Jakarta, August 5 2020 – The Covid-19 pandemic has resulted in a global economic crisis and has had an impact on the activities and mobility of the entire community, where MTF continues to support the process of national economic recovery in line with government programs to overcome this impact. PT Mandiri Tunas Finance (MTF) continues to carry out its role in helping the public to meet their motor vehicle financing needs selectively and carefully, and strives to maintain the company's position strong, especially from a financial perspective, which is reflected in the Mid-Annual Financial Report as of 30 June 2020 which released some time ago.

MTF Finance Director Armendra said, “We are trying to help the recovery of the national economy in terms of distributing motor vehicle financing during the crisis in a selective and careful manner. We believe there are still several sectors and customers who still need financing, where as of the end of June 2020, MTF succeeded in disbursing new financing amounting to IDR 8.84 trillion.”

“The impact of the Covid-19 pandemic was felt in the second quarter of 2020, where new financing fell significantly starting in April 2020. However, we are optimistic that in the third quarter the economy will begin to recover, with the Government's various efforts to handle Covid-19, such as the relaxation of the implementation of large-scale social restriction (PSBB) policies and the formation of the Committee for Handling Corona Virus Disease (Covid-19) and National Economic Recovery, began with a trend of increasing new lending MTF between 13-25% from May to July 2020 ," Armendra added.

Meanwhile, the total financing receivables distributed by MTF during the first semester of 2020 amounted to IDR 16.22 trillion, down 4.74% in line with the decrease in financing. Meanwhile, the total income obtained by MTF during the first semester of 2020 reached IDR 1.47 trillion, down 10.40% compared to the same period in 2019 of IDR 1.64 trillion, in line with the decrease in financing and the implementation of restructuring. This decrease in income was partly due to financing restructuring worth more than IDR 12 trillion in the form of postponing installments for 6 months. Nevertheless, in the first semester of 2020, MTF also recorded an operating profit of IDR 371.78 billion.

Armendra explained, ”The impact of the Covid-19 pandemic has been felt by the entire business world, including MTF. We have minimized this impact by making various efforts, including maximizing efficiency in the Company's costs. We also continue to ensure that liquidity is maintained well, where the balance between revenues and expenditures is still positive. So that we are still able to fulfill our financial obligations to creditors or related parties. So far, the Company's liquidity risk can be managed well because we have received strong financial support from Bank Mandiri through a joint financing scheme.”

In terms of capital, capital management is carried out by MTF in accordance with the provisions of POJK No. 35/POJK.05/2018 dated 27 December 2018 concerning the Implementation of Financing Company Business. One of them is maintaining the gearing ratio, namely the number of loans the Company has compared to its own capital and subordinated debt minus investments.

“MTF always maintains the maximum gearing ratio smaller than the provisions determined through analysis of financing alternatives, whether through bank loans, bond issuance or optimizing joint financing funds. "As of the end of June 2020, the MTF gearing ratio was 5.34 times, below the maximum regulatory limit of 10 times," he said. said Armendra.

Several financial ratios remain in a good position, including a capital ratio of 22.31%, an equity to paid-in capital ratio of 977.31%, and a ratio of financing receivables to total assets of 95.34%. Meanwhile, the non-performing financing (NPF) - gross MTF ratio as of the end of June 2020 was at 3.71%. The complete semi-annual financial report for Semester I 2020 MTF can be accessed on the website www.mtf.co.id.