Simulation: consolidation is expected to perform as best payment bank in ASEAN with more diversified loan portfolio

If Bank Mandiri acquired BRI the acquisition may result a company that has synergy of micro and retail banking and wholesale banking. The company will be more diversified in its loan portfolio. Bank Mandiri is more concern in urban area and BRI that tend to focus in outlying place, the composite of two different characters in segment and geographical operation area. The fusion of both will perform better payment bank that could serve the customer in village, urban and even oversea especially for ASEAN’s Region. Bank Mandiri has several branches in overseas and so does with BRI, the combination of both may improve the payment service for customer.

Bank Mandiri

Bank Mandiri is the biggest banking in Indonesia; the company was appeared from mega merger of 4 banks in 1998. There were 4 large banks that formed the company, they were Bank Dagang Negara, Bank Bumi Daya, Bank Pembangunan Indonesia and Bank exim.  Mr. Robby Johan who was leading the merger process in 1998 and he was also appointed as the first CEO of the bank. Then Mr. Agus Martowardoyo, his former subordinate was his successor. The core of business of the company is wholesale banking that consists of commercial banking, corporate banking and also institutional banking. Bank Mandiri is a state owned company; government of Indonesia owns more than 60 % of total share. In 2014 the asset of the company was more than IDR 855 trillion rupiah. In 2020 the company intends to be best banking company in ASEAN. 

Bank BRI

The company has impressed historical milestone since it was established before Indonesia declared its independent day in 1945. It was founded by Ariawiriatmaja in 1895, its name was De poerwokertoschehulp en spaarbank der inlandsche hoofdenin purwokerto. The entity was managing a mosque-fund include disbursed fund to people        in a simple way. During the Japanese occupation the company was changed its name became Syomin Ginko. The company named its name as BRI in 1946 after Indonesia declared its independence. From mosque fund manager in to a largest micro and retail bank in Indonesia, no one was predicted that the small entity that was owned by ariawiriatmadja became a great banking company. In 2014 BRI was purchasing satellite to strengthen its e-banking across Indonesia. Among of its clients is located in outlying area. In 2014 the total asset of the company was more than IDR 801 trillion. BRI is a state owned banking company; Government of Indonesia has 56.75 % of its total share.