Collectibility Analysis for Small and Medium Enterprise – Bank BUKOPIN Case

In Indonesia, small and medium enterprises (SME) have experienced 68% growth in 2008 and47% growth in 2007. The simple structure made it able to respond quickly to changingeconomic conditions and meet local customers' needs, growing sometimes into large andpowerful corporations or failing within a short time of the firm's inception. Unfortunately,lack of access to finance has been cited as an important problem for SMEs, being theconstraint in the creation, development or diversification of their economic activities. Lendinginstitution such as banks conduct an intensive assessment (usually called credit scoring) tofind out the creditworthiness of applicants in order to mitigate the risk. This paper,“Collectability Analysis in Small and Medium Enterprise”, is purposed for creatingappropriate credit scoring model to support the judgmental analysis approach in small andmedium enterprise, finding out how generic and plafond-specific variables affect thecollectability of the debtors from different plafond level (< Rp. 500 Million and > Rp. 500Million), and providing early detector for the bank to predict about future loan performanceof its debtors, thus the bank can be more careful in selecting qualified debtors

Interbank Lending Decisions in an Economic Downturn: an Agent-Based Approach

Interbank lending is one mechanism that can make shock, which is accepted by one bank spread to other banks (contagion). There are several researchers that focused their research on analyzing the effect of interbank lending to systemic risk. However, there is a few research that analyzed the effect of banks' decision maker's behavior, especially on the bank interbank lending to the systemic risk. In this research, the author creates an agent-based simulation of the banking system to analyze the effect of banks' decision maker's behavior to systemic risk in economic downturn condition. The preliminary result from this research is for an economic downturn in a long time period, the banking system with a low net worth to the asset's ratio threshold will produce more default bank than the banking system with a high net worth to the asset's ratio threshold. However, for an economic downturn in small time period, banking system which all bank in their system has the higher net worth to assets ratio threshold will have the default bank first than the banking system which has the lower net worth to the asset's ratio threshold

Analysis on Indonesia Strategic Framework to Face ASEAN 5 in ASEAN Free Trade Area (AFTA) 2015

This paper has purpose to assess Indonesia readiness of sectors to face ASEAN 5, those are Brunei, Malaysia, Philippines, Singapore, and Thailand in near AFTA2015. And also this paper want to construct the compatible Indonesia\u27s strategic framework that it will be useful for Indonesia itself in order to be key player in AFTA 2015. Furthermore, the econometric approach by using gravity equation model will be applied to assess Indonesia readiness to face AFTA2015 which using mechanism of free flows of goods

Stock Pricing Analysis of PT. LEN as Alternative Sources of Fund Through the Initial Public Offering (IPO)

PT. LEN is one of state owned companies (BUMN) in Indonesia which is engaged in technology industries. As one of state owned companies (BUMN) which enroll in strategic industries, PT. LEN has a very important role in supporting the growth of Indonesia\u27s development, PT. LEN\u27s business performance has successfully led PT. LEN as a trillion company. In 2011, the life cycle of this company has been projected from phase stability to phase growth. Nevertheless, one issue has arisen when the growth of the company is hampered by funding issue, especially the lack of capital to run the projects. The growth of revenues become unbalanced with working capital, especially liquid working capital (cash). The objective of the company is to Go Public with huge amount of capital which can support the business activities and also to strengthen the capital structure and the liquidity of assets. The sales revenue from some of its stocks is used as an alternative source of fund apart from bank loans. The fund is used to expand the company\u27s activities, to build the facility of developing system, and also to build fabrication workshop. The total amount of fund needed is 590 billion. During the IPO process, there are several things to be concerned, internally and externally. From the company\u27s internal perspective, several things to be be concerned are company\u27s feasibility studies in doing IPO. From the external perspective will affect investors\u27 interest to the company. This thesis uses discounted cash flow as a method to calculate the valuation of the company. This method is used to value stock\u27s price and the amount of stocks issued by PT. LEN for IP process so the price will be interesting to the investors. Other than to fulfill the needs of source funding, IPO process is also one of the program to privatize the state owned companies in Indonesia which is included in BUMN\u27s Masterplan 2010-2014

Strategi Ekspansi Penyaluran Kredit UKM (Studi Kasus PT Bank BJB Tbk)

Data of Bank Indonesia stated that Small Medium Enterprises (SME) loan portfolio by the end of April 2012 amounted to 20.65% of the total national banking loans. Currently the banks, ranging from the state owned banks, private banks, rural banks (BPR), joint venture banks, to foreign banks are competing to grab SME market. The reason is that the SME sector is a profitable and huge market. Bank BJB is one of the commercial banks based in West Java, where in the region, small medium enterprises are growing. It is opportunity of Bank BJB to focus on expanding its SME loans to the region. Existing strategies that adopted by Bank BJB is by opening new branch offices, channeling strategy and acquiring of existing BPR. This study aims to compare the three strategies above in terms of strength, weakness, opportunity and threat that likely occur. Method of analysis to be used is SWOT analysis. Once known Strength, Weakness, Opportunity and Threat for each strategy, then use the TOWS matrix to map out the existing strategy that fits with the use of strength, weakness, opportunity and threat for SME lending expansion of Bank BJB. CAMELS ratio will be used to measure the performance of BPR while Discounted Cash Flow (DCF) is method to valuate the value of BPR. Based on the results, it can be seen that strategy of opening a new branch has strength in terms of management authority which head office can control loans quality of the branch office while the weakness is difficult to find a strategic location for new branch office and it needs big initial investment. Strategy of opening new branches will remain to continue, especially in the district and sub-district area. The channeling strategy has advantage because it does not need big initial investment so the capital can be disbursed as loans effectively. This strategy will be implemented primarily to BPR bank that has broad coverage and low of NPL. The acquisition strategy has advantages in terms of fully authority of head office to control loans quality of the branch offices. This strategy can expand its loans by the existing infrastructure and resources of BPR acquired