Bank Mandiri Encourages MSME Growth: Credit Reaches IDR 144 Trillion In 2024

JAKARTA - PT Bank Mandiri Tbk. (BMRI) noted that throughout 2024 it has channeled financing to the social sector with the realization reaching Rp144 trillion. This number has increased by 6.6 percent compared to the same period the previous year.

Bank Mandiri Group Head Micro Development & Agent Banking, Muhammad Gumilang, said that the credit was distributed to Micro, Small and Medium Enterprises (MSMEs) and women in rural areas. In detail, Micro Business Credit (KUM) reached IDR 26.9 trillion and People's Business Credit (KUR) reached IDR 63.9 trillion.

As a change agent, Bank Mandiri wants to help MSMEs develop and advance to class. Therefore, various efforts continue to be made to improve the competitiveness of MSMEs in Indonesia.

In order to expand financial access for the community, Bank Mandiri utilizes digital technology by providing financial access through Livin' Merchant. As of December 2024, the number of Livin' Merchant users in non-urban areas reached 1.47 million, a significant increase of 42.3 percent on an annual basis.

In addition, to support the acceleration of the people's economy, Bank Mandiri runs the BUMN House (RB) program which aims to help MSMEs advance to class. Currently, there are 23 BUMN Houses throughout Indonesia that have involved more than 15,000 MSMEs in various types of training, including financial literacy, digital marketing, and e-commerce promotions.

Support for BUMN Houses is expected to have a positive impact on the community around the activity location. Until now, this program has been able to provide Social Return of Investment (SROI) 3.96 times and 4.06 times in 2024. SROI measures the social value generated from each rupiah invested by Bank Mandiri, namely Rp3.96 and Rp4.06 through BUMN Home activities.

MSME credit access provided to women has also increased, in line with Bank Mandiri's role in economic empowerment. As of December 2024, the composition of MSME loans distributed to women reached IDR 50 trillion or 55 percent of total lending.

To strengthen this role, Bank Mandiri collaborated by signing a credit facility of IDR 3 trillion for Mekaar PNM spread across various regions. This facility provides unsecured capital solutions for women ultra micro business actors with a financing limit of between IDR 2 million to IDR 3 million.

Through a shared responsibility approach, this program not only provides financing but also creates a solidarity community among its members, strengthens the collective spirit of achieving economic prosperity.

Bank Mandiri's commitment and efforts to support MSMEs are in line with the application of sustainable banking pillars which refer to ESG principles in operations and the company's business lines.