News Column

Mandiri Strengthens MSME Financing Through Easier Access

January 24, 2014

ENP Newswire - 24 January 2014 Release date- 22012014 - Bank Mandiri continues to facilitate access to credit on the part of micro, small and medium enterprises to (MSMEs ). In 2014, more than 300 new offices will be opened to expand lending to this segment. As of December 2013 , the bank had 2,949 offices to encourage lending to MSMEs. This figure consists of 322 business banking centers, floors and desks, and 2,627 micro units. Meanwhile, Bank Mandiri's lending to the MSME sector as of the end of December 2013 (unaudited) amounted to Rp 64.60 trillion , significantly higher than the same period the previous year when the figure was Rp 54.68 trillion . Bank Mandiri Commercial & Business Banking Director Sunarso said that loans to the MSME segment were used entirely to finance productive endeavors. The Bank, he said, is committed to providing easy and fast services to MSMEs so as to help them grow their businesses. 'We understand that MSMEs need capital quickly based on a simple process so that they can develop. We also want to answer the needs of MSMEs in Indonesia by reaching them through our Bank Mandiri network,' Sunarso explained in Jakarta on Wednesday (Jan. 22). In addition to the Bank Mandiri network, the Bank is also focusing on human resources development so as to boost its services to MSMEs. Sunarso said that this was necessary as unique skills were required of banking officials working with the MSME segment. Besides having excellent business knowledge, officials also needed to understand the cultural characteristics and behavior of local entrepreneurs. Sunarso said that Bank Mandiri's commitment to providing services to the MSME segment was also shown by its establishment of a reliable support system. The development of IT had helped expand the Bank's portfolio in the MSME segment in an integrated manner by strengthening such aspects as the client selection process, loan booking process, monitoring and reporting. By further strengthening the support system, Bank Mandiri expected its MSME business to grow rapidly while at the same time maintaining credit quality. Sunarso said that Bank Mandiri was also educating MSMEs so as to boost their competitiveness, thereby helping the Indonesian economy to grow and create large numbers of jobs, thus helping improve the overall standard of living in the country. 'What we are determined to do is to expand access to capital on the part of MSMEs in Indonesia , and to provide them with information and mentoring both in terms of management and good governance. In this way, their businesses should be better able to expand, which in turn will help spur the growth of the national economy,' Sunarso said.

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Source: ENP Newswire

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