Bank Mandiri Persero Tbk PT : Mandiri teams up with four insurance companies to boost micro segment business
January 05, 2015 at 10:56 pm EST
Share
Mandiri teams up with four insurance companies to boost micro segment business
12/24/14
Jakarta, 24 December 2014 - Bank Mandiri has teamed up with Perum Jaminan Kredit Indonesia (Jamkrindo), Asuransi Kredit Indonesia (Askrindo), Asuransi Jasa Indonesia (Jasindo), and Asuransi Jiwa Inhealth Indonesia (Mandiri InHealth) to boost its micro-finance business. A Memorandum of Understanding to this effect was signed by Bank Mandiri's Director of Micro and Retail Banking, Hery Gunardi, Jamkrindo Director Bakti Prasetyo, Askrindo CEO Antonius Chandra S.N., Jasindo Director Untung H. Santosa and Mandiri Inhealth CEO Roy Ibrahim at Plaza Mandiri on Wednesday (24/12).
Through the collaboration, prospective Bank Mandiri micro borrowers can choose from a wider range of insurance companies so as to select the one that offers the best terms in connection with the micro loans the borrowers receive from Bank Mandiri. The new arrangements complement the existing agreements with a number of other insurance companies that have partnered with Bank Mandiri.
Hery Gunardi said that the collaboration represented one of the Bank's strategic initiatives to meet the need for access to financing on the part of micro businesses.
"The insurance companies will work together with Bank Mandiri. For a company to become a partner of Bank Mandiri, it will obviously have gone through a rigorous selection process. This ensures maximum protection for both the Bank and its borrowers and customers," Hery explained.
As part of the collaboration, Jamkrindo, Askrindo and Jasindo will provide loan insurance products, while Mandiri Inhealth will offer life insurance products.
Hery said that the potential value of the insurance cover was significant. For example, he said, Bank Mandiri extended micro loans amounting to Rp 21 trillion between January and September, which means that the minimum value of the life insurance cover also amounts to Rp 21 trillion. This does not include the value of the loss insurance cover on the collateral or the insurance cover for borrowers whose businesses are feasible, but who lack collateral.
"Through these partnerships, we hope to continue to increase the value of micro lending to Rp 40 trillion in 2015," Hery said.
PT Bank Mandiri (Persero) Tbk (the Bank) is an Indonesia-based banking company. The Bank's segments include Corporate Banking, Commercial Banking, Government Institution, Retail Banking and Treasury & International Banking. The Corporate Banking segment includes loans, customer deposits and other transactions to corporate customers. The Commercial Banking segment includes loans to the medium scale and automotive sector, customer deposits and other transactions to commercial customers. The Government Institution segment provides loans, customer deposits and other transactions to government entities and pension plans of state-owned enterprises. The Treasury & International Banking segment includes foreign exchange, money market, fixed income, international banking business, capital markets and the overseas branches. Its geographical segments include Indonesia, Asia (Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia), Western Europe (United Kingdom) and Cayman Islands.
PT BANK MANDIRI (PERSERO) TBK 
