri Currently
p.14
unresolved
org
Bank Outlook
p.16
unresolved
org
Kota Nusantara
p.16
unresolved
org
Bank Mandiri. LinkAja
p.26
unresolved
org
Bank Mandiri WhatsApp
p.26
unresolved
org
Bank Mandiri. Mandiri EDC
p.26
unresolved
org
Bank Mandiri. Mandiri QRIS
p.26
unresolved
org
Bank Indonesia. In
p.26
unresolved
org
Bank Guarantee Draft Preview
p.29
unresolved
org
Bank Mandiri’s Chief Economist
p.29
unresolved
org
Bank Mandiri. Management
p.30
unresolved
org
Bank Mandiri Kopra Custody
p.30
unresolved
org
Bank Garansi
p.31
unresolved
org
Bank Mandiri’s Wholesale
p.31
unresolved
org
Bank Mandiri’s Operational
p.32
unresolved
org
Bank Mandiri’s Operational Mandiri
p.32
unresolved
org
PT Bank Mandiri Taspen
p.32
unresolved
org
Bank Mantap
p.32
unresolved
org
Mandiri International Remittance Sdn. Bhd.
p.32
unresolved
org
PT AXA Mandiri Financial Services
p.32
unresolved
org
PT Mandiri Utama Finance
p.32
unresolved
org
PT Mandiri Capital Indonesia
p.32
unresolved
org
Debtor Group Corporation
p.36
unresolved
org
Bank Mandiri Commercial Banking
p.38 ×3
unresolved
org
Bank Mandiri’s Commercial Banking
p.38 ×2
unresolved
org
Bank Mandiri’s Commercial
p.40
unresolved
org
Ministry of Finance’s
p.41
unresolved
org
Bank Guarantees
p.42
unresolved
org
Ministry of Finance
p.42
unresolved
org
Bank Mandiri. This
p.42
unresolved
org
Bank Mandiri’s Institutional Relations
p.43
unresolved
org
Bank Mandiri’s Human Capital
p.117
unresolved
org
Bank Mandiri Human Capital
p.117
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.