Supporting MSMEs And The Economy Of Kerakyatan, Bank Mandiri Encourages KUR Distribution To The Production Sector

Photo: Doc. Bank Mandiri

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 is also a form of Bank Mandiri's consistency as a development agent to encourage MSME growth as a driving engine for economic growth in the country.

In 2023, Bank Mandiri has distributed KUR of IDR 34.24 trillion to more than 320,675 debtors throughout Indonesia. Bank Mandiri's KUR distribution continues to strive to channel KUR prudently so that the non-performing credit ratio (NPL) can be maintained consistently below 1 percent.

Bank Mandiri SEVP Micro & Consumer Finance Saptari said Bank Mandiri's KUR distribution has always been focused on business sectors that have the potential to improve people's welfare and national economic growth.

"We are committed to continuing to support the development of MSMEs as the backbone of the Indonesian economy," Saptari said in an official statement, Tuesday, January 23.

Saptari added that the distribution of KUR is a form of the commitment of the Government and Bank Mandiri as financial institutions in supporting the development of MSMEs. As well as being a means for banks to increase and expand access to financing for business actors in the production sector.

Meanwhile, if detailed, the distribution of Bank Mandiri KUR throughout 2023 was dominated by the production sector as much as 61.16 percent or Rp20.94 trillion of the total distribution of Rp34.24 trillion. Based on historical data, the trend of increasing Bank Mandiri's KUR distribution to the production sector continues to grow, in line with the mandate given by the Government.

The Agricultural Sector is the production sector with the highest distribution throughout 2023, namely IDR 10.77 trillion or 31.44 percent of Bank Mandiri's total KUR. The Production Services sector is the next highest production sector with IDR 7.02 trillion or around 20.51 percent of the total distribution of Bank Mandiri KUR in 2023.

"The main focus of Bank Mandiri's KUR distribution is the leading production sector in each region, such as the processing industry agriculture or production services supported by synergies from all businesses, strong coordination across the network, and strategic cooperation with customers of Bank Mandiri's wholesale derivatives," he explained.

Thanks to this consistency, in 2024 Bank Mandiri has the mandate to distribute KUR of IDR 37.5 trillion, an increase of 3.46 percent from the previous year. Of this amount, this year's KUR distribution will be focused on the business production sector which still has large spaces such as agriculture, plantations, production services, processing industries and other leading sectors.

As a wholesale bank, Bank Mandiri optimizes the potential for distribution from the customer derivative business of the wholesale banking segment by close-loop ecosystem financing solutions.

"We are optimistic that we can meet the targets set by the Government which are in line with Bank Mandiri's commitment to encourage the people's economy in Indonesia through the development of a high competitive MSME ecosystem," he concluded.