PROPOSED BUSINESS STRATEGY THROUGH SWOT ANALYSIS FOR SHARIA BUSINESS UNIT OF BANK TABUNGAN NEGARA (UUS BANK BTN) AFTER SPIN OFF

• Main Author: Ardiansyah, Tony
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42460
• Institution: Institut Teknologi Bandung

There are three types of Islamic Bank in Indonesia namely Sharia Commercial Banks (BUS), Sharia Business Unit (UUS) and Sharia Rural Banks (BPRS). Changing status from UUS to BUS becomes a necessity. Act No. 21 of 2008 and other derivative regulations from Financial Service Authority stated that conventional banks that have UUS are required to separate UUS into become BUS if their asset has reached 50% of the total assets owned by the parent bank. In addition, they also stated that the spin-off is done no later than 15 years after the enactment of Act No. 21 of 2008 or no later than 2023. On the other hand, several studies have proven that spin off has an influence on financial performance improvement for Islamic Banks in Indonesia. UUS Bank BTN is a business unit of Bank BTN that focuses on banking services using sharia principles. Although it has good performance and continues to grow, UUS Bank BTN still has several obstacles in doing business. UUS Bank BTN has not been able to determine its own pricing level and marketing strategies because it must be in accordance with the parent policy. Therefore, UUS Bank BTN need spin off, as a strategic plan, to further develop its business and provide more flexibility in winning market competition while fulfilling established regulations. In order to grasp the better understanding related to the company condition and prepare the most suitable spin off model scenario and business strategy after spin off, UUS Bank BTN have to conduct internal and external analysis. Internal analysis is conducted by using VRIO analysis and financial performance analysis. While external analysis is conducted by using PESTEL and Porter’s Five Force Analysis. The results of internal and external analysis become the basis data for determining alternative business strategies in the SWOT Matrix. The result of the study indicates that UUS Bank BTN has readiness level to spin off in the near future by using the first spin off model scenario namely establishing new pledge of BUS directly from UUS Bank BTN. The SWOT quadrant calculation results show that Bank BTN Syariah’s position is in quadrant I with a coordinate values of (0.15, 0.12). It shows that Bank BTN Syariah is able to carry out aggressive strategies by optimizing internal strength to exploit external Opportunities through market penetration, market development and product development.