PT Bank Mandiri was established as Company as stated in Deed No.10, dated 2 October 1998, hereinafter referred to as PT Bank Mandiri (Persero) Tbk.
PT Bank Mandiri (Persero) was established as part of the banking restructuring programme implemented by the Indonesian government. In July 1999, four state-owned banks, namely Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia, and Bank Pembangunan Indonesia were merged into Bank Mandiri, each of which had an integral role in the development of the Indonesian economy. To this day, Bank Mandiri continues its tradition of over 140 years of contributing to Indonesia's banking and economy.

Consolidation and Integration

Following a thorough consolidation and integration process in all areas, Bank Mandiri has successfully built a solid banking organisation and implemented a new integrated core banking system to replace the separate core banking systems of the four legacy banks. Since its establishment, Bank Mandiri's performance has continued to improve, with profits rising steadily from Rp1.18 trillion in 2000 to Rp5.3 trillion in 2004. Bank Mandiri conducted an initial public offering of 20% or the equivalent of 4 billion shares on 14 July 2003.

Tranformation Program - Stage I (2005 - 2009)

The year 2005 was a turning point for Bank Mandiri, as the bank decided to become a regional champion bank, which was manifested in a transformation programme implemented through 4 (four) key strategies, namely:

• Cultural Implementation. This included performance-based organisational restructuring, performance-based appraisal system restructuring, leadership and talent development, and aligning human resources with strategic needs.
• Aggressive NPL control. Bank Mandiri focused on managing non-performing loans and strengthening the risk management system. Market growth through distinctive strategy and value proposition for each segment.
• Enhanced business growth above average. Market growth through distinctive strategy and value preposition for each segment.
• Develop and manage alliance programmes. Between divisions or business units to optimise services to customers and to further explore the business potential of existing customers and their value chain.

To achieve its goal of becoming a Regional Champion Bank, Bank Mandiri underwent a gradual transformation through 3 (three) phases:

Phase 1 (2006-2007)

Back on track : Focus on rebuilding Bank Mandiri's foundation for future growth.

Phase 2 (2008-2009)

Outperform the Market : Focus on business expansion to ensure significant growth across all segments and to achieve profit levels above market average targets.

Phase 3 (2010)

Shaping the End Game : Bank Mandiri aims to become a leading regional bank by consolidating its financial services business and prioritising non-organic growth strategy opportunities, including strengthening the performance of its subsidiaries and acquiring banks or other financial companies that can add value to Bank Mandiri.

The transformation process, which has been ongoing since 2005 to 2010, has consistently improved Bank Mandiri's performance. This is reflected in the improvement of various financial parameters, including:

• Non-performing loans declined significantly, as reflected in the consolidated net NPL ratio, which fell from 15.34% in 2005 to 0.62% in 2010.
• Bank Mandiri's net profit also increased significantly from Rp 0.6 trillion in 2005 to Rp 9.2 trillion in 2010.
• In line with the above business transformation, Bank Mandiri has also transformed its culture by reformulating its cultural values to guide employees in their behaviour, namely the 5 (five) corporate culture values called "TIPCE", which are elaborated into:
  • Trust
  • Integrity
  • Professionalism
  • Customer Focus
  • and Excellence.

Tranformation Program - Stage II (2010 - 2024)

To sustain and continuously improve its performance, Bank Mandiri undertook a further transformation from 2010 to 2014, revitalising its vision to "become Indonesia's most admired and progressive financial institution". With this vision in mind, Bank Mandiri aims to achieve financial milestones in 2014, including a market capitalisation of over Rp225 trillion with a market share of close to 16%, ROA of around 2.5% and ROE of close to 25%, while maintaining asset quality as evidenced by a gross NPL ratio below 4%.

By 2014, Bank Mandiri aims to have the largest market capitalisation in Indonesia and to be among the top 5 banks in ASEAN. By 2020, Bank Mandiri aims to be among the top 3 banks in ASEAN in terms of market capitalisation and become a major player in the region. To achieve this vision, Bank Mandiri's business transformation in 2010 will focus on 3 (three) business areas, namely:

Wholesale transaction

Strengthening leadership by offering comprehensive financial transaction solutions and building holistic relationships serving corporate and commercial institutions in Indonesia.

Retail Deposits & Payments

To be the bank of choice for retail deposits by providing our customers with a unique and superior banking experience.

Retail Financing

Achieve a leading position in retail financing, in particular to win the competition in home loans, personal loans and credit cards, and to become a major player in micro banking.

Indicators of the success of the further transformation in 2010-2014 were the achievement of a market capitalisation of Rp254 trillion, a return on assets of 3.39% and a non-performing loan ratio of 2.17%. Bank Mandiri has successfully maintained the title of "Best Bank in Service Excellence" by Marketing Research Indonesia (MRI) for 7 (seven) consecutive years, and the title of "Highly Trusted Company" by the Indonesian Institute for Corporate Governance (IICG) for 7 (seven) consecutive years.

Tranformation Program - Stage III (2015 - 2020)

Increasingly complex challenges and the need to continuously improve performance and provide the best quality of service to customers require Bank Mandiri to sustainably transform its business and organisational management. To this end, Bank Mandiri has implemented Phase III Transformation 2015-2020. Bank Mandiri's long-term vision is to be "The Best Bank in ASEAN by 2020". The formulation of this vision can be elaborated as follows:

• Bank Mandiri aims to be the best financial institution in ASEAN in terms of services, products and returns to shareholders as well as benefits to society at large. This excellence will be achieved by providing integrated services and products, financial solutions based on a deep understanding of the industry, supported by technological advances, human quality and business synergies down to the subsidiaries.
• As the pride of the country, each person working at Bank Mandiri has a responsibility that must be realised through good management and corporate governance.
• With a target market capitalisation of USD 55 billion and return on equity of 23%-27% by 2020, Bank Mandiri aims to become an icon of Indonesian banking in ASEAN.

To achieve this vision, Bank Mandiri's growth strategy focuses on 3 (three) key areas as follows:

• Strengthen wholesale leadership by deepening customer relationships. This strategy aims to increase the share of wallet and cross-sell revenue ratio of Mandiri's wholesale customers by providing integrated wholesale product solutions, solutions based on expertise in the customer's business sector, and actively supporting the activities of Mandiri's customers expanding their business to other countries by providing cross-border solutions.
• To be the bank of choice for retail customers by accelerating business in key segments that are the main drivers of Bank Mandiri's business growth, namely: (-) In the micro segment, Bank Mandiri aims to be the strongest challenger in the market by providing easy access for micro customers to Bank Mandiri's distribution network. (-) In the small and medium enterprise (SME) segment, Bank Mandiri aims to be the primary bank of choice for SME customers through customer penetration and acquisition focused on potential sectors to meet all the needs of SME customers. (-) Meanwhile, in the Individual segment, Bank Mandiri focuses on building leadership through a complete and competitive consumer product offering, with innovations to strengthen its dominance in retail payments.
• Integrate business across all segments within Bank Mandiri, including its subsidiaries. Through this strategy, Bank Mandiri aims to promote a culture of cross-selling, both between business units handling wholesale and retail segments, including with subsidiaries, as well as promoting business regionalisation and optimising distribution networks in the regions.

The three focus areas are also supported by strengthening the organisation to provide integrated service solutions, improving infrastructure (branches, IT, operations, risk management) and strengthening human resources.

Corporate Plan Restart (2016 – 2020)

In 2016, there was deceleration of macro economy indicated by the significant increase of non-performing loan in Bank Mandiri. Such increase occurred specifically on the credit quality of a segment that dominates the credit growth of Bank Mandiri to date, yet not the early core competency of the Company.

Based on this condition, as well as not widening the market capitalisation gap, it is necessary for Bank Mandiri to align its aspirations and vision, Corporate Plan 2020 and return to its original core competency, the corporate banking segment.

The successful management of the Company is the result of establishing the appropriate strategy. Continuing the Corporate Plan of Bank Mandiri, the Company has executed the Company strategy in order to supportthe achievement of operational and financial performance targets as set forth in the Bank’s Business Plan and captured every opportunity and potential of the existing businesses. The focus of Bank Mandiri’s Strategy until 2020 is set forth in the following three (3) main strategies:

1. Accelerate The Growth Segment Strategy

• Growing the consumer banking and Multipurpose Micro Business Loan as a new core of Bank Mandiri aggressively to become the first-choice bank, especially for the middleincome class through payroll, mortgage, personal loan and autoloan products, as well as increasing the low-cost funds (CASA).
• Encouraging the growth of Small Medium Enterprise (SME) and Micro Business segment selectively while maintaining its quality and market share.

2. Integrate The Group Strategy

• Strengthening the presence of Bank Mandiri among the ASEAN countries.
• Improving the productivity of Bank Mandiri’s network through business process reengineering and data analytics implementation.
• Encouraging the improvement of performance of subsidiaries through sinergi mandiri group.

3. Deepen Client Relationship Strategy

• Encouraging corporate business to be the main competence to grow more aggressively and be the best in the market in terms of growth in quality and reliability of transactional and treasury products.
• Increasing the contribution portion of fee income in the corporate and commercial segments.
• Developing sector solution, through specific product offerings and financial solutions.
• Encouraging the consolidation and strengthening the commercial segment to continue to grow in line with the market.

In addition to the above strategies, Bank Mandiri is also preparing enablers or other bankwide strategic supports in order to support the achievement of business targets and key aspirations.

Enabler Strategy

• Transformation of service model through digitization to improve efficiency, as indicated by the decreasing efficiency ratio.
• Organizational rearrangement to better reflect the business focus and to be responsive to market conditions safely, quickly, and productively.
• Alignment of risk management to balance growth and quality.
• Development of human resources to cultivate the leader and entrepreneurship characteristics.
• Encouraging work culture synergy (values, work ethics, mindset) in Mandiri Group.

One of the implementation of the Corporate Plan strategies is the alignment of distribution network organizations. Organizational alignment is an advanced process of Distributions Network Transformation (DNT), especially in order to improve the asset quality and business focus in the region. This organizational alignment initiative is aimed at 2 (two) main things, namely organizations that encourage the strengthening of risk management and control, and organizations that focus according to Corporate Plan Restart 2016-2020 strategy. In addition, the management has also set the growth targets in several segments that become the back bone of Bank Mandiri’s business growth.

Corporate Plan 2020 - 2024

There are three main targets of Bank Mandiri in the focus of the Corporate Plan 2020-2024 strategy, as follows:

1. To be the Prominent Wholesale Bank, beyond lending

which is by leveraging Bank Mandiri’s strength as a Wholesale bank to go beyond lending, by acquiring potential new revenue streams from customers through:

• Provision of beyond lending solutions such as Structured Finance and Trade through collaboration with Bank Mandiri’s subsidiaries, namely Mandiri Sekuritas and Foreign Office.
• Improvement of transaction banking services, including cash management, forex, and trade.
• Focus on anchor client penetration and progressive sectors.
• Enhancement of the Relationship Manager (RM) capability to enable them to serve as financial advisors for Bank Mandiri customers of.
• Strengthening the service capability of Wholesale Digital Super Platform KOPRA by Mandiri.

2. Promote sustainable SME & Micro Growth

in the following ways:

• Strengthening the SME network through strengthening the capabilities of the Sales Team and supporting tools.
• Enhancing the effectiveness of data analytics usage through the Early WarningSystem (EWS).
• Business process streamlining and value chain process improvement as well as the use of technology in the process of accelerating loan acquisition and analysis.
• Improving branch capabilities through one-stop solution services for customers.
• Mentoring micro customers to upgrade in class.
• Improving the micro financing process.
• Expanding partnerships with FinTech and utilizing branchless banking agents.

3. Being the Best Modern Digital Bank

with the following steps:

• Dominating the digital banking market share with a focus on the salaried-employee segment.
• Increased penetration of payroll customers and growth of retail CASA through digital channels.
• Development of a financial superstore app that is able to serve the needs of Bank Mandiri customers.
• Strengthening partnerships with e-commerce in Indonesia.
• Development of Bank Mandiri’s digital application integrated in the back-end core system.
• Increased digital service capabilities of retail banks.
• Acceleration of transaction migration to digital channels and optimization of branch networks.

Bank Mandiri 2023 Performance

• Consolidated assets grew by 9.12% YoY to Rp 2,174 trillion.
• Consolidated loans grew by 16.29% YoY to Rp1,398 trillion.
• Consolidated third party funds reached Rp1,577 trillion or grew by 5.78% YoY.
• Consolidated net profit was IDR 55.1 trillion or up 33.7% YoY.
• Consolidated NPL was 1.19% or decreased by 73 bps YoY with NPL coverage ratio reaching 326.34%.
• Consolidated net interest margin reached 5.48%.
• The efficiency ratio continued to improve as reflected in the BOPO which reached 51.88% or declined by 5.46 percentage points (%pt) YoY.
• Total ROE (bank only) reached 27.31%, up 4.69% y-o-y.
• Lastly, the bank's capitalisation remains strong with a CAR ratio (bank only) of 21.99%.

Bank Mandiri’s Key Milestones 2023

• Bank Mandiri held the mandiri ESG Festival by launching digital carbon insetting, the first pre-paid recycle card, and NZE Operational 2030 commitment.
• For 25 years, Bank Mandiri has consistently contributed to the people of Indonesia. Bank Mandiri’s commitment to continue to provide the best service and performance has received appreciation from various parties, including LinkedIn Top Companies 2023 as the Best Place to Work to Develop a Career in Indonesia, Forbes World’s Best Bank 2023 as the Number 1 State-Owned Bank in Indonesia, and AIBP Innovation Awards 2023 from the ASEAN Innovation Business Platform.
• The digital transformation continues with the launch of the new Livin' Sukha 2.0 feature, which provides a more interesting experience in accessing entertainment content and daily lifestyle transactions. As of October 2023, Livin' by Mandiri has been downloaded 34 million times with a transaction value of Rp 2,600 trillion or an annual increase of 36%.
• Bank Mandiri is also unveiling a new cross-border innovation to meet the needs of corporate customers abroad. Thus, integrated digital financial access for the customer ecosystem is becoming increasingly easier. As of August 2023, a total of 677 transactions with a total value of Rp12.466 trillion have been successfully processed by Bank Mandiri. The growth of Kopra by Mandiri also increased by 133% year-on-year (yoy) to 146,000 users within one year.
• Bank Mandiri became the market leader in channelling green financing of Rp115 trillion, an increase of 9.5% year-on-year (yoy). This is a tangible form of Bank Mandiri's implementation of sustainable finance, as well as a manifestation of our commitment to support Indonesia's transition to net zero emissions (NZE) in 2060 and the achievement of the United Nations Sustainable Development Goals (UN SDGs).

Strategic Plan 2024

In 2024, Bank Mandiri’s business strategy is focused onaccelerating business growth in all potential sectors to achieve dominance in the banking industry. As such, in addressing challenges, opportunities, and business competition, Bank Mandiri has formulated 4 Focuses as a 2024 strategy which is a continuation of Bank Mandiri’s series of strategy sharpening, as follows:

1. Accelerate growth in the wholesale segment to dominate the principal business and open new opportunities for other segments to optimize business potential in the derivative ecosystem.
2. Accelerate growth of the retail segment through an ecosystem-based value chainapproach by effectively executing all derivative business potentials from the wholesale segment. In addition, the retail segment will also grow by paying attention to the leading sectors in each region by utilizing digital platforms as an expansion of acquisition channels.
3. Digital optimization of the platform to increasethe transactional CASA base, to ensure thecost of funds to be kept at a low level. Digitalplatform optimization is carried out from theacquisition of new customers to the addition ofexcellent features to increase stickiness in orderto increase Bank Mandiri’s operational funds.
4. Increase synergy with all subsidiaries by aligningthe strategy of the subsidiary against thestrategy of the parent company. This is donethrough sharpening cross selling strategiesand streamlining business processes by utilizingtechnology, as well as prudently carrying outthe principles of risk management of the parent company.

These focuses are key to Bank Mandiri in continuing to achieve good performance to ensure sustainable business growth. Bank Mandiri’s business strategy in 2024 in 4 Focuses can be further described as follows:

1. Maintain credit growth in 2024 by fostering principal growth in the long-term potential sector, resilient/defensive sectors, and sector expertise to continue to increase Bank Mandiri’s market share and dominance.
2. Expand credit prudently by paying attention to the potential, capacity, and capability of each segment to capture all derivative business potential in the wholesale customer business ecosystem.
3. Maintain adequate liquidity through sustainable growth of low-cost funds to ensure in keeping low cost of funds through increased product holding, transaction optimization, and customer acquisition.
4. Optimizing Fee Based Income growth as a revenue driver by fostering recurring feegrowth and increasing intensification of existing customers and focusing on top players in each industry group.
5. Maintain optimal level of Coverage Ratio & Costof Credit to anticipate credit quality decline by maintaining coverage ratio.
6. Effective cost management by reducing costof funds and maintaining cost of credit at a low level in order to achieve optimal returns.