Bank Mandiri Promotes Private Sector Participation in Development Process

News Release - Rabu, 8 Februari, 2017

Jakarta, 8 February 2017 - Bank Mandiri and Mandiri Sekuritas have held the Mandiri Investment Forum (MIF) 2017 so as to encourage private sector investment and boost economic growth. The annual event, which was attended by key policy-makers and some 600 domestic and international investors, was aimed at highlighting investment opportunities in the real sector and identifying solutions to the challenges faced so as to support inclusive and sustainable economic development.

Bank Mandiri CEO Kartika Wirjoatmodjo said that the principal aim of the investment forum was to bridge the informational needs of investors and policy-makers so as to optimize policy-making in support of investment.
“This event provides the perfect opportunity for all stakeholders and policy-makers in the investment field to come together so as to respond to any doubts that people might have about investing in Indonesia. We hope that it will have a significant impact on improving the investment climate in Indonesia,” said Kartika when opening the event, themed "Reviving Private Investment,” in Jakarta on Wednesday (Feb 8).

One immediate result of the event was the signing of a Memorandum of Understanding (MoU) between Bank Mandiri and the Creative Economy Agency (Badan Ekonomi Kreatif / Bekraf) to help boost investment in the creative industries.

“We recognize that Indonesia’s creative industries, particularly those involved in the innovative use of information technology, have enormous potential and are able to compete at the international level. To do that, however, they need to be supported so that they can become magnets for prospective investors,” said Kartika.
In their latest study, Mandiri Group economists found that Indonesia needs to boost investment in the medium term so as to sustain the growth momentum that has been apparent since the second half of last year. This is especially important given the current strains on the government budget in financing investment, particularly in the infrastructure sector. In the 2017 State Budget, the government increased infrastructure investment to around Rp 387 trillion, Rp70 trillion more than in the revised 2016 State Budget. However, real infrastructure investment needs are estimated at around Rp 1,000 trillion per year.

Mandiri Group economists believe that there continues to be significant room for increasing private investment (both domestic and foreign), especially given that the latest data reveals that foreign investment growth returned to positive territory in 2016, after contracting between the fourth quarter of 2014 and the third quarter of 2015.
Furthermore, a survey conducted by the Japan Bank for International Cooperation (JBIC) in December 2016 found that Japanese manufacturing companies viewed Indonesia as a prospective investment destination over the medium to long term.

Investors from China are even more optimistic, and currently dominate foreign direct investment (FDI) in Indonesia, particularly in the electronics, machinery and metal industries.

Mandiri Sekuritas CEO Silvano Rumantir commented: "The MIF is expected to provide a lot of important information on investment opportunities in Indonesia. Mandiri Sekuritas is optimistic about the investment climate, including in the capital markets. We believe that this year will be more positive, in line with economic growth.”

Among the policy-makers present at MIF 2017 were Economy Minister Darmin Nasution, Bank Indonesia Governor Agus Martowardojo, Finance Minister Sri Mulyani Indrawati, SOE Minister Rini Soemarno, Creative Economy Agency (Bekraf) Head, Triawan Munaf, Investment Coordinating Board (BKPM) Head, Thomas Lembong, and Banyuwangi Regent Abdullah Azwar Anas.
As part of a series of activities related to the MIF, Bank Mandiri and Mandiri Sekuritas invited prospective investors to visit the offices of Bank Indonesia and an automotive plant in North Jakarta on Tuesday (Feb 7) to obtain first-hand information investment opportunities. The investors also held one-on-one and group meetings with stakeholders and business players in order to identify prospective businesses for investment.

In addition to bringing together investors, Bank Mandiri also supports enhanced economic growth through the provision of financing to the infrastructure sector. As of the end of last year, Bank Mandiri had provided loans amounting to Rp 57.3 trillion to the sector, out of a total of Rp 104.6 trillion in financing for the development of seaports, airports, power plants and tolled expressways.

About PT Bank Mandiri (Persero) Tbk
Bank Mandiri is the largest Bank in Indonesia, providing services in the Corporate, Commercial, Micro & Business, Consumer Banking and Treasury segments. The Bank’s subsidiaries are Mandiri Sekuritas (capital market services), Bank Syariah Mandiri (shariah banking), Bank Mandiri Taspen Pos/ Mantap (MSME sector), AXA-Mandiri Financial Services (life insurance), Mandiri InHealth (health insurance), Mandiri Axa General Insurance (general insurance), Mandiri Tunas Finance (consumer finance), Mandiri Utama Finance (financing services), Mandiri International Remittance (remittance services), Mandiri Europe (treasury & financial institutions), and Mandiri Capital Indonesia (venture capital).
As of the end of September 2016, Bank Mandiri operated 2,505 branches throughout Indonesia, and 7 branches/representative offices/subsidiaries overseas. The Bank’s distribution network consisted of 17,461 ATMs linked to the ATM Link, ATM Bersama, ATM Prima and Visa/Plus networks. In addition, the Bank operated more than 269.3 thousand Electronic Data Capture machines and a range of other electronic channels, including Internet Banking, Mandiri Mobile, SMS Banking and Call Center 14.000.

For more information, please contact:
Rohan Hafas
Corporate Secretary
PT Bank Mandiri (Persero) Tbk.
Tel: 021-5245740 Fax 021-5268246