Indonesia
Indonesia has patches of banked and un banked area. There is a presence of Universal Banks as well Islamic Bank. There are 11 banks per 100,000 people in the county. Indonesia has been relatively busy in the last few years. There have been a number of banks on transformation routes for some time and this sort of situation tends to put pressure on others to follow. The banking sector is competitive and this is a country that has seen strong GDP growth, with this predicted to continue although there has been something of a slowdown since 2013. As such, the country has recovered well from the severe banking crisis of the late 1990s, which saw the collapse of most of the sector.
There has been almost a halving of the number of banks in
the last decade, from a high of 236, much of it due to consolidation. State-owned Bank Mandiri, formed from four failed banks at the end of the 1990s, is the largest bank, followed by Bank Rakyat Indonesia and privately-owned Bank Central Asia. While all of the banks that were bailed out in the late 1990s reverted to private ownership, the government- owned banks that remain account for around one-third of assets. The top 15 banks account for around 70 per cent. Aggressive Malaysian bank, CIMB, is a major player in Indonesia, with CIMB Niaga now the fifth largest bank, behind a government majority-owned entity, Bank Negara Indonesia.
Temenos was the biggest winner in 2012, with five core
banking deals, at Bank Mayora, Bank Permata, Bank Tabungan Pensiunan Nasional, Rabobank Indonesia and State Bank of India. Other than that, ERI had a win for its Olympic private banking system at Mandiri Sekuritas, while there was one taker of Misys’ Opics.
In 2011, by contrast, there had been five treasury deals and
four universal deals. These included deals for Oracle FSS and Temenos that had an Islamic banking requirement, reflecting a decree by the central bank that banks’ Islamic windows should be separated from the conventional parts. Flexcube was taken by Bank Muamalat, part of a major transformation by this 500+ branch bank; T24 was taken by Bank Artha Graha. Temenos also won conventional banking deals with Bank Mayora, a start-up, and BPR Karyajatnika Sadaya. Bank Andara, a 2010 win for Temenos, has been looking for other BPR (savings or credit institution) customers for its white-label offering based on T24.
A major T24 implementation has been at Bank Syariah
Mandiri, following a late 2009 selection, the country’s largest Islamic bank and a subsidiary of Bank Mandiri. The 700-branch bank had implemented T24 across most branches by the end of 2012, around one year late, with non-core components still under implementation into early 2015.
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Of the five treasury deals in 2011, four went to Misys’ Opics, and one went to Australia-based CCK, which had won one of the two treasury deals of the previous year, at Panin Bank. At least four of CCK’s wins in the region have been to replace Opics, including a 2009 deal in Indonesia at Bank Rakyat. Thomson Reuters (now Misys), which signed two deals in 2009 and one in 2010, has drawn a blank since then for Kondor+/K+TP.
In 2013, French supplier, SAB, joined the fray. This stemmed
from an agreement with Collega, a local vendor which will see SAB AT adapted to the local regulations and market specifics, and then replacing Collega’s own development at its eleven customers (four of these also have Islamic subsidiaries, and the system will be rolled out there as well). The delivery was planned for Q1 2014. The first to move was expected to be the largest user, with over two million accounts. Most of the roll- outs would be done on a SaaS basis, with Collega hosting the system at its data centre, in keeping with the current set-up of Collega’s clients.
Temenos added another clutch to its haul in 2013 and was
also implementing T24 at Rabobank’s country operation. The core systems market remained busy, sometimes with an Islamic aspect, and Misys (Bankfusion), Oracle FSS and Polaris gained wins.
It was quieter in 2014, with two treasury and capital markets
deals, for Opics (now Fusioncapital Opics) and Sungard’s Ambit Treasury, plus a core banking deal for Temenos.
There could be change on the way. By early 2015, the
Indonesian authorities were considering the creation of an Islamic ‘mega bank’. The idea centres on the merger of the Islamic banking arms of three state-owned banks – Bank Syariah Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia. The Shari’ah-compliant banking unit of Bank Tabungan Negara (Bank BTN) might also be included in the merger, it was understood.
Indonesia has the world’s largest Muslim population, but its
Islamic banking segment comprised just 5.5 per cent of the country’s overall banking market, according to Ernst & Young’s World Islamic Banking Competitiveness Report 2014/15.
Only 2 deals were awarded in 2015 , that also for treasury management system only. FIS won both the deals in Indonesia.
The year 2016 was a good year for banking system sales in Indonesia, especially for Temenos, which won four out of the eight deal recorded in the country. The other four deals included two treasury system wins split between FIS and Misys, and two core banking wins split between Infosys and the Russian vendor, Diasoft.
Market Dynamics Report 2017 |
www.ibsintelligence.com
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