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In order to achieve our aspiration to become a Regional Champion Bank, Bank Mandiri needs to build upon several
inter-connected strategies:
1. Retaining a leading position in Corporate Banking The four legacy banks that were merged to form Bank Mandiri
were each focused primarily on corporate banking. From the outset, therefore, Bank Mandiri has been positioned as the
clear market leader in the corporate banking segment. This strength has been bolstered by the completion of extensive
loan restructuring and subsequent improvements in the quality of the corporate loan portfolio.
As the economic recovery continues over the next few years, Indonesia will enter a new investment cycle that is expected
to create significant opportunities, particularly within the infrastructure sector. As a prominent intermediary in the
national economy and the market leader in corporate banking, Bank Mandiri expects to selectively participate in these
opportunities to optimize our loan exposure while strictly adhering to prudential banking principles.
In order to maintain competitiveness, Bank Mandiri needs to continue to diversify its corporate banking business through
improvements in the productivity and quality of the loan portfolio as well as by exploring opportunities to generate
fee-based income, especially in conjunction with Mandiri Sekuritas.
2. Increasing market share in Commercial Consumer Banking
The Bank’s market shares in the commercial and consumer banking segments are much smaller compared to corporate
banking. These segments, however, offer prospects for significant growth given the increasingly important role of small
and medium enterprises SME within Indonesia’s post-crisis economy, and Bank Mandiri’s relatively low market penetration
in the highly fragmented consumer banking segment. The Bank’s strategy is to increase market share in the
commercial and consumer banking segments through aggressive business development, including organic growth, mergers
acquisitions, the ongoing expansion of our distribution networks, and sustainable product development.
These consumer and commercial banking development initiatives are integral elements of Bank Mandiri’s positioning
as a Universal Bank that is capable of serving all customer segments. The early results of this strategy are implied by our
achieving a loan portfolio balance between corporate and non- corporate of 48 to 52 at end of 2004.
3. Expanding the utilization of Information Technology To optimize and support Bank Mandiri’s long-term plan, the
Bank has developed a Strategic Plan for Information Systems Development 2000-2007 as a master plan and road map for
IT development through the next several years. This strategic plan follows on from the previous three-year strategic plan
during which Bank Mandiri invested USD176 million to replace inherited IT infrastructure with more reliable and
sophisticated hardware and software.
4. Fortifying Risk Management Bank Mandiri will continue to build organization-wide risk
management capabilities and optimize the risk management and monitoring unit to identify and mitigate credit risk, market
risk, liquidity risk, operational risk, legal risk, reputation risk, strategic risk and compliance risk. This program includes the
continuous development and implementation of specialized tools, methodologies and analyses for risk management. This
expansion of the Bank’s risk management capability will ably prepare the Bank for Basel II implementation.
5. Enhancing Human Capital Management In line with Bank Mandiri’s Phase II transformation 2005-
