It’s a challenging time for the country’s banking sector. Gone are the days when the industry could book 20% loan growth annually, fueled by the commodity boom that ended in 2012. Last year, the sector only booked loan growth of 6.1%, the lowest since 2009, after a rebound of 11.8% growth in 2018. A combination of the domestic and global economic slowdown was behind the weak performance, and it is worthwhile mentioning that the rise of peer-to-peer (P2P) lending offered by tech startups has also started to carve up market share–with Rp 13 trillion in outstanding loans as of the end of 2019. Investors and business people are tending toward a continuation of wait-and-see this year. Despite easing trade tensions between China and the United States, Bank Indonesia has cut its growth forecast by 0.1% to a 5% to 5.4% range due to the coronavirus outbreak.
Since 2017, PT Bank Rakyat Indonesia (BRI) has had a blueprint to reshape its business to become more sustainable in challenging times. The blueprint target is to make BRI the most valuable bank in the region, including in terms of financial performance and governance, by 2022. The bank has a solid footprint in its core business – micro, small and medium enterprises (MSMEs) – with vast experience as well. This year, BRI will turn 125 years old, making it the oldest bank in the country. The nature of the segment, which relies on a personal relationship as well as sociological and anthropological knowledge given Indonesia’s broad cultural diversity, and BRI’s long experience, means its business is hard to disrupt.
Bu hikaye Forbes Indonesia dergisinin March 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Forbes Indonesia dergisinin March 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
BACK ON TRACK
Collective wealth gets a 21% boost to a record $162 billion amid an economic uptick.
Championing Locals
The wave of social commerce is enabling inclusive digital economies beyond urban areas.
Boys in the Bubble
Startups are supposed to specialize, but OPENSEA’s founders thrived by building a wide-open market for creating and trading all manner of NFTs, whether art, music or gaming. Now that they’re centimillionaires and poised to become billionaires, they have other worries: competitors, fraudsters and the next crypto crash.
Enduring Relations
The implementation of IA-CEPA amid the pandemic signifies the Indonesia-Australia’s commitment to recover and counter future challenges together.
Sweet Success
Steven Erwin envisions Unifam to become a major global player in the confectionery and F&B industry.
Marathon Man
Across America, scores of municipal pension funds remain scandalously underfunded. But not the pension fund of Tampa’s police and firemen, thanks in large part to JAY BOWEN, whose no-frills approach to stock picking has protected and served them for more than 45 years.
Gold Rallies on Inflation Fears
During September the price of gold rallied to $1,868 per ounce following the release of figures on US inflation by the Bureau of Labor Statistics which indicated that, as of September, CPI inflation had rocketed to 6.2%, above the 5.8% which economists had been predicting.
Set Off to A New Start
Bank Aladin has two main ingredients for success: establish trust and offer better customer experiences.
The Daily Intake
YOUVIT plans to invest further into marketing and grow into one of the leading vitamin brands in Indonesia.
THE CROESUS OF CRYPTO
FTX COFOUNDER SAM BANKMAN-FRIED BUILT A $22.5 BILLION FORTUNE BEFORE HIS 30TH BIRTHDAY BY PROFITING OFF THE CRYPTOCURRENCY FRENZY—BUT HE’S NOT A TRUE BELIEVER. HE JUST WANTS HIS WEALTH TO SURVIVE LONG ENOUGH TO GIVE IT ALL AWAY.
