Bank Mandiri

Pre-merger

Bank Mandiri is the result of the merger made by Indonesian government from four older government-owned banks that failed in 1998. Those four banks were Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia, and Bank Pembangunan Indonesia. During the amalgamation and reorganisation, the government reduced the number of branches by 194 and the number of personnel from 26,600 to 17,620.

Bank Bumi Daya and Bank Ekspor Impor Indonesia was previously merged in 1965 by the Indonesian government under Guided Democracy into Bank Negara Indonesia umbrella, 1968: The Indonesian government then reorganized the banks in 1968 as the New Order government took place.

Bank Bumi Daya started in 1959, when the government nationalized Nationale Handelsbank's operations in Indonesia as a part of boycott on Dutch companies amid both nation's dispute over Western New Guinea, and from them the government created Bank Umum Negara . In 1964, the government nationalized Chartered Bank's operations in Indonesia and merged them into Bank Umum Negara; the British overseas bank had first entered Indonesia in 1863 when it opened an agency in Batavia . In 1965 the government brought Bank Umum Negara into BNI, renaming it Bank Negara Indonesia Unit IV , but in 1968 BNI IV became an independent bank again with the name Bank Bumi Daya.

Bank Ekspor Impor Indonesia was created in 1960 as the Indonesian government nationalized the Indonesian operations of Nederlandsche Handel-Maatschappij. The bank then merged into BNI by the government in 1965 and became Bank Negara Indonesia Unit II . In 1968, the government split BNI II into two parts, with the BNI Unit II Export-Import Division becoming BankExim, which specialised in trade finance.

Bank Dagang Negara was established in 1960 from the nationalization of Escomptobank. Escomptobank NV, previously Nederlandsch Indische Escompto Maatschappij until 1949, was established in Batavia in 1857.

Bank Pembangunan Indonesia had its root from Bank Industri Negara , which was established in 1951. The bank was aimed to finance priority sectors, such as plantations, industry and mining. In 1960, the Indonesian government established Bapindo and merged BIN into it. Bapindo specialised in medium and long-term financing of manufacturing, tourism and transportation. In 1986, Bapindo expanded into general commercial banking.

Merger and later history

In 1998, the government merged BBD, BDN, BankExim and Bapindo to create Bank Mandiri to restructurize some state-owned banks to manage impacts of financial crisis at the time. Bank Mandiri was established on 2 October 1998, and the merged banks operated effectively as a single bank starting on 31 July 1999. The name Mandiri was coined by President B. J. Habibie during his presidency, with the hope that the bank could become a self-reliant bank and encourage the people, especially who need microfinancing, to also become self-reliant.In 2004, the bank opened a branch in Dili, East Timor and a representative office in Shanghai, China.