Realizing The Economy Of People, Bank Mandiri's MSME Loans In 2024 Increase

Photo: Doc. Bank Mandiri

JAKARTA - Bank Mandiri is committed to realizing a people's economy through social loans. This is in line with the principles of Environmental, Social & Governance (ESG) implemented by Bank Mandiri, especially in terms of social aspects. Throughout 2024, Bank Mandiri was recorded as channeling financing to the social sector with the realization reaching Rp144 trillion.

This amount has increased by 6.6 percent compared to the same period the previous year (YoY). Meanwhile, the credit was channeled to Micro, Small and Medium Enterprises (MSMEs) and women in rural areas. With details, Micro Business Credit (KUM) is worth IDR 26.9 trillion and People's Business Credit (KUR) is worth IDR 63.9 trillion.

Bank Mandiri Group Head Micro Development & Agent Banking Muhammad Gumilang said that as an agent of change, Bank Mandiri wants MSMEs to develop and even advance to class.

"Therefore, we continue to make efforts to develop the MSME segment to have high competitiveness," said Gumilang in a written statement, Friday, February 28.

Meanwhile, in order to expand financial access to underserved communities, Bank Mandiri utilizes digital technology by providing access to finance through Livin' Merchant. As of December 2024, the distribution of Livin Merchant users in non-urban areas reached 1.47 million users, an increase of 42.3 percent YoY significantly.

In addition, to accelerate the people's economy, Bank Mandiri also has a BUMN House (RB) program that targets MSMEs to advance to class. Currently, the bank with the gold band logo has formed 23 RBs throughout Indonesia, involving more than 15,000 MSMEs for various types of training such as financial literacy, digital marketing, and e-commerce promotions.

RB support is also calculated to have a positive impact on the community around the place of the activity. Until now, the RB program has been able to provide Social Return of Investment (SROI) 3.96 times and 4.06 times in 2024.

SROI is the value of each rupiah invested by Bank Mandiri, which is able to provide social value of IDR 3.96 and IDR 4.06 through the activities of the BUMN House. On the other hand, access to MSME loans provided by Bank Mandiri to women has also increased. This is in line with Bank Mandiri's role in empowering the economy.

As of December 2024, the composition of MSME loans distributed to women reached IDR 50 trillion or equivalent to 55 percent. In strengthening its role, Bank Mandiri also collaborated marked by the signing of a credit facility of IDR 3 trillion for Mekaar PNM spread across various regions.

Meanwhile, the facilities provided are a solution for women who are ultra micro business actors to gain access to capital without collateral with a financing limit of between Rp. 2 million to Rp. 3 million. Through a shared responsibility approach, this program not only provides financing but also creates a solidarity community among its members, strengthens the collective spirit to achieve economic welfare.

Of course, this cannot be separated from Bank Mandiri's commitment and efforts in implementing sustainable banking pillars in accordance with ESG principles in the company's business and operational lines.