Strengthening the micro, small, and medium-sized enterprise (MSME)\nsegment is considered an important strategy for banking in facing\nincreasing global economic pressures. Senior Economist and Associate\nFaculty at the Indonesian Banking Development Institute, Ryan Kiryanto,\nstated that historically, MSMEs have demonstrated better resilience in\nfacing crises, whether from domestic or external factors.<\/p>\n
\u201cMSMEs possess high agility and flexibility in dealing with economic\npressures, including the impacts of geopolitics such as global\nconflicts,\u201d he said.<\/p>\n
He also appreciated the steps taken by several state-owned banks to\nstrengthen credit distribution to the MSME sector, particularly those\naligned with government programmes. Nevertheless, Ryan emphasised the\nimportance of applying prudent principles in credit distribution,\nincluding through 5C analysis\u2014Character, Capacity, Capital, Condition,\nand Collateral\u2014to maintain a healthy portfolio quality. Additionally,\nbanks are reminded to remain focused on their respective flagship\nsectors so that credit expansion does not compromise business\nstability.<\/p>\n
\u201cAs state-owned banks, it is reasonable to support government\nprogrammes, including those of a populist nature. However, they must\nstill align with each bank\u2019s expertise and business focus,\u201d he\nexplained.<\/p>\n
In this context, strengthening the MSME sector is seen not only as\nsupport for the people\u2019s economy but also as an opportunity for banking\nto maintain asset and revenue growth amid global pressures. The wide\nreach of state-owned banks to the regions is considered an advantage in\ntapping into the potential of local businesses that are promising, in\nline with the characteristics of each area.<\/p>\n
For example, Bank Mandiri is one of the banks that has recorded\npositive performance through credit distribution to the productive\nsector. As of February 2026, Bank Mandiri\u2019s loans reached Rp1,513.1\ntrillion, or grew 15.7% year-on-year (YoY), followed by third-party\nfunds (DPK) of Rp1,644.8 trillion, which increased 16.3% YoY.<\/p>\n
Bank Mandiri\u2019s Director of Finance & Strategy, Novita Widya\nAnggraini, stated that this growth was also driven by increasing digital\ntransaction activities, particularly through Livin\u2019 by Mandiri. Bank\nMandiri\u2019s net profit was recorded to grow 16.7% YoY to Rp8.9 trillion as\nof February 2026, in line with an increase in commission-based income\nfrom digital services.<\/p>\n
In addition, the transaction volume of Livin\u2019 by Mandiri reached more\nthan 738.7 million transactions since the beginning of the year, or grew\naround 28% YoY, driven by increasing use of digital services by the\npublic.<\/p>\n
From the intermediation side, net interest income (NII) reached\nRp13.7 trillion, or grew 9.16% YoY, while operational efficiency was\nreflected in the decline of the cost-to-income ratio (CIR) to 37.21%.\nAsset quality also remained maintained with a non-performing loan (NPL)\nratio of 0.98% and a strong coverage ratio of 246.5%.<\/p>\n
With these fundamentals, Bank Mandiri is optimistic about maintaining\ngrowth momentum going forward, while strengthening its role as a\nstrategic partner to the government in supporting national economic\ndevelopment.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/smes-can-become-a-pillar-for-banking-amid-global-pressures-1775638352", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }