Agus Martowardojo Reveals Difficult Times Of Bank Mandiri During The 1998 Crisis, Loss IDR 124 Trillion, But Now Profits IDR 12.5 Trillion

Agus Martowardojo. (Photo: Doc. Antara)

JAKARTA - Former President Director of PT Bank Mandiri (Persero) Tbk Agus Martowardojo told about the difficult times at the beginning of the establishment of the state-owned bank in the period 1998-1999.

On October 2, 1998, Bank Mandiri was established to accept the merger of four banks, namely Bank Bumi Daya, Bank Dagang Negara, Bank Export-Import Indonesia, and Bank Pembangunan Indonesia.

"At that time, conditions were in crisis, the total loss of the four banks that joined Bank Mandiri reached IDR 124 trillion," said the former Governor of Bank Indonesia when receiving the Bank Mandiri lifetime achievement award, in the series of the company's 23rd anniversary, quoted Sunday, October 3.

Furthermore, Agus said, in 1999, or to be precise during the legal merger, the company still suffered losses of IDR 68 trillion. Luckily, the state decided to merge and gave Bank Mandiri a capital injection of IDR 174 trillion in 1999.

"We are grateful that it is now the 23rd anniversary of Bank Mandiri. If we look at 1998-1999, Bank Mandiri's total assets were only IDR 240 trillion, now, it is IDR 1.600 trillion. It has multiplied", Agus said

Since its establishment, Bank Mandiri's performance has continued to improve, as shown in profit which continued to increase from IDR 1.18 trillion in 2000 to IDR 5.3 trillion in 2004. Until the first semester of 2021, the company posted a net profit attributable to owners of the parent entity of IDR 12. .5 trillion or grew 21.45 percent on an annual basis (year on year / yoy).

Profit growth was mainly supported by net interest income of 21.50 percent yoy to IDR 35.16 trillion. In addition, fee-based income, which grew 17.27 percent yoy to IDR 15.94 trillion, also supported profit growth.

Meanwhile, credit disbursement rose 16.37 percent on an annual basis to IDR 1.014.3 trillion, while third-party funds (DPK) increased 19.73 percent on an annual basis to IDR 1.169.2 trillion. Of the total DPK, the composition of low-cost funds was 68.49 percent or reached IDR 800.8 trillion.