In Indonesia, Bank Perkreditan Rakyat (BPR) is one of the regulated microfinance systems and supervised directly by Bank Indonesia with an intention to address the unsatisfied demand for formal credit by the rural population and exploitative practice of the moneylenders. Despite of the negative impact of the Indonesian economic crisis, the opportunity for micro finance service to the poor is increasing more rapidly, yet the outreach of formal micro finance institution such as BPR to reach the poor and the micro enterprises especially women is still very small.

PT Ukabima, with a very limited sources but the current strength of presence in servicing BPR, has a great potential to be in the business and moving forwards as a leading player in this specialized service. The growth can be obtained through the underlying strategy of value creation and has to be done simultaneously both for the customer (BPR and end customer -the poor) and the investors (Socially Responsible Investors)

To reach the objective as a leading player, Ukabima shall pursue a Customer Intimacy approach, which means Ukabima should build-up knowledge-based assets and develop uniquely design product package to BPR in order to bring up the higher level of business experience instead of loan. To support and closer communication Ukabima shall engage in e-customer based experience system

Ukabima has to pursue another income beyond of interest income from loan. Capitalized on the basis of its existence in the financial wholesales business and its technical capacity, Ukabima should commercialized the expertise in BPR business that include technical service, software, audit & rating, Kusuma and Fund Placement.

To reduce the dependency to single source of funding from CRS and others, Ukabima should widen the source of fund from other socially Responsible Investor. It is necessary for Ukabima to increase the capacity in meeting with international finance market and the foreign currency based loan scheme.



In anticipating the potential of severe interest rate competition, forward integration strategy by entering and focusing more in the equity investment to BPR is a valid proposed strategy.

With focus and specialized business in micro finance through BPR, Ukabima has a potential for regional and international recognition. Therefore the success of the implementation of the above corporate strategy is crucial for the company objective.

Based on the optimist scenario in financial, our groups identify that it is very tough for Ukabima to achieve IDR 100 billion assets within the next five years. The optimist scenario advises that IDR 92 billion assets will be more appropriate target for Ukabima to achieve. In case of optimist scenario does not work, our groups had prepared a fall back plan with several strategies to maintain Ukabima growth. In regards to the fall back plan, Ukabima assets growth by approximately close to 80% compare to 110% growth in initial or optimist scenario.





Research Location : PT Ukabima

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