Products, services, and Process innovation

PT Bank Mandiri Persero Tbk. insTiTuTionaL BanKinG The Directorate of Institutional Banking has a central role that manages particular segments of ministries or State agencies and State-owned Enterprises, as well as national and international private clients. In their operational activities Directorate of Institutional Banking adheres in the vision “to make Bank Mandiri a Major Partner For Institutions and government agencies” with a mission that strived to improve execution of the value chain and the alliance of the Institutional segment of government agencies and State-owned Enterprises; as well as being the main partner in the management of funds and investments to optimize revenue and proit pools especially in wholesale transaction. Despite new challenges in worldwide banking industry in 2012, institutional Banking Directorate remained focus to maintain its position in the banking industry. The Directorate continuously strives to enhance product competitiveness. The Directorate ofers enhanced features especially related to product variations, lexibility to the customers as well as competitive pricing, by upholding the principles of good corporate governance. 2. Developing an integrated academic system with payment system. The objective was to manage the inance and academic data of state universities PTn. 3. The management of Margin Fund of PT Kliring Berjangka indonesia KBi. The objective was to provide banking service in derivatives clearing transactions, such as saving accounts opportunities for the investors. 4. Developing on-line system for registration and payment settlement for court cases through web in which Bank Mandiri acts as the bank to manage the case funds. Total fund under the management of institutional Banking group. Total Fund Rp44.7 Tn The institutional Banking Directorate succeeded in implementing several national scale projects in 2012 such as the national selection of entrance to state university Program snMPTn year 2012. Bank Mandiri is established as a single partner bank in this program for a period of 5 years 2008-2012. Further, the Bank also supported the selection of new students enrollment for state islamic university Program sPMB PTAin. As a business entrance-gate, the Directorate of institutional Banking together with the Product Development team, supported by iT team and related working units has developed a comprehensive solutions, products and services to meet the customers’ needs such as: 1. Hospital Billing system. This system replaced the hospital cashier functions with Bank Mandiri teller through online terminal system. The service was conducted in several Public service Agency Blu hospitals under the management of Health Ministry of the Republic of indonesia. INSTITUTIONAL BANKING 5. Pension fund payment system enhancement through e-Dapem program electronic payment fund and payment for ASABRI pension through payroll system. 6. Providing multi-payment and e-channel facility for Jamsostek’s fees and claim payments, as well as the provision of multi-payment and e-channel facility for Jiwasraya insurance premium payment. 7. Enhancement of Mandiri Cash Management MCM, payroll payment, and multi payment e-channel facility for cash delivery payment and management of potential customers. 8. The provision of website and enhancement of Mandiri DPLK application for easy access on DPLK product features and DPLK’s customer inancial position through the application of settlement for withdrawals and claims. The Directorate of institutional Banking has implemented business strategy on funding and succeeded in improving Third Party Funds DPK, to grow by 26.5 from Rp35.3 trillion in 2011 to Rp44.7 trillion in 2012. The fund contributions were 68.2 from Ministry segment, and a 21.8 from state owned enterprisesoes. on low cost funds composition current Accounts and Business savings, the Directorate of institutional Banking has maintained the low cost fund structure at 37.4 from the total fund volume of Rp16.7 trillion. This performance was achieved through leading indicators support, which includes the growth from close deal customer and productivity of Relationship Manager. Meanwhile, the Rp16.7 trillion low cost funds achieved in 2012 was supported by related leading indicator, such as volume cash management and total accounts growth. Moreover, in the efort to strengthen customer base, the Directorate of institutional Banking continues to grow the Mandiri Financial institution Pension Fund DPlK. The Directorate conducted DPlK customer acquisition, through relationship with investment Management companies that include funding placement, competitive market rate, signiicant increase in pension fund, as well as to organize both internal and external promotion through above the line and below the line media. currently, Mandiri DPlK has ofered 5 investments packages: Money Market investment, Fixed income investment, equity investment, Balanced investment and sharia investment – with the objective to increase signiicant fee-based income and beneits for Bank Mandiri. The total participants of Mandiri DPlK since its establishment in May 2011 to December 2012 has reached 10,820 participants with total assets of Rp89.0 billion. The Directorate of institutional Banking in its efort to support soes’ role as the government agent of change, has also actively distributed the government program funds with related working units, such as school operational Assistance Bos fund, Public Healthcare guarantee JAMKesMAs, corporate social Responsibility csR THiRD-PARTy FunDs BAse on consuMeR segMenTATion Rp.billion THiRD-PARTy FunDs BAse on PRoDucT coMPosiTion Rp.billion 68.2 21.8 7,7 2.0 0.3 Ministries state-owned enterprises Foundation Pension Funds subsidiaries of soe insurance companies 62.6 36.9 0.5 Time Deposit Demand Deposit saving Deposit Business oveRvieW AnD conDiTion