Bank Mandiri Explains Loan facility Secured by JARR and PGUN Shares

JAKARTA, Jakartaweekly.com—Bank Mandiri has confirmed that it provided a loan facility to PT Johnlin Baratama, secured by fixed and non-fixed assets, including shares in JARR and PGUN. PT Johnlin Agro Raya Tbk (JARR) and PT Pradiksi Gunatama Tbk (PGUN) are affiliated of PT Johnlin Baratama. 

Bank Mandiri Senior Vice President Adhika Vista explained in a disclosure submitted to the Indonesia Stock Exchange (IDX) that the pledging of these assets complied with applicable regulations, including those governing the ownership status of assets used as loan collateral.

“The total collateral pledged exceeds the credit facility provided and complies with applicable regulations,” Adhika Vista said on Monday, October 26, 2026. 

Bank Mandiri uses the lowest intraday share prices of JARR and PGUN over the past month in its calculations. As a result, the total collateral coverage ratio has remained at 150%. He He also explained that Bank Mandiri had considered the risk of concentrated ownership in PGUN shares by conducting sensitivity tests on share price volatility when calculating credit adequacy.

The valuation of shares used as additional collateral was also considered compliant with Article 4 of OJK Regulation No. 40/POJK.03/2017 and the bank’s internal policies. Under these provisions, shares serve as a secondary source of repayment, or a “second way out,” and are valued conservatively.

Approximately 7.99 billion JARR shares pledged as collateral represent 100% of the shareholding owned by PT Eshan Agro Santosa. For PGUN, the collateral comprises approximately 2.20 billion shares owned by PT Araya Agro Lestari, around 900 million shares owned by PT Baramega Citra Mulia Persada, and approximately 2.19 billion shares owned by Citra Agro Raya.

Rp40 Trillion Credit Facility Limit from Bank Mandiri

Bank Mandiri has extended a credit facility with a limit of Rp40 trillion to PT Johnlin Baratama. Of this amount, Rp17 trillion has been utilized.

Bank Mandiri explained that the credit facility provided to PT Johnlin Baratama was not intended to finance stock trading activities. Instead, the funds were intended to support business development, including capital expenditure (capex) and financing needs across the Johnlin Group’s coal mining businesses and supporting industries.

The bank said it granted the facility after considering the company’s business prospects, financial performance, and repayment capacity, while also assessing the borrower’s ability to finance its own and the group’s needs.

“In assessing the borrower’s repayment capacity, Bank Mandiri only considers cash flow from the Johnlin Group’s existing coal businesses,” Adhika said.

The primary sources of repayment are the company’s business operations and several subsidiaries capable of paying dividends, all derived from the Johnlin Group’s coal businesses. Based on these funding sources, Bank Mandiri considers the borrower sufficiently capable of meeting all its obligations.

Bank Mandiri also confirmed that it had established a sinking fund in accordance with the mechanisms and provisions stipulated in the financing documents to ensure the payment of interest and principal installments.

Bank Mandiri’s Gross NPL Ratio at 0.98% in September 2026

Bank Mandiri’s bank-only gross non-performing loan (NPL) ratio improved to 0.98% in September 2026, compared with 1.03% in the same period a year earlier.

As of September 2026, Bank Mandiri’s bank-only NPL coverage ratio stood at 243%, while its cost of credit was 0.55%. Meanwhile, the bank-only special mention loan (SML) ratio declined to 2.88% from 3.35% in the same period a year earlier.

In the corporate segment, the NPL ratio stood at 0.30%, while the NPL ratio for loans to related ecosystem businesses was 0.90%. Bank Mandiri’s corporate lending reached Rp700 trillion as of September 2026, representing 22% year-on-year growth. Loans to related ecosystem businesses, covering the small and medium-sized enterprise (SME), micro, and consumer segments, reached Rp174 trillion, up 9% year-on-year.

Bank Mandiri Finance and Strategy Director Novita Widya Anggraini said loan growth and increased customer transactions had also strengthened the bank’s revenue. As of September 2026, interest income grew 7.08% year-on-year to Rp97.3 trillion, while non-interest income increased 13.8% to Rp29.4 trillion.

Net interest income also rose 6.2% to Rp61.2 trillion, bringing total bank-only income to Rp90.6 trillion, an increase of 8.54%. This revenue growth was accompanied by a 9.03% decline in operating expenses to Rp32.7 trillion.

Improved productivity was also reflected in the bank-only cost-to-income ratio (CIR), which fell to 36.1% from 43% a year earlier. Return on equity (ROE) stood at 23.6%, while return on assets (ROA) reached 2.99%. Bank Mandiri’s bank-only capital adequacy ratio (CAR) was 18.4% as of September 2026.

“This position gives Bank Mandiri room to continue expanding its business while maintaining prudent banking principles,” Novita said in a press release on Monday, October 26, 2026.