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Indonesian Banking Outlook by Felia Salim

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  • As an archipelago country, interconnectivity has always been an issue for many years. Slow progress is happening toward national interconnectivity.No wonder why, infrastructure is one of the top 3 issues in doing business in Indonesia and Indonesia Global Competitiveness index is consistently decreasing for the last 3 years from rank 44 to 50
  • Access to a high quality education is still a challenge.Indonesia Human Development Index is relatively low compare to other countries.
  • Although Indonesian middle class is growing rapidly in recent years, marginal middle class still dominates. Hence a disruption in the economy can immediately downgrade this segment to below the poverty line.Policy and action are needed to maintain this segment to the higher segement.
  • Although middle class accounted to 57% of the population, the saving account penetration only 22% (assuming banked people own on average 3 saving accounts, BPS). It is indicated that some of middle class has not yet have saving account.Such a low banking penetration causing Indonesia’s access to financial institutions is one of the lowest amongst G20 countries.Assumed each hAs 3 saving accounts
  • Indonesia’s rank not so good by many independen institution. This is the accumulation of all the strutural problem in the ecnomi.
  • The ability to promote sustainable economic growth depends on the ability to improve innovation. Innovation based on the capitalization of technology research products will make an immediate impact on improving sustainable productivity, which in turn can accelerate economic growth. The ability to master science and technology is a basic capital to create innovations that will be useful to develop the economy in order to face global competition.The efforts to increase productivity towards the creation of competitive advantage can be achieved with the innovation based human resource capacity development. The legacy of natural resource-based economy, which is labor intensive, needs to be gradually improved towards skilled labor intensive and eventually to human capital intensive. The improvement of human capital mastering science and technology is highly needed when Indonesia enters into the innovation-driven economies stage.
  • To realize the increase of productivity, it is recommended that Indonesia applies innovation initiative as a key driver in the transformation to innovation-based economic system by strengthening the education system (human capital) and technological readiness.Under the innovation initiative, one percent of the GDP will be earmarked towards this strategy. This proportion should be increased gradually to 3% of GDP by 2025.Research and development funding portion as mentioned above, comes from the Government and the businesses. The transformation will be carried out through 7 improvement steps of innovation ecosystems, while the process will be carried out using 4 acceleration economic development instruments as a model for the strengthening of key stakeholders in innovation including tertiary institutions and community colleges.In line with the economic progress of the factor-driven economy towards innovation driven economy, it is expected over time the role of Government in funding R & D will de crease and the role of private sector in funding R & D will increase.R&D fund has not been settled, MP3EI Program has to more focus on Human & Environmental aspects.
  • Mobile Financial Services: the next generation business model for banks in Asia Banks in Asia began to see it as a potential solution from Mobile, in terms of encouraging customer usage levels on products / services and banking also creates a new level of revenue with mobile financial services. Financial Inclusion / Banking the unbanked – Bank Sinar Harapan Bali take advantage of opportunities by adopting innovative approaches using cell phones to get people who have not opened an account at their bank. High Street Banking - increasing the level of sophistication of banking with a new service that creates a "unity" expertise across mobile networks and devices, encouraging a high experience in process convenient payment, remittances, and interactive banking wherever located. CIMB Niaga has started a mobile marketing strategy that encourages wider bank customers to process mobile payments, remittances, and others.
  • Innovation-Driven economy is something that can be pursued. Young generation can create changes to the economy and compete with strong global brand using creative innovation.
  • Innovation is not a new thing to BUMN, but SOE Minister push all the BUMN to strove harder for innovation
  • New Spatial planning concept design by Chinese authority is able to reduce urbanization and create a better income distribution in the country.
  • The Global Innovation Index examines how countries benefit from innovation through the use of enablers that stimulate innovation and their ensuing outputs. There are five enabling parameters which include: 'Institutions', ‘Human Capacity', 'General and ICT Infrastructure', 'Market Sophistication' and 'Business Sophistication'. The two output parameters – 'Scientific Outputs' and 'Creative Outputs and Well-Being' - provide evidence of the results of innovation within the economy.With low access to high quality education, Indonesia is considered to be a less Innovative country.
  • All the challenges a rea
  • Although middle class accounted to 57% of the population, the saving account penetration only 22% (assuming banked people own on average 3 saving accounts, BPS). It is indicated that some of middle class has not yet have saving account.Such a low banking penetration causing Indonesia’s access to financial institutions is one of the lowest amongst G20 countries.Assumed each ahs 3 saving accounts

Transcript

  • 1. 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
  • 2. Agenda Indonesia Quick Snapshot Indonesia Economic Challenges – Structural Problems How to Support Innovation – Driven Economy Solution & Concept for Innovation – Driven Economy Closing Remarks
  • 3. Agenda Indonesia Quick Snapshot Indonesia Economic Challenges – structural Problems How to Support Innovation – Driven Economy Solution & Concept for Innovation – Driven Economy Closing Remarks
  • 4. Indonesia Quick Snapshot 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 condition
  • 5. 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 (%) 4.5 6.1 6.5 6.23 6.02 5.81 na na 5.50 Inflation (%) y-o-y 2.78 6.96 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) 116.5 157.73 218.02 190.1 6 15.00 14.74 15.11 Na 180.65 Import (USD miliar) 96.9 135.61 190.14 191.7 1 14.70 15.59 17.42 Na 193.63 Reserve (Rp T) 66.11 96.21 110.12 3 112.8 104.8 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
  • 6. 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'13 Indicator 2009 2010 2011 2012
  • 7. Indonesia Quick Snapshot: Huge Population Dominated by Middle Class Page 7  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
  • 8. 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
  • 9. 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
  • 10. Agenda Indonesia Quick Snapshot Indonesia Economic Challenges – Structural Problems How to Support Innovation – Driven Economy Solution & Concept for Innovation – Driven Economy Closing Remarks
  • 11. 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 Solution Is needed to Create Value Added Economy Source: Master plan for Acceleration and Expansion of Indonesia Economic Development
  • 12. 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
  • 13. 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
  • 14. Inefficient Bureaucracy: Impact to Several Sectors (2) 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. EnergyEnergy With the abundant of natural resources, ideally indonesia has a strong manufacturing facilities / down stream industries Manufa cture 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
  • 15. Inefficient Bureaucracy: Impact to Several Sectors (3) Issue Impact Low infrastructure support high interest environment financial deepening issues Banking intermediary function is expected to support regional economic growth, especially with high liquidity in bankingBanking
  • 16. Bank Financing to a non value added Sectors Page 16 Most Bank Financing allocated to trading & Services that only residual.
  • 17. Page 17 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$ 600 Jakarta – Singapore = US$185 Low interconnetivity has caused a high cost economy
  • 18. Indonesia Economic Challenges : Human Resources Quality 32.3 64.3 3.4 Their Occupation(%) Government or public institution Private business or industry Majority rural middle class are local entrepreneurs; while urban middle class are employee (salaried jobs) in services industry Sources: BPS dalamMarketeers, 2012 28 33 7 32 Level Education (%) Less thansecondary completedsecondary Some university education without degree Universitylevel education, withdegree  One third of Middle Class population hold a university degree.  However, Indonesia Human Development Index rank at 124 out of 187 countries (medium level)
  • 19. Indonesia Economic Challenges: Indonesia Budget on Research 1.47% 0.60% 0.26% 0.08% China Malaysia Thailand Indonesia Indonesia spend less budget on R&D compare to other Asian Countries Source: World Bank article 2013
  • 20. 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 (affluent) %ThdPopulasi 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 %ToPopulation
  • 21. 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).
  • 22. 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 institutions Source: 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 Jerman Perancis Inggris Jepang Kanada Korsel AS Italia China Turki Brasil Afrika Selatan Rusia ArabSaudi India Argentina Meksiko Indonesia Access To Financial Institutions Among G20 Countries Note: Assuming people, on average, own 3 saving accounts Source: 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
  • 23. 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
  • 24. Agenda Indonesia Quick Snapshot Indonesia Economic Challenges – structural Problems How to Support Innovation – Driven Economy Solution & Concept for Innovation – Driven Economy Closing Remarks
  • 25. Page 25 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
  • 26. 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
  • 27. Agenda Indonesia Quick Snapshot Indonesia Economic Challenges – structural Problems How to Support Innovation – Driven Economy Solution & Concept for Innovation – Driven Economy Closing Remarks
  • 28. Page 28 One of Government Concept to Toward Innocation Driven Economy Source : MP3EI With this concept, Government is focus to solve structural problems in the economy
  • 29. Page 29 Government Innovation Initiatives Source : MP3EI
  • 30. Page 30 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
  • 31. BNI Innovation: “Moving Up the Value Chain Ladder“ MICRO LENDING BNI WIRAUSAHA (BWU) SPECIAL LENDING PROGRAM (KUR) FACILITAT ION TRANSITION BANKABLE STAGE SEGM ENT MICRO SMALL MIDDLE / Corporate COMMERCIAL & CORPORATE MORE COMPLEXDEVELOPMENT PERIOD  Interest subsidy  Requirements relaxation  Educating the beneficiaries FEATURE 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
  • 32. 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
  • 33. BNI Innovation: Creating Internal Innovation Culture (2) “U” Learning Journey Foundation Of “U“ Deep Dive After Care Prototy ping 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
  • 34. BNI Innovation: Creating Internal Innovation Culture (3) Co – Creating  Leading From The Future As It Emerges
  • 35. BNI Innovation: Creating Internal Innovation Culture - Prototyping Selection Criteria Page 35 Not all the ideas are ready to prototype, belows are the criteria for selecting prototyping Ideas
  • 36. LDP 1000 Protoype Presentation – Presentation of Ideas Page 36 Presencing the futures through collective ideas
  • 37. 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
  • 38. 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
  • 39. 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
  • 40. 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 design Founder 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 Cafe Young 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:
  • 41. Page 41 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
  • 42. Page 42 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. 43 Central Service District Sub- Service District Sub- Service District Sub- Service District Sub- Service District Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential 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 China Concept for Re-urbanization + De-urbanization (by Prof. Li Xiaodong)
  • 44. Agenda Indonesia Quick Snapshot Indonesia Economic Challenges – structural Problems How to Support Innovation – Driven Economy Solution & Concept for Innovation – Driven Economy Closing Remarks
  • 45. 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?
  • 46. Thank you
  • 47. 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
  • 48. Confidential Gapura BNI Sentra benang untuk tenun industry hulu : Kapas Benang Warna Craft’s Center Tenun songket Showroom tenun songket Kelompok Pengrajin Tenun Songket Program Illustration: KAMPOENG BNI Promosi terpadu : - BNI - Pemerintah Daerah Cluster : - Bapak angkat - Ketua kelompok - Koperasi
  • 49. Page 49 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
  • 50. BNI Innovation: Global Action of Co Creation
  • 51. 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 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 Perbankan per Juni 2013 17.1% 17.3% 24.9% 32.8% 21.1% 20.0% 26.5% 23.0% 14.8% 10.6% Growth Kredit Perbankan per 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 69.6563.50 75.40 90.78 95.92 108.9175.14 95.21 111.40 122.23 140.89 179.40 224.15 253.92 275.53 312.3244.23 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 Perbankan Menurut Sektor Ekonomi (Rp Triliun) Pertanian Tambang Industri Perdagangan Listrik, Gas, Air Konstruksi Trans. & Kom. Jasa usaha Jasa sosial Lainnya
  • 52. 52 Kondisi Perbankan Indonesia (3)  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. Sumber : Bank Indonesia, diolah Kredit Modal Kerja, 47.6% Kredit Investasi, 23.7% Kredit Konsumsi, 28.8% Share Kredit Perbankan berdasarkan 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 Perbankan Menurut Jenis (Rp Triliun) Modal Kerja Investasi Konsumsi 16.7% 33.4% 18.0% Modal Kerja Investasi Konsumsi Growth Kredit Perbankan berdasarkan Jenis per Juni 2013 (yoy)
  • 53. 53 Kondisi Perbankan Indonesia (4)  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%. Sumber : Bank Indonesia, diolah 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Des '10 Des '11 Jun '12 Des '12 Juni '13 Non PerformingLoan per Sektor (%) Pertanian Tambang Industri Perdagangan Listrik, Gas, Air Konstruksi Trans. & Kom. Jasa usaha Jasa sosial Lainnya
  • 54. 54 Kondisi Perbankan Indonesia (5)  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. Sumber : Bank Indonesia, diolah 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 1,481.02 733.16 898.30 939.20 1,076.83 1,066.01535.86 652.65 718.26 767.07 827.25 Des '10 Des '11 Jun '12 Des '12 Juni '13 Dana Pihak Ketiga Menurut 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
  • 55. Page 55 Year Total Bank Loan* Indonesia GDP Loan 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 ForeignOwner Share Country Bank Danamon Temasek 67.30% Singapore Bank International Indonesia Maybank 97.50% Malaysia CIMBNiaga CIMBGroup 97.90% Malaysia Bank Ekonomi HSBCHoldingPlc 98.94% England OCBCNisp OCBCBank 85.06% Singapore Bank Swadesi Bank of India 76.00% India Bank Permata Standard Chartered Bank 44.50% England QNP Kesawan QatarNational 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 Investors Financial 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
  • 56. Perkembangan Ekonomi Indonesia: Pertumbuhan Bisnis BNI (1) 249 299 333 344 2010 2011 2012 2013* Total Asset (Rp. Triliun) 136 164 201 223 2010 2011 2012 2013* Total Pinjaman (Rp. Triliun) 72 70 78 84 2010 2011 2012 2013* Loan to Deposit Ratio (%) 4.1 5.8 7.0 4.3 2010 2011 2012 2013* 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
  • 57. Perkembangan Ekonomi Indonesia: Pertumbuhan Bisnis BNI (2) Kekuatan jaringan yang tesebar luas di Indonesia dan luar negeri memperkuat posisi bisnis BNI
  • 58. 58 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……….
  • 59. 59 Peluang dan Tantangan Perbankan Indonesia (2) 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.
  • 60. 60 Peluang dan Tantangan Perbankan Indonesia (3) 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.
  • 61. 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% Page 61
  • 62. 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% Page 62
  • 63. 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$100.000] with growth target 15%  Cash Management, more extensive acquisition and increased number of transaction  Trade Finance & Remittance, accelerate volume through our overseas branches Launched in October 1997 Balance: Rp, 4 trillion # Applications: 95,000/month # of cards holder: 2,4 millions BNI Wirausaha (Commercial) BNI Griya (Housing Loan) TAPLUS & Derivatives (Savings Product) Launched in 1989 Balance: Rp, 118,3 trillion # Applications: 199.000/month # of accounts: 13.1 million Launched in 2007 Balance: Rp 3,15 trillion # of account: 22,000 Launched in 2005 Balance: Rp, 18,1 trillions # Applications: 5,000/month # of accounts: 123.400 Product Focus 2012Key asset and liability products Credit Cards (Visa & Mastercard) Page 63
  • 64. Indonesia Geography in Brief  Strategically located in main international economic and trade Routes, between two continents ( Asia & Australia) and two oceans ( Pacific and Indian).  Endowed with huge population (241 millions) and various natural resources within its archipelago of 17 thousand islands that spread across 3 time zone (total area 1,9 million km2).  There is only 2 season in Indonesia (Wet & Dry), with temperature around 21–36 C, make most of the land can be planted all year round.  Indonesia are among the largest democratic country in the world where the leader are directly elected by the people.  Indonesia continues to have a stabil political situation by a higher appreciation to democracy in diverse etninicities and local languanges As one of the largest country in the world, Indonesia has many geography advantages
  • 65.  Having a GDP size of nearly US$ 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 Page 65 Indonesia 41% Thailand 18% Malaysia 14% Singapura 11% Filipina 11% Myanmar, Kamboja, Laos, Vietnam & Brunei 5% Source: IMF 2011 -4 -2 0 2 4 6 8 10 12 14 16 Indonesia Malaysia Philippines Thailand Vietnam Singapore 2009 2010 2011 …with relatively stable growth rate, even during the crisis The Biggest amongst ASEAN Country
  • 66.  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 Page 66 Source : Masterplan for Acceleration and Expansion of Economic Development of Indonesia, MP3EI Growing Population
  • 67. Growing Middle Class Population Page 67 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). 0 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 PercentagetoPopulation *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
  • 68. Despite slowering global economic growth, Indonesia Trade balance will maintain a contracting surplus 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 2004 2005 2006 2007 2008 2009 2010 2011 in USD million Foreign Domestic 158 204 136 177 2004 2005 2006 2007 2008 2009 2010 2011 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 Page 68 Indonesia Macro Economic Indicators
  • 69.  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 60.6% 59% 57% 55% 54% 8.4% 10% 9% 9% 9% 27,7% 31% 32% 32% 33% 1,1% 2.8% 1.7% 1.4% 1% 6.10% 4.50% 6.10% 6.50% 6.50% 2008 2009 2010 2011 2012F Private Consumption Govt Consumption Gross Investment Net Export GDP 11,375 8700-9200 - 27.0 54.0 81.0 108.0 135.0 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Foreign Reserve USD Bio IDRvs USD 2012F Page 69 Sound macro economic indicators mainly supported by strong domestics consumption followed by a surplus trade balance.
  • 70. Source : Masterplan for Acceleration and Expansion of Economic Development of Indonesia, MP3EI  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
  • 71. Bali-Nusa Tenggara Corridor Tourism, Fishery, Livestock Sulawesi Corridor Food Crops, Cocoa, Fishery, Nickel, Oil-Gas Sumatera Corridor Palm Oil (CPO), Rubber, Coal, Steel & Sunda Strait Brigde Papua-Maluku Corridor Food Estate, Cooper, Livestock, Fishery, Oil-Gas, Nickel Kalimantan Corridor Palm Oil (CPO), Coal, Aluminum/ Bauxite, Oil-Gas, industryal Forestry, Steel Java Corridor Food & 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 Source : Masterplan for Acceleration and Expansion of Economic Development of Indonesia, MP3EI
  • 72. 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. Source : Masterplan for Acceleration and Expansion of Economic Development of Indonesia, MP3EI
  • 73. 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- TION 2. LEGAL & REGULATORY ENVIRONMENT LABOUR LAW 3. PHYSICAL INFRA- STRUCTURE ELECTRI- CITY INTERCON- NECTIVITY ROADS AIRPORT SEA PORT TRAIN & RAILWAYS TELECOMU- NICATION
  • 74. Page 74 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:
  • 75. Agenda Indonesia – Country Profile Indonesia Geography in Brief Demography Profile Growing Population Growing Middle Class Population Indonesia Economy Macro Economic Indicators Reliance on Domestic Economy Leading Economy Sectors Based in MP3EI Prospective industryes in 6 Economic Corridors Estimated Investments in Each Corridors Targeted Sectors – National & Regional Indonesia – Netherland Statistics Indonesian Banking Sector Banking Sector Performance BNI Roles in Supporting Indonesian Economy Opportunities & Challenges Ahead Closing Remarks
  • 76. 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
  • 77. Page 77 Global Innovation Indicators
  • 78. Targeted Sectors – National & Regional Agriculture Electricity Oil, Gas & Mining Engineering &Construction ChemicalCommunication Retail & Wholesalers F & B Page 78  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 .
  • 79. Source : Masterplan for Acceleration and Expansion of Economic Development of Indonesia, MP3EI 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
  • 80. Page 80 Indonesia Economic Challenges: Low Innovation Based on the Global Innovation Index Ranking, Indonesia is lower compared to other Asian countries Country 2013 2012 2011 2009-2010 Singapore 8 3 3 7 Malaysia 32 32 31 28 China 35 34 29 43 Thailand 57 57 48 60 India 66 64 62 56 Vietnam 76 76 51 71 Indonesia 85 100 99 72 Philippines 90 95 91 76 Global Innovation Index Ranking Sumber : WIPO
  • 81. Opportunities & Challenges – Regulation Aspects Factors Multi 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
  • 82. 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 institutions Source: 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 Jerman Perancis Inggris Jepang Kanada Korsel AS Italia China Turki Brasil Afrika Selatan Rusia ArabSaudi India Argentina Meksiko Indonesia Access To Financial Institutions Among G20 Countries Note: Assuming people, on average, own 3 saving accounts Source: 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
  • 83. Binova Events – Sharing of some Collective Ideas Page 83