BUSINESS STRATEGY REJUVENATION OF AN INDONESIAN INVESTMENT MANAGEMENT COMPANY TO REMAIN COMPETITIVE IN THE MIDST OF DISRUPTIVE TECHNOLOGIES & ALTERNATIVE ASSET DISRUPTION

• Main Author: Nindita Iskandar, Muthia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65683
• Institution: Institut Teknologi Bandung

Mutual Fund Industry in Indonesia began in 1976 and further accelerated with the issuance of Indonesian Capital Market Law in 1995. Mutual Fund provides access for an investor to invest in a basket of securities affordably. A well developed and healthy Mutual Fund industry contributes to growth and sustainability of a country’s national economic. As per end of December 2021, there were 2,192 Mutual Funds available in the Indonesian market with total Asset Under Management (AUM) of IDR579 trillion. During 2011 – 2021 period, the industry experienced 227% growth in terms of number and 245% in terms of AUM. Indonesian Mutual Funds’ industry is experiencing issues and challenges that impact the growth and sustainability of the industry. Some identified challenges are “disruption” emerges from other alternative asset and the quick penetration of disruptive technologies that has and will continue disrupting the investment management process and Mutual Fund industry as a whole. An Investment Management company (the “Company”) is selected to be focus of the analysis. It had been experiencing a challenging situation in the last few years, losing its market share due to among other fierce competition against its competitors. The analysis covered Mutual Fund industry in general and focusing on an Investment Management company which business is managing Mutual Funds. The analysis performed herein is aimed to understand current Mutual Funds’ industry landscape; the issues and threats faced by Mutual Fund industry in general; issues and the root cause to issues faced by the Investment Management Company in review. Output of this analysis is suggestion on some alternative business solution for the Company with implementation strategies & plan.