Supporting Government Policy, Bank Mandiri Ensures Government Regulation Number 47 Of 2024 Has No Impact On Financial Performance

Photo: Doc. Bank Mandiri

JAKARTA - The President of the Republic of Indonesia, Prabowo Subianto, has signed Government Regulation (PP) Number 47 of 2024 which facilitates the elimination of bad debts for micro, small and medium enterprises (MSMEs) in several vital economic sectors. This policy includes key sectors such as agriculture, plantations, livestock, fisheries, marine, and other creative fields such as fashion/busana, culinary, and creative industries.

Through this step, the government hopes to provide fresh air for MSMEs throughout Indonesia, encourage stronger economic independence and open opportunities for more sustainable growth. Bank Mandiri, as one of the SOEs, expressed full support for this government step.

Bank Mandiri Corporate Secretary Teuku Ali Usman, said that this policy is in line with Bank Mandiri's commitment to help strengthen the people's economy which is the backbone of the Indonesian economy.

"This policy of eliminating bad debts is a strategic step to strengthen the competitiveness and capacity of MSMEs in Indonesia in the long term and to encourage the people's economy at large," Ali said in his official statement, Wednesday, November 6.

Ali also assessed that the policy had no financial impact on Bank Mandiri's balance sheet and profit loss because the loan had been deleted by the book (writing off).

"Based on historical analysis, the return rate ratio (recovery rate) of debtors removes KUR/KUM books, especially farmers and fishermen, the value is not significant compared to Bank Mandiri's financial performance," he added.

Furthermore, this policy is expected to provide MSME players with the opportunity to return to productivity and strengthen their competitiveness in the market.

"As a state-owned company, we are committed to continuing to contribute to strengthening the national economy through innovative programs," concluded Ali.

With full support for this policy, Bank Mandiri is ready to strengthen banking access for farmers and fishermen in supporting food self-sufficiency programs and supporting free nutritious eating programs. This can also support the sustainability of MSMEs in Indonesia and strengthen national economic resilience.