Danamon Affirms Commitment To Support Strengthening The Automotive Industry Through Financial Solutions From Upstream To Downstream

Andrew Suhandinata, Transaction Banking Head of PT Bank Danamon Indonesia Tbk. (Photo: Doc. Danamon)

JAKARTA - PT Bank Danamon Indonesia Tbk (Danamon), together with PT Adira Dinamika Multi Finance, Tbk (Adira Finance) and MUFG Bank Ltd. (MUFG), were present again at the 2024 Indonesia International Motor Show (IIMS) as official bank partners, official multi finance partners, and official trade-in partners through Momobil.id and momotor.id. This long-term partnership is Danamon's commitment to strengthen the national automotive industry by providing comprehensive financial solutions for each part of the automotive industry chain, from upstream to downstream.id.

With consolidated assets reaching Rp221 trillion as of the end of 2023, Danamon shows solid financial capabilities to support Indonesia's automotive sector from production to distribution. Andrew Suhandinata, Transaction Banking Head of PT Bank Danamon Indonesia Tbk emphasized the importance of the automotive industry in advancing the Indonesian economy and Danamon's commitment to supporting business actors in this sector.

In 2023, Danamon recorded significant growth in lending, with total credit and Trade and Finance increasing by 19 percent Year-on-Year (YoY) to IDR 174.9 trillion. This increase was driven by credit portfolios from the Enterprise Banking & Financial Institution segment which grew 15 percent YoY reached IDR 78.8 trillion.

Sinergi antara Danamon dengan Adira Finance sebagai anak perusahaan, telah menghasilkan peningkatan dalam penyaluran kredit dan pembiayaan otomotif baik retail maupun korporasi sepanjang tahun 2023.

The value of vehicle financing carried out by Adira Finance for Danamon business customers (flat financing) has grown by 85 percent YoY with customer growth reaching 22 percent YoY. In addition, Danamon has disbursed working capital loans for Adira Finance partner dealers in 2023 with an increase in loan value of 103 percent YoY with an additional 105 percent YoY dealer.

This shows that Danamon's synergy with Adira Finance plays a role in increasing the customer base and business expansion of both companies and is a distinguishing power to grow as a Financial Group and this will continue to be improved in the future.

In supporting the Corporate business, Danamon provides a comprehensive series of Transaction Banking services, including Danamon Cash Management, Danamon Trade Finance & Services, as well as Danamon Financial Supply Chain. This service allows corporate customers to manage cash flow, export/import trade financing, and financial supply chain solutions more efficiently through the Danamon Cash Connect platform, an internet banking service designed to accelerate business processes and increase productivity.

In line with the increasing scale and capability of the MUFG Group through various acquisitions of other service provider companies that have recently been completed, such as Akulaku and Home Credit Indonesia by MUFG, and the acquisition process of Mandala Finance which is currently underway by Adira Finance and MUFG, at IIMS this time, this group is again present with an increasingly complete and comprehensive financial solution option for every customer's needs from upstream to downstream.

This expansion not only strengthens Danamon's capacity in providing complete financial solutions from upstream to downstream for the auto industry, but also expands service access to more industry players.

Danamon realizes that customer needs in terms of automotive are not limited to end users. There are many customers who are business owners such as workshop owners, aftermarket stores, and others. Danamon wants to reaffirm their commitment to corporate customers, including SME and Enterprise Banking and present as one stop financial solution providers. This is because we believe that if our client's efforts operate smoothly, they will also be able to provide the goods and services needed for the final consumers, so that in turn they can make a positive contribution to the Indonesian economy," concluded Andrew.