Bank Mandiri Waits For OJK Rules Regarding Extension Of Credit Restructuring

JAKARTA - PT Bank Mandiri Tbk (BMRI) welcomes the proposal from the Government to extend the restructuring of COVID-19 credit until 2025.

His party will continue to wait for the discourse regarding the continuation of the rules issued by the Financial Services Authority (OJK).

"As a development agent, Bank Mandiri welcomes the proposal and is waiting for implementation instructions and regulations issued by the regulator, in this case the Financial Services Authority (OJK)," said Bank Mandiri Corporate Secretary Teuku Ali Usman, Friday, June 28.

Ali said that Bank Mandiri continues to be committed to supporting the micro, small and medium enterprises (MSMEs) sector, which is the backbone of the Indonesian economy.

According to Ali, currently, Bank Mandiri has no problem with decreasing the quality of its credit portfolio which makes the need for instigating losses increase.

For information, until the first quarter of 2024, Bank Mandiri's NPL on a consolidated basis was at the level of 1.02 percent, an improvement of 68 basis points (bps) from the same period the previous year of 1.7 percent.

Ali said that Bank Mandiri is also very prudent and conservative in setting credit reserves, as reflected in the coverage ratio of banks only which is at a safe level at 368 percent.

In encouraging credit disbursement, Ali said Bank Mandiri would continue the strategy that has been implemented over the last few years, namely strengthening core competence and increasing the growth of the retail segment.

"Continuing the strategy that has been implemented over the last few years, namely strengthening Bank Mandiri's core competence in the wholesale segment and increasing retail segment growth with an ecosystem-based value chain approach and focusing on the leading sector in Indonesia," he said.

Previously, Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said his party would conduct an in-depth investigation regarding the plan to extend the Covid-19 credit restructuring.

"I heard that, we want to explore what is meant by matters related to (the extension of bank credit restructuring)," he said after the Bundaku Financial Education Talkshow on Tuesday, June 25.

Mahendra menyampaikan, pihaknya dalam pengambilan keputusan untuk penjungan rekstrukturisasi kredit Covid-19, telah mengungkap dari sisi dampaknya dengan mempertimbangkan keseduatan modal, pencadangan atau cadangan kerugian penurunan nilai (CKPN), likuiditas, dan kapasitas untuk pertumbuhan kredit.

"Yesterday in the decision making for the termination of the pandemic credit restructuring, it has been calculated in terms of capital adequacy, CKPN reserves, nor does it interfere with liquidity and capacity for credit growth have been seen, observed, and guarded," he said.

According to Mahendra, with the end of the Covid-19 credit restructuring policy, credit growth in 2024 was higher than the previous year.

"So, from that point of view [the end of the stimulus] is actually what happened or at the end of March the tempo of the day, or after that, nothing is an anomaly," he said.

Mahendra said that his party would evaluate the proposal from the government regarding the extension of the Covid-19 credit restructuring.

"So we conducted an evaluation, both related to what was completed last March, which restructured the pandemic credit, as well as the issues raised (extended the restructuring of Covid-19 credit)," he explained.

Even so, Mahendra conveyed that he understood and understood the direction of the government's proposal for the restructuring of Covid-19 credit to be extended because there were several potential credit growth in certain segments.

"There is a special concern for the potential of credit growth in certain segments," he said.