2. EXECUTIVE SUMMARY
Bank Merdeka focuses on
cooperatives loans
About 96% of the bank’s portfolio consists cooperatives development credit, whereas there’s little to none
consumptive credit demand from the costumer’s.
The application of IT hasn’t been
utilized by Bank Merdeka
Study from the BCG shows that digital technology significantly boosts banks’ performances, as they can reduce the
complexity of their products and therefore making them more accessible. But unfortunately Bank Merdeka hasn’t held
the grasp on this opportunity.
Bank Merdeka potentially have an
competitive advantage on
executing loans
With their engaging style towards the customers and their fast, excellent responses, Bank Merdeka might have an
competitive advantage on giving executing loans. But this potential needs to be backed by a good marketing and also
with the help of technology to gain more customer.
The market size is still
concentrated on Western
Indonesia
Currently, Bank Merdeka still focuses on operating in the western Indonesia region. However, the financial inclusion
on the eastern Indonesia is still low, therefore there’s an opportunity waiting to be discovered by banks, and Bank
Merdeka could gain larger market size if they can accommodate the perceived demand on that region.
It is projected that they won’t be
able to be classified on Book II in
Bank Indonesia
With financial projections made, we can conclude that if the bank’s performance hasn’t changed much, then within
the next five years, it won’t be able to jump onto the Book II classifications, as their assets and profitability are still not
enough to grow to the expected level.
5. • Cooperatives-executing lending is still the
main credit product of Bank Merdeka
• There’s no market demand for certain
products of Bank Merdeka, namely
multipurpose loans and vehicle loans
• Housing loans is the least performing sellable
products
• Total products demand is decreasing because
of the non-competitive rates (17.5%)
compared to competitors
Current Strategic Positioning- Loans
6. • Cooperatives-executing lending is still the
main credit product of Bank Merdeka
• There’s no market demand for certain
products of Bank Merdeka, namely
multipurpose loans and vehicle loans
• Housing loans is the least performing sellable
products
• Total products demand is decreasing because
of the non-competitive rates (17.5%)
compared to competitors
Current Strategic Positioning- Loans
14. Target (Potential) Market
Income Levels Commercial Financial Services Locations
Cooperative of Indonesian
Civil Servants
(KPRI)
11.045 units
Standard Commercial Bank loans;
full range of savings services
Commercial
Micro loans
Middle-Income:
Rp3.000.000
Customers
Indonesian Civil Servants
(PNS)
4.450.000 people
15. Indonesian Inclusion
The implication to Bank Merdeka is
Bank Merdeka can not rely on its conventional
operational model, door to door (direct
approach), since it’s not relevant with today’s
Indonesia financial market customers. Although it
can enhance its capability to build emotional
relations to its customers, direct approach is
costly and not efficient enough which is proven in
financial statement stated that operational cost of
Bank Merdeka increases persistently from 2011 –
2014 even more it led losses in 2014.
Therefore, to overcome inevitable loss
of scale and cost issues, Bank Merdeka must
devise innovative operating models by adapting
digital financial services to meet customer
expectations and economic environments.
(Further explanation of operational model will be
explained in Recommendations).
17. Business Prospect
• Indonesia’s development in growing economic condition with banking competition and complicated people’s
needs become the main prospect for Bank Merdeka to take role in that needs fulfilment through the
partnership with cooperatives, especially with Cooperative Of Indonesian Civil Servants. However, we think
that we need to keep considering any possible risks appear among the financial sectors challenges by
maintaining liquidity adequacy, efficiency improvement, and productive assets quality of Bank Merdeka.
• Based on given data, the number of Cooperatives Of Indonesian Civil Servants (KPRI) all over Indonesia which
has been registered reaches 11.045 KPRIs, while Bank Merdeka has not reached all its potential markets.
• Therefore, it gives a big market opportunity to be focused on Bank Merdeka’s future service development due
to its new business model.
• Considering that condition, we believe that cooperatives development will have an impact on people’s needs
growth and development which can be supported through the existence of cooperatives in the future. Thus, it
gives a chance for sustainable development of Bank Merdeka who has a certain market share in serving
people’s needs through cooperatives partnership, especially with Public Officer’s Cooperatives.
• As a result, we assume that Bank Merdeka will have a growth of its income fees by 10%, 12%, 15%, 13%, 15%,
and 16% in 2015 – 2020.
18. Projected Financial Statements
AKUN 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
ASET
Kas 10978 9463 8229 7282 6332 5654 5140 5483 5041 4969
Penempatan pada Bank Indonesia
55654
7
50595
1
45995
6
41814
2
38012
9
34557
2
31415
6
42699
9
31579
4
25552
5
Penempatan pada bank lain 67385 61259 55690 50627 46025 41841 38037
13659
7
15380
8
27876
Tagihan spot dan derivatif 0 0 0 0 0 0 0 0 0 0
Surat berharga
35762
5
32511
4
29555
8
26868
9
24426
3
22205
7
20187
0
23250
1
23966
2
33068
7
Tagihan atas surat berharga yang dibeli dengan
janji dijual kembali (reverse repo)
0 0 0 0 0 0 0 92588
28084
3
0
Tagihan akseptasi 0 0 0 0 0 0 0 0 0 0
Kredit
35302
48
32093
16
29175
60
26523
28
24112
07
21920
06
19927
33
21125
12
20791
35
19194
52
Penyertaan 0 0 0 0 0 0 0 0 0 0
Cadangan kerugian penurunan nilai aset keuangan
-/-
15990
3
14536
6
13215
1
12013
7
10921
6
99287 90261 42582 48153 43290
Aset tidak berwujud 11118 10108 9189 8353 7594 6904 6276 5092 4771 4060
Akumulasi amortisasi aset tidak berwujud -/- 7099 6453 5867 5333 4848 4408 4007 3315 2873 2534
Aset tetap dan inventaris 41687 37897 34452 31320 28473 25884 23531 23449 21482 19996
Akumulasi penyusutan aset tetap dan inventaris -/- 24104 21913 19921 18110 16463 14967 13606 12613 11372 11251
Aset pajak tangguhan 10447 9497 8634 7849 7135 6487 5897 1576 1566 1452
Aset Lainnya 82695 75177 68343 62130 56482 51347 46679 46635 44768 39284
TOTAL ASET
89076
10
80973
11
73608
18
66914
54
60828
52
55297
63
25264
45
30249
22
30844
72
25462
26
19. • To attract more customers on having Bank Merdeka as the people’s financial
intermediaries, they have to know their most performing (flagship) products and focus on
those products and expand on related products to create efficiency, and abandon their
least performing products, as the other banks already have their advantage on those
products.
Recommendation: Create Competitive Advantage
22. Operational Model
Strong Agent Network Limited Product Variety Robust Technology Platform
-Instead of having to visit a bank branch,
customers can visit any of the designated
agent outlets set up by Bank Merdeka.
-Develop knowledge on local language
and culture in each provinces
Limited product selection in deposits
and payments. Ease of transaction as
customers only need to provide the
account number and mobile phone
number to conduct transactions.
-Instead of using door to door approach
Bank Merdeka should provide services
which are accessible in order to
maintain emotional engagement to a
huge proportion of their target market
by relying on existing mobile phone
users due to Indonesia’s high mobile
penetration rate
-Upgrade in IT system, particularly on
Financial controls, Credit controls and
Report format
