Citibank Indonesia Expansion and Growth Strategy

Citibank Indonesia has been expanding its presence in the country since its establishment in 1972. The bank has a long history of growth and development.

One of the key strategies behind Citibank Indonesia's expansion is its focus on digital banking. In 2019, the bank launched its mobile banking app, which has seen significant adoption among its customer base.

The bank's commitment to digital banking has enabled it to reach a wider customer base and improve its services.

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Citibank Indonesia was established on June 14, 1968, under the Ministry of Finance Decree No. D.15.6.1.4.23.

The bank started its operations in Hotel Indonesia with an initial staff of 15 employees.

In 1986, Citibank Indonesia made history by introducing the first ATMs in the country.

Citi was also the first foreign bank to introduce credit cards in Indonesia, which happened in 1989.

The bank's customer service program, CitiPhone, was launched in 1993 and provided 24 hours a day, 7 days a week support.

In 2013, Citi launched CitiMobile, a new mobile banking service.

Citibank Indonesia has faced its fair share of challenges and controversies over the years. In 2011, the bank was embroiled in a scandal involving the embezzlement of $1.9 million from three clients by a senior relationship manager.

The case led to a temporary ban on Citibank taking new customers for its wealth management division. The bank was also fined and its executives were subjected to fit-and-proper tests.

The bank's debt collection practices have also come under scrutiny. In 2011, a small-businessman named Irzen Octa died after being found motionless in Citibank's credit card collection department. An autopsy later determined that his death was caused by a ruptured blood vessel due to his chronic hypertension.

Citibank's response to the incident was to hire 1,400 new debt collection staff who were previously outsourced. This move was announced in April 2011, just a few months after the incident.

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Legal Issues have been a major challenge for Citibank in Indonesia. In 2011, senior relationship manager Inong Malinda Dee was arrested for embezzling $1.9 million from three clients.

This incident led to a temporary ban on Citibank taking new customers for its wealth management division. In 2012, Dee was convicted of stealing from clients and sentenced to eight years in jail.

Another controversy surrounded the death of Irzen Octa, a small-businessman who died after visiting Citibank's credit card collection department. His family alleged that he was assaulted by third-party debt collectors, but an autopsy later revealed that his death was caused by a ruptured blood vessel due to chronic hypertension.

Three debt collectors were sentenced to five years in prison for depriving Irzen's liberty, which ultimately resulted in his death.

Citibank officially closed its consumer banking and credit card services in Indonesia on November 17, 2023. This was announced on the official UOB website, which has reached an agreement to acquire Citi's consumer banking business in Indonesia.

The service stop for credit cards was at 20:00 WIB on November 17, 2023. Customers can use credit cards again starting November 19, 2023 at 15:00 WIB.

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Citibank credit card payments can be made on several channels starting from UOB ATMs on November 19, 2023 after 15:00 WIB. Payments can also be made via the UOB TMRW App starting at the same time.

The transition to UOB Indonesia services allows Citibank customers to return to using their credit cards starting November 19, 2023.

Citibank Indonesia's business structure is divided into two main groups: Institutional Clients Group (ICG) and Global Consumer Banking (GCB).

ICG has four branches located in Jakarta, Bandung, Surabaya, and Medan, focusing on treasury, cash management, trade, and security services, corporate and structured finance, and investment management.

GCB, on the other hand, operates 11 branches and over 70 ATMs across Indonesia, offering credit cards, wealth management, consumer loans, savings and deposits, investment products, and treasury products.

Note: GCB has been fully sold to UOB by the end of 2023.

Growing a business requires a solid foundation, and that starts with a well-structured hierarchy.

A flat organizational structure can be beneficial for small businesses with fewer than 10 employees, as it allows for quicker decision-making and more direct communication.

In a small business with a flat structure, the CEO or founder often reports directly to the board of directors, keeping decision-making power concentrated.

Flat structures can be beneficial for innovation and speed, but they can also limit scalability and growth.

For larger businesses with more complex operations, a more hierarchical structure may be necessary to maintain organization and efficiency.

In a hierarchical structure, departments and teams are often organized by function, with clear lines of communication and decision-making authority.

Clear job descriptions and roles help prevent confusion and overlapping responsibilities.

Effective communication is key to a well-functioning team, and regular team meetings can help ensure everyone is on the same page.

Regular performance reviews can help identify areas for improvement and provide opportunities for growth and development.

A well-structured hierarchy can help businesses navigate change and growth, but it's essential to regularly assess and adjust the structure as needed.

Regularly reviewing and adjusting the business structure can help prevent stagnation and ensure the business remains agile and adaptable.

Citi Indonesia's business structure is divided into two main groups: Institutional Clients Group (ICG) and Global Consumer Banking (GCB).

ICG has four branches located in Jakarta, Bandung, Surabaya, and Medan.

The core business of ICG includes treasury, cash management, trade and securities services, corporate and structured finance, and investment management.

GCB operates 11 branch offices and over 70 ATMs in Indonesia.

Its core business includes credit cards, wealth management, consumer loans, savings and deposits, investment products, and treasury products.

By the end of 2023, GCB was fully sold to UOB.

Macquarie estimates that Citi's APAC consumer business is valued at up to $8 billion.

The Australian brokerage has identified DBS Bank Ltd, Oriental and Commercial Bank of China (OCBC), and Standard Chartered (StanC) as the most likely cross-border buyers for a bouquet of assets across Asia.

Citibank Indonesia is a leading bank in the country, with a strong presence in the market. It offers a wide range of financial services, including consumer and corporate banking, treasury and trade solutions, and wealth management.

The bank has a significant presence in Indonesia's growing digital economy, with a mobile banking app that has been downloaded by millions of customers. This app provides customers with easy access to their accounts, as well as a range of financial services and tools.

Citibank Indonesia has a long history in the country, dating back to the 1950s. It has a deep understanding of the local market and has developed a range of products and services that meet the needs of Indonesian customers.

The bank's commitment to innovation is evident in its use of technology to improve customer experience. For example, it has implemented a range of digital channels, including online banking and mobile banking, to provide customers with easy access to their accounts and financial services.

In terms of market share, Citibank Indonesia is one of the largest banks in the country, with a significant presence in the retail and corporate banking segments.

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Citibank Indonesia has appointed Edwin Pribadi as the head of Citi Commercial Bank for Indonesia, effective May 7, 2024.

Edwin Pribadi has two decades of experience in banking and has held various leadership positions within Citi.

He started his career with Citi as a regional management associate in 2003, followed by an assignment to Citigroup's Apac operations and technology leadership development programme in Shanghai in 2006.

Pribadi will oversee all Citi's CCB business and operations in Indonesia, driving business strategy and financial performance.

Indonesia remains an important market to Citi due to its prominence within Southeast Asia and strategic ties with other countries in the region.

CCB delivers a range of products to mid-sized companies in Indonesia, including cash and liquidity management, foreign exchange, trade finance, capital markets, and lending solutions.

Gunjan Kalra, head of Citi Commercial Bank for Asia North, Australia & Asia South, sees the emergence of numerous mid-sized companies in Indonesia with a vision to expand regionally and globally.