The objective of the study has been to assess investment opportunities for GE Capital in financ,ial industry in Indonesia and define possible entry strategy.

Global Approach

The approach followed in the study includes major pieces of analysis:

* analysis of overall macro condition (political, social, legal and economic) arid timing strategy .

* assessment of financial industry attractiveness .assessment of GE Capital capabilities

* screening of target

* develop foundation strategy and deal scenario

Business Opportunity in Indonesia

National private banks owned the largest market share on collection of funds and credit disbursement Banking sector become a major player in Indonesia economic activity and will be the first sector 0 first priority to be recovered. During this crisis, government offers an opportunity in banking sector for foreign investor through policies and deregulation which induce foreign investment.

Timing Strategy

Despite the high uncertainty of political and social condition, GE Capital should do acquisition whe1 opportunity is available regardless the general election timing. This strategy offers the advantages on low price and high bargaining position from government as well as from target bank(s).

Key Success Factors .

In the recent development, the major determinants of financial and competitive success in banking sector are:

.Good Image; gaining trust from public is very important .Good Financial Backup

.Customer's satisfaction through better service and competitive product.



Research Location: GE Capital (Indonesia)

Supervisor: Roy Sembel, Ph.D

Accepted on 27 November 1998



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