PROPOSED BUSINESS STRATEGY FOR BPRS FAJAR SEJAHTERA BALI

• Main Author: Meidian Ramdhani, Deri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49229
• Institution: Institut Teknologi Bandung

Islamic economic development of Indonesia became increase significantly. This indicated by many Islamic financial institutions' growth and got a big trust and acceptance from the public, included Islamic rural banks. Islamic rural bank is a sharia bank that in bank activities were not provided services in payment traffic. OJK Banking Statistic December 2019 indicated that there were incremental numbers of Islamic rural banks (BPRS) that have total assets above IDR 10 Billion. It showed that their business was growing. One of BPRS in Indonesia is BPRS Fajar Sejahtera Bali that had increased significantly its asset IDR 9.7 Billion in June 2019 to IDR 13.3 Billion in December 2019. As the only one Islamic rural bank in Bali since 1994, BRPS Fajar Sejahtera Bali faced the business issues both internal (human capital, financial, and IT) and external (low sharia literacy index). Strategy formulations used to resolve these issues are Stakeholder Analysis to obtain relevant parties in order to form strategic alliances and partnership with the company. Then the TOWS Matrix Strategy to avoid or reduce disadvantages also to create the best strategies by matching variables of strengths, weaknesses, opportunities, and threats of the company. It also used the Porter’s Generic Strategy to determine the best and right strategy to be chosen in order to upgrade its business size with emphasizing on which target customer should be focused. The result of the business analysis showed that BPRS Fajar Sejahtera Bali should conduct strategic alliances and partnerships with relevant stakeholders to address business issues. Staging in proposed business strategy implementation for the short-term will focus on request submission for core capital, offering products to government board and corporate, and transfer sharia knowledge and practices. The medium-term will focus on community programs with community leaders and sharia financial bazaar. While for the long-term will focus to transfer technology advancement, offering value-added service programs, and channeling, executing, or joint financing.