Bank Mandiri Holds Asset Auction From Non-performing Loans Of Up To IDR 1 Trillion To Enter MURI Record

JAKARTA - PT Bank Mandiri (Persero) Tbk (BMRI) or Bank Mandiri has a way of cleaning up assets originating from bad loans. One of them is conducting an auction.

Bank Mandiri in collaboration with the Directorate General of State Assets (DJKN) of the Ministry of Finance held a simultaneous auction of Bank Mandiri's bad debt collateral with the theme Gema Auction 22-2-22, which was conducted electronically (e-auction).

In total, as many as 834 collateralized assets with a limit of more than IDR 1 trillion will be auctioned at the State Assets and Auction Service Offices (KPKNL) throughout Indonesia through the Indonesian auction site auction.go.id and on the official Bank Mandiri auction website at auction.bankmandiri.co. en. These assets are managed by all wholesale and retail segment debtors who have been declared non-performing, or even bankrupt.

“The Mortgage Auction and the Fiduciary Guarantee Execution Auction are an important part of maintaining financial health in the banking sector, especially in handling non-performing loans. For this reason, the auction process needs to be carried out in a good, fast, efficient and accountable manner," said Deputy President Director of Bank Mandiri Alexandra Askandar in a statement, Tuesday, February 22.

On the same occasion, Bank Mandiri's Director of Risk Management Ahmad Siddik Badruddin said, in order to obtain optimal auction results, his party ensures that the condition of the assets that are eligible for auction, both physically and complete with supporting documents.

“Despite the restrictions on social activities, auction participants can still have access to find the best assets according to their needs due to the integration of the Bank Mandiri auction portal into the DJKN Auction Portal. This integration also helps the auction process to be carried out virtually without a physical presence," said Siddik.

Furthermore, Siddik reminded all levels of Bank Mandiri to continue to maintain coordination and good relations with the ranks of DJKN and KPKNL throughout Indonesia, as well as to continuously educate customers in order to produce a maximum auction success rate.

Not only that, good relations also need to be maintained with the National Land Agency (BPN) which has supported the preparation of the Land Registration Certificate so that the auction can run smoothly.

From this well-established collaboration, Siddik added, Bank Mandiri managed to record a very good asset return, where since January 2022, Bank Mandiri's revenue from auction and pre-auction sales has reached more than Rp. 100 billion.

"What's interesting is that this simultaneous auction has received recognition from the Indonesian World Record Museum (MURI) as the largest simultaneous auction event ever held," concluded Siddik.