Darmawan, who was Bank Mandiri’s treasury, international banking and special asset management director prior to the appointment, aims to improve the publicly listed bank’s achievements this year amid the economic downturn caused by the COVID-19 pandemic.

“We just want to secure this year’s performance and improve it throughout the fourth quarter,” he said during an online press briefing held after the bank’s extraordinary shareholders meeting on Wednesday.

Bank Mandiri, Indonesia's second-largest bank by asset value, saw its net profit drop 23.9 percent annually to Rp 10.2 trillion (US$689.6 million) in the first half of the year. At the same time, its loan disbursement grew just 4.38 percent year-on-year (yoy) to Rp 871.6 trillion as of June, lower than over 14 percent growth recorded in the first quarter.

The COVID-19 pandemic has disrupted economic activity as consumers prefer to stay at home while various businesses have to operate below maximum capacity due to low demand and health protocol requirements to maintain physical distance.

Darmawan said Bank Mandiri would put expansion plans on hold amid the uncertainty surrounding the outbreak.

“We’re putting every corporate action on hold during this pandemic until the situation improves,” he stressed.

He, however, emphasized that the bank was committed to serving its clients, strengthening its business and providing support to micro, small and medium enterprises (MSMEs).

Stocks of Bank Mandiri, traded on the Indonesia Stock Exchange (IDX) under the code BMRI, dropped 0.9 percent as of 9:42 a.m. Jakarta time on Thursday as the main gauge, the Jakarta Composite Index (JCI) slipped 0.47 percent. BMRI has lost 28.66 percent of its value so far this year.

The bank’s shareholders also approved on Wednesday the appointment of Alexandra Askandar as its new vice president director, replacing Hery Gunardi. Hery stepped down from his position to focus on his role as project managing officer (PMO) for the merger of three state-owned banks’ sharia subsidiaries, Bank Syariah Mandiri (BSM), BNI Syariah (BNIS) and publicly listed BRI Syariah (BRIS).

“I will also be CEO of BSM prior to it merging with BNIS and BRIS,” Hery said. 

He fills the seat at BSM after it was left empty following former president director Toni EB Subari’s appointment as Bank Mandiri’s operational director.

The merger started on Oct. 12 as the three sharia banks and their parent companies signed a conditional merger agreement. The government aims to complete the merger in February next year, creating the country’s biggest sharia bank and one of the top-10 largest banks in Indonesia.

BRI Syariah will be the surviving entity as its status as a publicly listed company will simplify the merger.