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Projects > Indonesia_Nov-Dec10

 The following article gives a summary of this project. More details are described in Media BBR No. 33 Feb11 edition,

 the magazine of PERBARINDO, the national association of the People’s Credit Banks in Indonesia.


In September 2009 GTZ acquainted BPRs with an MS Excel based quantitative management tool (SIAP). This tool allows analysing the bank’s current weaknesses and strengths, simulating the impact of an adjusted business strategy, pricing loans and comparing the resulting indicators for efficiency and outreach against competing market participants. Courses on concepts and applications of SIAP are taught by the local Perbarindo chapters.

One of the key concepts consists in the classification of the BPR’s loan portfolio into risk and costs based product classes that are now standardized across Indonesia:

Loans are distinguished according to seize ranges of the initial principle and regarding non group loans according to the way the client creates cash flows for payment, e.g. via a business or a salary.

In October 2010 BI incorporated these and other new loan characteristics into the enhanced monthly requested loan report. This allowed Dr. Birgit Galemann, who developed SIAP in the name of ProFI, to derive the standardized product classes directly from this official report.

The user-friendliness of the tool is therefore greatly increased: At a push of a button now BPR management inputs the official loan report whereupon the whole portfolio is sliced and diced into the standardized risk and costs based product classes together with their associated

·        average interest rates, quoted as “flat” and “non-flat”

·        average original loan term

·        average loan size

·        outstanding amount and

·        number of loans, also distinguished by quality

The average interest rates charged provide one indicator for the degree of the BPR’s competitiveness. Other competitiveness as well as efficiency and outreach indicators for the current state of the BPR are displayed in SIAP as soon as the official balance sheet and profit & loss report plus a few additional parameters have been inserted into the tool.

In this way from now on a BPR’s competitiveness, efficiency and outreach can easily be compared across the industry.

In an increasingly competitive market some BPRs will be forced to lower interest rates over time. If this is achievable without making a loss can be read off the projected indicators after the interest rates and may be other current parameters in SIAP have been adjusted.