Purwakarta, 27 February 2016 – PT Mandiri Tunas Finance (MTF), a financing company resulting from a joint venture of PT Bank Mandiri Tbk and PT Tunas Ridean Tbk, posted fantastic performance amidst weakening national automotive sales, both two-wheeled and four-wheeled. Throughout 2015, MTF posted net profit growth of more than 30%, twice the profit growth of its competitors which was only able to achieve the highest growth at the level of 15%. Meanwhile, MTF's current year profit throughout 2015 increased 31% to IDR 306.8 billion from 2014 which amounted to IDR 234 billion. 

 

According to President Director of PT Mandiri Tunas Finance, Ignatius Susatyo Wijoyo, the very high profit growth was due to MTF's success in obtaining new financing throughout 2015 amounting to IDR 17.14 trillion, an increase of 16% compared to 2014 which amounted to IDR 14.77 trillion.

 

"The increase in new financing pushed MTF's income throughout 2015 to increase 31%, to IDR 1.98 trillion compared to 2014's income of IDR 1.51 trillion," said Susatyo at a Media Gathering in Purwakarta, West Java, Saturday (27/2/2016) . 

 

Susatyo explained that the composition of financing in 2015 was still dominated by new cars. The composition of MTF new car financing grew 19% to IDR 16.43 trillion compared to 2014 which amounted to IDR 13.81 trillion. 

 

 “The value of new car financing in 2015 grew 19% compared to the 2014 period, while in terms of new car units it increased 5%, namely from 99,863 units to 105,329 new car units. "This is in line with the Company's business focus in the new car financing segment," he said. he said.

 

Positive financing growth caused financing receivables managed by MTF to increase 26.46% to IDR 26.75 trillion from the 2014 position of IDR 21.15 trillion.

 

Even though financing receivables are increasing, MTF continues to implement good and strict risk management. This can be seen from the level of problematic financing or Non Performing Loans (NPL) which is still manageable at the level of 1.20%.

 

Susatyo also revealed, market share MTF in new cars until the end of 2015 reached 15%, an increase compared to the 2014 period which was still at the level of 12% (based on Gaikindo data). This increase in MTF performance is an encouragement to continue positive growth considering that national car sales are experiencing weakness.

 

For your information, national car sales in 2015 reached 1,013,291 units, a decrease of 16% compared to 2014 which reached 1,208,028 units. National sales of new cars have experienced a downward trend in the last 2 years.

 

The growth of financing industry receivables in 2015 fell 1% from IDR 366 trillion in 2014 to IDR 363 trillion in 2015. 

 

“The decline in sales of cars and motorbikes was caused by, among other things, the weakening of the Rupiah exchange rate against the USD, commodity prices which are still low, plans to increase fuel prices which have limited people's purchasing power which has an impact on sales of commercial vehicles,” explained Susatyo.

 

Nevertheless, in the midst of a weakening economy which also affects the growth of the automotive sector, this has not dampened MTF's business expansion. It is proven that throughout 2015, MTF has added a number of new branches to increase market penetration. These include Sampit (Central Kalimantan), Sintang (West Kalimantan), Mamuju (Sulbar), Kotamobagu (Sulut), and Kupang (NTT).

 

In addition to the new branches, MTF is also adding more satellite offices (MTF offices that utilize the Bank Mandiri office network). 'We utilize the parent company (Bank Mandiri) office network. This is also a form of synergy, in addition to efficiency in investment costs for opening new branches. "There are around 20 satellite offices that we will open in 2015," said Susatyo. 

 

The new satellite offices that were operated throughout 2015 include: Tugu Mulyo (South Sumatra), Sumedang (West Java), Bone (South Sulawesi), Lamongan (East Java), Singaraja (Bali), Sumbawa (NTB), West Pasaman (West Sumatra) , Pasuruan (East Java), Marisa (Gorontalo), Solok (West Sumatra), Blitar (East Java), Salatiga (Central Java), Cilacap (Central Java), Indramayu (West Java), Bulukumba (South Sulawesi), Belitung (Babel), Lahat (South Sumatra) , Palopo (South Sulawesi), Banjarnegara (Central Java), and Kolaka (Sultengg)