Indonesian Banking Outlook by Felia Salim

The Innovation – Driven Economy as The Fundamental of Indonesian Economic Growth :

From The Banking Perspective – Creating an Innovation Culture

International Conference on Indonesia Development (ICID)September 14, 2013

Institute of Social Studies (ISS), Erasmus University The Hague, The Netherlands

Felia SalimVice CEOPT. Bank NegaraIndonesia (Persero) Tbk

Agenda

Indonesia Quick Snapshot

Indonesia Economic Challenges – Structural Problems

How to Support Innovation – Driven Economy

Solution & Concept for Innovation – Driven Economy

Closing Remarks

Agenda


Indonesia Economic Challenges – structural Problems



Closing Remarks


I. Strategically located with significant economic size

II. Large Population and Dominated by The Middle Class

III. Economy rely on Agribusiness, and Natural Resources, but fishery?

IV. One of the largest democracy with stable political conditionIndonesia

Indonesia Quick Snapshot: Sizable Economy

Source : Bank Indonesia, Badan Pusat Statistik*) Forecast for September 2013

Parameter 2009 2010 2011 2012 March 2013

June 2013

July 2013

August 2013

2013*)

Economic Growth (%)

4.56.1 6.5 6.23 6.02 5.81 na na 5.50

Inflation (%) y-o-y

2.786.96 3.79 4.30 5.90 6.90 8.61 8.79 10.0

Exchange Rate (Rp/USD)

9,400 8,991 9,068 9,685 10,323 9,929 10,278 10,924 12,000

Export (USD miliar)

116.5 157.73

218.02

190.16 15.00 14.74 15.11 Na 180.65

Import (USD miliar)

96.9 135.61

190.14

191.71 14.70 15.59 17.42 Na 193.63

Reserve (Rp T) 66.11 96.21110.1

23112.8 104.8 98.1 92.67 Na 85

BI Rate (%) 6.50 6.5 6.0 5.75 5.75 6.0 6.5 7.0 8.0

Increasing growth trend since 2009

Indonesia Quick Snapshot: Indonesia Banking Industry

Remain robust in the midst of the global economy pressure

Sumber : Bank Indonesia, data reproduce*) Incl. Operasiotal Risk

MAR JUN SEP DES MAR JUN y-o-y y-t-d

Asset (Rp T) 2.534,1 3.008,9 3.652,8 3.708,7 3.891,1 4.009,4 4262,59 4313,83 4461,78 14,67% 4,67%

Credit (Rp T) 1.437,9 1.765,8 2.200,0 2.266,2 2.452,9 2.555,8 2.707,9 2.768,4 2.959,1 20,64% 9,28%

Funding (Rp T) 1.973,0 2.338,8 2.784,9 2.826,0 2.955,8 3.050,0 3.225,2 3.243,1 3.374,3 14,16% 4,62%

Profit/Loss (Rp T) 45,2 57,3 75,0 21,6 45,7 68,1 92,8 25,1 51,1 11,78% -44,93%

Capital* (Rp T) 268,6 323,2 404,6 453,8 466,1 481,0 496,6 565,4 567,4 21,72% 14,25%

Undisbursed Loan (Rp T) 323,72 554,71 683,2 707,6 747,8 778,2 817,3 848,3 862,1 15,29% 5,49%

CAR** (%) 17,4 17,2 16,05 18,28 17,49 17,41 17,43 19,08 18,08 3,37% 3,73%

ROA (%) 2,60 2,86 3,03 3,05 3,16 3,09 3,11 3,03 3,02 -4,43% -2,89%

BOPO (%) 86,63 86,14 85,42 76,68 74,68 74,26 74,10 75,11 74,66 -0,03% 0,76%

LDR (%) 72,88 75,21 78,77 78,89 82,57 83,33 83,58 84,93 86,80 5,12% 3,85%

NPL (%) 3,31 2,56 2,17 2,29 2,18 2,07 1,87 1,97 1,88 -13,76% 0,53%

NIM (%) 5,56 5,73 5,91 5,15 5,38 5,45 5,49 5,41 5,43 0,93% -1,09%

2013 Growth Juni'13Indicator 2009 2010 2011

2012

Indonesia Quick Snapshot: Huge Population Dominated by Middle Class

Indonesia has large population more than 260 Million (one of the largest in the world). Indonesia’s middle class has increased rapidly. In 1999, the number of Indonesia’s middle class was

around 25 million (25% of population), while in 2010 was estimated around 146 million (57% of population).

The additional 90 million people with enough income to purchase goods beyond basic needs (during 2020-2030), is the biggest in the world - apart from India & China.

*According to ADB, Middle Class is classified as population with daily per capita expenditure between $2-$20.

Note: - Population projected to grow by 2.5 million population per year

Source: McKinsey Global Institute

Source : Masterplan for Acceleration and Expansion of Economic Development of Indonesia, MP3EI

8 programs :• Agriculture,• Mining,• Energy,• Industrial,• Marine,• Tourism,• Telecommunication and• Development strategic area

Indonesia Quick Snapshot: Dependency on Basic Economy

Mainly, Indonesia economy still depend on basic economy of Agribusiness and Natural Resources Focus the development was classified in 8 Programs, consist of 22 economic activities. This strategy is adopt by BNI to develop its business strategy in the region

Indonesia Quick Snapshot: One of Largest Democratic Country With Stable Political Condition

Government decentralisation become major issues many times, but figure shows that majority of the GDP fastest growth is from outside Java

Agenda


Indonesia Economic Challenges – Structural Problems



Closing Remarks

Indonesia Economic Challenges: Structural Problems

Aspects

ChallengesFocus on Agriculture and Natural Resources Exploiting Industry

Low infrastructure interconnectivity for transportation, Information Communication & Technology

Access to quality education and health facilities affect the Human Resources Quality. Labour Regulation issue

People tend to move to urban area that raise new issues such as changing in employment structure, land use conflicts etc.

Infrastructure

Industry

Human Resources Quality

Urbanization

Dependency on natural resources will not be sustainable in the long run, innovation is needed to create a value added economy

Creative and Innovative

SolutionIs needed to

Create Value Added

Economy

Source: Master plan for Acceleration and Expansion of Indonesia Economic Development

Problems in Developing Business in Indonesia

Complexity / Inefficiency of Bureaucracy is considered to be the main factor that affect business development in Indonesia.

No 2008 2009 2010 2011

1 Government Bureaucracy

Government Bureaucracy

Government Bureaucracy

Corruption

2 Infrastructure Infrastructure Corruption Government Bureaucracy

3 Corruption Political Unstability

Infrastructure

Infrastructure

4 Labor Law Corruption Access to Finance

Political Unstability

5 Inflation Access to Finance

Inflation Access to Finance

Source: WEF (2011), Reproduce

Inefficient Bureaucracy: Impact to Several Sectors (1)

Issues Impact Unclear spatial planning

policy. Regulation overlap

between Agricultural Minister and Forestry Minister

industry inefficiency Poor output. Compared Australia,

farming land to total population of Indonesia is lower 29,59% v.s. 53,24%

Regulation overlap between Agricultural Minister and Trade Minister (e.g. Beef and Onion import)

Unclear regarding supply chain. Indonesia beef consumption is 1,2kg/man/year, lower than Malaysia 6-8 kg/man/year and Germany 60 Kg

Dependency on import is still high, even fruits many times come from import market

Indonesia is still facing food security issue

In the end, food security issues will affect Indonesian Human Resources Quality

Indonesia is one of the world largest agrarian country, but some regulation issues make agribusiness industry development less optimum

Agribusiness


Issue Impact Too many legalization for

Oil & Gas Mining Slow down in investment

70% of Indonesia energy depend on coal that is non renewable

Manufacturing sector is not growing

Lack of Innovation (No R&D)

High dependency on import goods

Low energy supply affect industry growth

Energy contribute to the deficit of Indonesia balance of payment

Indonesia is with Natural Resources incl. EnergyEnerg

y

With the abundant of natural resources, ideally indonesia has a strong manufacturing facilities / down stream industries

Manufacture

Higher import dependency and decreasing commodity price in the middle of depreciaiting exchange rate, contribute to the deficit of balance of payment and trade

Issue Impact


Issue ImpactLow infrastructure support high interest environment financial deepening

issues

Banking intermediary function is expected to support regional economic growth, especially with high liquidity in banking

Banking

Bank Financing to a non value added Sectors

Most Bank Financing allocated to trading & Services that only residual.

Indonesia Economic Challenges : Poor Infrastructure

It is cheaper to ship orange from China - Jakarta compare to Pontianak, West Kalimantan - Jakarta Cement price in Papua is more expensive 20

times to Jakarta due to transportation cost

Source: RJ Lino (2011) presentation, “Port Unity Indonesia – Pelindo II”

Container shipping cost:Padang, West Sumatera – Jakarta = US$ 600Jakarta – Singapore = US$185

Low interconnetivity has caused a high cost economy

Indonesia Economic Challenges : Human Resources Quality

32.3

64.3

3.4

Their Occupation (%)

Government or public institutionPrivate business or industry

Majority rural middle class are local entrepreneurs; while urban middle class are employee (salaried jobs) in services industry

Sources: BPS dalamMarketeers, 201228

33

7

32

Level Education (%)

Less than secondary

completed secondary

Some university education without degreeUniversity level education, with degree

One third of Middle Class population hold a university degree. However, Indonesia Human Development Index rank at 124 out of 187 countries (medium level)

Indonesia Economic Challenges: Indonesia Budget on Research

China Malaysia Thailand Indonesia

1.47%

0.60%

0.26%

0.08%

Indonesia spend less budget on R&D compare to other Asian Countries

Source: World Bank article 2013

75,0

20,1

4,7

0,3

0,0

57,0

30,9

10,8

1,1

0,2

<$2 (Poor)

$2-$4 (Low er Middle)

$4-$10 (Mid Middle)

$10-$20 (upper Middle)

>$20 (aff luent)

% T

hd

Po

pu

las

i

1999 2009

Indonesia Economic Challenges: Dominant Marginal Middle Class

Source: The Rise of Asia’sMiddle Class, ADB

Note: Based on ADB definition, middle class are those who spend $2-$20 per day with breakdown:• $2-$4 expenditure = Lower Middle• $4-10 expenditure = Mid Middle• $10-$20 expenditure = Upper Middle

Indonesia should be aware with lower middle class segement that is risky to fall down below poverty line

Indonesia’s Middle Class Structure

% T

o P

opu

latio

n

Indonesia Economic Challenges: “Middle Class Trap”

Although the demographic bonus (large productive age relative to population) offers many opportunities for Indonesia’s development, but it could backfire if not carefully planned.

This situation has happened to many countries like South Africa, Brazil, Philippines and Russia (The World Bank).

Failure to create jobs

The lack of quality in human resources to compete in the

global market

High economic burden (i.e.high poverty rate); stuck

from emerging/middle income to a higher income country

group

Indonesia Obtain demographic bonus in

2020-2030, but if:

Mitigation:

Increase jobs by promoting investment. Need: infrastructure development, supportive regulatory system and environment.

Government policy should focus to support the labor intensive sector such as Agriculture and Manufacture (including Creative Industry & SMEs)

Build workers skills, including technology awareness through education.

Develop strong financial service industry to support economic activities.

Resource management

Gender Equity (access to finance and markets).

Indonesia Banking Industry: A relatively low banking penetration

Indonesia is still under-Banked, on the other hand infrastructure availability has been a major obstable for banks to expand its network

53%

21% 9%2%

10%

5%

Commercial Banking Outlet DistributionCommercial Banking Saving Account Penetration

Source: BI

Note: Number of population aged 15yr old and above with access to formal financial institutionsSource: The Global Financial Inclusion Index 2012, World Bank

99% 98% 97% 97% 96% 96% 93% 88% 71% 64% 58% 56% 54% 48% 46% 35% 33% 27% 20%

Australia

Jerm

an

Peran

cis

Inggris

Jep

ang

Kan

ada

Korsel

AS

Italia

Chin

a

Turki

Brasil

Afrika

Selatan

Rusia

Arab

Saud

i

Ind

ia

Arge

nti

na

Me

ksiko

Ind

on

esia

Access To Financial Institutions Among G20 Countries

Note: Assuming people, on average, own 3 saving accountsSource: LPS, BI

97 102 114

169 172 173

19.2% 19.7%22.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

50

100

150

200

250

2010 2011 Jun-12

# of Saving Account (mil) Population> 15yr (mil)Saving Penetration Ratio

Indonesia Rank in a Global View

As part of the economic challenges issues, Indonesia has an unfavorable rank as issued by several global institution

Indonesia Human Development

Index rank at 124 out of 187 countries

(medium level)

Source : http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CDYQFjAB&url=http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf&ei=9ckeUruGK4OJrQfCyYGIDg&usg=AFQjCNGW-G_28DE_DjJaGlQpkZQEevgPGg


http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf



Agenda





Closing Remarks

With all the challenges and opportunities explained above, it is our responsibility to answer this question:

How to create a value-added productive sector through innovation

Developing Innovation-Driven Economy Framework

World Class Output

Highly-Skilled Jobs

High Industry Growth

Innovation Driven Economy

Industrial Policy Making

Government Facilitation

Value Creation

Pursuit of Innovation

Banking Sectors – Provide capital needed to support

Innovation-Driven Economy, especially the riil

sectors

Source: Innovation Journal – The Public Sector Innovation Journal Vol 10 (3), article 34

With all the resources and structural problems, all related party (Government & Private Sectors include Banking, must work together to create an Innovation-Driven Economy Society

Agenda





Closing Remarks

One of Government Concept to Toward Innocation Driven Economy

Source : MP3EI

With this concept, Government is focus to solve structural problems in the economy

Government Innovation Initiatives

Source : MP3EI

Some Innovation to Minimise the Gap: Banking Innovation

SocietyBank Access to Finance

Innovation Driven

“Stringent regulations, intelligent customer, intense competition from non-banking services, and tough economic environment requires banking industry become more innovative than ever before! "

With high unbank population, Banking have to create innovation to increase access to Finance. Bank need to figure out the KYC for the unbanked, in the meantime Government finalize single ID (e KTP)

Banking society has to be able to leverage this huge market potential in the midst of infrastructure limitation.

Mobile Financial Services:the next generation business model for banks in Asia

Financial Inclusion / Banking the unbanked High Street Banking

BNI Innovation: “Moving Up the Value Chain Ladder“

MICRO LENDING

BNI WIRAUSAHA

(BWU)

SPECIAL LENDING

PROGRAM(KUR)

FAC

ILIT

ATIO

N

TRANSITION BANKABLE

STA

GE

SEG

MEN

T MICRO SMALL MIDDLE / Corporate

COMMERCIAL &

CORPORATE

MORE COMPLEXDEVELOPMENT PERIOD

Interest subsidy Requirements

relaxation Educating the

beneficiaries

FEATU

RE

BANKABLE

CCR

NON BANKABLE but feasible

PRODUCTIVE POOR

“Grant” Interest subsidy Community Support Support the Education Support the health

quality improvement.

Government INTERVENTION and

CSR

NON BANKABLE

MARGINAL/ UNPRODUCTIVE

POOR

Social safety net

Untapped Market Commercially Viable

Untapped market: focus on basic needs fullfillment, health, education for children and start up company.

“Moving Up the Value Chain Ladder“ by understanding differentiated segment and individual customer needs through IT based insight & analytics

Push The Financial Inclusion

Hutan Kota: Innovation for Marginal Poor

Kampung BNI: Innovation for Productive poor

BNI Innovation: Creating Internal Innovation Culture (1)

BNI adopt U-Theory which was invented by Prof. Otto Scharmer from MIT to develop an innovative Leaders – Leading From The Future As It Emerges


“U” Learning Journey

Foundation

Of “U“

Deep Dive

After Care

Prototyping

Exercises Exercises

•Check In Process

•Shadowing

•Stakeholders Interview

•World Cafe

•Sensing Journey

•Check In Process

•Case Clinics

•Connecting the DOT

•Word Cafe

•Prototyping

Leading From The Future As It

Emerges


Co – Creating Leading From The Future As It Emerges

BNI Innovation: Creating Internal Innovation Culture - Prototyping Selection Criteria

Not all the ideas are ready to prototype, belows are the criteria for selecting prototyping Ideas

LDP 1000 Protoype Presentation – Presentation of Ideas

Presencing the futures through collective ideas

BNI Innovation: Other Inspiring Innovations by BNI

Platform based supply chain that cater whole segment in the “Value Chain Ladder” from Corporate to small chain agent.

IT Based for “Modul Penerimaan Negara” in foreign exchange.

Mobile Remittance for Indonesian women labour in overseas.

There is also BINOVA, a place where all employee be able to put all their idea to the table and yet rewarded.

BNI support creativepreneurship event, embrace entrepreneurship spirit to young people.

Leveraging social media activity through BNI Social Media

BNI Innovation: Innovations in Progress

CRM System in Consumer & Retail project to build: insight and analytics; to enhance understanding of customer profile (needs, risks,

channel preferences, and supported by how to monitor behaviour through single customer view, how to sell and do campaign more effectively);

eventually Customer can choose or “Innovate” their own needs

Otto’s Concept of Co-Creation – institution of 4.0

Innovation: Other inspiring Innovation

Innovation is not a something new. Many countries and young people alredy started doing innovation.

Directly of indirectly, their innovation is contributing to minimize Indonesia structural challenge

Young Entrepreneur – to Create a Value Added Industry Beyond Basic Economy

Activity

Yoris Sebastian Founder of OMG Creative Consultant.Provide creative advice and suggestion for a company who need a breakthrough

Leonard Tanoesoebrata

Director Acupunto Indonesia.Provide innovation in furniture industry with a specific designFounder of Goods Department Store.Capture the opportunity of rising middle class by open a dept store with local products.

Arief Widhiyasa CEO Agate Studio.Developer of local game from Bandung.

Adi Panuntun CEO Sembilan Matahari.Creative film maker. One of his movie title “Cin(T)a” has been distributed in several countries.

Irvan Helmi Founder of Anomali CafeYoung entrepreneur who found a Coffee shop that able to compete with global brand in Indonesia using Indonesia original coffee.

Indonesia has some real success story in Innovation-Driven Economy initiated by young entrepreneurs such as:

State Owned Enterprise Innovation – To Create a value added economy

Category Company

Best Product Innovation of Financial Services PT. Bank Negara Indonesia

Best Technology Innovation of Agriculture PT. Perkembunan Nusantara V

Best Product Innovation on Energy and Mining PT. Semen Indonesia

Best Technology Innovation on Energy and Mining

PT. Pertamina

Best Product Innovation on Infrastructure PT. TELKOM

Best Product Innovation on Logistic & Transportation Sector

PT. Pos Indonesia

Innovation on Green Technology PT. Pembangunan Perumahan

Best Technology Innovation on Logistic & Transportation Sector

PT. KAI

State Owned Enterprise Minister is trying to create an innovative culture in the State Owned company

Source: Itech Magazine September Edition

Gerakan Indonesia Mengajar By Anis Baswedan

An inspirating movement to increase education level across the nation. Young people with

passion leave the city into isolated area to

share modern knowledge to villagers

Sharing the passion and dream hope will spark the younger generation to achieve a higher dream to increase Indonesia human resources quality

43

Central Service District

Sub- ServiceDistrict




Residential Residential

ResidentialResidential





Residential


Residential

Is a new concept of Spatial Planning:

Collide the city with the sub-urb or village area (avoiding urbanization).

A solution of urban problem with the re-establishment of green ecology (urban area is surrounded by farming area, river, etc).

Solve the sub-urban/villagers social problem by shorten the producers (village) to the market (urban)

Spatial Planning Concept to Enhance Regional Economic Growth In ChinaConcept for Re-urbanization + De-urbanization (by Prof. Li Xiaodong)

Agenda





Closing Remarks

Key take aways

To all the Indonesian people, How do we adress all those structural problems ?

An example that can be elaborated is the Idea of “Oil or Coal to Cash to overcome Nature Resources Curse”

Can you do Research and policy recomendation for improvement to create a better future of our country and planet?

Thank you

Felia SalimVice CEOPT. Bank NegaraIndonesia (Persero) Tbk

BNI Innovation: Hutan Kota

47

Hutan Kota BNI - Banda Aceh

Some locations of BNI’s Hutan Kota: Aceh: Hutan Kota Gampoeng Tibang (6.75 Ha)

and Taman Kota Peulunggahan (1.5 Ha)

Bali: Hutan & Taman Kampus UNUD (35 Ha)

Jateng: Manahan Solo (17 Ha), Bukit Imogiri (15 Ha), dan Wonosari Gn. Kidul (1.7 Ha, to be)

DKI Jakarta: Taman Pakubuwono (3000m2, to be)

BEFORE

AFTER

It is widely known that City Forrest has abundant of benefit….

Re-establishing green spaces and Reducing the CO2 produced by households, industryes, or automotives)

Filtering the ash, dust (through its trees).

Some plants is naturally neutralize air acidity

Enhance environement eathetics.

Eco-tourism

Bio-diversity and species

Confidential

Gapura BNI

Sentra benang untuk tenun

industry hulu :KapasBenangWarna

Craft’s CenterTenun songket

Showroom tenunsongket

Kelompok PengrajinTenun Songket

Program Illustration:KAMPOENG BNI

Promosi terpadu :- BNI- Pemerintah

Daerah

Cluster :- Bapak angkat- Ketua

kelompok- Koperasi

Framework:Guiding Principles Applied on CSR/CCR Partnership Program

DEVELOPMENT STAGE FIRST

INVEST IN EDUCATION

SIMPLE REQUIREMENT

TRUST & PARTNERSHIP: with trusted community organizer

LOCAL DEMAND

LOCAL STRENGTH & LOCAL WISDOM

RESTORING THE GOOD OLD VALUES/DESIGN: if relevant

REPLICABLE MODEL

RIGHTS PERSPECTIVE: gender perspective

WIDE IMPACTS: on social, ecological and economic livelihood

MULTI STAKEHOLDER

TEMPORARY FACILITATION: to create independency

VALUE ETHICS AND TRANSPARNCY

BNI Innovation: Global Action of Co Creation

51

Kondisi Perbankan Indonesia (2)

Secara umum, penyaluran kredit mengalami pertumbuhan 20.6% (year on year) hingga kuartal kedua 2013.

Sektor perdagangan, industry, serta jasa usaha menyerap porsi terbesar dibanding sektor lainnya, masing-masing sebesar 21.9%, 16.4%, dan 10.6%. Ketiga sektor tersebut juga mengalami pertumbuhan yang tinggi hingga kuartal kedua.

Namun, ke depannya dengan adanya pelemahan nilai tukar Rupiah, diperkirakan akan ada penurunan kinerja pada sektor perdagangan, terutama terkait dengan ekspor dan impor, serta sektor industry manufaktur terutama yang menggunakan bahan baku dan bahan penolong impor.

Sumber : Bank Indonesia, diolah

Pertanian, 5.4% Tambang,3.7%

Industri, 16.4%

Perdagangan, 21.9%

Listrik, Gas, dan Air,

2.4%Konstruksi,

3.7%

Trans. & Kom., 4.8%

Jasa Usaha,10.6%

Jasa sosial,2.3%

Lainnya, 29.0%

Share Kredit Perbankanper Juni 2013

17.1% 17.3%

24.9%

32.8%

21.1% 20.0%

26.5%

23.0%

14.8%

10.6%

Growth Kredit Perbankanper Juni 2013 (yoy)

91.00 114.73 136.89 147.94 160.33 61.37 87.78 92.96 104.21 109.03

275.40 344.60 388.41 445.81 485.15

339.64 405.44 487.34 544.21 647.30

34.16 45.84 57.50 59.07 69.65 63.50 75.40 90.78 95.92 108.91 75.14 95.21

111.40 122.23 140.89 179.40 224.15

253.92 275.53 312.32 44.23 57.98

59.93 62.29 68.80

602.05 748.98 774.63 850.65 856.74

Des '10 Des '11 Jun '12 Des '12 Juni '13

Perkembangan Kredit PerbankanMenurut Sektor Ekonomi (Rp Triliun)

Pertanian Tambang Industri Perdagangan Listrik, Gas, Air

Konstruksi Trans. & Kom. Jasa usaha Jasa sosial Lainnya

52


Hingga semester pertama tahun ini, penyaluran kredit perbankan, secara proporsional (pangsa) masih didominasi oleh kredit modal kerja (KMK) yakni 47.6%.

Namun, jika dilihat dari sisi pertumbuhan, kredit investasi (KI) mengalami pertumbuhan tertinggi (33.4%). Pertumbuhan yang tinggi tersebut terkait dengan adanya proyek-proyek infrastruktur, terutama terkait konstruksi yang dicanangkan oleh pemerintah Indonesia hingga akhir 2014 yang akan datang.


Kredit Modal Kerja,47.6%

Kredit Investasi,

23.7%

Kredit Konsumsi,

28.8%

Share Kredit Perbankanberdasarkan Jenis

per Juni 2013

880.21 1,068.68 1,205.68 1,316.69 1,407.12

348.52 464.26

525.39 591.43

700.62 537.12

667.16 721.78

799.75 851.38

Des '10 Des'11 Jun '12 Des '12 Jun '13

Perkembangan Kredit PerbankanMenurut Jenis (Rp Triliun)

Modal Kerja Investasi Konsumsi

16.7%

33.4%

18.0%

Modal Kerja Investasi Konsumsi

Growth Kredit Perbankanberdasarkan Jenis

per Juni 2013 (yoy)

53


Dalam empat tahun terakhir ini (2010-2013), rasio NPL pada semua sektor terus menurun dan masih di bawah standar BI (5%). Hal tersebut menandakan kondisi penyaluran kredit perbankan masih sangat prudent.

Namun, pelemahan nilai tukar Rupiah yang saat ini terjadi diperkirakan akan memukul beberapa sektor, yakni perdagangan, industry manufaktur, dan pertambangan. Hingga akhir tahun 2013, rasio NPL diperkirakan akan sedikit di atas 2%.


0.00

1.00

2.00

3.00

4.00

5.00

6.00


Non Performing Loan per Sektor (%)

Pertanian Tambang Industri Perdagangan Listrik, Gas, Air Konstruksi Trans. & Kom. Jasa usaha Jasa sosial Lainnya

54


Menurut kelompok DPK, deposito berjangka masih memilik porsi paling besar. Namun, dilihat dari pertumbuhan year on year hingga kuartal kedua 2013, semua jenis DPK berada pada tingkat yang hampir sama (rata-rata sekitar 14%).

Kondisi tersebut menandakan ketatnya persaingan dalam perebutan pangsa pasar DPK di industry perbankan Indonesia. Artinya, sejauh ini kondisi perbankan di Indonesia dinilai masih sangat kompetitif.

Dengan naiknya suku bunga acuan (BI rate), memaksa beberapa bank menyesuaikan suku bunga dananya untuk menjaga likuiditas.


Deposito,43.9%

Tabungan,31.6%

Giro,24.5%

Share DPK per Juni 2013

1,069.81 1,233.97 1,298.37 1,381.30 1,481.02

733.16898.30 939.20

1,076.83 1,066.01535.86

652.65718.26

767.07827.25


Dana Pihak KetigaMenurut Jenis (Rp Triliun)

Deposito Tabungan Giro

14.1% (yoy)13.50% (yoy)

15.2% (yoy)

7.2% (ytd)

-1.0% (ytd)

7.8% (ytd)

Deposito Tabungan Giro

Growth DPK per Juni 2013

YearTotal Bank

Loan*Indonesia

GDPLoan to

GDP Ratio

2007 1,001.9 3,949.3 25.37%2008 1,307.6 4,954.0 26.39%2009 1,437.8 5,606.2 25.65%2010 1,765.8 6,436.3 27.44%2011 2,199.9 7,427.1 29.62%

Feb 2012 2,202.9 7,888.6 27.93%

Bank Foreign Owner Share CountryBank Danamon Temasek 67.30% SingaporeBank International Indonesia Maybank 97.50% MalaysiaCIMB Niaga CIMB Group 97.90% MalaysiaBank Ekonomi HSBC Holding Plc 98.94% EnglandOCBC Nisp OCBC Bank 85.06% SingaporeBank Swadesi Bank of India 76.00% IndiaBank Permata Standard Chartered Bank 44.50% EnglandQNP Kesawan Qatar National Bank 65.59% Qatar

Indonesia has a relatively Low financial inclusion as shown by Loan to GDP Ratio only 29,62% in 2011 compare to Thailand (90.60%) and Malaysia (116.10%).

This low financial inclusion is an attractive opportunity for Banking Business Penetration

It is also indicated by strong local banks acquisition by foreign banks.

Indonesia is an Attractive Market for Foreign InvestorsFinancial sector is the most attractive sector for foreign investors as shown by foreign ownership in local Banks.

Loan to GDP Ratio

Local bank Owned by Foerign

Perkembangan Ekonomi Indonesia: Pertumbuhan Bisnis BNI (1)

2010 2011 2012 2013*

249 299

333 344

Total Asset (Rp. Triliun)

2010 2011 2012 2013*

136 164

201 223

Total Pinjaman (Rp. Triliun)

2010 2011 2012 2013*

72 70

78

84

Loan to Deposit Ratio (%)

2010 2011 2012 2013*

4.1

5.8

7.0

4.3

Laba Bersih

Sejalan dengan pertumbuhan ekonomi, BNI terus berkarya untuk mendukung pertumbuhan ekonomi bangsa

Sebagai wujud komitmen mendukung pertumbuhan ekonomi nasional asset BNI terus bertumbuh

Sebagian besar asset BNI tertanam dalam pembiayaan yang dilakukan kepada dunia usaha

BNI terus mengoptimalkan penyaluran kredit untuk mendukung pertumbuhan dunia usaha, terlihat dari LDR yang meningkat

Melalui pengelolaan asset yang prudent dan optimal, BNI selalu membukukan kenaikan laba bersih

* ) sampai dengan SM I 2013

Perkembangan Ekonomi Indonesia: Pertumbuhan Bisnis BNI (2)

Kekuatan jaringan yang tesebar luas di Indonesia dan luar negeri memperkuat posisi bisnis BNI

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Peluang dan Tantangan Perbankan Indonesia (1)

1 Multi License Policy• Regulasi Multi License diterbitkan pada Maret 2013 lalu, menuntut perbankan Indonesia untuk

menaikkan modal intinya. Sebab, secara garis besar beleid tersebut mengatur tentang pembatasan kegiatan usaha bank berdasarkan modal inti yang dimiliki.

• Bank dibagi menjadi 4 kelompok (BUKU/Bank Umum Kelompok Usaha) yaitu BUKU 1 (modal inti ≤ Rp 1T), BUKU 2 (Rp 1T ≤ modal inti ≤ Rp 5T), BUKU 3 (Rp 5T ≤ modal inti ≤ Rp 30T) , dan BUKU 4 (modal inti ≥ Rp 30T).

• Implikasi dari aturan ini, banyak bank akan melakukan aksi korporasi strategis berupa: merger, akuisisi, atau penambahan modal dari pemilik atau strategic partner.

2 Masyarakat Ekonomi ASEAN (MEA)• Masyarakat Ekonomi ASEAN (MEA) akan mulai berlaku pada tahun 2015 mendatang, sedangkan

khusus untuk sektor perbankan akan dimulai pada tahun 2020.

• Dengan berlakunya MEA, maka memungkinkan adanya peningkatan arus pertukaran orang, modal, barang dan jasa di antara negara-negara intra ASEAN. Kegiatan perbankan yang berkaitan dengan perdagangan ekspor-impor antar negara tersebut akan meningkat secara signifikan.

• Namun sebelum MEA untuk sektor perbankan berlaku, diperkirakan mulai tahun 2015 hingga 2018 akan terjadi transformasi pelaku industry perbankan dari negara-negara di ASEAN masuk ke perbankan nasional.

• Pelayanan jasa, teknologi IT, produk, bisnis proses perbankan akan semakin berkembang pesat dengan adanya MEA tersebut.

Dibalik tantangan, selalu ada peluang……….

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3 Keberadaan Bank-bank Asing di Indonesia Adanya bank-bank asing yang berasal dari luar regional ASEAN pun menjadi ancaman bagi bank-

bank nasional dalam menguasai pangsa pasar perbankan di Indonesia. Kemudahan bank-bank asing membuka kantor jaringan di Indonesia dalam rangka ekspansi bisnis,

tidak serta merta diikuti dengan kemudahan sebaliknya (asas resiprokal), yakni bank-bank nasional dalam membuka kantor/jaringan di negara asal bank asing tersebut.

Namun, sisi positifnya masyarakat Indonesia yang bankable dapat makin bertambah, dengan adanya banyak pilihan bank di Indonesia dengan program dan promosinya tersendiri.

Bank-bank asing terkenal dengan digital brand-nya, sistem IT yang mumpuni, kualitas SDM serta kualitas pelayanan yang jauh lebih baik. Hal ini dapat menjadi pemacu bagi bank-bank nasional untuk meningkatkan kapabilitasnya, terutama di bidang layanan.

4 Aturan Loan To Value (LTV)I. Loan to Value Kepemilikan Properti (SEBI No.14/10/DPNP perihal Penerapan Manajemen Risiko

yang Melakukan Pemberian Kredit Pemilikan Rumah dan Kredit Kendaraan Bermotor)Tujuan utamanya yaitu mengendalikan kenaikan harga aset properti yang tak

terkendali, sehingga industry properti terhindar dari ancaman bubble. Aturan LTV properti dari BI tentang uang muka kepemilikan rumah sebesar 30%, dinilai dapat melemahkan industry properti nasional. Baru-baru ini terdapat wacana baru, yakni uang muka kepemilikan rumah kedua sebesar 40%, dan rumah ketiga sebesar 50%.

II. Loan to Value Kepemilikan Kendaraan (SEBI No.14/10/DPNP perihal Penerapan Manajemen Risiko yang Melakukan Pemberian Kredit Pemilikan Rumah dan Kredit Kendaraan Bermotor & Peraturan Menteri Keuangan No.43/PMK.010/2012 tentang Uang Muka Pembiayaan Konsumen untuk Kendaraan Bermotor Pada Perusahaan Pembiayaan)

Tujuan dari LTV ini yaitu, agar lembaga keuangan (multifinance) tidak terlalu mudah memberi fasilitas pinjaman ke debitur/calon debitur untuk kepemilikan kendaraan. Sejak tahun lalu, BI melalui SEBI No.14/10/DPNP sudah menerapkan aturan LTV untuk kepemilikan kendaraan bermotor, yakni uang muka sebesar minimal 25% pada kendaraan roda dua, 30% pada kendaraan roda empat, serta 20% pada roda empat atau lebih untuk keperluan produktif.

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4 Aturan Loan To Value (LTV)III. Wacana Loan to Value Bahan Baku Impor

Bank Indonesia (BI) berencana akan menerapkan loan to value (LTV) untuk kredit yang diberikan pada sektor-sektor yang mengimpor bahan baku untuk mengurangi defisit neraca perdagangan sejak kuartal kedua tahun 2013.

Beberapa komoditas/barang impor yang menjadi perhatian BI adalah bahan baku rumah tangga, mobil penumpang, alat angkutan bukan industry, bahan bakar dan pelumas, olahan produk minyak, suku cadang dan perlengkapan untuk barang modal, impor suku cadang dan perlengkapan untuk alat angkutan.

Sebagaimana diketahui, defisit neraca perdagangan terus melebar karena impor yang masih naik, di saat yang sama ekspor belum meningkat karena permintaan dan harga komoditas di pasar dunia yang masih rendah (belum kembali normal).

5 Single Presence Policy (SPP) Kebijakan ini disebut juga kepemilikan tunggal di industry perbankan, yaitu dengan

pengecualian beberapa pihak agar dapat menjadi pemegang saham pengendali untuk lebih dari satu bank. Dampaknya, investor asing dapat masuk ke sektor perbankan Indonesia, dengan melihat potensi yang sangat besar.

PBI No.14/24/PBI/2012 tentang Kepemilikan Tunggal Pada Perbankan Indonesia yang diperkuat dengan Surat Edaran BI (SEBI) No.15/2/DPNP ini dimaksudkan untuk mengantisipasi dinamika perkembangan perekonomian regional dan global, industry perbankan perlu meningkatkan ketahanan dan daya saing sehingga memerlukan struktur perbankan yang kuat.

Balance Sheet Highlight

[ Rp Billions ] – Cumulative 2008 2009 2010 2011 Y.o.Y

Total Assets 201.741 227.497 248.581 299.058 20%

Placement with other banks & BI 22.642 38.153 38.385 49.328 29%

Marketable Securities [market value] 10.243 19.516 13.229 7.668 -42%

Government Bonds [market value] 34.655 31.040 32.556 36.958 14%

Loans (gross) 111.994 120.843 136.357 163.533 20%

Customer Deposits 163.164 188.469 194.375 231.296 19%

Deposits from other Banks 4.100 3.819 3.326 7.019 111%

Marketable Securities Issued 1.269 1.262 1.277 265 -79%

Borrowings 8.617 5.570 5.623 8.726 55%

Shareholders’ Equity 15.431 19.143 33.120 37.843 14%

Profit & Loss Highlight

[ Rp Billions ] 2008 2009 2010 2011 Y.o.Y

Net Interest Income 9.912 11.133 11.721 13.196 13%

Non Interest Income 3.549 4.295 7.061 7.601 8%

Operating Income 13.461 15.428 18.782 20.799 11%

Operating Expense (7.228) (7.991) (9.643) (11.134) 15%

Pre-Provision Income 6.291 7.437 9.138 9.665 1%

Provisioning (4.359) (4.051) (3.629) (2.421) -33%

Non Operational Income/(Expense) 58 58 (24) 219 ~

Net Income before Tax 1.932 3.444 5.485 7.461 36%

Net Income 1.222 2.484 4.102 5.808 42%

Net Income Per Share (full amount) 80 163 266 312 17%

BNI product

CREDIT & DEBIT Card to boost recurring fee income

• Credit Card growth : > 20%• Debit Card Transaction growth : > 20%

TAPLUS & Derivatives, [saving account] To balance CASA – Non CASA composition Target growth 2012: > 15%

BNI Griya [mortgage loan] with growth target in 2012 over 35%

BNI Wirausaha [small commercial loan size US$5.000 – US$100.000] with growth target 15%

Cash Management, more extensive acquisition and increased number of transaction

Trade Finance & Remittance, accelerate volume through our overseas branches

Launched in October 1997Balance: Rp, 4 trillion# Applications: 95,000/month# of cards holder: 2,4 millions

BNI Wirausaha (Commercial)

BNI Griya (Housing Loan)

TAPLUS & Derivatives (Savings Product)Launched in 1989Balance: Rp, 118,3 trillion# Applications: 199.000/month# of accounts: 13.1 million

Launched in 2007Balance: Rp 3,15 trillion# of account: 22,000

Launched in 2005Balance: Rp, 18,1 trillions# Applications: 5,000/month# of accounts: 123.400

Product Focus 2012Key asset and liability products

Credit Cards (Visa & Mastercard)

Indonesia Geography in Brief

Strategically located in main international economic and trade Routes, between two continents ( Asia & Australia) and two oceans ( Pacific and Indian).

Endowed with huge population (241 millions) and various natural resources within its archipelago of 17 thousand islands that spread across 3 time zone (total area 1,9 million km2).

There is only 2 season in Indonesia (Wet & Dry), with temperature around 21–36 C, make most of the land can be planted all year round.

Indonesia are among the largest democratic country in the world where the leader are directly elected by the people.

Indonesia continues to have a stabil political situation by a higher appreciation to democracy in diverse etninicities and local languanges

Indonesia

As one of the largest country in the world, Indonesia has many geography advantages

Having a GDP size of nearly US$ 707 billion in 2010, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis than its neighboring countries, Indonesia’s economy

grew by 4.5% in 2009, 6.5% in 2011 and is expected to reach 6.4% this year, providing a case for Indonesia’s inclusion in the so-called BRIC economies.

Indonesia Economy Profile

Indonesia is the Largest in South East Asian Economy

Indonesia41%

Thailand18%

Malaysia14%

Singapura11%

Filipina11%

Myanmar,Kam-

boja, Laos, Viet-nam

& Brune

i5%

Source: IMF 2011

Indonesia Malaysia Philippines Thailand Vietnam Singapore

-4

-2

0

2

4

6

8

10

12

14

16

2009 2010 2011

…with relatively stable growth rate, even during the crisis

The Biggest amongst ASEAN Country

Indonesia is experiencing a transition period in the structure of its population productive age. In the period of 2020-2030 the dependency index (which was started in 1970) will reach its lowest point thus increasing its productive work force has one of the highest in the region. Implication of this condition is the increased importance of job creations that will cater to the huge portion the population productive age.

Indonesia’s Demography


Growing Population

Growing Middle Class Population

Source: ADB, Worldbank, Trimegah

Indonesia’s middle class has increased rapidly since 1999, driven by favorable demographic, a credit cycle recovery and a commodities boom. In 1999, the number of Indonesia’s middle class was around 25 million (25% of

Population) while in 2010 was estimated around 146 million (57% of Population).

Series10

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

Perc

enta

ge t

o P

opula

tion

*According to ADB, Middle Class is classified as population with per capita expenditure between $2-$20.

Indonesia’s Middle Class

Reliance on domestic economy supported by a growing middle class population

Despite slowering global economic growth, Indonesia Trade balance will maintain a contracting surplus

2004 2005 2006 2007 2008 2009 2010 2011

4,573

8,911

5,992

10,341

14,871

10,815

16,215

19,467

1,659

3,126

2,289

3,703 1,860

4,021

6,743

8,444

Foreign Domestic

in USD million

2004 2005 2006 2007 2008 2009 2010 2011

136

177 158

204

Export Import

Domestic & Foreign Direct Investment to Indonesia Indonesia Trade Balance (IDR Mio)

Source: BKPM and BPS

Investment Grade rating helps support maintain economic activities and growth in 2012

Indonesia Macro Economic Indicators

Resilience of Indonesia’s economy for 2012 will be supportive for industryes investment and development. IDR exchange rate is expected to remain in the Rp 8,700-Rp 9,200 range. The Nation’s foreign reserve is forecasted to reach

USD 130 billion supported by higher investment activities driven by the nation’s investment climate, and recent up grade of its credit rating.

Reliance on Domestic Economy

Indonesia’s GDP Growth & Structure (%) Reserves (USD billion) & Exchange Rates (IDR/USD)

130

Source: Bank Indonesia and BNI Estimate

2008 2009 2010 2011 2012F

61% 59% 57% 55% 54%

8%10% 9% 9% 9%

27,7%31% 32% 32% 33%

1,1% 2.8% 1.7% 1.4% 1.2%

6.10%4.50%

6.10% 6.50% 6.50%

Private Consumption Govt Consumption Gross InvestmentNet Export GDP

Dec-

08

Feb-

09

Apr-

09

Jun-

09

Aug-

09

Oct

-09

Dec-

09

Feb-

10

Apr-

10

Jun-

10

Aug-

10

Oct

-10

Dec-

10

Feb-

11

Apr-

11

Jun-

11

Aug-

11

Oct

-11

Dec-

11

2012

F

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

-

27.0

54.0

81.0

108.0

135.0

11,375

8700-9200

Foreign Reserve USD Bio IDRvs USD

2012

F

Sound macro economic indicators mainly supported by strong domestics consumption followed by a surplus trade balance.


Government released Masterplan for Acceleration and Expansion of Economic Development of Indonesia (MP3EI) in Mei 2011. The masterplan have aimed “Transform the Indonesian economy into a developed nation, which recognized by the world community, through high, inclusive, and sustainable economic growth.”

Focus the development was classified in 8 Programs, consist of 22 economic activities.

8 programs :• Agriculture,• Mining,• Energy,• industryal,• Marine,• Tourism,• Telecommunication and• Development strategic area

Leading Economy Sectors Based in MP3EI

Bali-Nusa Tenggara CorridorTourism, Fishery, Livestock

Sulawesi CorridorFood Crops,

Cocoa, Fishery, Nickel, Oil-Gas

Sumatera CorridorPalm Oil (CPO),

Rubber, Coal, Steel & Sunda Strait Brigde

Papua-Maluku Corridor

Food Estate, Cooper, Livestock, Fishery,

Oil-Gas, Nickel

Kalimantan CorridorPalm Oil (CPO),

Coal, Aluminum/ Bauxite, Oil-Gas, industryal Forestry,

Steel

Java CorridorFood & Bev Ind., Textile, Transportation Vehicle, Machinery,

Transportation, Shipping, Military Devices, Telematics, Metropolitans Areas of Jakarta-Bogor-Depok-Tangerang-Bekasi

& Surabaya-Gresik-Sidoarjo-Lamongan

Prospective industryes in 6 Economic Corridors


Estimated Investments in Each Corridors To support the development of the main economic activities within the corridors, the total

investment which will be implemented during 2011 - 2014 has been identified at about IDR 4,000 Trillion.


Challenges in Indonesia

Corruption remains a major challenge, but there is development such as : The Political will to bring corruption under control has never been greater. Development of civil society constrains corruption. Anti-Corruption Agency receives considerable public respect,

1. CORRUP-TION2. LEGAL &

REGULATORY ENVIRONMENT

LABOUR LAW

3. PHYSICAL INFRA-STRUCTURE

ELECTRI-CITY

INTERCON-

NECTIVITYR

OADS

AIRPORT

SEA PORT

TRAIN & RAILWAYS

TELECOMU-

NICATION

Principles Applied on CSR/CCR Partnership Program Incl. Start Up

DEVELOPMENT STAGE FIRST

INVEST IN EDUCATION

SIMPLE Requirement

TRUST & PARTNERSHIP: with trusted community organizer

LOCAL DEMAND

LOCAL STRENGTH and local wisdom

RESTORING THE GOOD OLD VALUES/DESIGN if relevant

REPLICABLE MODEL

RIGHTS PERSPECTIVE: Gender perspective

WIDE IMPACTS: on social, ecological and economic livelihood

MULTI STAKEHOLDER

TEMPORARY FACILITATION to create independency

VALUE ETHICS AND TRANSPARNCY:

AgendaIndonesia – Country Profile

Indonesia Geography in BriefDemography Profile

Growing PopulationGrowing Middle Class

Population

Indonesia EconomyMacro Economic IndicatorsReliance on Domestic EconomyLeading Economy Sectors Based in MP3EI Prospective industryes in 6 Economic CorridorsEstimated Investments in Each CorridorsTargeted Sectors – National & RegionalIndonesia – Netherland Statistics

Indonesian Banking SectorBanking Sector PerformanceBNI Roles in Supporting Indonesian EconomyOpportunities & Challenges Ahead

Closing Remarks

Hambatan Bisnis di Indonesia: Global Competitiveness Index

Hambatan birokrasi, Korupsi dan infrastruktur menjadi kendala utama

dalam melakukan bisnis di Indonesia sehingga peringkat Indonesia

cenderung menurun

Sumber : http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf




Global Innovation Indicators

Targeted Sectors – National & Regional

Agriculture Electricity Oil, Gas &Mining

Engineering &Construction

ChemicalCommunication Retail & Wholesalers

F & B

Align with MP3EI program, BNI Focusing it’s business portfolio on 8 leading industry sectors in Bank wide view.

To sharpen the strategy, BNI also focus on leading industryes in each operating region align with MP3EI Economic Dedelopment .


One industry main challenge is how to increase down stream activity and provide all the infrastructure needed

8 programs :• Agriculture,• Mining,• Energy,• industryal,• Marine,• Tourism,• Telecommunication and• Development strategic area

Indonesia Economic Challenges - Industry

Indonesia Economic Challenges: Low Innovation

Based on the Global Innovation Index Ranking, Indonesia is lower compared to other Asian countries

Country 2013 2012 2011 2009-2010Singapore 8 3 3 7Malaysia 32 32 31 28China 35 34 29 43Thailand 57 57 48 60India 66 64 62 56Vietnam 76 76 51 71Indonesia 85 100 99 72Philippines 90 95 91 76

Global Innovation Index Ranking

Sumber : WIPO

Opportunities & Challenges – Regulation Aspects

FactorsMulti License Policy Require more Capital raising to expand business.

Will push industry consolidation among the players that strengthen Indonesia Banking Industry

ASEAN Economy Community

Increasing competition due to a free flow of Capital, People/talents, good and services among ASEAN country.

On the other hand, will open the opportunity to tap regional market.

Foreign Bank Presence in Domestic Market

Easier access from foreign bank to Indonesia market has bring competition to a higher level.

Local bank can gain benefit from local market expertise. Foreign Bank presence is expected to bring a new transfer of knowledge to local bank

such as Cash management, IT Platform enhancement.

Aturan Loan To Value (LTV)

New LTV regulation will slowing down the high consumer loan growth. Loan portfolio will grow at a healthier level

Single Presence Policy (SPP)

Single presence policy will hold the presence of foreign and new player.Just like multi license policy, single presence policy will push players consolidation

Opportunities & Challenges: A relatively low banking penetration

Indonesia is still under Bank, on the other hand infrastructure availability has been a major obstable for banks to expand its network

53%

21% 9%2%

10%

5%

Commercial Banking Outlet DistributionCommercial Banking Saving Account Penetration

Source: BI

Note: Number of population aged 15yr old and above with access to formal financial institutionsSource: The Global Financial Inclusion Index 2012, World Bank

99% 98% 97% 97% 96% 96% 93% 88% 71% 64% 58% 56% 54% 48% 46% 35% 33% 27% 20%

Australia

Jerm

an

Peran

cis

Inggris

Jep

ang

Kan

ada

Korsel

AS

Italia

Chin

a

Turki

Brasil

Afrika

Selatan

Rusia

Arab

Saud

i

Ind

ia

Arge

nti

na

Me

ksiko

Ind

on

esia

Access To Financial Institutions Among G20 Countries

Note: Assuming people, on average, own 3 saving accountsSource: LPS, BI

97 102 114

169 172 173

19.2% 19.7%22.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

50

100

150

200

250

2010 2011 Jun-12

# of Saving Account (mil) Population> 15yr (mil)Saving Penetration Ratio

Binova Events – Sharing of some Collective Ideas

Indonesian Banking Outlook by Felia Salim

News & Politics

Transcript of Indonesian Banking Outlook by Felia Salim