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Jakarta Post

Bank Mandiri provides bridging loan facility for KAI suppliers, vendors

Inforial (The Jakarta Post)
Jakarta
Tue, June 15, 2021

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Bank Mandiri provides bridging loan facility for KAI suppliers, vendors (Courtesy of Bank Mandiri)

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s part of its campaign to support national economic recovery efforts, state-owned Bank Mandiri is collaborating with state-owned railway company PT Kereta Api Indonesia (KAI) to provide its suppliers and vendors with access to bridging loans (KRETA).

The bridging loan facility is meant to hasten payments of KAI suppliers and vendors to improve their liquidity management, as well as act as capital for their operations.

Bank Mandiri has also approved an extension for a short-term loan worth Rp 2 trillion along with a non-cash loan for Rp 2 trillion. Both loans are utilized to pay for the company’s operational expenses.

The financing collaboration was signed by KAI finance director Salusra Wijaya, Bank Mandiri SVP of SME Banking Alexander Dippo, and Bank Mandiri SVP of corporate banking Budi Purwanto on Monday, with Bank Mandiri corporate banking director Susana Indah K. Indriati acting as a witness.

According to Indah, the collaboration is a strategic cooperation between SOEs, especially in the land transportation sector, as well as a form of support for the national economic recovery efforts.

“It is hoped that the value chain financing initiative can help Kereta Api Indonesia suppliers and vendors to receive faster payments,” she said.

Indah also noted that Bank Mandiri aimed to provide loans to KAI vendors and suppliers worth Rp 200 billion, which is likely to increase alongside further collaboration between the two SOEs. Bank Mandiri is also committed to supporting KAI’s business development and strategic business plans.

“Taking into account Indonesia’s economic conditions in the midst of the COVID-19 pandemic, the cooperation [between KAI and Bank Mandiri] will provide a benefit for suppliers and vendors to increase their financial liquidity for the sake of maintaining the quality of goods and services for Kereta Api Indonesia,” she said, adding that the loan facility was consistent with Bank Mandiri’s support of medium enterprises, as the program provided capital for businesses affected by COVID-19.

KAI finance director Salusra WIjaya said the collaboration was an important cooperation between SOEs to support KAI suppliers and vendors’ finances during the pandemic. It is also an adaptive and collaborative aspect in the company’s financial management.

“We support our suppliers and vendors, including MSMEs, who have been loyal partners for KAI in providing goods and services to the company,” he said, adding that he hopes KAI partners with good liquidity can fully support KAI’s needs in restoring the national railway performance.

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