BUSINESS STRATEGY FOR PAYMENT SWITCH SERVICE OF PT JARINGAN TRANSAKSI ELEKTRONIK INDONESIA IN THE INDONESIA NATIONAL PAYMENT GATEWAY ERA

• Main Author: Rinata, Aulia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46853
• Institution: Institut Teknologi Bandung

In mid-2017, Bank Indonesia issued a new breakthrough regulation for the electronic payment system in Indonesia, namely the Indonesia National Payment Gateway (NPG). By NPG program, Bank Indonesia targets national efficiency through a cashless movement. NPG means a system that consists of Standards, Switching, and Services built through a set of regulations and mechanisms which integrate several payment instruments and channels in Indonesia. In contrast to practices in other countries, where the central bank only appoints one NPG Switching Agency, in Indonesia there are four Switching Agency that comes from the private sector, one of them is PT Jaringan Transaksi Elektronik Indonesia (PT JTEI). The implementation of the NPG regulation has an impact on PT JTEI. Commoditizing is one of the impacts of NPG. This condition has changes the competition atmosphere among the Switching Agency to win the market. As a result, it will threaten PT JTEI revenue. This research aims to develop a growth strategy for Payment Switch service of PT JTEI in order to explore new revenue stream, so that the company could sustain and grow in NPG era. To develop the growth strategy, this research was conducted by analyzing the external and internal environmental conditions of the company. The external environment condition is carried out using PESTEL, Porter's Five Forces and Competitive Analysis. Whereas the company's internal environment is analyzed using the Core Competency, VRIO, and Porter's Value Chain model. This research will follow the qualitative research method. Primary data collected through in-depth interviews with related stakeholders at PT JTEI and Bank Indonesia. While secondary data are gathers from relevant information sources. The results of external and internal analysis above then explored to develop growth strategy options using the Ansoff Matrix or also known as the Product / Market Expansion Grid. Then the growth strategy options selects based on specified criteria. The selected strategy options will formulate into the Five Diamonds Framework and Business Model Canvas. This research is also complemented by an implementation plan for the company. This research concludes that PT JTEI should choose a Product Development strategy from Ansoff Matrix by developing a cardless payment switch for linking banks, e-wallets, and e-commerce to serve online shopping transactions. This strategy is combined with the Low-Cost Leadership strategy so that PT JTEI is more flexible in winning competition in this industry.