A study on Overseas Chinese bank in Indonesia - Focusing on Bank Central Asia

Abstract

This study seeks to comprehensively analyze the historical development and current status of the Indonesian banking industry. Furthermore, it aims to delve into the origins, developmental trajectory, and current standing of Overseas Chinese Bank Central Asia, a pivotal player in the Indonesian banking landscape, while evaluating its competitive edge. Drawing from this examination, practical implications and strategic developmental approaches will be proposed. Through an extensive review of literature, we will scrutinize the evolution and present state of Indonesia's banking sector, along with the establishment, growth history, and current position of Bank Central Asia. Utilizing Porter's Five Forces analysis model, we will assess the competitive dynamics of Bank Central Asia, complemented by a SWOT analysis to scrutinize its internal and external environments. Despite its inception by overseas Chinese, Bank Central Asia has emerged as a frontrunner in Indonesia's financial realm. While it exhibits deficiencies in digital transformation, product innovation, customer experience, risk management, and collaborative innovation, it boasts strengths in network expansion, talent cultivation, and system enhancement for promotion and development. Leveraging these competitive advantages, Bank Central Asia has sustained its leading position within the Indonesian financial landscape. To maintain this competitive edge, Bank Central Asia must astutely navigate market trends, competitor actions, and regulatory shifts, making informed decisions and flexibly adjusting strategies as needed. Leveraging its external networks and internal strengths, Bank Central Asia has upheld a sterling reputation and achieved sustainable growth. The exploration of these Overseas Chinese banks not only sheds light on the intricacies of the Southeast Asian economies but also offers valuable insights into the dynamics of global banking and finance.