<article><a style="color: #000080;" href="http://www.bankmandiri.co.id">PT Bank Mandiri Tbk</a> (BMRI), the largest bank by assets in Indonesia, is planning to tap the growing automotive credit market through a joint venture (JV) with a multifinance firm <a style="color: #000080;" href="http://pt-mandiri-utama-finance">PT Mandiri Utama Finance</a> (MUF).</article>

<a style="color: #000080;" href="http://www.bankmandiri.co.id">PT Bank Mandiri Tbk</a> (BMRI), the largest bank by assets in Indonesia, is planning to tap the growing automotive credit market through a joint venture (JV) with a multifinance firm <a style="color: #000080;" href="http://pt-mandiri-utama-finance">PT Mandiri Utama Finance</a> (MUF).
The bank plans to collaborate with automotive distribution company ASCO Automotive and Tunas Group for establishing the JV company. In the new JV, Bank Mandiri will hold 51 per cent, while US <a style="color: #000080;" href="http://www.asco.org">ASCO</a> will hold 37 per cent stake and <a style="color: #000080;" href="http://www.tunasgroup.com">Tunas Group</a> 12 per cent.
MUF expects the new JV firm to begin operations in September.
MUF was established in January 2015 as a leasing sub unit of Bank Mandiri, which has 10 subsidiaries, including Syariah lender <a style="color: #000080;" href="http://www.syariahmandiri.co.id">PT Bank Syariah Mandiri</a> (BSM), securities firm <a style="color: #000080;" href="http://www.mandirisekuritas.co.id">PT Mandiri Sekuritas</a> and life insurer firm <a style="color: #000080;" href="http://www.axa-mandiri.co.id">PT AXA Mandiri Financial </a>Services.
Hery Gunadi, Consumer Banking Director for the bank told DEALSTREETASIA that Bank Mandiri intends to capture market share of 30 per cent by 2018. Currently, the bank has around 10 per cent market share in the multi finance sector.
MUF plans to open between five and eight branches (Jakarta, Bandung and Surabaya) in the second half of this year.
Meanwhile, Mandiri Tunas Finance will provide financing for car, heavy equipment and motorcycles, while Mandiri Utama Finance will focus on new and used car and motorcycle financing, said Gunadi.
President Director and CEO Group of Bank Mandiri, Budi Gunadi Sadikin added that the potential market for automotive credit could reach Rp200 trillion ($14.93 billion) this year with estimated car sales around 1 million units and motorcycle 8 million units.
“There are a lot of multifinance firms that are encountering funding difficulties. This creates opportunities for us to enter (the financing) business. At present, income contribution from multifinance business, on average grows, by around 31 per cent per annum; and it is the third largest income contribution from subsidiaries after AXA Mandiri and Bank Syariah Mandiri,” he said.
ASCO Automotive and Tunas Group are among largest automotive distributors in the country. ASCO Automotive, previously called Adira Mobil, was jointly established by former CEO of<a href="http://www.astra.co.id"> PT Astra International Tbk </a>(ASII) Teddy P Rahmat and former CEO of financing firm <a style="color: #000080;" href="http://www.adira.co.id">PT Adira Finance Tbk</a> Stanley Setia Atmadja in 1989.
Tunas Group was established by businessman Anton Setiawan in early 1970s. In 1980, he established <a style="color: #000080;" href="http://www.tunasgroup.com">PT Tunas Ridean Tbk</a> (TURI) as holding company of Tunas Group and listed the firm in 1995. In 2009, Bank Mandiri acquired 51 per cent shares of PT Tunas Financindo Sarana, a subsidiary of Tunas Group and later changed the company’s name to PT Mandiri Tunas Finance (MTF).

The largest bank by assets in Indonesia PT Bank Mandiri Tbk (BMRI) seeks to seizure opportunities in growing automotive credit by setting up a joint venture (JV) multifinance firm called PT Mandiri Utama Finance (MUF). The bank collaborates with automotive distribution company ASCO Automotive and Tunas Group in establishing the JV company.

Indonesia’s Bank Mandiri partners ASCO, Tunas for multifinance biz JV

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Indonesia’s Bank Mandiri partners ASCO, Tunas for multifinance biz JV

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