Expanding The Agriculture Ecosystem, Bank Mandiri Strengthens Partnerships With PT Sinergi Sugar Nusantara

Photo: Doc. Bank Mandiri

JAKARTA - PT Bank Mandiri (Persero) Tbk reiterated its commitment to supporting the development of a sustainable national agricultural ecosystem by establishing a strategic partnership with PT Sinergi Sugar Nusantara (SGN), Sub Holding Sugar Commodity PTPN III (Persero) Holding Plantation. Through the signing of the cooperation agreement in Surabaya, last Friday, August 9, the two companies collaborated in providing integrated financial solutions to support the SGN ecosystem, especially for sugarcane farmers who are the main partners.

As a concrete step, Bank Mandiri provides Micro Business Credit (KUR/KUM) facilities specifically designed for sugarcane farmers with a harvest pay scheme. This facility offers a harvest pay scheme, which allows farmers to regulate their cash flow more flexibly. Thus, payment obligations can be adjusted to harvest time, which is often a challenge in agricultural business management.

As an illustration of information, until July 2024, Bank Mandiri has distributed Micro Business Credit (KUM) to more than 294 thousand MSMEs throughout Indonesia with a value of IDR 32.7 trillion. The credit distribution continues to show positive growth, with Bank Mandiri's Micro Business Credit portfolio increasing by 10.74 percent on an annual basis (YoY).

Executive Vice President Corporate Banking VI Bank Mandiri Budi Purwanto, explained that this step is part of Bank Mandiri's big strategy in expanding the agricultural ecosystem through digitalization and innovation of financial services.

"We see that the agricultural sector has great potential in encouraging national economic growth. Through digitalization and strategic partnerships like what we do with SGN, we are trying to create an inclusive and sustainable ecosystem, where farmers have easier access to financing according to their needs," Budi said in his official statement, Monday 12 August.

For this reason, Bank Mandiri offers innovative digital solutions for farmers with Livin' by Mandiri. The company's flagship super app is designed to meet the financial transaction needs and non-financial needs of sugarcane farmers, so that they can easily manage daily finances such as payments, money transfers, e-wallet top-ups, account opening, and various other excellent features.

Budi further explained, in addition to providing financing support to farmers, this collaboration also includes providing financing for suppliers and vendors through the Accepted Invoice Financing mechanism. This step is expected to strengthen the supply chain or value chain of the SGN ecosystem, so that business operations can run more efficiently and effectively.

Not only does it stop there, Bank Mandiri also offers Payroll Package Services designed to facilitate salary management for SGN employees. In this service, SGN employees can access various banking products such as savings, insurance, and loans more easily.

This facility is expected to increase the financial literacy and economic well-being of employees, as well as support the achievement of their financial goals.

The bank with the gold ribbon logo hopes that this synergy is expected to provide tangible benefits for sugarcane farmers who are SGN partners, as well as support the creation of a more advanced and sustainable agricultural ecosystem in Indonesia.

"We are optimistic that this collaboration will have a positive impact on all parties involved. We want to be a strategic partner in building a modern and highly competitive agricultural ecosystem, in line with Bank Mandiri's vision to encourage financial inclusion in various sectors," added Budi.

Budi explained that this collaboration is a further step from various initiatives that have been carried out by Bank Mandiri in supporting the agricultural sector and economic empowerment in Indonesia. By utilizing technology and innovation, Bank Mandiri continues to be committed to expanding the reach of financial services to various segments of society, including farmers, MSME players, and other informal sectors.

With the digitalization and innovation of financial services that continues to be developed, Bank Mandiri hopes to become a catalyst in creating a stronger and more inclusive business ecosystem, as well as encouraging national economic growth as a whole.