Softskill English to Make a Paragraph about Bank Sector in Indonesia

BANK MANDIRI

A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses.

Due to their influence within a financial system and an economy, banks are generally highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords.

One of the Bank in Indonesia isBank Mandiri, headquartered in Jakarta,is the largest bank in Indonesia in term of assets, loans and deposits. Total assets as of Q3 2012 were IDR 588.4 trillion (or USD 59.8 billion). It also has Capital Adequacy Ratio (CAR) of 16,08% (including market risk), Return on Asset (RoA) of 3.45%, and Return on Equity (RoE) of 22.18%. As of September 2012, Bank Mandiri is the first largest bank in Indonesia by total assets.

By September 2012, the bank had 1733 branches spread across three different time zones in the Indonesian archipelago and six branches abroad, about 11.000 Automatic Teller Machines (ATMs), and six principal subsidiaries: Bank Syariah Mandiri, Mandiri Sekuritas, Mandiri Tunas Finance, AXA Mandiri Financial Services, Bank Sinar Harapan Bali, and Mandiri AXA General Insurance.

Museum Mandiri, the former building of Nederlandsche Handel-Maatschappij that was nationalized after the independence period.

Bank Mandiri is the result of the merger made by Indonesian Government from four older government-owned banks that had failed in 1998. Those four banks were Bank Bumi Daya (BBD), Bank Dagang Negara (BDN), Bank Expor Impor (Exim), and Bank Pembangunan Indonesia (Bapindo). During the amalgamation and reorganization, the government reduced the number of branches by 194 and the number of personnel from 26,600 to 17,620.

• 1951: Bank Industri Negara (BIN) was established to finance priority sectors, such as plantations, industry and mining.
• 1959: The Indonesia government nationalized Nationale Handelsbank’s operations in Indonesia and from them created Bank Umum Negara.
• 1960: The Indonesia government nationalized the Indonesian operations of two more Dutch banks. It used Nederlandsche Handel-Maatschappij’s operations to create Bank Ekspor Impor Indonesia. Escomptobank became Bank Dagang Negara. The government also established the state-owned Bank Pembangunan Indonesia (Bapindo) and merged BIN into it. Bapindo specialized in medium and long-term financing of manufacturing, tourism and transportation.
• 1964: The Indonesia government nationalized Chartered Bank’s operations in Indonesia and merged them into Bank Umum Negara. Chartered Bank, a British overseas bank, had first entered Indonesia in 1863 when it opened an agency in Batavia.
• 1965: The Indonesia government brought Bank Umum Negara into the Bank Negara Indonesia group, renaming it Bank Negara Indonesia Unit IV (BNI IV). Similarly, Bank Ekspor Impor Indonesia became Bank Negara Indonesia Unit II (BNI II).
• 1968: The Indonesian government again reorganized some banks. BNI IV became an independent bank with the name Bank Bumi Daya. The government split BNI II into two parts, with the BNI Unit II Export-Import Division becoming BankExim, which specialized in trade finance.
• 1986: Bapindo expanded into general commercial banking.
• 1999: The government merged Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia and Bank Pembangunan Indonesia to create Bank Mandiri.
• 2004: The bank opened a branch in Dili (East Timor), and a representative office in Shanghai (China).

As part of Bank Mandiri culture program, Bank Mandiri established their culture value known as TIPCE that stands for:

1. Trust
2. Integrity
3. Professionalism
4. Customer Value
5. Excellence

Based on mystery shopper method done by surveyor, in 2011 Bank Mandiri got average value 91.23 percent, a first time for a bank got more than 90 percent over 15 years survey. Bank Mandiri got Service Excellence Award for 4 times consecutives and got The Most Consistent Bank for 2 times.

REFERENSI

Wikipedia, (Online), (http://en.wikipedia.org/wiki/Bank_Mandiri , diakses tanggal 01 april 2013)