PT Bank Mandiri Tbk distributed financing of IDR 200 billion to a number of used car sales showrooms that are Mandiri Tunas Finance (MTF) partners in the Kemayoran Car Center area...

This financing facility will be channeled through Mandiri Tunas Finance and used to encourage an increase in the motor vehicle sales showroom business, especially in the area.

Bank Mandiri Senior Vice President Business Banking I Tatang Tabroni said that the used car market share is very good due to the influence of the increase in new car sales volume in line with increasingly improving national economic growth conditions.

Apart from that, he continued, with plans to implement progressive taxes and high Sales Tax on Luxury Goods (PPnBM) for new cars, it could encourage people to switch to buying used cars.

"This facility is one of our synergies with Mandiri Tunas Finance for business expansion. As an initial stage we will provide financing facilities for used car sales showrooms in the Kemayoran car center," he said in a written statement, this afternoon.< /span>

Mandiri Tunas Finance is a subsidiary of Bank Mandiri which operates in the consumer financing and automotive rental facilities business sector.

With this strategic alliance, said Tatang, it is hoped that Mandiri Tunas Finance will be able to increase its ability to compete and improve business performance. To date, Tunas Finance has a network of 32 branch offices in 20 cities in Indonesia.

Credit distribution through MTF partner used car showrooms in 2009 was 842 showrooms with 237 of them located in Jakarta. Meanwhile, in the Kemayoran car center area itself, there are around 165 showrooms, 115 of which have become MTF partners.

Until the end of May 2010, the total sales value of used cars that received financing from Mandiri Tunas Finance reached IDR 500 billion.

 

(Bisnis Indonesia - Sunday, 04 July 2010)