The non-organic business development process initiated
by CMO begins by identifying acquisitions of potential
companies, as well as cooperation with strategic partners that
may accelerate the Bank’s business growth. CMO further
leads the non-organic initiative implementation process and takes
an active role in delivering Bank Mandiri shareholders value, with
the acquired companies or through its strategic partners. The process
was completed through business strategy development targeting
future goals.
CMO also actively provided responsive and innovative inputs to
ensure business plan applications. CMO also functioned by mentoring
post-acquisition subsidiaries, speciically during early operations,
including coordination with work units with regard to the risk
management and consolidation process.
The post-acquisition process of PT Asuransi Dharma Bangsa to its
new name PT Mandiri AxA general insurance MAgi was completed
at the end of 2011. cMo is also actively leading the positioning
process to ensure business synergies in general insurance
development with the optimization between MAgi and Bank Mandiri
business groups.
cMo continues the appraisal process of non-organic growth
initiatives on joint ventures, acquisitions or other type of
partnerships. This process is sustained by the development of a
business strategy to enhance Bank Mandiri’s shareholder value, as well
as value for its strategic partners.
cMo also initiates and identiies the potential companies targeted
and believed to be able to contribute to the acceleration of
Bank Mandiri’s business growth. This is to be in line with Bank
indonesia’s stipulation on the single presence policy and multiple
licenses established through Bank indonesia Regulation no. 1224
PBi2012 dated 26 December 2012 concerning single ownership of
indonesia Banking, and Regulation no. 1226PBi2012 dated 26
December 2012 regarding Business Activity and oice network Based
on Banks core capital. Moving forward, cMo, as stated
by the Management’s direction in six Key Priorities, in the year
2013, will continue to review every opportunity to grow inorganically,
especially in areas that could improve the Bank’s business
growth and market share, as well as provide business synergies to
all within Bank Mandiri’s Business group.
3. To suPPoRT THe BoARD oF
DiRecToRs on oTHeR sTRATegic PRoJecTs
As the Bank’s think tank, cMo supports the Management to
maximize the company’s value creation. cMo provides out of
the box thinking, innovative and quick response towards business
development and regulations. in this respect, cMo was involved
as strategic support to the Board of Directors and stakeholders
during 2012. This process provided a positive impact on the Bank’s
performance and reputation. cMo was also involved in developing
cooperation with institutions, including Asuransi ekspor indonesia
Asei, in the move to boost the Bank’s business.
suPPoRTing uniTs RevieW
CHANGE MANAGEMENT OFFICE
PT Bank Mandiri Persero Tbk.
4. AS THE CATALyST IN THE
DEvELOPMENT OF CROSS- DIRECTORATE INITIATIvES
The Bank established CMO as a Directorate to facilitate
coordination with other work units for cross-directorate functional
initiatives crucial to optimize the Bank’s performance. In this respect,
CMO took the role as the catalyst to accelerate the development
of initiatives towards strategic alliances and organizational
alignments.
Their role is to promote the implementation of Account Plan
targets in 2012, which are to focus on low cost fund and fee
based income improvements for wholesale banking, and to increase
income through product cross selling to the Bank’s 100 Anchor
Clients in Corporate, Commercial, and Institutional segments. This
is also in line with the strategy to accelerate the achievement
of Bank Mandiri’s three business focuses: wholesale transaction,
retail payment deposit, and retail inancing.
The Account Plan was implemented through internal
business process enhancements, as follows:
-
Accelerating product and service development;
-
end-to-end solution through new product development,
existing product reinement, and bundlingpackage
product in accordance with customer needs;
-
support system and development of Account
Planning tools;
-
HR quality enhancement through customer centric
type of organization, reinement and Account
Plan Team competency improvement; and
-
change Management Program to improve
employees’ mindset.
-
Account Plan implementation in 2012
successfully increased share of wallet in corporate,
commercial, and institutional segments from
12 to 17. Account Plan implementation
in 2013 remains in focus on 100 Anchor client of the
corporate, commercial, and institutional segments. This will be
implemented by intensifying the functions of the Account Plan Team
at twelve Bank Mandiri regional oices throughout indonesia. This
is in line with the move to propel account execution, value chain
strategy application, and bundling program implementation to
enhance product cross selling. This strategy is expected to increase
share of wallet from 5 to 22.
in addition to the alliances programs and in anticipation of
business needs and developments, cMo with Human capital strategy
Policy group and related Work units also conducted organization
structural alignments in the Business units and supporting
units. The objectives are to propel the achievement of business
needs, to focus on segments and products to be competitive, to
boost the customer base and market share, to enhance eicient
business processes by mitigating operational risk, as well as improve
work unit productivity.
SUPPORTINg UNITS REvIEw
FINANCE STRATEGY
sixth consecutive year as one of The Most Trusted Indonesian Companies
in good Corporate governance from The Indonesian Institute for Corporate
governance. In 2012, Bank Mandiri managed to reach Rp205.3 trillion or
USD21.2 billion in market capitalization value; breaking into the ranks of the
top six banks in ASEAN. Bank Mandiri achieved other breakthroughs in
the development of its subsidiaries. The subsidiaries have continually
contributed positive trends, which consist of 13.4 of Bank Mandiri’s net
proit. This trend represents a positive sign in the midst of challenges to grow
organically for Bank Mandiri.
The inancial and non-inancial performance of Bank Mandiri during
2012 are a result of optimal eforts from management and employees
in achieving business targets and implementing operations activity
with discipline and consistent hard work, intelligence and thoroughness.
naturally, this achievement grew the optimism to further improve the Bank’s
performance through a more focused and even more innovative business
development. speciically to improve market share in all business segments,
and becoming the main bank of choice and pride of customers and all
stakeholders. We are proud to present Bank Mandiri
records and achievements during 2012. The year 2012 marked the beginning
of the second half of Bank Mandiri’s Transformation toward 2014. The
time is right to measure the second half performance as a relection of
what the future can be. Bank Mandiri with its discipline and consistency
to execute strategic initiatives and business strategies in 2012 moved
another step forward to reach its vision to be a regional champion bank in
2014. on performance, the conducive environment of the national economy
has positioned national banking performance, including Bank Mandiri’s,
in a satisfactory zone.
Propelled by consistency in business and business infrastructure strengths,
Bank Mandiri recorded positive results in its inancial and non-inancial
performance during the second stage of its Transformation process. This
was substantiated through reaching over Rp600 trillion in total assets,
which maintained the Bank’s position as the biggest bank in indonesia by
assets. Bank Mandiri also received the service excellence award for a ifth
consecutive year, and being noted as a “service legend” in indonesia’s
banking industry. Furthermore, Bank Mandiri maintained its position for the
FinanCE sTraTEGY dirECToraTE PErForManCE in 2012
The Finance strategy Directorate consistently strives to enhance its role
as a strategic partner to all business units and supporting units in the move
to reach its goal to be respected as World class inancial body. The Finance
strategy Directorate focuses on reporting system automation, business
process improvement, strengthening business pillars and alliances, and to
increase the company’s value. The objective is to oversee and ensure that
the Bank’s Transformation is carried out as planned.
During 2012, the third year of implementation of Transformation,
the Finance strategy Directorate successfully expanded its strategic role
as follows:
•
strengthened decision support function on sBu work program
implementation;
•
enhanced performance management tools through executive information
system eis development to improve decision making process by the
Management;
•
increased inancial reporting quality and accuracy based on best practice
and stakeholders’ needs;
•
strengthened corporate image through corporate branding
strategies as well as comprehensive and compelling equity story
development;
PT Bank Mandiri Persero Tbk.
•
Provided analysis on industry- regions-outlook of comprehensive
macro economy
•
Improved business process through manual provision on policies and
procedures of the Bank.
The strategic role improvement is aimed to support business development
optimization on SBU and Shared Services units. The Finance Strategy
Directorate intends to become ”the best inancial practice” to add value for
stakeholders. The following are details of Finance strategy Directorate’s main
achievements:
1. Reinforcement of Performance Management System PMS
sustainable PMs development during 2012 was directed towards rapid and
continued business growth support. This was in line with the efectiveness
measurement of the Bank’s performance. enhancements were not
intended only on acceleration and improvements, but also on concept
and methodology reinement. in order to make business decisions, analytical
tools were optimized to provide easy, timely and comprehensive information
on the Bank’s performance. The eforts also strengthened implementation of
the Performance Based culture.
2. Development and Reinforcement of Subsidiary Contribution
Mandiri group in its efort to reach the 2014 vision as “the most admired
and progressive inancial institution in indonesia” will need optimum
support and contribution from all units both Holding company as well as
subsidiaries. support and contribution is expected from business performance,
services and good corporate governance. The following strategy,
among others, were actioned:
•
improve business cooperation with all subsidiaries;
•
synergy-optimization between subsidiaries and Bank Mandiri;
•
increase sense of business acumen in order to develop an integrated
business pattern between Bank Mandiri and its subsidiaries.
This strategy has propelled subsidiary contribution to net proit amounting to
Rp2,073 billion, a growth of 32.9 yoy, with contribution value of 13.4 from
the Bank’s total proit in 2012.
in parallel with aspirations toward an integrated Financial institution, Finance
strategy Directorate succeeded in developing a long-term strategic
directions in early 2012 for each subsidiary saturn Project to support
targeted achievements as well as Bank Mandiri vision for 2014 and the
following years. Bank Mandiri injected additional capital into Bank syariah
Mandiri amounting to Rp300 billion, to support its business development
in the sharia industry. To move further ahead, a non-organic initiative program
will continue to be carried out, among others, joint ventures with third parties,
ownership and capital injection in subsidiaries, as well as implement
acquisition plans of inancial companies including banks.
3. Eiciency enhancement Through Reporting Automation
The Finance strategy Directorate as the provider of accurate and timely
inancial reports continues to expand reporting automation to increase
quality and accuracy of the inancial reporting. The automation process was
done on the following:
•
consolidated Financial statements and Derivative spot Transactions
as well as cAR through iRsRs application;
•
FxF application as solution enhancement on sFAs 5055 R-
2006 implementation and iFRs amendment;
•
integrated Processing system, data control enhancement;
•
Balanced scorecard automation;
•
llD application development on BDs system;
•
collection automation process implementation; and
•
Payroll vAT deposits and reporting as well as sDB.
Automation was intended to reduce the manual process and human error in
every reporting phase so as to produce accurate, excellent and timely reports.
4. Regular Review on Policy and Procedure System Standard
The Finance and strategy Directorate conducts regular reviews and updates
on Bank Mandiri policy and procedures standards as part of good corporate
governance; and in supporting and ensuring business operations luency,
compliance and safety. The process is done prudently and eiciently with
SUPPORTINg UNITS REvIEw
all business, and supporting units and will include policy adjustments based
on Bank Indonesia regulations and applicable standards.
The Directorate successfully integrated the process in 2012 for the
following: 149 policy and procedure, reinement of 94 manuals and 96
technical instructions, so as to concur with external regulations. Hence,
to accelerate business process, the Directorate also has further developed
Business Process Reengineering, end-to- end Trade service Finance.
5. Brand Equity Reinforcement Through Investor Relations
Perspective To improve and strengthen Bank
Mandiri image by the community and investors, the Directorate conducts
brand equity enhancement sustainably through comprehensive and compelling
equity story development. every quarter in 2012, the Directorate routinely holds
a meeting and forum with capital market analysts and investors to present
the Bank’s performance and business strategy. The Directorate also actively
works on improving communication and investor’s understanding on
business development strategies and innovation; by participating in
stakeholders and analysts conferences, both domestic and international. The
Directorate in 2012 also organized six non-deal road shows.
Following our commitment to continue to build good communications with all
stakeholders, Bank Mandiri’s company value in 2012 signiicantly increased.
Bank Mandiri share price grew by 23 in 2012; exceeding the growth rate of
the main banking industry competitor and the 13 growth of the Jci index.
During this period, Bank Mandiri’s share price reached a high of Rp8,800 and the
Bank’s market capitalization exceeded Rp200 trillion.
6. Reinforcement of Public Positive Perception and CSR
Implementation Reinforcement of positive public and
shareholders perception of Bank Mandiri is relected through the achievement
of an average 90.7 in Publicity efectiveness level as of December
2012. This achievement is the result of efective message and information to
the stakeholders through several media. Brand enhancement programs were
also actively organized by Bank Mandiri through national events; such as Pasar
indonesia and the cFo Forum.
in addition, Bank Mandiri also initiated new corporate social
Responsibility programs with 3 main pillars; Mandiri community,
education entrepreneurship, and Friendly environment Facility. The csR
program in 2012 was focused on the implementation of the Mandiri self-
suicient community through the Mandiri Bersama Mandiri program.
While continuing its commitment to contribute towards community
empowerment, the Directorate also organizes other csR programs such as
young entrepreneur Program WMM, Mandiri young Technopreneur MyT,
Mandiri care For education, and others.
7. Chief Economist Oice Function Reinforcement
Following our aspirations to be perceived as leader in the banking
industry, the Finance strategy Directorate reinforced the role of
Bank Mandiri’s chief of economist to obtain strong and respected research
capabilities at both national and regional levels by providing analysis
and reviews on industry and macro economic outlook. The enhancements
in quality, accuracy and in-depth analysis have succeeded in also
boosting development of business units.
every month during 2012, the Directorate published regional macro
economic outlooks and industry analysis, which enables the credit
business unit to support operations strategy and prudent credit distribution.
We also successfully developed the Banking Pressure index, and published
FINANCE STRATEGY
PT Bank Mandiri Persero Tbk.
Mandiri Leading Economic Index on a regular basis. we also held an
international level macro-economic forum. One example was the Indonesia
Investment Forum intended to strengthen the corporate image of Bank
Mandiri.
2013 Strategy Work Plan
Bank Mandiri has declared the year 2013 as the Banking Transaction year;
focusing on developing strategy and supporting infrastructure optimization.
Also to deepen the business penetration embedded within the
customer’s mind that Bank Mandiri is the best transaction bank in Indonesia.
In this respect, the Finance Strategy Directorate with its core function in
inancial performance management and strategy development of the Bank has
developed a work program to provide maximum support for all business units.
As the business units’ strategic partner, Finance strategy Directorate will focus
on six strategic initiatives, as follows:
1. Reporting Automation and Eiciency
•
eis implementation-stage 1 with mobile system.
•
leading indicator implementation within eis.
•
PMs reinement and lex inance function optimization to increase
data percentage processing and detailed consolidated inancial
report automation.
2. Resources Optimization and Synergy development of Mandiri
Group
•
Bank Mandiri successfully completed the corporate Plan
Mandiri group 2012-2016 saturn Project in early 2012. This will
be used as a reference by the subsidiaries’ to achieve optimum
synergy within the Mandiri group in the future. To support the
Mandiri group 2012-2016 strategy implementation, performance
monitoring will be organized routinely in all synergy strategy
executions with subsidiaries of the Mandiri group.
•
RoRWA implementation Return on Risk Weight Assets was
applied into wholesale banking organizations.
•
KPi reinement to improve subsidiary collaboration and
implementation of sPAn and account planning.
•
Balance scorecard and PMs implementation within all
subsidiaries.
•
To monitor subsidiaries management through the guiding
principal that it is in line with the regulations and applicable rules of
Bank Mandiri.
3. Policy and System infrastructure development
•
Finance strategy Directorate acts as the facilitator and the
catalyst in credit process of BPR implementation, and
ncl process simpliication to accelerate business process.
The development of BPR was intended to ensure The Right Risk
indicator and the Right Process is eiciently implemented in
the Bank. This will allow risk mitigation on business process
to be conducted in relation to the reconciliation process, life
cycle product, iT process sDlc; including measurement on clarity
of duties and responsibilities, as well as to stream line the
processes.
•
completion of all sPos as part of synchronization, simpliication
clearance of Policy and Procedure through circular letters and
Decrees.
4. Roll Out Concept of Risk Adjusted Return to PMS
•
initiate building awareness, education and understanding
to business units speciically on wholesale transactions regarding
RoRAc calculation. The intention is to make RoRAc as one of the
key decision-making tools.
PT Bank Mandiri Persero Tbk.
PT Bank Mandiri Persero Tbk.
