OJK : Financial Condition and Indonesian Banking Quite Stable,http://swa.co.id/business-strategy/management/ojk-kondisi-keuangan-dan-perbankan-indonesia-cukup-stabil, 28 August 2014
Indonesia's financial condition is still considered to be good and stable enough by the Financial Services Authority (OJK). Related banking performance, until August 2014 still looks stable. Although relatively tight liquidity conditions, the resilience of the banking liquidity seen from the development of the interbank money market transactions (interbank) still awake well reflected in the interest rates that are still relatively uniform and stable both based BOOKS and Ownership.
Tight Bank Competition : http://www.koran-sindo.com/node/313248, 14 July 2013
Based on the results of a 2013 survey of Indonesian banks from PricewaterhouseCoopers Indonesia, the level of competition among banks in 2013 will be more stringent. Optimism bankers banking related growth could reach double digits this year is not without obstacles.
According to the survey of PricewaterhouseCoopers (PwC) at the end of April, there are three major challenges facing the growth target ready. The third challenge is no different than last year but there is a shift. In 2012, the competition among banks is in the third position in 2013 is in the second position. Regulatory issues remain ranked first and Human Resources (HR) was third. In addition, the issue of credit risk is still considered problematic also be a threat.
Therefore, the bankers are actively follow the development of the existing regulations. Understandably, the regulation is still the center of attention of the bankers in Indonesia, especially related to multiple licensing policy (22%). Followed by other policies such as property rights (18%), small and medium enterprise lending requirements / SMEs (16%), capital adequacy ratio (CAR), equivalent maintained capital assets / CEMA (14%), as well as the requirements for opening branch (13%).
Operational risk, credit, and liquidity risk factor is still the top three since 2011. be the top operational risk than others by 25%. Followed by credit risk (22%) and liquidity risk (20%). The high operational risk due to the lack of qualified human resources and technological systems. Not surprisingly, many bank employees who were not of school banking. As a result, the bank had to pay extra because they have to train them.
The quality of human resources is a challenge that ranks third this year. Competition among banks require the bankers to be prepared to compete with other banks. According to PwC Partner Joseph Wibisana, increasing competition in the bank that there is a "force" the bankers to provide services and facilities to customers (subscribers). That way, customers also benefited from the availability of such facilities. Despite the many challenges of banking in Indonesia, this has not lessened the bankers, especially foreigners, for expansion in Indonesia.
"The banking industry in Indonesia is very challenging but also favorable," said Technical Advisory PwC Benson Cheng to NEWSPAPER SINDOkemarin. The lack of availability of qualified human resources in the banking became one of the obstacles in the expansion of branch network. According to the survey, experienced experts in the credit and is the rarest of information technology for the banking sector.
He added, if the banker wants to expand and invest in infrastructure, human resources, and technology, meaning they see the potential banking market in Indonesia as a big business. In general, the bankers are aware that banks will grow significantly. According to the Economic Observer Yuswohady, in terms of the local players, the biggest challenge of competition coming from foreign banks. Moreover, foreign banks have the power over local banks in terms of capital, human resources, management, and technology.
Since the last five years a wave of local banks by foreign purchases. From the side of local players, if this acquisition goes on, then the local banks that are small will be eliminated so that there is no other choice but to sell. "Banks are the biggest asset of this country if the controlled foreign parties can be dangerous, said Yuswohady to NEWSPAPER SINDO yesterday. Domestic banking profits over the past five years is remarkable. Every closed book, which incidentally shareholders stranger would take the profit.
Therefore, the current account deficit as one of Indonesia is the largest component of profit companies in Indonesia with the ownership of foreigners. The bank's business in Indonesia is being hot because the majority of Indonesian people are middle class. This makes Indonesia as a major market for them, obviously Yuswohady.
Swift foreign domination in local banks also influenced government regulation that is not measurable and systematic. This is because the regulation in Indonesia does not have a clear strategy and prioritize group interests than the national interest, he said.
Public, Savings and Development Bank in Indonesia
Indonesia Industry Report and Market Research
March 21, 2018
Industry Code : K81112
Forecast to : 2022
Definition
Public, Savings and Development Bank in Indonesia This Class consists of units recognised mainly engaged in banking activities with government authority and rights to issue and circulate official currency, establish policies for banking operations, manage foreign exchange reserves, guard and preserve the stability. Gathering of people's funds in the form of postal money transfers, deposits and saving and redistributing funds in the form of providing credit. Receive money in the form of savings and deposits and provide small scale, short- term credit to people.
Activities
The primary activities of firms in this industry are:
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Deposits, such as; current account, time deposits, certificates of deposit.
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Corporate banking, such as: corporate loans, loans syndication trade finance, project finance, bank advances and guarantees.
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Investment Banking, such as commercial papers programs.
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Treasury and International Banking, such as; Foreign Exchange Transactions, Correspondent Banking.
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Retail Banking, such as; small business loans, working capital loans, revolving working capital loans, project feasibility loans mortgage financing for business, car loans for businesses.
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Consumer Banking, such as; mortgage financing for car loans for individuals, loans for business professionals, employee's welfare loans, credit cards and ATM (Automatic Teller Machine).
The Public, Savings and Development Bank industry in Indonesia research report contain trend analysis, statistics, market size information, industry growth rates as well as major competitors.
Major market segments are identified and also those forces affecting demand and supply within this industry. Performance analysis includes emerging industry trends as well as recent results and performance of each key company. Drawing on the depth of information DIS also provides 5 year forecasts for this industry.
The comprehensive study also examines details such as the barriers to entry, operating cost structure, technology & systems and domestic & international markets. Tables and statistics include: Industry revenue, exports, imports, wages and number of companies in the industry, Industry growth and geographic regional data.
The key indicators for the industry for last five years are provided here, and include: • Industry Revenue • Industry Value Added • Employment • Establishments • Exports • Imports • Domestic Demand • Total Wages
Market Size
This section gives the size of the domestic market and the size of the export market for each industry.
Linkages
This section lists the industry"s major supplier and its major customer industries, with SIC"s (KLUI) for easy reference.
Demand Determinants
Lists the key factors which are likely to cause demand to rise or fall.
Domestic and International Markets Exports
The trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover. The size of the domestic market (domestic demand) and the proportion of this accounted for by exports Imports
Outlines the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand States the size of the domestic market (domestic demand) and the proportion of this accounted for by imports Analysis
Domestic and international markets defines the market for the products and services of this industry, both locally and in other countries. This outlines: the size of the domestic market (domestic demand) and the proportion of this accounted for by imports, the key countries from which imports are sourced (with percentage and relative size if available), the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand, the size of turnover and the size of exports as a proportion of turnover, the key export destinations (percentages and relative importance of these, if available, the trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover.
Basis of Competition
Gives the key types of competition between firms within the industry. It also highlights competition from substitute products in alternative industries.
Products and Service Segmentation
This details the key products and/or services provided by this industry. Wherever possible, we include an indication as to which of these are the most important to demonstrate which have a more significant influence over industry results as a whole.
Major Market Segments
The key client industries and/or groups are detailed here. Wherever possible, an indication as to which of these are the most important is included. This will highlight the client groups that are most important to the industry. Trends in these client groups may have an important impact on the demand for products and services provided by the SIC, hence they may be important to monitor suggested links
Industry Concentration
This is an indicator of how much industry turnover is accounted for by the top players.
Geographic Spread
This is a guide to the regional share of industry turnover/gross product. DIS calculates this on the basis of turnover or production, however, the number of establishments may be used as a proxy where these are not available.
Barriers to Entry
This section outlines factors that can prevent a new company from entering the industry and will also give an indication of the extent to which this occurs.
Taxation
Taxation refers to all kinds of taxation that are specific or are particularly important to an industry. This includes taxation concessions.
Industry Assitance
Assistance refers to government and/or other measures in place designed to improve the performance of the industry or sections of the industry. (eg grants, subsidies)
Regulation and Deregulation
Where licenses are required to operate in an industry, these will be noted here. Where possible, details regarding the degree of difficulty in obtaining a licence are included. Important issues relating to regulation and deregulation are included here.
Cost Structure
The average costs for a company operating in this industry as a percentage of total revenue.
Capital and Labour Intensity
Provides a guide to the amount of capital used in production/providing a service compared to the amount of labor in the total mix of inputs.
Technology and System
Acknowledges the latest technology and/or systems available to this industry within the country. Technology refers to machinery and equipment (such as computerisation) which enables better and more efficient production. Systems refer to methods of production that also enables better and more efficient production.
Industry Volatility
Industry volatility refers to the year on year fluctuations, which occur in industry output.
Globalization
This gives an indication of the extent to which the industry is global. As a guide, we base its definition of the level of globalization on a number of factors, some of which include: the level of foreign ownership, the proportion of demand accounted for by foreign operators, and in the case of industries dominated by domestic participants, the volume of production conducted in other countries.
Historical Performance
This section details previously important events in the development of the industry
Current Performance
This is the key analysis section for the industry over the past five years. The key performance indicators for the industry in question are discussed, providing trends and explanations for occurrences in the industry.
Key Sensitivities
The sensitivities are factors that are outside of the control of an operator of the industry, but are likely to have significant impact on a business.
Key Success Factors
These are the factors within the control of the operator and which should be followed in order to be successful. Often these may include behavior that will help to minimise the effects of the key sensitivities.