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TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................................... 1 CASE 1 ................................................................................................................................................ 2 PT SUMBER ALFARIA TRIJAYA TBK ........................................................................................ 2 CASE 2 .............................................................................................................................................. 19 PT ELECTRONIC CITY TBK ....................................................................................................... 19 CASE 3 .............................................................................................................................................. 32 PT BANK MUAMALAT INDONESIA TBK ................................................................................. 32 CASE 4 .............................................................................................................................................. 48 PT BANK TABUNGAN PENSIUNAN NASIONAL TBK ............................................................ 48 DATA TOTAL ASSET DAN SALES.............................................................................................. 59

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CASE 1 PT SUMBER ALFARIA TRIJAYA TBK

ALFAMART HISTORY Alfaria Trijaya Resources Tbk (Alfamart) was founded in 1989 by Djoko Susanto and family. Alfamart started its business in the field of trade and distribution, and then in 1999 began to enter the minimarket sector with the name Alfamart Minimart. Alfamart Minimart is under PT.Alfa Minimart Utama and was founded on July 27, 1999, with PT.Alfa Ritelindo, tbk as their shareholders that had 51% shares and PT.Lancar Distrindo for the amount of 49%. PT.Alfa Main Minimart was opened on October 18, 1999 located at Jalan Raya, Karawaci, Tangerang. On July 27, 2002, PT HM Sampoerna Tbk formally restructure its ownership in PT. Alfa Ritelindo which was originally 54.4% was reduced to 23.4%. On August 1, 2002, the ownership switch to PT. Sumber Alfaria Trijaya with shareholders of PT. HM Sampoerna Tbk amounting to (70%) and Sigmantara Alfindo by (30%) and then the name was changed from Alfa Minimart to Alfamart on January 1, 2003. In 2005 the number of Alfamart stores grow rapidly into 1,293 stores and all outlets are located in Java. Early 2006 PT. HM Sampoerna Tbk sold their shares, so that the ownership structure is going to PT. Sigmantara Alfindo (60%) and PT. Mulia Prima horizon (40%). Mid2007, Alfamart is the first Indonesian minimarket obtained ISO 9001: 2000 for quality management system with the number of outlets up to 2,000 outlets and have entered the Lampung market. As of January 15, 2009, Alfamart going to a public company by increasing the number of outlets reached 3,000-outlets and also entered the market of Bali. Number of Alfamart stores grow rapidly until 2013, the number of stores as many as 8517 outlets (40% located in Greater Jakarta, 45% were in Outside the Greater Jakarta, Bali and Lombok, while the other 15% spread outside Java{Sumatra, Kalimantan and Sulawesi}). As of December 2014 the number was increased to 9876 Alfamart. In March 2015, Alfamart through Alfamart Retail Asia Pte. Ltd. establish Alfamart Trading Philippines Inc. and by October 2015 already has 70 outlets with Alfamart brand name and targeted to 100 outlets by the end of 2015.

GENERAL INFORMATION 3

Alfamart carry out the vision, mission and philosophy to become "True Community Store". Therefore in addition seeks to meet the needs and convenience of the customer by providing basic goods at affordable prices is also a convenient place to shop, as well as an easily accessible location. Alfamart also provide added value to customers by providing service payment point, E-Services, knowledge about the product and internship opportunities for students and part-time employment for local people. In addition there is an information for the customer in the form of health information, promotional information, and others. Alfamart’s vision is to become the retail distribution network leader that owned by the public, oriented to small community development, meeting the needs and expectations of consumers, and be able to compete globally. While for its mission is to give satisfaction to the consumer by focusing on products and services of superior quality, always be the best in everything it does and always uphold behavior and high business ethics, to participate in building the country to foster the entrepreneurial spirit and business partnerships, and building a global organization that is reliable, healthy and growing and beneficial to customers, suppliers, employees, shareholders and society in general. Alfamart mascot is Albi, a friendly bee that has a fun character and ready to help anyone who needs help. Albi symbolizes Alfamart employees who are ready to help customers with sincerity to serve. Albi promote life and collective goals, avoid conflict, and always responsive to changes around him. Albi represents Alfamart commitment to achieve a collective goal, meeting the needs of Indonesian families with quality products at affordable prices and friendly service, to embrace the surrounding communities and a healthy competition. As a community outlets, Alfamart always participate in improving the welfare of the community through Corporate Social Responsibility (CSR) which is divided into Alfamart Care that helps people through social activities. Alfamart Smart supports education, Alfamart Sport sponsoring sports events, Alfamart Clean and Green to help getting a healthy environment, Alfamart SMEs to help small and medium entrepreneurs who are around outlets and Alfamart Vaganza who are actively involved in the development of arts and culture. Alfamart itself has repeatedly received an award. The latest in 2015, Alfamart Franchise re-elected for the eighth time as the top brand in the category of national minimarket in an annual competition organized by Frontier Consulting Group and Marketing Magazine, as well as Indonesia WOW Brand Gold Award from Mark Plus. Previously a number of other awards have been obtained, including: since 2007 awarded "the highest store equity index" from Nielsen Research; in 2008, 2009 and 2012 was chosen as Superbrands Indonesia; 2011 to 2014 received the Service Quality Award from Marketing magazine and CARRE of CCSL; 2010 4

and 2012 to 2015 receive Digital Marketing Award; as Indonesia 's Most Admired Company of the year 2009-2014; the 50 Top Companies for 2012 by Forbes Indonesia; Brand Leadership Award from CMO Asia; Best of the Best Retailers Award for Asia Pacific of Retail Asia Pacific; Hall of Fame Retail Asia Pacific Top 500 Awards from Retail Asia Pacific in 2014, and a series of other awards both at national and regional levels. In early September 2015, minimarket that bearing the ant symbol which is the main competitor Alfamart managed to establish cooperation ticket payment with a major airline of Indonesia. Whereas the previous two years, Alfamart has managed to foster co-operation with a number of airlines, one of which is a subsidiary of the airline in cooperation with the "Ant". Another thing that is also disturbing long enough is the "Ant" has more number of outlets owned than Alfamart, spread all over Indonesia. And although based on the results of a survey by AC Nielsen, Alfamart still occupying the top spot to store equity index, but the "Ant" has developed quite rapidly and significantly in the last two to three years for the shopping options in the minimarket. So that in 2014 the "Ants" won the Top of Mind Brand Award from the Indonesian Franchise Association and Dynamic Marketing Research Service.

BUSINESS ACTIVITIES Until the end of 2014, Alfamart has operated 9,800 outlets. Where 39% are in Jabodetabek, 43% in Java and Bali, and 18% were in Sumatra, Sulawesi and Kalimantan. The entire network of stores located in strategic locations close to the center of the crowd, activity centers, residential, offices and others demanding an adequate distribution system to ensure the availability of supply at any time in each outlet. Warehouse functions as a pillar of 9,800 outlets become central in the formation of a network of outlets into the vanguard Alfamart. Alfamart focus in 2014 while increasing the capacity of the warehouse services for the Jabodetabek area also develop the potential market outside Greater Jakarta. On December 31 2014 the ratio of consolidated total debt to total consolidated equity amounted to 1.63, an increase compared to the year 2013 by 1.36. The ratio increased of consolidated total debt to total consolidated shareholders' equity is mainly due to increased bank loans and bond issuance, as shown in the financial statements Alfamart. The consolidated net cash used in investing activities fell 10.33% to Rp 2.88 trillion (2013: Rp 3.21 trillion) mainly due to a decrease in stock investment. In line with business expansion, expenditure on fixed asset investment and prepayment long-term lease in 2014 amounted to Rp 2.43 trillion is increased by 11.71% compared with the year 2013 amounting

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to Rp 2.17 trillion. Funding comes from bank debt and a portion of net cash from operating activities. Since the public offering of shares Alfamart consistently make the payment of cash dividends. Based on the decision of the RUPS dated June 25, 2014, the shareholders approved the distribution of cash dividends amounting to Rp.160,44 billion from retained earnings at December 31, 2013. The Board of Directors has not yet determined the amount of the cash dividend to be proposed to the shareholders at the forthcoming RUPS.

MERCHANDISE As one of the largest retailer in Indonesia, Alfamart always endeavor to provide a wide range of goods with good quality and competitive price. The amount of goods sold about 500 items of products include household products daily with a composition of 60 percent is a product that quickly sold or fast moving items. To create customer satisfaction, Alfamart seeks to goods sold is always complete and available. To make sure it is working as it should, Alfamart have a section of Merchandising and Distribution Centre. Merchandising section, one of its tasks is to establish a relationship and build a good relationship with suppliers. While the Distribution Centre is to make products that have been received from the supplier could be channeled into outlets Alfamart. Merchandising department in coordination with the operational and logistical departments to monitor the availability of products throughout warehouses and outlets throughout Indonesia. In order to increase sales, merchandising department in collaboration with the marketing department preparing promotional programs involving the participation of suppliers. Some programs are conducted throughout the year 2014, among others; Surprise Early Years, Lively Birthday Alfamart, Proof of Love For You. A variety of goods with the type, quantity, and price to suit the needs and expectations of consumers at the right time, is a key strategy in achieving sales and merchandising optimal margin. Merchandising department is focuses on developing private label products as a form of brand awareness and to meet consumer needs for quality products at affordable prices, such as instant noodle products, disposable razor, tissue, electrical equipment, clothes and others. In accordance with its vision, Alfamart attempted to reach the widest opportunity for Micro, Small and Medium Enterprises (SMEs) in every area of operation to be able to market the product in Alfamart stores through house brand private label and typical regional products. Until now there are 500-600 of 4,000 SKUs SKU coming from SME suppliers. Alfamart on these efforts succeeded in getting the "Economic Challenges Award 2014" and judgment parameter is native Indonesian company 6

that capable of positive growth amid the global economic crisis, provide added value and contribute to the progress of the Indonesian economy.

INVENTORY & SUPPLY CHAIN MANAGEMENT In 2014, Alfamart has built seven new warehouses, 4 warehouses are used specifically for penetration outside Java Island include Manado, Kotabumi, Pontianak and Lombok. 2 warehouses in Karawang and Rembang to strengthen the ability of the distribution of merchandise in every store in the area. One warehouse in Parung to replace warehouse locations in Serpong. Alfamart throughout 2014, was implemented a mix of products policy with a composition of 70% food and 30% non-food outlets throughout Indonesia in each. Until 2014 Alfamart has more than 400 suppliers that provide more than 4,000 Stock Keeping Unit (SKU). To ensure the supply of logistics and distribution systems, Alfamart has built a system of web-based Business to Business for suppliers. With this system both Alfamart and suppliers can monitor logistics processes ranging from the reservation process to the availability of stock of goods. Alfamart and suppliers can work together in determining the strategic steps to increase sales and inventory efficiency. Warehouse

infrastructure

and

information

technology

systems

integrated

communications designed and developed so that the entire Alfamart warehouse able to serve the needs of supply for all outlets efficiently and effectively. The readiness of the supply chain and distribution become the main point and supporting network growth of Alfamart outlets throughout Indonesia. The effectiveness of supply chain management become very critical in ensuring the availability of goods throughout Alfamart. In addition to the timeliness and amount of an adequate supply at each outlet, inventory turnover is the main focus of Alfamart to always developed in line with the expansion of outlets are increasingly widespread. Selection of the location of the warehouse and distribution fleet readiness become an important support in supply chain management. To support the number of outlets that have reached more than 9800 stores, in 2014 Alfamart has opened 7 new barn with 6 warehouses (Karawang, Pontianak, Lombok, Kotabumi, Manado, Rembang) and 1 warehouse relocation (Parung). Until the end of year, Alfamart already operates 30 warehouses across Indonesia. However, unlike the warehouse located in Java, information systems available is still inadequate for storage outside the Java Island. Although the entire data warehouse and branch address can be seen in the office and accessed via an information system. Cumulatively scheduling of all business

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activities the company has a standard and has been running well as shopping activities, activities of opening and closing the store, and procurement activities of a particular event.

OUTLET At level as the forefront Alfamart outlets, some development is done as follows: 1. The use of tablet pc in each Alfamart. In the tablet features outlets employee can get the latest information to improve the effectiveness of the performance of outlets. 2. Development of Personal Data Assistant / Personal Data Terminal as a tool to monitor the receipt of goods, inventory check and return of goods. 3. The use of finger print as a means of absenteeism to facilitate and monitor employee attendance. 4. Development of online KK (Personnel Decisions), to accelerate the process of decision-making human resources department. 5. Upgrading the network connection on each outlet, so the ability of a network connection can be greater. This effort to meet the speed of data communication outlets to support the complexity and the number of transactions is high enough outlets. 6. Diversification Alfamart outlets pursued in 2014 was the development of the Car Store "Moko." Moko is a car designed as Alfamart. Moko ICT facilities needs to be designed and developed so that it is equal to the booth. Anticipating the increasingly fierce competition, in recent years Alfamart develop outlets in several formats such as: regular store, specific store, convenience store, Car Store and Container Store with the aim to expand the network and serves customers from a wide range of categories and locations. The treatment each outlet with the activities of controlling each of the periods specified for each area becomes mandatory for Alfamart in maintaining the quality of their outlets.

OPERATIONAL Operational department in collaboration with several departments are gradually implementing the clean standard, cool and neat for the whole format outlets. From the aspect of the service product, Alfamart develop a variety of products and facilities, among others; groceries, ready to drink, ready to eat, payment point and e-money. Operational departments supported by the relevant departments ensure that the products in each outlet is always available, high quality and easy to find. Payment point and e-money facility (value added service) is one of the Alfamart advantages. Until now, the services that can be enjoyed by 8

customers, among others; ticketing (plane, train), motor vehicle installment, online billing payment points (PLN, Telephone, Pay TV), e-money, courier / cargo and remittances. From the aspect of the process, Alfamart develop sales channels such as through regular store, Store Sales Point, delivery services and e-commerce (Alfaonline). For regular store, in addition to expanding the store network, Alfamart always ensure the entire infrastructure owned sufficient to support the operations of outlets so that the operational outlets to be accurate, fast and practical. Store Sales Point (SSP), which is an effort to establish cooperation with the Alfamart micro small and medium entrepreneurs to grow together develop business activity. Until the end of 2014 Pereroan has more than 80,000 members of the SSP / Outlet Patronage Alfamart. Anticipating changes in the lifestyle of modern society and the development of internet technology, Alfamart prepare Alfaonline that have been launched since February 2013. By the end of 2014, Alfaonline Alfamart has served 13 branches throughout Indonesia

HUMAN RESOURCES MANAGEMENT From the human resources aspect, Alfamart develop a service quality programs for all employees, through coaching programs, sharing knowledge and training. Since the last few years Alfamart always socialize standards of service as well as employees prepare a neat, friendly and caring at all outlets. As a basic binder of all employees, Alfamart has set the company's values. Values "2I 3K" is the basic mentality that must be met by all employees include: 1. High Integrity 2. Innovations for better progress 3. Highest Quality and Productivity 4. Teamwork 5. Customer satisfaction through best service Alfamart always focus on the recruitment process that is the initial phase of availability of qualified employee candidates. Alfamart run integrated recruitment process involving the relevant departments to ensure that the candidate employee has the competence, potential and culturally appropriate with Alfamart character. Recruitment department always tries to renew the tools used for hiring employees and get employees qualified candidates and ready to work. For that Alfamart always actively attend the labor market and recruitment activities at universities. Throughout 2014, Alfamart has recruited as many as over 38,000 new employees. All incentives and salary and allowances and 9

K3 are set by the government have been met in order to enhance the performance of each individual itself. Alfamart hold trainings which include enrichment training, mandatory training and development training. Training modules are always developed and adapted to the conditions and development of the current business world. In order to support the fulfillment of key positions and business development, Alfamart develop talent based training management system. Development of the training is done with two types of sources of candidates. 1. To develop the best talent from an external source, through the Management Trainee (MT) and Store Leader Development Program (SLDP). 2. To develop the best talent from internal sources, including program Management Development Program Coordinator (MDP) MDP MDP Junior and Senior Manager.

RETAIL INDUSTRY DEVELOPMENT With the development of the times, human activity becomes very dynamic with a solid work schedule each day. This encourages behavioral change in their activities, including in shopping. People want a faster shopping, especially on weekdays. To answer these problems, then retail businesses has to develop. Changes in people's behavior is followed by changes in business behavior that retail business is no longer just the traditional retail such as grocery stores, but evolved into modern retail such as minimarkets, supermarkets and the likes of them. In Indonesia especially big cities we very easy to find modern market in the form of hypermarkets, supermarkets and minimarkets. For the minimarket category, people very easily see them spread at residential areas and all over towns. Based on the results of mitigation spending Frontier Consulting Group, about 50% of household expenditure would be met by the products sold in the minimarket and increase attractiveness for investors. Products sold in the modern market is largely a product of daily needs. Based on Nielsen research results, there is a Top 10 categories of products seen from the growth in volume. Three product categories is among the Top 3 baby diapers, snack and cooking oil. Based on the Association of Indonesian Retailers (APRINDO), the average growth of retail business in Indonesia between 10-15% per year. Positive growth in the retail industry (minimarket) is an opportunity for the future development of this business. Retail sales in 2011 reached Rp.120 trillion and in 2012 reached Rp.138 trillion. In 2014, retail growth decreased only 8% from the previous year with sales of around Rp 184 trillion. This is presumably due to sluggish macroeconomic conditions and predicted growth in 2015 is only capable of reaching a maximum of 10%. This has an impact also on the growth of minimarkets also 10

experienced lower growth in 2014. As of March 2014 fell to 21.5% growth compared to the year 2012 which reached 22.8%. However the number of retail outlets minimarket always increasing from year to year. Based on data from Alfamart, in 2013 the number of retail outlets has reached 19.555 minimarket scattered in almost all cities in Indonesia and in 2014 increased to 22.788 outlets.

COMPETITION IN THE INDONESIA RETAIL INDUSTRY Based on Presidential Decree No. 118/2000 issuing the retail business of a negative list for foreign direct investment (FDI), has open the door for foreign retailers. Since then, foreign retailers began to bloom into Indonesia. The entry of foreign retailers in the business in this industry is very profitable. It is also evident from the development of the retail industry in the past 15 years, revenue generated continues to rise. The rise of modern retailing of course lead to competition among the modern retail. This can be seen from the site minimarket outlets with each other competitors are very close together there is even a position adjacent. Thus, consumers would be easy to choose the preferred retail and match the desires or in other words, consumers can easily be changed modern retail that wanted to visit. In the minimarket category, Alfamart and Indomaret are familiar in the eyes of consumers, even those brands occupy the top position in the Top Brand Award. Competition is very fierce between two minimarket. Both of these minimarket outlets do not hesitate to get closer to its customers. Alfamart and Indomaret outlet location can be found in a residential area and even side by side at large cities and small towns. The outlet number of these two minimarket are also compete closely. Indomaret very intensively in penetrating, evident from the number of outlets Indomaret which still ranks first compared with its competitors. In 2014, there were approximately 10.367 Indomaret outlets, while Alfamart amounted to 9876. Indomaret outlets targeting growth of 20% -25% in 2015, compared to 2014. While the Alfamart, until the end of 2015 plans to add 1,000 new outlets. Alfamart currently has 31 branches and warehouses are spread almost all over Indonesia. From the aspect of spending per buyer, Alfamart still outperformed Indomaret that Alfamart for Rp.421.000 / buyer and Indomaret Rp.396.000 / buyer. In addition to competition with Indomaret, Alfamart also have other competitors such as Circle K, Lawson, Starmart, and local minimarket in the local area. For in certain areas in Indonesia, that competitors is actually a threat to Alfamart.

ALFAMART MARKETING MANUEVER 11

Alfamart allocate marketing budgets through the medium of Above the Line and Below The Line. Alfamart has 3 main programs of integrated marketing (Customer Management Integrated Plan) : Sales Promotion, Marketing Communication and Customer Loyalty Program. 1. Sales Promotion Sales Promotion programs conducted regularly (seasonal or bi-weekly and monthly promos) by Alfamart aims to provide shopping solutions for consumers and make Alfamart as consumers preferred shopping destination. There are four major annual program that is routinely held that "Surprise Early Years", "Smile Family Indonesia", "Evidence For Your Love", and "Lively Birthday Alfamart". Some Sales Promotion programs in 2013-2015 using retention mechanisms such as stamp collecting and points that can be exchanged for prizes. For the years 2013-2014, a gift of licensed characters, such as Hello Kitty and Doraemon, Super Heroes and friends and in 2015, a gift of kitchen equipment that led to the largest segment of the Alfamart consumer mostly housewives. Then there are also other programs such as exclusive fair promotion, thematic promo, discounts and promo work with suppliers. There is also a sales promotion in the form of rebates, bundling, buy 2 get 1 free promotion and others. 2. Marketing Communications (Advertising and Event) Marketing communication strategy Alfamart focused through advertising and events activity or public event that can create a positive synergy between Alfamart and customers. This marketing communication is done through interaction via social media such as facebook fan page with Friends of Alfamart Indonesia account and twitter account alfamartku. Through this communication strategy, Alfamart brand awarded the Social Media Marketing Award in 2012. Alfamart events is conducted cooking demonstrations, drawing and coloring, modeling, beauty and health seminars and Posyandu were held in the House of Albi. Other events are organized "Gowes Alfamart Healthy Together", which is a regular program in order to enliven Lively Birthday Alfamart. In 2013, the event was held in 18 major Indonesian city on October 27, 2013 with the number of participants exceeded 100,000 lovers of cycling. Alfamart also make the program "Kids Shopping with Albi" for children and youth segments. In July 2013, Alfamart introduce "Albi Card", for children aged 6-12 years. In contrast to sales promotion programs, advertising and events programs were conducted Alfamart a combination of above the line and below the line. Social media were initially classified as below the line, because the number of followers a little and still be 12

personal, now classified above the line. Multiply the number of followers is certainly difficult to make the interaction more personal. However, this account would be very efficient to do marketing like the info Alfamart promos by spending almost free. 3. Customer loyalty program Alfamart intensively conduct community-based activities with the loyal consumers who become Alfamart members. Development of cooperation with national and local merchants conducted to provide additional benefits to its members through the promotion or special discounts at merchants who work together with a Alfamart membership card. Customer loyalty programs can be accessed by buyers that become a loyal customers to Alfamart by having a Alfamart membership card. Alfamart's membership (Member card AKU) in 2013 increased by 12.4% compared to 2012. In 2014, cardholders Alfamart has reached 4 million people where 44% of them are active members. Card holders can use the special service provided like "Arisan Member", a visit to the factory, Member gathering, discount "Save Special", Calendar Shopping Member, Reward Point and Point Redemption and much more. In 2015, Alfamart joined the Japanese company loyalty: PONTA. Cards AKU transformed into the card AKU PONTA since February 2015 to provide more benefits for its members. AKU PONTA cards currently have a member of more than 6 million people with 50% of them are active members. In essence, having this card will make customers get a variety of promos and discounts from Alfamart. Based on Nielsen Shopper Trends 2013 Research Company, Alfamart's membership card is a retail membership card that provides many benefits for consumers. Digital Marketing is becoming an alternative means of effective marketing communications, along with the growth of Internet users in Indonesia. Alfamart utilize Digital Marketing to introduce Alfamart brand through social media and website. This is done to expand the market to the upper class segment, which constitute the majority of internet users. Internet users are pampered with a variety of social media activities via Facebook Fan Page Alfamart Friends of Indonesia, Twitter @alfamartku, Line Alfamart. This strategy proved to give positive results, with awards achieved Digital Marketing Award from Marketing magazine three years in a row from 2013 to 2015. In 2011, Alfamart develop a payment point at the Alfamart cashier intensively. At this time, customers can enjoy the ease of paying regular bills such as electricity, telephone and motor vehicle installment, transaction booking train tickets, airline tickets, e-money and e-toll card at Alfamart. Various promotional activities continuously and periodically in order to

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provide more benefits to customers, including the provision of lottery prizes, free of payment free of certain products and administrative costs. Alfamart develop a new marketing channel that is Alfaonline via the Internet by accessing www.alfaonline.com since February 18, 2013. During the year 2013 the development of Alfaonline cover Greater Jakarta, Bandung, Surabaya and Yogyakarta.

INDUSTRY RIVALRY As a pioneer in the retail industry minimarket, Indomaret not stay silent in the face of its competitors. One of its main competitors is Alfamart. Currently Indomaret still outperformed in terms of the range and number of outlets are spread all over Indonesia. As of June 2015, the number of stores has reached about 11,170 with 31 branches in the cities in Java, Madura, Bali, Lombok, Sumatra, Sulawesi and Kalimantan. This broad distribution network that makes excellence Indomaret than its competitors. Other marketing efforts undertaken Indomaret in the face of its competitors by providing superior service to its customers in the form of onestop service. Currently Indomaret outlets in addition to providing the daily needs of the family, also provides personal needs. Indomaret collaborate with partners to provide additional services such as payment of electricity, telephone, remittances, the sale of train and plane tickets, tickets for concerts and others.

ALFAMART ACHIEVEMENTS Alfamarts market share in 2012 amounted to 31.4% and in 2013 rose to 33.3%. In 2014, the increase is only 0.9% compared to the year 2013 which became 33.6%. Based on the data, Alfamart revenue increased from 2009 to 2013. Over the five-year revenue growth reached 32.8%. Revenue growth in the first quarter (Q1) of 2014 compared to Q1 2015 reached 23.1%. Compared with its competitors Indomaret, Alfamart revenue in 2013 is greater Rp. 2 trillion. Indomaret revenue in 2013 only reached Rp.32.7 trillion, while Alfamart reached revenue to Rp. 34.8 trillion. In terms of profitability, Alfamart decreased in the first quarter of 2014 at around Rp. 25 billion compared with the first quarter of 2013.

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DATA TAMBAHAN 1. Top 10 Categories in Modern Trade Growth Driver In 2014

2. Indonesia Modern Trade, Super/Hypermart and Minimarket Growth 2012-2014 (%)

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3. Indonesia’s Minimarket Stores Number and Expansion Rate 2013-2014

4. Alfamart Stores Growth 2009-2014

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5. Alfamart Stores Location Based on Geographic Area 2009-2014

6. Alfamart Share To Total Minimarket 2012-2014 (%)

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Sumber : -

Annual Report PT Sumber Alfaria Trijaya Tbk Tahun 2012-2014

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http://industri.kontan.co.id/news/target-gerai-baru-indomaret-di-2014-tak-tercapai

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http://m.tribunnews.com/bisnis/2015/05/19/hingga-maret-2015-200-gerai-alfamartbaru-sudah-dibuka

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http://swa.co.id/corporate/corporate-action/indomaret-targetkan-buka-600-geraihingga-akhir-2015

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http://swa.co.id/business-strategy/management/jurus-indomaret-capai-target-omsetrp-42-triliun

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http://www.kemendag.go.id/

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http://www.alfamartku.com/en/

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http://www.alfaonline.com/

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http://www.kemendag.go.id/files/regulasi/2013/12/12/70m-dagper122013-id1387441243.pdf

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http://www.topbrand-award.com/article/kebangkitan-ritel-membangun-topbrand.html

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http://indonesiaretail.com/

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http://marketeers.com/article/inikah-wajah-industri-ritel-indonesia-tahun-ini.html

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http://www.trimegah.com/data/files/trim_fn_amrt_1.pdf

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CASE 2 PT ELECTRONIC CITY TBK

HISTORY OF ELECTRONIC CITY PT Electronic City Tbk (Electronic City) is an electronic products company that was established in November 1, 2001 by Ingrid Pribadi who currently serves as President and CEO of this company. Electronic City is one of the biggest electronics seller in Indonesia. Electronics City became a pioneer of modern electronic retail company in Indonesia by opening standalone stores and the flagship store in the Sudirman Central Business District (SCBD). The Company The idea arose when Ingrid was then viewed the lack of modern electronic retailing concept where products can be purchased at convenience shopping, one price policy differs from traditional markets such as Glodok (Jakarta), which requires a bargain price and the product offerings are also limited. Electronic City expand its stores network outside the Greater Jakarta by opening its first store in Denpasar at 2004 and Medan, North Sumatra at 2007. Elecronic City on June 25 to June 27, 2013 had an initial public offering of the release 333.333.000 shares at an offering price of Rp. 4050 per share and officially became a public company on July 3, 2013 with 1.334.333.000 registered shares in the Indonesian Stock Exchange (BEI) with ECII as the stock code. The shares consist of 1,000,000,000 listed founder shares, 333.333 million public shares, and 1,000,000 new shares beyond the initial public offering of shares allocated to Management as bonus. Shareholders that has 5% or more of the shares of Electronic City Indonesia Tbk ( 30.09.2015), is PT Graha Surya Kirana (25.57%), Andi Winata Bharata (23.15%), PT Graha Thanks Kirana (controllers) (13.77%), Personal Ridwan (12, 46%) and HSBC Fund Services, NT Asian Discovery Master FD (6.21%). Electronic City has a dual-branding strategy through two store concepts: Electronic City Stores (EC Store) and Elecronic City Outlet (EC Outlet) as a marketing method for a different segment target. In 2012, Electronic City also launched an e-commerce platform through the official website of the company as an effort to strengthen the company's image and attract customers who prefer to purchase products by online.

GENERAL INFORMATION 19

Electronic City has a vision for the future to develop a modern electronic shop with exhibition concept that provides the best services, supported by competent human resources and professional business partners to increase customer satisfaction. In this case, the company on a mission trying to become a leading company in electronics retail business with the widest and most modern networks and supported by a best services and complete facilities. Being the pioneers of modern electronics retailer EC carries the Smart Way of Modern Shopping, Electronic City which strives to provide electronic goods that have value for money, quality service and promoting excellence (value added) for customers. Electronic City as part of a corporate citizen was very aware of the importance of corporate social responsibility programs. Electronic City has implemented several social activities as a commitment to the implementation of corporate social responsibility. Through the course of this event, Electronic City hope to continue to contribute and give some benefit to the society. A several program has been done several years back. In April 2013, the company held a promo program called "CLEAN INDONESIA (ECO GREEN)" with the aim of raising public awareness in efforts to prevent global warming. By setting the minimum value of the purchase of electronic products in the company's stores which located in Greater Jakarta, customers who shop at the stores of the company are entitled to one tree. Through this program, the company seeks to educate the public to play an active role in efforts to curb global warming effect by starts from themself, from their neighborhood and starting from now. In addition, during the Ramadhan in 2013 and Christmas 2013, the company also organized a program "Bazaar" in collaboration with Artha Graha Peduli Foundation. This “Bazaar” gives a special price for the purchase of nine basic commodities such as rice, cooking oil and others held in the residential area around the Electronic City store in East Bekasi, Kampung Curug Pekansari, Oikumene Bahtera Kasih Church - Cilandak, Cakung, Pancoran Mas, Duren Tiga. This program is one of the company's commitment to make a positive contribution to the environment and the communities around the Electronic City stores. To raise children’s reading interest, in February 2014 Electronic City in cooperation with PT Express Transindo Utama Tbk. ( "Express Group") organized a program called "Express Your Concern" as an expression of concern for the development of education in Indonesia. Through this program, Electronic City and Express Group invites the public to donate a children's literature that will be distributed to less fortunate children through the Retno Palupi Noya Education Foundation, Rama - Rama. Communities can donate textbooks by entrust to the taxi driver Express or handed in Drop Box available at Electronic City outlets in the area of Greater Jakarta. In April 20

2014, Electronic City in collaboration with Toshiba, Electrolux and Sanken was donating to 12 orphanages and nursing homes and Education Foundation Rama-Rama. Donations made in the form of a several items that are considered useful to support the institution and the foundation activity. With innovative concept and continue to maintain customer satisfaction, Electronic City also won a several prestigious awards in the category Electronic Superstore among others, Top Brand Award 2014 for 6 years sequential since it was first achieved in 2009, Indonesia WOW Brand in September 2014, Corporate Image Award 2012-2013; The first rank with excellent achievement (1.414) in Electronic Supermarket category, Superbrands 2012-2014, 2013-2014, Social Media Award from Marketing Magazine and Frontier; The first rank with the achievement of BEST (64.51%), Service Quality Award from Markplus, In addition the company also gave an award to honoring some principal in Electronic City Award program that was held in 2013. The company expects to provide the spirit of the brand to continue to be the best in terms of products and services offered.

BUSINESS ACTIVITIES The Company currently offers more than 9,000 different units of the company's stock in the company stores based on four main categories: the audio-video, household appliances, telecommunication devices and gadgets, as well as information technology equipment and office equipment. The company sells quality products from major brands both international and local, such as Apple, Blackberry, Electrolux, LG, Modena, Panasonic, Polytron, Samsung, Sharp, Sony and Toshiba, as well as generic products. The company is also developing long-term relationships with major business partners of the company as supplier of branded products, consignment vendor which the Company obtain some generic products, property developers, land-owners, supervisor of the credit card and third party financing companies, as well as the latest media. The newest partners in 2016, was with Home Credit Indonesia as a multi-purpose financing company. It is obviously beneficial to both the company and support the growth of both companies. Currently, customers can obtain Electronic City products such as audio-video, household appliances, televisions, gadgets, cameras, laptops and office equipment at more than 70 Home Credit Indonesia points of sale which are spread in Greater Jakarta, Bandung, Makassar and Surabaya. Customers can simply come to the point of sale in Electronic City stores and complete the financing application and approval process about 30 minutes.

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In an effort to raise their business growth, the company continues to invest by increasing the number of outlets with the range of 8-10% each year and doing business contracts with several lenders. Company distributed dividends of Rp 12.94 billion or 10% of the company's profit in 2014 that reached Rp 129 billion. Dividends distributed to shareholders in cash.

INVENTORY & SUPPLY CHAIN MANAGEMENT The company is committed to ensure the quality of products that are offered by the company, therefore the company supplied their products directly from manufacturers and authorized distributors, and the company has an inventory warehouse to keep their product and to distribute their products through the Electronic City stores. The company acquired their generic products from consignment vendor basis. Proceeds from sales of generic products will be collected in advance by the company and subsequently paid to the consignment vendor after deducting their commissions. To avoid any disruption to supply, the company diversified its suppliers. By the end of 2012, the company obtained the branded and generic products supply from about 50 suppliers of branded products and 40 suppliers of consignment vendor. In its inventory distribution activities, the company implements a centralized process for supply chain to produce a better inventory management. Suppliers and consignment vendor distributes small and medium sized products directly to the store, while the products in large quantities and sizes are sent to 11 (eleven) distribution warehouse spread over the islands of Java, Bali, Sumatra, Kalimantan, and Sulawesi. Distribution of supplies is being held every periodically depending on the demand in each store outside Jakarta and surrounding areas and by the analysis results from the central office. Currently, the company owns and operates 49 delivery vehicles to handle logistics operations, including delivery to the customer location and transportation from the warehouse to the store. The company carefully monitor and manage inventory levels as much as possible to adjust the product quantity and consumer demand. The company does not store the inventory for generic products because these products are sold through consignment system. Suppliers typically inform the company about the dismissal product is approximately 2-3 months months in advance, so that the company can design a promotions together with suppliers to sell the inventory products that will be discontinued. The company also employs a permanent employee at the store level to monitor inventory levels and identify products that experienced a sales slowdown. For the year ended December 31, 2014, the average inventory turnover days is 77 days.

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OUTLET

Electronic City Stores (EC Stores) - Display and product presentations at the EC stores uses a blue concept. EC stores has a main target the upper middle class consumers. Basically, gross sales area ranges between 600 and 2,500 m2. Until the end of December 2014, Electronic City operate 51 EC Stores are located at strategic locations in the mall, shop and stand alone (standalone). The total gross sales area of 51 EC stores is 61 546 m2.

Electronic City Outlet (EC Outlet) - Display and store product presentation at EC outlet uses the concept of red. Has the entry-level and middle-class consumers as their main target. In general, the area gross sales ranging from 350 up to 700 m2. Until the end of December 2014, Electronic City operates 16 EC outlet which are located at strategic locations throughout the mall and shop. The total area of the gross sales of 16 EC Outlet is 8083 m2.

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OPERATIONAL Until the end of the period of December 31 2014, the company has operated 67 consisting of 51 EC stores and 17 EC outlets in big cities with a population dense as in Jakarta, Bogor, Depok, Tangerang, Bekasi, Banten, Purwakarta, Solo, Lampung, Balikpapan , Pontianak, Medan and Bali with gross sales area of about 69.629 m2. The company's stores are located in malls, shops and stand alone (stand-alone). In Electronic City operation activities, their often make the renovation and relocation of the outlets needed. At each of its outlets, Electronic City apply some concepts such as exhibitions where products are grouped according to the products brand. To improve their bussiness operations, Electronic City doing an innovative breakthrough that focuses on customer since November 2014 until now and successfully completed the implementation of SAP ERP 6.0 Retail. SAP ERP 6.0 Retail helps the company to run more efficiently by looking at business processes in real-time. SAP ERP 6.0 Retail is an integrated retail solution that enables real-time planning, execution, reporting, and analysis of business processes end-to-end, including logistics and distribution.

HUMAN RESOURCES MANAGEMENT In conducting its operational activities as a company that engaged in the business of retail electronic products, the employees at the company's stores have an important role in providing services to customers and build customer loyalty. Store employees consisted of sales force, supporting and logistics. Of the total sales force in company stores, 65% of the sales force are promoters provided by the supplier where for salaries and training costs are borne by the supplier. Promoter sales force has been equipped with knowledge about the features and benefits of their products that sold in the stores. All sales forces who worked in the stores of the company are required to undergo training on selling skills training and the promotion of payment options held by the company, or within a certain time held by the company supplier. The company also regularly provide a training to supporting personnel in the company's stores such as customer service, cashier, Goods Pick Up (GPU), and the tester. Training provided include business process knowledge of the company, standard operating procedure (SOP), and training on how to provide service excellence. In addition to the development of human resources in achieving the company objectives, the company consider the alignment between the interests of the company and the employee's needs. It is for the realization of employee benefits which increased motivation, loyalty and productivity of employees.

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In retaining skilled and potential employees, the company introduced a competitive remuneration system. The composition of the income received by the company's employees have met the standard of minimum wage (UMR). In addition to improving the welfare of the employees, the company provides the social security program. For store employees, the company also provides bonuses and other incentives if they meet sales targets. For sales forces employed by suppliers sometimes gets an additional incentive for the sale of certain products. Since the company was establish 12 years ago, the total number of employees at PT Electronic City Tbk in 2014 was 890 employees.

RETAIL INDUSTRY DEVELOPMENT With the development of the times, human activity becomes very dynamic with a hectic work schedule each day. This encourages some behavioral change in their activities, including in shopping. Communities want speed while shopping, especially on weekdays. To answer these problems, then retail business was rised and developed. People's behavior changing is followed by changes in business behavior which is caused a retail business is no longer just the traditional retail such as grocery shops, but developed into a modern retail minimarket, supermarkets, department stores, specialty stores, and the like. Indonesia is ranked 12th in the Global Retail Development Index (GRDI) released 2015 AT Kearney. This is the highest growth rate ever achieved since 2001. GRDI index covers 30 major developing countries in the retail investment worldwide. Despite a slight decline in retail sales per capita in 2014, total retail sales grew 14.5%. The sector is down in early 2015, but retailing continued to be drawn by Indonesia's large population and growing middle class. AT Karney noted the retail market in Indonesia is currently at USD326 billion or worth Rp4.306 trillion. Nevertheless higher operating expenses such as salaries and rental costs will indeed depress operating profit of the company. Plus the increase in fuel and the weakening of the rupiah in 2014 can weakenned consumer purchasing power, especially in the electronics sector which affect to business growth. Retailers must be careful in observing the opportunities and challenges that exist. Along with the retail market in Indonesia continues to grow, it is necessary to repair the infrastructure and regulations more favorable to help this sector grow further. In February 2015, the government announced plans to invest $ 22 billion in infrastructure projects, although some investors are skeptical because of the potential use of uneffective using

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of funds. In the other hand, the rules still remain tight, after the Ministry of Commerce recently affirmed restrictions on the maximum number of franchises and shops.

COMPETITION IN INDONESIA RETAIL INDUSTRY Based on Presidential Decree No. 118/2000 that issuing of a negative list of retail business to foreign direct investment (FDI), therfore its open the door for foreign retailers. Since then the foreign retailers began to bloom into Indonesia. The entry of foreign retailers in the business in this industry is very profitable. There are also an evident from the development of the retail industry in the past 15 years, revenue generated continues to rise. The proliferation of modern retailing of course lead to competition among the modern retail. Not to mention for the electronics category in particular, modern electronics retailer still has to compete with traditional markets such as Glodok, Mangga Dua, and the like which has its own position in the market share of electronics. Thus, consumers would be easy to choose the preferred retail and match the desires or in other words, the consumer could easily change or switch from modern retail.

MARKETING STRATEGY By applying dual-branding strategy of the EC stores and ES outlets, the company seeks to reach different segments. EC store for the upper middle class, while EC outlet for beginner and intermediate level targets by presenting products that are affordable. Basically companies provide competitive prices among modern electronic retailing by conducting regular reviews on every product prices together with the supplier of the company. The company, suppliers and consignment vendor often continue to provide gifts and a promo package. Pricing policies conducted centrally so that the change in the price or special promotional piece can only be approved by the head office. Electronic City ensures ease of transaction for its customers. There are various ways of payment other than in cash, as credit cards from major banks, debit cards, as well as the system of financing the privately run like Aeons, and Adira Finance. 0% installment for 3, 6, or 12 months are also available from some banks advocates using a credit card to purchase various products. Electronic City provides free installation services, delivery of goods to the destination (home delivery), trade service, free of cost surcharge of 3% for transactions with credit cards, as well as after-sales service is the mainstay Electronic City through their service center, either in the form of extended warranty at a cost that is very light, up to the service repair / maintenance for products that are not covered by the warranty. 26

In advertising and promotion, Marketing Team undertake effective media selection wether by using a print, radio, or television as a media to promote their store activities, or increase their brand recognition and brand awareeness. Electronic City is also often hold an events that are attractive when the official opening of the outlets were inaugurated. E-commerce and e-mail marketing is also part of their strategy to harness the development of the digital era to reach a wider market.

INDUSTRY RIVALRY Because the company is playing in the category of electronics seller, besides having to compete with traditional stores such as markets Glodok and hypermarkets such as Carrefour and Hypermart, of course Electronic City has the closest competitor which is in the category of specialty retail (specialty stores) both foreign and local, such as Electronic Solution (Singapore), Best Denki (Japan), Agis Electronic. In the development of its business since their entry into Indonesia in 2005, Electronic Solution indeed become very aggressive competitor in developing outlets in Indonesia. Until 2014 ES operate 56 shops spread to the eastern part of Indonesia not only in the capital but also in the district. Electronic Solution also often promoting a varied order to increase brand awareness in the community. Business contracts with business partners were often carried by ES in efforts to improve business productivity. In 2013, ES signed a cooperation contract with the Economic Bank to meet financial needs. As a competitor for Electronic City, ES also offers a complete product and after-sales services. But at this time, ES had no concept of stand-alone stores such as Electronic City, Electronic Solution is still sell their products at mall. In 2013 Electronic Solution has a market share of 34 , 8% below the Electronic City which has a market share of 44.6% in electronic modern retail industry. ACHIEVEMENTS OF ELECTRONIC CITY Based on electronical product sales data in 2014, ECII managed a market share of electronic sales which amounted to 44.6% from total sales of the electronics retail segment modern. Along with the Company's success opening new stores as many as 33 stores in 2013 and 11 new store in 2014, sales contribution of new stores was increased although not all of their stores can achieve the targets that have been set. From the aspect of the financial performance of the company, they earned revenues of Rp2.226,77 billion in 2014, which is increase by 10.6% compared to revenues in 2013 (Rp2.012,61 billion). The company's revenue 27

growth is still above the growth of the electronic market, though the growth of the electronic market was growing negative reality - 7% in 2014. Net income amounted to Rp129,45 billion, declining by - 37.45% compared to the year 2013 by Rp206,78 billion. This decrease was due to the achievement of sales for stores that opened in 2013 and when in 2014 their not reached the targets set and the cause of weakening of the rupiah compared to foreign currencies, especially the US dollar which caused a decline in the purchasing power of electronics customers and the fact that the price of electronic products otherwise increases as a weakening rupiah. If referring to the last year which is 2015, PT Electronic City Indonesia Tbk (ECII) getting a net profit in Q1 2015 amounted to Rp18,67 billion or Rp14 per share, down 28.27% from the net profit in Q1 2014 which Rp26,03 billion or Rp22 per share. ECII performance drop due to increasing of employees and transport services expenses which are reflected in operating expenses that increase from Rp66,87 billion in Q1 2014 to Rp82,35 billion in Q1 2015 or increased by 23.15%. The cost of goods sold also increased from Rp373,41 billion to Rp393,75 billion.

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ADDITIONAL DATA : 1. Electronic City Sales Data 2012-2016

2. Market Share Data 2013

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3. Expansion growth of Electronic City outlets

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Sumber : -

Annual Report PT Electronic City Tbk Tahun 2012-2014

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http://www.corp.electronic-city.com/

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http://www.trimegah.com/data/files/trim_cf_20150303_ecii_undemanding_valuatio n_to_buy_1.pdf

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http://bisnis.tempo.co/read/news/2014/07/05/090590584/rupiah-loyo-tokoelektronik-turunkan-target

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http://investasi.kontan.co.id/news/tahun-penuh-tantangan-bagi-electronic-city

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http://industri.kontan.co.id/news/sengitnya-persaingan-gerai-elektronik-modern

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http://axelrizky.blogspot.co.id/2013/11/persaingan-perusahaan-electronic-city.html

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http://www.marketing.co.id/perluas-pangsa-pasar-lewat-email-marketing/

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http://www.datacon.co.id/Ritel-2011ProfilIndustri.html

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http://www.marketing.co.id/elektronik-city-inovasi-ritel-berkonsep-pameran/

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https://www.bankekonomi.co.id/1/2/tentang-kami/siaran-pers/sinergi-electronicsolution-dan-bank-ekonomi

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http://www.beritasatu.com/pasar-modal/220844-kenaikan-kelas-menengahpeluang-bagi-electronic-city.html

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http://www.sinarharapan.co/news/read/150911538/electronic-city-selesaikan-saperp-6-0-retail

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CASE 3 PT BANK MUAMALAT INDONESIA TBK

SEJARAH BANK MUAMALAT PT Bank Muamalat Indonesia Tbk was found in 24 Rabius Tsani 1412 H or November 1st 1991 by Majelis Ulama Indonesia (MUI) and the Government of Indonesia. Bank Muamalat started their operational activities on 27 Syawwal 1412H or May 1 st 1992. Fully supported by the Ikatan Cendekiawan Muslim Indonesia (ICMI) and a few Moslem entrepreneurs, the bank was also earned 84 billion rupiah as a financial support from the communities, this can be seen on the company’s financial document. In the opening ceremony of Bank Muamalat at Istana Bogor, they also got an additional support from the local citizen of West Java as much as 106 billion rupiah. In Islamic perspective, bank interest rate is being considered as haram. Therefore, the Majelis Ulama Indonesia established a forum which constructs the idea of Bank Muamalat as a sharia bank with a profit sharing system instead of interest. Muamalat was the first sharia bank in Indonesia. Within 2 years after the establishment, Bank Muamalat has been awarded as Foreign Exchange Bank. This brought the company as the first and the most well-known bank in Indonesia with various developed products and services. In the late 90s, Indonesia has been going through a terrible monetary crisis which destructs most company in South East Asia. National banking sector was stuck in a nonperforming loan and the impact also got Bank Muamalat in trouble. The credit risk ratio came into its highest point at 60% in 1998. The company was getting a 105 billion rupiah loss and the equity came into its lowest point at 39,3 billion rupiah, less than one-third of the initial investment. To restructure the capital budgeting, Bank Muamalat seek for potential investor and fortunately the call was positively responded by the Islamic Development Bank (IDB) in Jeddah, Saudi Arabia. Effectively on June 1st 199, IDB was officially being one of the biggest investor of Bank Muamalat. In a period from 1999 to 2002, Bank Muamalat has succeedingly inverted the company from loss to profit with the help of full effort and dedication of each and every crew of the company, supported by strong leadership for strategy development and high consistency on the pure sharia concept. Thus, that was one of the most challenging period for Bank Muamalat. Through this hard time, Bank Muamalat did well in rising up to prosperity.

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Next, Bank Muamalat promoted their five year plan for operational activities with the emphasis on (i) asset restructurisation and program efficiency, (ii) no reliance on extra investment, (iii) no HR dismissal and payroll deductions in cost efficiency, (iv) higher crew’s personal confidence as the main priority of new board first year agenda, (v) set the new business foundation with work discipline as the new board second year agenda and (vi) rebuild the business pillars by creating business possibilities for third year agenda and so on which will bring Bank Muamalat to the era of growth and development.

INFORMASI UMUM Previously, Bank Muamalat’s vision is “To be a top Islamic Bank in Indonesia, Dominant Market admired Emotional and Rational Market”. With the vision of Bank Muamalat is committed to continue working optimally in an emotional as well as rational market. Bank Muamalat will continue to meet the trend of rapid growth of Islamic banking in recent years and the future. Bank Muamalat also come with the vision to be “The Best Islamic Bank and Top 10 Bank in Indonesia with Strong Regional Presence” and mission to build a strong and visionary sharia financial institution with the emphasis on entrepreneurship spirit under the principle of carefulness, Islamic and professional human resources with the innovative investment orientation, to maximize the four initial goal of the company which are enhancing the quality of Indonesian community social life, increasing the society’s participation in national economy development, developing healthy financial system and principle and enhance economical behavior on national society. There are a few meaning behind the logo of Bank Muamalat. If seen carefully, the logo consists three Hijaaiyah letter which are Daal, Yaa’ and Nuun. They represent a series of active economic operations in a healthy and developed country. The meaning behind water icon of Muamalat comprises a purity and strength towards the root of Islamic concept as the basis of Bank Muamalat system. The purple theme is also a trademark of Bank Muamalat. As written in UU Republik Indonesia No. 25 2007 about Capital Investment, article 15 (b) mentions that “Every capital investment are obliged to conduct a corporate’s social responsibility”. Besides, according to the applicable terms and conditions of Good Corporate Governance (GCG), every bank are obliged to report all GCG information related to the distribution of funds for social events. Throughout 2014, in conducting its CSR activities, Bank Muamalat stressed to four (4) aspects of CSR activities which include environmental, social community development in cooperation with Baitulmaal Muamalat (BMM), Rumah Zakat (RZ), and Badan Amil Zakat Nasional ( BAZNAS), employment, work health and safety (K3), 33

responsibilities to the customers as well as a special program “Bersama Muamalat Merajut Nusantara” in the commemoration of Bank Muamalat’s 22nd Anniversary. To continue corporate’s commitment in supporting the government on educational sector, Bank Muamalat grants thousand of office supplies from the old office to educational institution in Indonesia as a form of Corporate Social Responsibility (CSR). This “Furniture of Hope” program has been operating until December 2015. Up to 1,500 furnitures with the total value of 1,7 billion rupiah has been granted to 75 educational institutions which includes civil society organizations, schools (pre-school to high school & Islamic school) and masjids located around Jabodetabek, Bandung, Sukabumi, Cianjur, Banten and Majalengka. The donated furnitures include office chairs, credenza, working station, office desks, hanging closet, wall racks and book shelfs. In 2014, PT Bank Muamalat also held a program called ‘Bersepeda Jelajah Nusantara’. Along with ‘Muamalat Merajut Nusantara’ through ‘Ride for (Do) Nation’, it is the first program in Indonesia that held by Bank Muamalat. Corporate Banking Director of Bank Muamalat, Indra Yurana Sugiharto said that this program intends to implement the whole CSR program in 22 local cities which are passed by the trip. This program focuses on educational, health and economic development aspects. Bank Muamalat also established health care program with the main activity is blood donor as one of the CSR program. This program targeted 200 donors whose blood will be distributed to the Palang Merah Indonesia (PMI). Until the middle of 2014, Bank Muamalat has held eight corporate events which includes Muamalat Berbagi Rezeki II/2013 amd Penyerahan Bantuan Madrasah Banten Program Unggulan Kementerian Agama (BPS BPIH). Bank Muamalat has been awarded to numerous accomplishments. The latest in 2015, Muamalat has been given multiple awards. The latest award is in 2015, Bank Muamalat got a title as the Best Islamic Retail Bank dan Best Islamic Bank in Indonesia. Bank Muamalat has gotten the title for 7 times in year 2006, 2008, 2009, 2010, 2012,2013 and 2014. Beside that, in year 2012 Bank Muamalat also earned an award as The Most Innovative Islamic Bank in The World. The award came from Islamic Finance News (IFN) in IFN Awarding ceremony 2014 which lasted in Shangri-La Ballroom Hotel, Kuala Lumpur, Malaysia. Other than that, PT Bank Muamalat Tbk. also got a prestigious international award in the 9th Annual Southeast Asia Award Luncheon which lasted in Jakarta, September 2015. In the event, Bank Muamalat also get an award as Best Islamic Bank In Indonesia. Bank Muamalat succed to uphold that awards continuously for 7 years from 2009 until 2015. President Director of Bank Muamalat Endy Abdurrahman said that award from Alpha Southeast Asia is the proof 34

and commitment of Bank Muamalat to always improving and making innovation in the field of banking for all the Bank Muamalat customer.

BUSINESS ACTIVITY Currently, Bank Muamalat has a service for more than 4.3 millions customer through 457 branches around Indonesia. BMI networks is also supported by their alliance trough more than 3700 online post office/System Online Payment Point (SOPP) in Indonesia, 1958 ATM, also 95.000 merchant debet. Today, Bank Muamalat is also the only syariah bank which has been open a branch in outside the country which is in Kuala Lumpur, Malaysia. To increase the accessibility of customers in Malaysia, Bank Muamalat works together with Malaysia Electronic Payment System (MEPS) so that BMI service can be accessed in more than 11.000 ATM in Malaysia. Other than that, Bank Muamalat has a product named Shar-e gold with chip technology, the first technology in Indonesia which can be used in 170 countries with no extra expenses in all merchant with Visa logo. Up until year-end 2014, Bank Muamalat has increased its assets by 16.17% from a position a year earlier, along with a 3.12% growth in financing disbursement. Customer deposits likewise grew by 22.53% over the level achieved in the previous year. Meanwhile, net income for 2014 amounted to Rp 57.17 billion, as compared to net income of Rp 165.14 billion recorded in 2013. From the viewpoint of the Board of Commissioners, the achievements and overall performance of Bank Muamalat in 2014 was a reflection of market dynamics as well as general conditions in the banking industry during the year under review. It should be noted here that the decline in net income in 2014 was solely the effect of the significant increase in earning assets impairment provisioning in line with the deteriorating quality of Bank Muamalat’s financing portfolio. In addition to earning assets loss provisioning towards a healthier balance sheets going forward, the Board of Directors has also taken the necessary steps to anticipate and prevent the deterioration of quality in the financing portfolio with current collectibility status, including by being highly selective in the disbursement of new financing facilities. Moreover, the main focus of the corporation in the consolidation period of 2015 emphasizes on the improvement of the investment portfolio and fund raising structure to achieve the quality of a healthy, strong, and sustainable balance sheet. Therefore, in 2015, the Bank will focus on; (i) improving the quality of financing, (ii) increasing productivity and cost efficiency, (iii) implementing Excellent Business Process Management, (iv) strengthening

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Bank Muamalat’s main advantages, (v) reorganizing and transforming Human Resources and (vi) transforming risk management.

BENTUK LAYANAN & PRODUK As one of the pioneer in Syariah bank in Indonesia, Bank Muamalat always makes serious efforts to serve multiple kinds of products/services with many excellences and advantages. Bank Muamalat provides funding, financing and multiple banking service for the society such as transfer, ATM, bank draft and also infaq and zakat payment. Product services that Bank Muamalat offer is certainly use a syariah system with zero interest rate for all of the process. Some of the financing product that Bank Muamalat offers are Muamalat Dollar iB Saving, Muamalat Prima Saving, Umroh saving, Pension saving, Mudharabah Deposito and Deposito Full Invest. Meanwhile for the financing payment products, Bank Muamalat has KPR Muamalat iB, Muamalat Umroh Financing, Capital Investment Financing, LKM Syariah Financing, Pembiayaan Hunian Syariah Bisnis and many others as recorded in the Muamalat official website. Basically, Bank Muamalat enables to fund many business sectors which are not contradicted with the syariah system for small/micro segment, medium and corporation. As many others syariah bank, Bank Muamalat gets the profit from distribution of funds which is conducted from murabahah fund and lease margin, profit sharing mudharabah fund and and also from fee services (ujrah). Bank Muamalat built their branches with a very fascinating design and it attracts customer to come and do the transaction, additionally, Bank Muamalat employee must be required to use Moslem clothes to build the Islamic atmosphere in the office. The service in the office is also completed by supportive technology to represent the information and services with more leverage for the customers. Unfortunately, the amount of branch and ATM in Indonesia is still less than any other conventional bank in Indonesia where Islam is a majority.

MANAJEMEN RANTAI PASOKAN Tight business competition in a globalized world requires Bank Muamalat to develop strategies and tactical daily business. Basically, the core of business competition lies in how a company implements the process of creating products or services cheaper, better and faster in comparison with its competitors. One of the ways is to implement a strategy of supply chain

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management. The activities involved in supply chain management of Bank Muamalat is the flow of goods, information flow, the flow of transactions and the flow of money. To support the supply chain management, especially on the flow of information and the flow of transactions, Bank Muamalat invested US $8 million in the development of Islamic banking technology infrastructure in the next five years. Bank Muamalat cooperates with the information technology systems provider, Oracle Financial Services Software, a subsidiary of Oracle Corporation. Through the development of these infrastructures, Bank Muamalat expects to standardize and automate business processes so that the velocity of transactions and services can be done more efficiently. In addition, to support the flow of goods, transactions and money, Bank Muamalat cooperates with various partners including PT Pos Indonesia, SRB (Sharia Rural Bank) and BMT (Baitul Mal Wa Tamwil) Sharia for distribution of product sales and various banking transactions, Office of PT Pos Indonesia, as a network partner of Bank Muamalat Indonesia, which became a point of meeting for the communities to get a Shar-E card in 4800 Pos Indonesia outlets distributed throughout the archipelago.

GERAI Bank Muamalat has a system of services or facilities in cash payments made by customers at counters or payment point (PP) which has been working with Bank Muamalat. The facility is better known as PPOB (Payment Point Online Bank). PPOB has two services, namely desktop and mobile counter counter. Desktop counter utilizing a computer/laptop is connected to the printer for its operations, while mobile counters utilize smartphone devices connected by Bluetooth mini printer for its operations. By using the PPOB booth, customers can transact without administrative costs and gain other benefits. Placement of Bank Muamalat outlets, both branches and ATMs, is strategic because it is spread in 34 provinces in Indonesia, especially in big cities like Jakarta, Bekasi, Depok, Bandung, Surabaya, Makassar, Medan, Bali and so on. The extensive distribution sometime causes difficulties for controlling activities because of the considerable additional costs. Sometimes, technicians in small towns do not have sufficient proficiency. Therefore, they have to be brought from the big cities. Anticipating the increasingly fierce competition, in recent years the Bank Muamalat develop outlets in several forms one of which is the Virtual Account.

37

The layout in Bank Muamalat outlets are not much different from other banks in general. The design used in line with the color theme that carried by Muamalat is purple. Although the Bank Muamalat outlets look modern and attractive, the layout of the room did not have a point of difference with Islamic banks and other conventional.

OPERASIONAL In conducting its business, Bank Muamalat has three operating principles, namely the principle of sharing, the principle of buying and selling with the profit margin and the principle of fee (services). Meanwhile, the operational mechanism of Bank Muamalat as interest-free bank

and

syariah

principle

include

the

following;

(i)

wadiah/deposit,

(ii)

mudhanabah/investment, (iii) murabahah/purchase for investment financing, (iv) ijarah/ lease, (v) wakalah/transfer, (vi) musharaka/joint venture, (vii ) kafalah/bank guarantee, (viii) sharf/foreign exchange trade, (ix) qardh/loan (x) istishna/purchase orders for industrial and (xi) salam/purchase orders for agribusiness. In Bank Muamalat, the operations manager in charge of several parts, namely teller, back office, and supervision. In recent years, Bank Muamalat operates Weekend Banking in several cities. Weekend Banking is operational service in which the office not only operates on weekdays (MondayFriday) but also on Saturday and Sunday with specific working hours. The locations of Bank Muamalat which runs a program Weekend Banking among others, is Pondok Indah branch, South Jakarta, Palembang in South Sumatra and Bandung, West Java. It was considered by where potential travelers were crowded on the weekends in those cities. During the running Weekend Banking in those cities, Bank Muamalat keeps close watch on market response to the service, and will be developed through branch offices in other provinces in Indonesia. 38

MANAJEMEN SUMBER DAYA MANUSIA Human resources (HR) development continue to be one of Bank Muamalat’s biggest challenges, as its role is deemed irreplaceable in support of strong, healthy and sustainable business growth towards the attainment of Bank Muamalat vision. As such, since several years back, Bank Muamalat has engaged in intensive programs to develop its HR in terms of both quantity as well as quality. The quality development program is not related only to competency adjustment and competency development aspects, but also in cultural development aspect which put forward the integrity in order to upsurge the working quality and productivity. Bank Muamalat core programs in HR development in 2014 are still focused on improving employee productivity through enhancing employee competences, and especially those competences that are related to the business lines segmentation strategy as well as Information Technology support capabilities. Employee development programs are also focused on personnel at the front line (branch offices) in terms of competences that have a direct impact on increased revenues or the achievement of other specific business objectives. The number of employees of Bank Muamalat continued to increase to match the growth of its business, and was recorded at 6,669 empoyees at year-end 2014, which represented an increase of 10.45% over the number a year earlier at 6,038 employees. A total of 1,335 new employees have been recruited in 2014, comprising 366 officers and 969 non-officer personnel, and included 490 personnel who were recruited for the expanding network of micro business units in West Java, Central Java and Makassar. The newly recruited employees were composed of 782 sales personnel and 553 non-sales personnel. This composition reflected on Bank Muamalat focus to improve sales productivity. New employees are recruited through a variety of channels, including (i) web-based online recruitment, (ii) direct sourcing to accredited universities, (iii) participation of Bank Muamalat in job fair events, and also (iv) personal referrals. In addition to accommodating the need for more employees, recruitment is also necessary to fill the vacant posts in a number of functions, a condition that has been occuring for several years previously. This is evident from the recorded level of employee turnover that has tended to increase over the years, from 4.7% in 2012 to 9.24% on 2013 and then to 10.59% in 2014. Moreover, employee competence development programs are based on the four matrix of human resources development, namely (i) Initial Development Program such as the Muamalat Ways employee induction program; (ii) Regular Development Program such as the Frontliner Academy and the Consumer Academy; (iii) Strategic Development Program such as the Front 39

Liner Academy dan Consumer Academy Program; (iii) Strategic Development Program such as Muamalat Officer Development Program (MODP) and the Branch Manager Academy; and (iv) Strategy Related Program such as high-level seminars/workshops. Training programs are also grouped into five categories, namely (i) Core Training Program; (ii) Leadership & Management Training Program; (iii) Business Training Program; (iv) Operation Training Program; and (v) Supporting Training Program. In assessing employee performance quality and awarding compensation, Bank Muamalat conducts employee performance assessment using three measurement yardsticks, namely (i) work result, (ii) work method, and (iii) individual attitude. The work result aspect measures achievement against a set of Key Performance Indicators (KPI), while work method and individual attitude are used to assess employee competence. The scores in these three aspects are combined to arrive at the total assessment result. PERKEMBANGAN INDUSTRI PERBANKAN From time to time, the condition of the banking sector in Indonesia has undergone many changes. Besides of the internal developments in the banking sector, the changes can not be separated from the influence of outside the banking world, such as the real sector of the economy, politics, law, and social. The development of internal and external factors that leads to the condition of banks in Indonesia can be classified in four periods. Each period has a special characteristic that can not be equated with other periods. Deregulation in the real and monetary sectors, which began in the 1980s as well as an economic crisis in Indonesia since the late 1990s are the two main events that have led to the emergence of four periods of banking conditions in Indonesia until 2000. In 2015, the Financial Services Authority (FSA) recognizes that the development of the national banking industry in the second quarter showed a good growth and the resilience of banks that remain solid. This can be seen from the total assets, loans and national banking Third Party Fund that respectively increased by 0.9%, 2.1% and 0.8% from the previous quarter to Rp5.837,7 trillion, Rp3.757 trillion and Rp4.232 trillion. However, credit growth is likely to experience a slowdown in the range of 10% -11%. Moreover, in the world’s Islamic banking industry Indonesia has the potential to become a global player and Qibla of the Islamic financial industry development in the world. This is related to the presence of a new era in trade relations and economic integration in the form of the Asean Economic Community (AEC). Potential Indonesian sharia banking industry in the face of the enormous amounts of MEA for the following reasons among others; (i) the number 40

of large Muslim population into potential clients Islamic finance industry; (ii) bright economic prospects, reflected relatively high economic growth (range of 6.0% -6.5%) were underpinned by solid economic fundamentals; (iii) an increase in Indonesia's sovereign credit rating to investment grade which will increase the interest of investors to invest in the domestic financial sector, including Islamic finance industry; and (iv) has abundant natural resources that can be used as underlying Islamic finance industry. The development of Islamic banking in Indonesia is more market-driven and bottom-up push in meeting social needs that are more reliant on the real sector is also a distinct advantage. This is in contrast to the development of Islamic finance in Malaysia as one of the countries in the ASEAN region, where financial development syariahnya more reliant on the financial sector and not the real sector, and the government's role is dominant. Besides regulatory support, placement of government funds and state-owned enterprises in the Islamic financial institutions increased the total assets significantly, especially when these countries are enjoying windfall profits from rising oil and commodity prices. The other benefit in the development of Islamic finance in Indonesia is the regulatory regime that is considered better than other countries. In Indonesia, issuing a fatwa in the Islamic financial authorities are centralized by the National Sharia Council (DSN) - Indonesian Ulema Council (MUI), which is an independent institution. While in other countries, the fatwa can be issued by individual scholars so that the chances of a very big difference. In Malaysia, the organizational structure of this fatwa institutions are under Bank Negara Malaysia (BNM), does not stand alone independently.

KOMPETISI DALAM INDUSTRI PERBANKAN INDONESIA Enhanced competition of banking in Indonesia is actually have started since the disclosure of the Indonesian banking system, which was initiated by the issuance of a Policy Package on June 1, 1983 (PAKJUN) with the aim of modernizing the banking and then proceed with the Package of October (PAKTO) on October 27, 1988, which provides ease permitting the establishment of new banks, including the opening of a branch office. At that time, with a fund of Rp 10 billion alone, investors have been able to establish a new bank, and it caused a significant increase in the number of banks. Currently, Indonesia has more than 120 banks. Indonesia is also one of the countries that implement dual system is a system in which conventional banks and Islamic banks operate simultaneously. Islamic banking industry in Indonesia has been growing rapidly. With the 41

issuance of UU No. 21 of 2008 concerning Islamic Banking on July 16, 2008, the development of national Islamic banking industry increasingly have adequate legal base and will accelerate the growth more intensively. If in 1998 there was only one Islamic Banks and 76 Rural Bank Syariah, then in December 2009, according to statistics Islamic Banking published by Bank Indonesia the number of Islamic banks has reached 31 units consisting of six Islamic Banks and 25 Sharia , With this rapid development, opportunities influx of newcomers to the competitive capacity is very huge. This is mainly done by players who already have experience in the financial world. Conventional banks (non-sharia) can also be included in the Islamic banking industry either by establishing a new commercial bank or Sharia Business Unit. This is facilitated in UU No. 21 of 2008 as has happened on Bank Syariah Mandiri and Bank Rakyat Indonesia Syariah where the parent (Bank Mandiri and BRI) acquired small banks and then propose changes into an Islamic commercial bank. It is very risky if the players continue to enter the large commercial banks, especially starting with the opening of Sharia Business Unit.

MANUVER PEMASARAN BANK MUAMALAT Marketing and sales of retail products of Bank Muamalat is done through the activities of the Sales Force Executive (SFE), which operates from the head office and branch offices of Bank Muamalat in various regions. In marketing and selling retail products such as savings, current accounts and deposits for individual customers and product financing (iB mortgage), SFE personnel conducts canvassing and referral, in addition to direct sales activity at various events and exhibitions which Bank Muamalat participates. SFE personnel also sell products that are managed jointly with partners, such as pension fund products from a number of Financial Institutions Pension Fund (Pension Fund) as well as Sharia-compliant insurance products in cooperation with the life insurance company Manulife Indonesia. In addition to the activities of SFE, Bank Muamalat also does marketing and sales of products through telemarketing officer. Specifically to support product performance savings, since 2010 Bank Muamalat has organized the program Muamalat Share Sustenance (MBR), to provide reward points on every multiple of a certain amount of average balance in savings account customers and on certain transactions through e-Channel Muamalat and debit Muamalat card. Accumulated reward points can be redeemed for cash or gift vouchers directly as costumers want. Through the period 2014-2015 MBR program implementation, the concept has been further refined by changing the value of the voucher. If the previous value of the voucher varies between Rp5 million to 42

Rp1 billion, it is now worth between Rp50.000 up to Rp50 million. Thus, there will be more customers of Bank Muamalat to enjoy immediate reward on his savings account activity as well as the use of e-Channel Muamalat. In 2014, Bank Muamalat actively promoting e-Channel service Muamalat, along with various improvements in the capabilities of electronic distribution channels of Bank Muamalat. A series of promotional activities above-the-line is done by advertising in print media, radio and television. ATM Services Muamalat also used for promotional programs directly as program Rezeki ATM, for example, where customers use ATM Muamalat, including customers using the ATM Bersama and Prima, gain appreciation in the form of points that can be exchanged for vouchers to shop directly at the ATM machine.

RIVALITAS INDUSTRI In the economic crisis of 1998, financial industry players wonder why Bank Muamalat was able to survive the crisis that has seen dozens of other conventional banks run into trouble. Inspired by Bank Muamalat hard times facing the crisis, more banks with Islamic concepts were emerged, one of which is the Bank Syariah Mandiri as the second Islamic bank in Indonesia. Bank Syariah Mandiri is a combination of several state-owned banks owned by accident affected by the crisis in the financial actors alone 1998. Most of the financial players bet on whether the bank would survive or not, indeed. Apparently, Bank Syariah Mandiri can operate properly, match the position of Bank Muamalat and encourage the emergence of other Islamic banks in Indonesia. Nowadays, the existence of Islamic banks in Indonesia is regulated in UU No. 10/1998 on the amendment of UU No. 7 1992 on Banking.

PENCAPAIAN BANK MUAMALAT In the midst of current slow down of domestic economic growth, the exposure to the exchange rate which has not abated until the end of 2014 and the volatility of global financial markets, Bank Muamalat opened 2015 with a score of positive results. The results achieved through the implementation of IB Vaganza event that was held in Solo, Central Java. In the event that was held at the Solo Square at 7-10 January 2015, Bank Muamalat NoA managed to record as many as 560 new accounts with total deposits reached USD 12 billion. This achievement at the same time is the emphasis of financial forecast where Bank Muamalat is predicted as one of the banks which will achieve the highest volume in IB Vaganza event, which began in 2012 ago. In this event, in 2012 the Bank Muamalat incised achievement of Rp

43

95 million. This achievement continues to increase. In 2013 the numbers were successfully recorded from this event reached 57 billion Rupiah dan in 2014 reached 172 billion Rupiah. The event IB Vaganza Expo itself is part of the FSA cooperation with the Islamic Banking Industry in socializing and educating the public. Throughout 2015, the IB Expo will be planned to launch in fifteen major cities in Java, Sumatra, Kalimantan, Sulawesi and West Nusa Tenggara. This activity was followed by Islamic banks such as Bank Syariah Mandiri, BNI Syariah, BRI Syariah, and so on. This activity is one step in the Islamic banking industry to boost market share above 5%.

44

DATA TAMBAHAN 1. Indicator Ratio Sharia Bank dan Conventional Bank in Indonesia

2. Indicator Ratio Sharia Banking Across Countries

3. Shareholder Composition Bank Muamalat 2014

4. Financing Flow by Sharia Banking and Sharia Business Unit (2009-2013)

5. Income Ratio Across Sharia Bank in Indonesia 2015 45

6. Bank Muamalat’s Strategic Alliance

46

REFERENCES Annual Report PT Bank Muamalat Indonesia Tbk Tahun 2012-2014 Azwar. 2015. Industri Perbankan Syariah Menghadapi Masyarakat Ekonomi Asean (MEA) 2015 : Peluang dan Tantangan Kontemporer. Makassar. http://www.bankmuamalat.co.id/investor/laporan-gcg#.Vg3f9vmqqko http://www.bankmuamalat.co.id/berita/detail/bank-muamalat-luncurkan-layananakhir-pekan-di-bandung#.VrCO67J97IU http://ekbis.sindonews.com/read/1047751/178/ojk-akui-industri-perbankan-dalamkondisi-baik-1443085700 Republik Indonesia. 2008. Undang-Undang Nomor 21 Tahun 2008 tentang Perbankan Syariah. Jakarta: Sekretariat Negara. Widyastuti, Ratna Sri dan Boedi Armanto. Kompetisi Industri Perbankan Indonesia. 2013.

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CASE 4 PT BANK TABUNGAN PENSIUNAN NASIONAL TBK

SEJARAH BANK TABUNGAN PENSIUNAN NASIONAL Bank Tabungan Pensiunan Nasional ( Bank BTPN ) born from the idea of 7 (seven) people in a bevy of retired employees of the military in 1958 in Bandung. The seventh series later founded the Retired Military Association of Bank Employees (hereinafter "BAPEMIL") with the status of an association of business that accepts deposits and provide loans to its members. BAPEMIL has a noble goal of helping ease the economic burden of retirees, both the Indonesian Armed Forces and civilian, who was generally very difficult and many were trapped moneylenders. Blessings high trust of the public and business partners, in 1986 the members of the association BAPEMIL form PT Bank National Pension Savings with a business license as the Savings Bank in order to meet the provisions of Act No. 14 of 1967 on the Principles of Banking to continue the business activities BAPEMIL. The application of Law No. 7 of 1992 concerning Banking (as subsequently amended by Act No. 10 of 1998), which among other things stipulates that the status of the bank there are only two, namely: Commercial Bank and Rural Bank, then in 1993 the status of BTPN changed of the Savings Bank into a commercial bank through the Decree of the Minister of Finance of the Republic of Indonesia No. 055 / KM.17 / 1993 dated March 22, 1993. Changes in the status BTPN has received approval from Bank Indonesia as stipulated in the letter of Bank Indonesia No. 26/5 / UPBD / PBD2 / Bd dated April 22, 1993 which stated the Company's status as a commercial bank. As the National Private Bank initially had status as a Savings Bank later changed to Commercial Bank on March 22, 1993, BTPN has operational service to the customer activity, both savings and loans. But the main activity of Bank BTPN is fixed to the specialized services for retirees and active employees, since the target market BTPN is retired. In order to expand its business activities, in cooperation with PT Bank BTPN TASPEN, so BTPN not only able to provide loans and loan repayments cuts, but it can also carry out the "Tri TASPEN Program", ie Payment Savings days old, Social Security Payments and Payment of Pensions. 48

Commencing on March 12, 2008 Bank Bank has a listing on the Jakarta Stock Exchange (JSX) (now Indonesia Stock Exchange) and officially hold the title tbk (open). And on March 14, 2008, Texas Pacific Group (TPG) to acquire shares of the bank authorized the Bank amounted to 71, 61%.

INFORMASI UMUM Mission, Vision, and Values "The process of formulation of Mission, Vision and Values - BTPN value equal or even more important than Mission, Vision and Values - the value itself." Jerry Ng, President Director With the aim to give deeper meaning of life and to increase significantly the potential of the people of Indonesia, the Bank believes that they will grow into a mass market bank in Indonesia. MISSION Together, we create opportunities for growth and a more meaningful life VISION

Bank became the best mass market, changing the lives of millions of Indonesian people

NILAI - NILAI

Values shared by BTPN is a guideline of how they run the business as well as the Code of Conduct to establish the identity of BTPN. 49

•

Can be trusted

•

Care

•

Synergies

•

Achieve the Best

PERJALANAN

The process of formulation of Mission, Vision and Values Bank began in 2009, involving the input and participation of all the employees of various levels. Our goal is to build a sustainable business and contribute to improving the welfare of the people of Indonesia as well as play a role in nation building. The design formula that began in January 2009 reached a result in March 2009 in the form of the concept of consensus. Through a series of workshops facilitated by the Board of Directors and senior management, the initial formulation of the Vision, Mission and Values are discussed to get input more than 3,000 employees. Although the launch is done in January 2010, the year after, but we believe that the process of formulating the Vision, Mission and Values BTPN as the direction and objectives to be achieved together. As mandated by the Law of the Republic of Indonesia Number 25 Year 2007 regarding Investment, in Article 15 (b), among others, stated that: "Every investment shall implement corporate social responsibility". Besides, in accordance with the rules and regulations of Good Corporate Governance (GCG) which applies, inter alia, stated that each bank is obliged to inform the Bank of the relevant GCG report on the disbursement of funds for social activities. As one of the major companies in Indonesia PT. Bank BTPN (Persero) Tbk has a social responsibility to the community around the company. Corporate Social Responsibility (CSR) is an ongoing commitment that was built by PT. Bank BTPN (Persero) Tbk to behave ethically and contribute to national development while improving the quality of life of local communities and society as a whole. This is a manifestation of good favor (goodwill) of companies as a form of appreciation to the people. As one form of CSR (Corporate Social Responsibility), PT. BTPN (Persero) Tbk to utilize the CSR fund in the economic field that consists of several programs such as the partnership program that focuses on lending to superior product development, creative 50

industries, food security and capacity building. And community development programs that focus people program: education, health, and places of worship are also programs that planetary environment, infrastructure and facilities are also natural disasters. This is evidenced by the SOE Ministry in the presence of the Decree No. PER-05 / MBU / 2007 on Partnership Program BUMN with Small Business and Community Development (CSR), in which the companies will allocate a fund of 2% of net profit after tax for the Partnership program. Explained that SOE Partnership Program With Small Business hereinafter called Partnership Program is a program to enhance the ability of small businesses to be strong and independent through the use of funds from the profits of SOEs. Small businesses are the economic activities of the people are small in scale and meet the criteria of net worth or annual sales and ownership as stipulated in this decree. Partners is a Small Business to get a loan from Partnership Program. Program seeks partnerships so that people can be empowered and have access to economic resources primarily are capital. Therefore the partnership program seeks how poor people and small entrepreneurs can access to micro financing sources. To achieve optimum results should be the third economic actors can synergize each other happen "dependence" to the activities that are complementary. (Http://www.depkop.go.id/ dated March 23, 2010) BTPN Bank itself has repeatedly received awards. The latest in 2015, Bank Muamalat won the title as one of the Best Bank 2015 Investor magazine. Previously, BTPN has earned the title as the ASEAN Top 100 Banks Ranking by The Banker Magazine for four consecutive years - participated. BUSINESS ACTIVITY BTPN is a bank headquartered in Jakarta with branches in 263 cities in Indonesia. The Bank offers a wide range of banking services through three business units. The first is the BTPN Purna Bakti that focus on retirees and prapensiunan segment. The second is BTPN Mitra Usaha Rakyat who serve customers small entrepreneurs. Lastly, the BTPN Sinaya, focus on the growth of third party funds from institutional segment and the middle and upper-income individuals. BTPN is managing networks that provide services for customers, including 409 branches of the BTPN Purna Bakti and 122 payment point, 585 BTPN branches of BTPN Mitra Usaha Rakyat, As well as 56 branches of BTPN Sinaya throughout Indonesia. ASSETS AND LIABILITIES On December 31, 2014, assets and loans respectively grew by 8% and 13%. Until the end of the year, total assets reached 75.0 trillion, while total loans amounted Rp52,0 trillion. Loans from pension business Bank (BTPN Purna Bakti) reached Rp34,7 trillion, so it remains 51

a major contributor to the portion of the loan amounting to 67% of total loans. Compared to the year 2013 loans this year grew by 10%. Micro-loan accounts for 24% of total loans, grew 22% from the previous year, reaching 12.7 trillion. With total loans and deposits each grew by 13% and 2.2%, LDR Bank increased to 97% from 88% in the previous year. It recalled the importance of professional financing, which is medium-long term loans which accounted respectively for 13% and 11% of total funding in 2014 and 2013. Despite the tight race for third party funds, the Bank managed to retain its funding structure, with a portion of deposits by 85% as well as the Giro and Savings (CASA) of 15%. BENTUK LAYANAN & PRODUK BTPN has three products in the form of doing business. The first is the Bank Purna Bakti, which is a product of the fund business pensioner cultivated since 1958, has been developed and specifically designed to answer the needs of clients who have been and will enter full service. The second is that the Bank Sinaya business bentuktabungan funding and deposits as in other conventional banks. The latter is the Bank Mitra Usaha Rakyat (MUR), which is the business of distribution of funds for Small and Medium Enterprises in Indonesia The Bank's main business is the payment service Annuities (THT) and monthly pension payments through a pattern of cooperation with strategic business partners, primarily TASPEN and Pensioners Fund include Telkom Pension Fund, Pension Fund and Pension Fund Perhutani. In addition to the pension payment services, the Bank also provides loan products to customers with cutting retiree monthly installments directly from the monthly pension payments. BTPN relationship with PT. TASPEN in pension payments. The goal is to expand its business activities by not only providing loans and loan repayments cuts, but also implement the "Tri TASPEN Program", ie payment of Old Age Savings, Social Security payments Payment of Labor and Pensions.

SUPPLY CHAIN MANAGEMENT Tight business competition in this era of globalization demands BTPN to develop strategies and tactical daily business. When viewed in depth, the core of business competition lies in how a company implements the process of creating products or services cheaper, better and faster (cheaper, better, faster) in comparison with its competitors. One way is to implement a strategy of supply chain management / supply chain management. The activities involved in

52

supply chain management of Bank Muamalat is the flow of goods, information flow, the flow of transactions and the flow of money. To support the supply chain management, especially on the flow of information and the flow of transactions, Until the end of September 2015, the Bank has recently invested Rp 225 billion to develop infrastructure, network, and technology. The investment value was increased by 619% over the same period the previous year ..

OPERATIONAL Bank Operations Unit is responsible for managing the Bank's back office, to provide transaction services in a timely and accurate for the whole organization. The unit is also tasked to achieve optimal resource utilization, as well as compliance with all applicable rules and regulations. In providing services, operational units supported by the National Operation Centre and 10 Regional Operation Centers across Indonesia. The unit is cooperating with the IT unit of the Bank in order to utilize process automation to achieve increased productivity. To improve efficiency and control, in 2014 Operations unit has completed the consolidation of the entire process of handling customer complaints and establish a special unit of the Customer Complaint Handling serve all business units Bank. Some of the main process has also been enhanced, including through the implementation of a paperless method for the purchase of goods and services as well as the approval process of employee access to the system. Processing system online customer's signature has also been launched, so that the branch offices can provide transaction services more quickly and accurately to customers. To support the pension business, the Bank Purna Bakti, Operations unit has been to automate the reconciliation process the payment of life insurance premiums in the National Operation Center. Has also implemented a new process for transaction reconciliation BTPN Wow! in the branches of the Bank's central banking system. To support the new effort to serve clients Bank Small & Medium Enterprises, the unit has developed a comprehensive operating system in order to serve the needs of customers' transactions in the supply chain. In 2014, the Operational Unit also completed a consolidation plan Headquarters, which will be started and completed at the end of 2015. In the field of human resources and organizational development, Operational Unit has enhanced the system performance measurement for the whole organization of operational units.

53

The measurement system provides for four measurement criteria to be employees who are professional and competent operation, namely: • Service • Compliance • Efficiency and • People Engagement.

HUMAN RESOURCE MANAGEMENT In 2014, Human Capital unit to focus on three main priorities, namely an increase in the efficiency of HR management, IT utilization in HR processes, as well as the continued development of the Bank's culture and leadership capacity. Human Capital Unit has completed the testing process on the organizational structure and policies of human resources in order to align the Bank's rapid expansion in the Bank's business. Human Capital Unit is also involved in the formation and organization of human resources policy for the Bank Syariah. In order to improve effectiveness and efficiency, unit Human Capital has made automation of several important processes, including the overtime payment, loan administration employees and tax calculation process. Human Capital Unit also launched a new eLearning facility, so employees can build up competence without the need to leave the workplace each. At the end of 2014, a total of about 53 556 participants have taken advantage of the eLearning facilities. In the field of human resource development, the 2014 Human Capital unit began implementing a new leadership development plan to enhance the leadership capacity of the Bank's personnel manager. At the end of the year more than 408 branch managers, area managers and regional managers have participated in this program. For senior managers, the Bank organized a program of leadership and creativity in collaboration with the Center for Creative Leadership (CCL) in Singapore, which was attended by 17 senior participants in 2014. Harmonious relationship with labor unions is the main thing in building human resources committed. In 2014, the Bank has completed the signing of the renewal of the Collective Labor Agreement, as evidence of good relations between management and the employees. As part of efforts to build a positive working environment, in 2014 Human Capital unit carry out its annual Employee Engagement Survey. The survey results measure the level of alignment between the company's values and aspirations of employees, as well as details of an 54

action plan for improvement. In order to encourage a healthy lifestyle and balanced, in 2014 the Bank launched its Bank Club, which invited all employees to participate in various sports activities and art. Event sports competition organized with the aim of raising the spirit of togetherness and competitiveness. At the end of 2014, as many as 988 sports and cultural activities have been organized in more than 105 cities in the branches of the Bank. Social activities are also developed to encourage all employees to Participate in the program Friends of Power. This is in line with the Bank's mission, in the which employees do not only have to PROVE Reviews their professional competence, but Also need to have the character of power to help others. The participation rate in the Companion Power continues to rise: in 2014, as many as 2,548 employees are Involved in social activities 3375, an Increase of as many as 1,035 employees in the previous year.

BANKING INDUSTRY DEVELOPMENT AND COMPETITION

MACROECONOMICS In 2014, among the major industrialized nations, only the United States that showed positive signs of economic growth. During the first three quarters, US economic growth yearon-year reaching respectively 1.9%, 2.6% and 2.3%. In continental Europe, only Germany recorded a significant growth of 1.2% in the third quarter. For the same period, the French only achieve growth of 0.4%, while Italy contracted by 0.5% growth. In Asia, Japan experienced a disappointing year with a contraction of 1.2% during the third quarter. China also continued to experience a slowdown in the third quarter to 7.3% from 7.5% in the previous quarter. This reduces the demand for Indonesian exports and the resulting weakening of the rupiah. Chairman of the Federal Reserve, Janet Yellen, responding to these developments with caution. But the market had expected a rise in US dollar interest rates next year, which encourage the strengthening exchange rate of USD against all major currencies, including in Asia. Rupiah is no exception. Rupiah started in 2014 at the rate of 11,500 rupiah per USD1, and then weakened during the year before it finally closed at 12,385 rupiah per USD 1 at the end of 2014. However, this trend is not only due to the exchange rate of USD strengthened. The low growth in China as well as the shift of the economy from production to consumption patterns so that a more balanced economy has significantly reduced demand for the 55

commodities world. This negative impact on the performance of Indonesia's exports to China. As a result, there was a shift in the balance Indonesia trade, which turned into a deficit in 2012. The lowest point occurred in 2013, which reached -3.5% of GDP, before slightly recovering to the level of -3.0% of GDP in 2014.

BANKING INDUSTRY The economic slowdown and rising interest rates have a large dampening effect for the banking industry. Demand and credit growth slowed from over 20% to 12% at the end of the year, one of the lowest levels in recent years. Third party funds kept trying to catch up with the rapid credit growth in recent years. Third party funds also slowed although much smaller, from 14% last year to a rate of 13%. Thus, the ratio of loans to third-party funding, 89% survive at relatively the same level as the previous year. Four top banks, Bank Mandiri, Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI) and Bank BNI (BNI) to compete for deposits to fund loan growth, causing tightness in the domestic money market. As a result, other banks have to compete hard to get funding. It ended up significantly raised interest rates by a third-party funds. This trend prompted the Financial Services Authority (FSA) to set restrictions on deposit interest rate policy based on the size of each bank in the second half of 2014. However, the conditions of rising interest rates, raising the deposit rate is always easier than raising interest rates on loans. Besides debtors sensitive to rising interest rates and the banking industry was more cautious in raising interest rates for fear of loan borrowers experiencing difficulty in paying off their loans. As a result, a decline in net interest margin to a level of 4.2% from 4.9% in the previous year. Slowing credit growth and declining net interest margins have a negative impact on the performance of the banking sector profitability. Growth in fee income also decreased slowdown in business activity. This is reflected in the level of net profit of the banking industry, which only grew by 8% from 15% in the previous year. This slowdown sparked concerns over deteriorating asset quality and loan, as reflected in an increase in the ratio of non-performing loans which reached 2.3% from 1.9% the previous year. However, the level of capitalization of the banking industry is still adequate to dampen the impact of the decline in profit. In fact, the capital adequacy ratio (CAR) increased slightly to 19.5% from 18.1% in the previous year.

56

The banking industry is expected to face the same challenges in 2015. Although there are positive signs for the world economy, it will not be felt in Indonesia in the second half of 2015 as investment and government spending began to increase. The banking industry is expected to take steps to reduce costs, and continue to monitor the loan portfolio to ensure the availability of adequate loss reserves and to enhance the capital adequacy in order to face the upheavals in the rate of profit BTPN MANOUVER In 2015, the Bank is expected to reach its financial performance Business Plan submitted to the Bank and the FSA. Pension business (BTPN Purna Bakti) will expand its financial services to reach customers pre-retirees and active employees. In the micro-business sector (BTPN Business Partner), programs for the informal segment of SME (i-SME) will be launched. Subsidiaries Bank, Bank Syariah, will focus on business development syariahnya to continue to expand the range of financial services. In the financial sector, the Bank will expand and develop the range of retail banking services in order to reach people in remote areas who do not enjoy banking services. The Bank also will start an important initiative to overcome the high cost of funding and meet the funding needs of the Bank in the future. Bank branch offices will also be more active Sinaya implement cross-selling of financial services Allianz accordance Strategic Partnership agreement. In addition, the strategic partnership with Allianz Bank will concentrate on providing micro-insurance for the mass market segment. BTPN Power program will continue to develop and improve the three pillars of the initiative, Healthy and Prosperous Power, Power Business Growing and Growing Power Community. For example, for the Growing Power Enterprises, the Bank will standardize and expand the reach of their training programs. In the field of human resources development and network infrastructure, the Bank will continue to make investments to improve productivity and the quality of its employees, as well as the effectiveness and reach of The information technology network. In 2015, the Bank will continue to develop the Bank's utilization of services Wow! as a platform for mobile banking services across all business units and support. The Bank continues to maintain and expand its market share of loans and deposits by improving products and services to reach new segments of potential and untouched by the banking sector. Bank loan market share reached 1.4% while the market share of third party funds amounted to 1.3% in 2014. The Bank promotes its products and services through a network of branches and outlets. The Bank also utilizes ads in media publications and 57

electronic media and other non-electronic. On the funding side, the Bank organizes regular activities for clients of funding, to address topics that attract investment ACHIEVEMENTS BANK BTPN In January 2014, BPN call a General Meeting of Shareholders Extraordinary and obtain shareholder approval for the acquisition of PT Bank Sahabat Purba Danarta (Bank Sahabat) based in Semarang. BTPN then change the license of the bank into Islamic bank license and changed its name to Bank Syariah. In February, the Bank invested about US $ 600 billion to acquire a 70% stake in Bank Sahabat Purba Danarta, which later became Bank BTPN Sharia. In March, SMBC completed the purchase of 15.74% stake in the Bank, as well as increasing its shareholding to 40.00% from 24.26%. As a result, TPG shares in the Bank decreased to 25.88% from 41%. In July, the Bank completed the conversion of Bank BTPN Sahabat be Sharia and separation processes of business (spin-off) sharia business unit (UUS) to the Bank Syariah. Now, the Islamic Bank became one of the twelve Islamic banks in Indonesia and the only one that is focused to serve underprivileged segment. In August, the Bank's Retail Banking unit signed a strategic partnership agreement with Allianz-Bancassurance. In addition, the Bank and Allianz agreed to provide life insurance products to the mass market segment. In August, IFC and SMBC provides a standby loan facility for the Bank amounted to USD200 million and an additional USD300 million that obtained approval from Bank Indonesia in February 2015. The funds will be used for the purposes of liquidity, if needed.

58

DATA TOTAL ASSET DAN SALES Telecommunication ( in Million) No Company

Total Asset 2014

Total Asset

Sales 2014

Sales 2013

Rp

Rp

2013 1

Telekomunikasi

Rp

Rp

Indonesia (Persero)

140.895.000,00

127.951.000,00 89.696.000,00

82.967.000,00

XL Axiata (d/h

Rp

Rp

Rp

Rp

Excelcomindo

63.706.488,00

40.277.626,00

23.460.015,00

21.265.060,00

Rp

Rp

Rp

Rp

53.254.841,00

54.520.891,00

24.085.101,00

23.855.272,00

Tower Bersama

Rp

Rp

Rp

Rp

Infrastructure Tbk

22.034.082,00

18.719.211,00

3.306.812,00

2.690.500,00

Smartfren Telecom

Rp

Rp

Rp

Rp

(d/h Mobile-8

17.758.685,00

15.866.493,00

2.954.410,00

2.428.858,00

Rp

Rp

Rp

Rp

5.077.572,00

4.591.911,00

1.416.138,00

1.667.819,00

Rp

Rp

Rp

Rp

9.062.003,00

8.242.589,00

10.778.295,00

10.366.732,00

Rp

Rp

Rp

Rp

7.588.561,00

9.128.135,00

1.179.182,00

2.072.435,00

Bali Towerindo

Rp

Rp

Rp

Rp

Sentra Tbk

808.768,00

658.369,00

136.527,00

103.194,00

Rp

Rp

Rp

Rp

320.186.000,0

279.956.225,0

157.012.480,00 147.416.870,00

Tbk 2

Pratama) Tbk 3

4

5

INDOSAT Tbk

Telecom) Tbk 6

7

8

9

Total

Inovisi Infracom Tbk

Trikomsel Oke Tbk

Bakrie Telecom Tbk

59

Food And Beverages (in Million) No Food And Beverages

Total Asset 2014

Total Asset 2013

Sales 2014

Sales 2013

1

Indofood Sukses Makmur Tbk

Rp 85.938.885

Rp 77.611.416

Rp 63.594.452

Rp 55.623.657

2

Indofood CBP Sukses Makmur Tbk

Rp 24.910.211

Rp 21.267.470

Rp 30.022.463

Rp 25.094.681

3

Sinar Mas Agro Resources Technology (SMART) Tbk

Rp 21.292.993

Rp 18.381.114

Rp 32.340.665

Rp 23.935.214

4

Mayora Indah Tbk

Rp 10.291.108

Rp 9.710.223

Rp 14.169.088

Rp 12.017.837

5

Tiga Pilar Sejahtera Food (d/h Asia Intiselera) Tbk

Rp 7.371.846

Rp 5.020.824

Rp 5.139.974

Rp 4.056.735

6

Tunas Baru Lampung Tbk

Rp 7.328.419

Rp 6.212.359

Rp 6.337.561

Rp 3.705.288

7

Ultrajaya Milk Industry & Trading Company Tbk

Rp 2.917.084

Rp 2.811.621

Rp 3.916.789

Rp 3.460.231

8

Multi Bintang Indonesia Tbk

Rp 2.231.051

Rp 1.782.148

Rp 2.988.501

Rp 3.561.989

9

Fast Food Indonesia Tbk

Rp 2.162.634

Rp 2.028.125

Rp 4.208.887

Rp 3.960.253

10

Nippon Indosari Corpindo Tbk

Rp 2.142.894

Rp 1.822.689

Rp 1.880.263

Rp 1.505.520

11

Siantar TOP Tbk

Rp 1.700.204

Rp 1.470.059

Rp 2.170.464

Rp 1.694.935

12

Wilmar Cahaya Indonesia (d/h Cahaya Kalbar) Tbk

Rp 1.284.150

Rp 1.069.627

Rp 3.701.869

Rp 2.531.881

13

Tri Banyan Tirta Tbk

Rp 1.239.054

Rp 1.502.519

Rp 332.402

Rp 487.200

14

Delta Djakarta Tbk

Rp 991.947

Rp 867.041

Rp 879.253

Rp 867.067

15

Sekar Bumi Tbk

Rp 649.534

Rp 497.653

Rp 1.480.765

Rp 1.296.618

16

Prasidha Aneka Niaga Tbk

Rp 620.928

Rp 681.832

Rp 975.081

Rp 1.279.553

60

17

Akasha Wira International (d/h Ades Waters Indonesia) Tbk

Rp 504.865

Rp 441.064

Rp 578.784

Rp 502.524

18

Pioneerindo Gourmet International (d/h Putra SejahteraPioneerindo (CFC)) Tbk

Rp 294.178

Rp 250.670

Rp 376.599

Rp 390.551

19

Sekar Laut Tbk

Rp 167.419

Rp 154.316

Rp 681.420

Rp 567.049

Rp 174.039.404

Rp 153.582.770

Rp Rp 175.775.280 146.538.783

Total

Customer Goods ( in million) No. Company

1

2

3

4

Unilever Indonesia Tbk

Mandom Indonesia Tbk

Martina Berto Tbk

Mustika Ratu Tbk

Total

Retail Wholesale No. Company 1 2 3

Total Asset Total

Asset

Sales 2014

Sales 2013

2014

2013

Rp

Rp

Rp

Rp

14.280.670

12.703.468

34.511.534

30.757.435

Rp

Rp

Rp

Rp

1.853.235

1.465.952

2.308.204

2.027.899

Rp

Rp

Rp

Rp

619.383

611.770

671.399

641.285

Rp

Rp

Rp

Rp

498.786

439.584

434.747

358.128

Rp

Rp

Rp

Rp

17.252.074

15.220.774

37.925.884

33.784.747

Total Asset 2014 Dian Swastatika Rp Sentosa Tbk 16.197.868,00 Sumber Alfaria Rp Trijaya Tbk 13.992.568,00 Mitra Pinasthika Rp Mutiara Tbk 13.950.177,00

Total Asset 2013

Sales 2014

Sales 2013

Rp 14.735.412,00 Rp 10.962.227,00 Rp 11.220.245,00

Rp 7.457.012,00 Rp 41.773.316,00 Rp 16.076.412,00

Rp 7.445.655,00 Rp 34.897.259,00 Rp 13.878.602,00

61

4 5 6 7 8

9 10 11 12

13

14 15 16 17 18

19 20 21

22 23 24

Mitra Adiperkasa Tbk Hero Supermarket Tbk Enseval Putra Megatrading Tbk Erajaya Swasembada Tbk Permata Prima Sakti (d/h Toko Gunung Agung) Tbk Matahari Putra Prima Tbk Tiphone Mobile Indonesia Tbk Ramayana Lestari Sentosa Tbk Nusantara Infrastructure (d/h Metamedia Technologies) Tbk Matahari Departement Store (d/h Pacific Utama) Tbk Catur Sentosa Adiprana Tbk Ace Hardware Indonesia Tbk Midi Utama Indonesia Tbk Tigaraksa Satria Tbk

Rp 8.686.175,00 Rp 8.295.642,00 Rp 6.190.618,00 Rp 6.120.307,00 Rp 6.024.271,00

Rp 7.808.300,00 Rp 7.758.303,00 Rp 5.528.068,00 Rp 5.001.635,00 Rp 6.095.696,00

Rp 11.822.106,00 Rp 13.564.029,00 Rp 17.011.550,00 Rp 14.451.413,00 Rp 631.536,00

Rp 9.734.240,00 Rp 11.900.354,00 Rp 15.623.240,00 Rp 12.727.248,00 Rp 1.986.760,00

Rp 5.827.294,00 Rp 5.017.544,00 Rp 4.590.667,00 Rp 4.074.897,00

Rp 6.579.518,00 Rp 3.455.339,00 Rp 4.378.556,00 Rp 2.579.582,00

Rp 13.590.405,00 Rp 14.589.691,00 Rp 5.861.348,00 Rp 518.378,00

Rp 11.912.763,00 Rp 10.484.625,00 Rp 6.000.818,00 Rp 425.861,00

Rp 3.408.372,00

Rp 2.936.882,00

Rp 7.925.547,00

Rp 6.754.326,00

Rp 3.308.918,00 Rp 2.947.349,00 Rp 2.579.467,00 Rp 2.471.584,00 FKS Multi Agro (d/h Rp Fishindo Kusuma 2.168.785,00 Sejahtera Tbk) Global Teleshop Tbk Rp 1.851.535,00 Electronic City Tbk Rp 1.439.420,00 Sigmagold Inti Rp Perkasa (d/h AGIS) 1.175.103,00 Tbk Supra Boga Lestari Rp Tbk 781.616,00 Star Petrochem Tbk Rp 775.918,00 Multi Indocitra Tbk Rp 664.178,00

Rp 3.107.895,00 Rp 2.478.919,00 Rp 2.108.897,00 Rp 2.471.998,00 Rp 3.115.066,00

Rp 7.143.924,00 Rp 4.492.198,00 Rp 6.027.859,00 Rp 9.463.005,00 Rp 15.460.919,00

Rp 6.438.747,00 Rp 3.895.446,00 Rp 4.962.851,00 Rp 8.198.126,00 Rp 16.180.645,00

Rp 1.488.532,00 Rp 1.558.213,00 Rp 1.188.794,00

Rp 4.037.217,00 Rp 2.226.770,00 Rp 122.381,00

Rp 3.887.253,00 Rp 2.012.610,00 Rp 180.248,00

Rp 712.079,00 Rp 749.403,00 Rp 628.738,00

Rp 1.646.584,00 Rp 228.622,00 Rp 528.358,00

Rp 1.303.079,00 Rp 274.142,00 Rp 591.343,00 62

25

Evergreen Invesco Rp Tbk 651.467,00 26 Millenium Rp Pharmacon 529.992,00 Internasional Tbk 27 Kokoh Inti Arebama Rp Tbk 525.488,00 28 Skybee Tbk Rp 361.690,00 29 Wicaksana Overseas Rp International Tbk 204.951,00 30 Triwira Insanlestari Rp Tbk 163.050,00 31 Golden Retailindo Rp Tbk 95.309,00 32 Akbar Indo Makmur Rp Stimec Tbk 23.182,00 33 Rimo Catur Lestari Rp Tbk 7.000,00 Total Rp 125.102.402,00

Financial ( in million) No. Company 1 Bank Mandiri (Persero) Tbk 2 Bank Rakyat Indonesia (Persero) Tbk 3 Bank Central Asia Tbk 4 Bank Negara Indonesia (Persero) Tbk 5 Bank CIMB Niaga (d/h Bank Niaga) Tbk 6 Bank Danamon Tbk 7 8 9

Rp 615.900,00 Rp 471.677,00

Rp 125.268,00 Rp 1.437.668,00

Rp 154.410,00 Rp 1.310.244,00

Rp 336.488,00 Rp 858.995,00 Rp 169.324,00 Rp 185.933,00 Rp 96.693,00 Rp 24.649,00 Rp 5.081,00 Rp 111.413.037,00

Rp 1.204.929,00 Rp 621.656,00 Rp 506.053,00 Rp 7.368,00 Rp 45.962,00 Rp 27.249,00 Rp 123,00 Rp 220.626.856,00

Rp 1.112.046,00 Rp 1.354.864,00 Rp 426.102,00 Rp 11.804,00 Rp 49.357,00 Rp 102.752,00 Rp 291,00 Rp 196.218.111,00

Total Asset 2014 Rp 855.039.673,00 Rp 801.955.021,00

Total Asset 2013 Rp 733.099.762,00 Rp 626.182.926,00

Sales 2014 Rp 86.690.044,00 Rp 84.421.353,00

Sales 2013 Rp 71.341.628,00 Rp 67.809.543,00

Rp 552.423.892,00 Rp 416.573.708,00

Rp 496.304.573,00 Rp 386.654.815,00

Rp 52.799.750,00 Rp 44.080.298,00

Rp 42.224.234,00 Rp 35.891.612,00

Rp 233.162.423,00

Rp 218.866.409,00

Rp 22.942.768,00

Rp 20.490.013,00

Rp 195.708.593,00 Bank Permata Tbk Rp 185.349.861,00 Bank Panin Tbk Rp 172.581.667,00 Bank Tabungan Rp Negara (Persero) 144.575.961,00 Tbk

Rp 184.237.348,00 Rp 165.833.922,00 Rp 164.055.578,00 Rp 131.169.730,00

Rp 28.818.939,00 Rp 17.601.192,00 Rp 17.369.669,00 Rp 13.702.148,00

Rp 26.544.431,00 Rp 13.241.693,00 Rp 14.334.463,00 Rp 11.546.860,00

63

10

11 12 13

14

15 16 17

18 19 20 21 22 23

24

25

26

27 28

Bank Maybank Rp Indonesia (d/H Bank 143.318.466,00 Internasional Indonesia) Tbk Bank OCBC NISP Rp (d/h Bank NISP) Tbk 103.123.179,00 Bank Bukopin Tbk Rp 79.051.268,00 Bank Pembangunan Rp Daerah Jawa Barat & 75.836.537,00 Banten Tbk Bank Tabungan Rp Pensiunan Nasional 75.014.737,00 Tbk Bank Mega Tbk Rp 66.647.891,00 Bank Muamalat Rp Indonesia 62.413.310,00 Bank Pembangunan Rp Daerah Jawa Timur 37.998.046,00 Tbk Bank Mayapada Rp Internasional Tbk 36.173.591,00 Bank Artha Graha Rp Internasional Tbk 23.453.347,00 Bank Ekonomi Rp Raharja Tbk 29.726.856,00 Bank Victoria Rp International Tbk 21.364.882,00 Bank Sinarmas Tbk Rp 21.259.549,00 Bank QNB Indonesia Rp (d/h Bank QNB 20.839.018,00 Kesawan) Tbk Bank Woori Saudara Rp Indonesia 1906 (d/h 16.432.776,00 Bank Himpunan Saudara 1906) Tbk Bank J Trust Rp Indonesia (d/h Bank 12.682.021,00 Mutiara) Tbk Bank Windu Rp Kentjana 9.769.591,00 International (d/h Bank Multicor) Tbk Bank Nusantara Rp Parahyangan Tbk 9.468.873,00 Bank MNC Rp Internasional (d/h 9.430.264,00

Rp 140.546.751,00

Rp 15.323.380,00

Rp 13.478.017,00

Rp 97.524.537,00 Rp 69.457.663,00 Rp 70.958.233,00

Rp 8.650.814,00 Rp 8.179.918,00 Rp 9.357.724,00

Rp 7.028.175,00 Rp 6.735.699,00 Rp 8.590.246,00

Rp 69.664.873,00

Rp 13.032.675,00

Rp 11.343.452,00

Rp 66.475.698,00 Rp 53.723.980,00 Rp 33.046.537,00

Rp 7.375.026,00 Rp 5.214.860,00 Rp 4.456.820,00

Rp 6.075.117,00 Rp 4.334.150,00 Rp 3.746.755,00

Rp 24.015.572,00 Rp 21.197.512,00 Rp 28.750.162,00 Rp 19.153.131,00 Rp 17.447.455,00 Rp 11.047.615,00

Rp 3.660.009,00 Rp 2.341.691,00 Rp 2.572.406,00 Rp 2.163.253,00 Rp 2.045.612,00 Rp 1.430.554,00

Rp 2.361.123,00 Rp 2.045.687,00 Rp 2.237.422,00 Rp 1.619.239,00 Rp 1.665.377,00 Rp 662.307,00

Rp 6.221.880,00

Rp 429.681,00

Rp 405.238,00

Rp 14.576.094,00

Rp 1.270.117,00

Rp 1.377.794,00

Rp 7.917.214,00

Rp 920.941,00

Rp 681.451,00

Rp 9.985.736,00 Rp 8.165.865,00

Rp 1.121.313,00 Rp 823.588,00

Rp 959.822,00 Rp 763.121,00 64

29 30

31 32

33 34 35

36 37 38 39 40 41 42 Total

Bank ICB Bumiputera) Tbk Bank Capital Indonesia Tbk Bank Pundi Indonesia (d/h Bank Eksekutif Internasional) Tbk Bank Mestika Dharma Tbk Bank Rakyat Indonesia Agroniaga (d/h Bank Agroniaga) Tbk Bank Panin Syariah Tbk Bank Nationalnobu Tbk Bank of India Indonesia (d/h Bank Swadesi) Tbk Bank Bumi Arta Tbk Bank Maspion Indonesia Tbk Bank Agris Tbk. Bank Yudha Bakti Tbk. Bank Ina Perdana Tbk, Bank Mitraniaga Tbk Bank Dinar Indonesia Tbk

Rp 9.251.776,00 Rp 9.044.046,00

Rp 7.139.276,00 Rp 9.003.124,00

Rp 822.566,00 Rp 1.803.782,00

Rp 572.269,00 Rp 1.731.818,00

Rp 8.672.084,00 Rp 6.385.191,00

Rp 7.911.550,00 Rp 5.124.070,00

Rp 926.429,00 Rp 638.234,00

Rp 899.271,00 Rp 471.315,00

Rp 6.207.678,00 Rp 5.767.590,00 Rp 5.199.185,00

Rp 4.052.701,00 Rp 3.877.270,00 Rp 3.601.336,00

Rp 559.789,00 Rp 393.692,00 Rp 475.463,00

Rp 283.759,00 Rp 169.051,00 Rp 305.438,00

Rp 5.155.423,00 Rp 4.828.575,00 Rp 4.111.036,00 Rp 2.692.234,00 Rp 1.951.587,00 Rp 1.892.362,00 Rp 1.641.451,00 Rp 4.484.175.219,00

Rp 4.045.672,00 Rp 4.170.423,00 Rp 2.509.281,00 Rp 2.291.715,00 Rp 1.402.171,00 Rp 1.285.157,00 Rp 854.801,00 Rp 3.933.550.118,00

Rp 551.753,00 Rp 443.704,00 Rp 334.165,00 Rp 311.626,00 Rp 188.093,00 Rp 174.118,00 Rp 126.680,00 Rp 466.546.637,00

Rp 414.615,00 Rp 369.371,00 Rp 178.146,00 Rp 270.308,00 Rp 147.979,00 Rp 108.845,00 Rp 61.354,00 Rp 385.518.208,00

65

66