Distribution in Central Java and DIY Regions Reaches Rp2.48 trillion until June 2024

Semarang, July 24, 2024 - Bank Mandiri continues to actively support the government's program in developing the Micro, Small and Medium Enterprises (MSMEs) sector through the distribution of People's Business Credit (KUR). This also demonstrates Bank Mandiri's consistency as a development agent to encourage the growth of MSMEs as the driving force of economic growth in the country.

As of the end of June 2024, Bank Mandiri's realization of KUR distribution has reached Rp19.33 trillion to more than 122 thousand debtors across Indonesia. This achievement is 51.6% of Bank Mandiri's KUR target for 2024.

Bank Mandiri's KUR distribution through the Regional Office VII / Java 2 Central Java and DIY recorded Rp2.48 trillion to 25 thousand MSME debtors. This value is equivalent to 12.8% of Bank Mandiri's KUR distribution nationally.

Regional CEO of Bank Mandiri Central Java and DIY, Tinno Susilo, said that Bank Mandiri's KUR distribution is always focused on business sectors that have the potential to improve community welfare and national economic growth. “We are committed to continuously supporting the development of MSMEs as the backbone of Indonesia's economy,” said Tinno in an official statement, Wednesday (24/7).

Tinno added that the distribution of KUR is a manifestation of the Government's and Bank Mandiri's commitment as financial institutions in supporting the development of MSMEs. It is also a means for banks to increase and expand financing access to business actors in the production sector.

In Central Java - DIY, the Agriculture Sector is the production sector with the highest distribution throughout 2024, amounting to Rp 472 billion or 19.08% of Bank Mandiri's total KUR. Meanwhile, the Livestock and Fisheries sectors are the next highest production sectors with Rp262 billion or around 10.60% of Bank Mandiri's total KUR distribution in 2024.

“The main focus of Bank Mandiri's KUR distribution is the leading production sectors in each region, such as agricultural processing industries or production services supported by synergy from all businesses, strong coordination across networks, and strategic cooperation with Bank Mandiri's wholesale derivative customers,” he explained.

Bank Mandiri, continued Tinno, is committed to achieving the KUR distribution target for 2024 with an ecosystem-based acquisition strategy with a closed-loop pattern according to regional strategies by optimizing collaboration in working on the value chain of Bank Mandiri's wholesale customers.

Bank Mandiri also encourages digital optimization to provide faster services to prospective debtors, boosting MSMEs' competitiveness by giving them direct access to Bank Mandiri's wholesale ecosystem.

In addition, as part of its business strategy, Bank Mandiri provides digital transaction services to support MSMEs to advance through Livin Merchant with easy onboarding, payment acceptance flexibility, and no subscription fees. This application offers easy access to banking services (access to finance) for MSME actors.

Livin’ Merchant can be used as a point of sales application that directly digitizes transaction activities and accepts direct payments through the QRIS facility that can be scanned by buyers using any bank account or e-wallet. Bank Mandiri continues to expand financing access through a referral program followed by educational services and financial transactions through Mandiri Agents (Agen Laku Pandai Mitra Bank Mandiri) within the MSME business ecosystem.

“We are optimistic about meeting the targets set by the Government, aligned with Bank Mandiri's commitment to promoting the people's economy in Indonesia through the development of a highly competitive MSME ecosystem,” he concluded.