The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Halfway there

The forced merger of three failed institutions to create Bank Mandiri, now Indonesia's largest bank, also spawned a new domestic securities house. Mandiri Sekuritas is half done in reaching its goals, reckons its management. Chris Leahy reports.

MERGERS OF COMMERCIAL banks are often fraught with difficulties and disapppointments, but piecing together an effective and profitable investment bank from the remnants of three securities firms is nigh-on impossible. PT Mandiri Sekuritas started life with just such an unappealing provenance: a mongrel operating in a business where pedigree is everything. The results, by Mandiri management's own admission, were middling to say the least. "When we came in the merger had already taken place," says Jeffrie Korompis, managing director of Mandiri and one of the key personnel recruited in April 2003 from local investment banking powerhouses Danareksa and Bahana to turn the firm around. "But the capital was only Rp38 billion ($4 million) and we only had 100 staff. There was no one in investment banking, no research coverage and capital markets was barely active."

By April 2003, Bank Mandiri, the firm's 96% shareholder, had had enough. "[Bank] Mandiri as a shareholder wanted to become a universal bank, to strengthen its services, especially in investment banking," says Korompis.

To demonstrate how serious it is, Bank Mandiri has thrown money at its subsidiary; too much in fact, according to Korompis.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree