Articles

Review of The Financial Health of Bank During Increasing Foreclosed Assets and The Application of Analytic Hierarchy Process (AHP) in Selecting Strategies to Reduce Them

/in /by

PT Bank Laju International Tbk (the Bank) has struggled with its increased foreclosed assets, particularly those originating from mortgage loans, which could affect its financial health. The research assessed Bank’s financial health using Risk Based Bank Rating (RBBR) framework by analysing key financial ratios and investigating the root causes of rising foreclosed assets through Fishbone and Pareto analysis. Key factors include customer income instability, slow progress in selling foreclosed assets, and lack of insurance protection during economic downturns. To select effective strategies for managing foreclosed assets, the research utilized Analytic Hierarchy Process (AHP), a Multi-Criteria Decision-Making method, to evaluate multiple alternatives based on various criteria, which were derived from Focus Group Discussion (FGD) with Bank’s officers, who directly involved in mortgage loans and foreclosed assets activities, also reference with Bank’s SWOT analysis. The research evaluated three alternatives strategy:

  1. Protection Insurance for Customer’s Mortgage Loans.
  2. Actively Partnering with property agents to accelerate sale of foreclosed assets as-is.
  3. Collaborating with property agents to renovate foreclosed assets.

The result showed that despite the increase in foreclosed assets, the Bank remains financially sound, with key financial ratios within acceptable regulatory limits. AHP analysis revealed that alternative 1 stands in first place to be prioritized, followed by alternative 2, however between both alternatives indicates a very small difference in prioritization weight, which means that both strategies are important to be executed and prioritized. Proposal to implement both alternatives in parallel would be a very effective strategy, where alternative 1 conduct as Preventive Strategy in preventing customer’s mortgage loans defaults, while alternative 2 as Corrective Strategy in lowering foreclosed assets volume. Alternative 3 acts as a complement strategy, where renovating foreclosed assets could facilitate quicker sales, however it’ll take longer time for renovation itself.

Selecting Outdoor Wireless Solution for Bara Prima Borneo Using Analytic Hierarchy Process

/in /by

The advancement of wireless communication technology is critical for improving the efficiency, safety, and productivity of mining operations. This study focuses on evaluating and recommending an optimal outdoor wireless network solution for Bara Prime Borneo (BPB) mining operations in East Kalimantan, Indonesia, using the Analytic Hierarchy Process (AHP) for decision-making. The current Wi-Fi infrastructure faces significant challenges, including limited coverage, interference, and scalability issues, which hinder its effectiveness in the demanding mining environment.

To address these challenges, the study employs a comprehensive approach to identify stakeholder expectations and value perceptions, explore alternative wireless network designs such as Private LTE and Kinetic Mesh, and systematically select the most suitable solution using AHP. Through discussions with subject matter experts and secondary data collection, the study outlines the strengths, weaknesses, opportunities, and threats (SWOT) associated with the existing Wi-Fi network and potential alternatives.

Using AHP, the study prioritizes various criteria such as coverage, reliability, cost, scalability, and security. The recommended design aims to bridge the gap between current capabilities and future needs, ensuring robust and extensive network coverage that supports various digital applications essential for modern mining.

By selecting the proposed solution using AHP, BPB can achieve a more reliable and scalable wireless network, enhancing overall operational efficiency and safety while meeting the evolving demands of its mining operations.

Capacity Planning to Increase Mechanic Availability in After-Sales Service at PT. Elang

/in /by

After-sales service is critical in selling products such as heavy equipment, which require maintenance from mechanics who understand the product. PT. Elang is one of Indonesia’s heavy equipment distributors and provides service support after purchase. The company currently struggles to manage the mechanics for repair requests from customers. Most of the time, the mechanics are already dispatched for regular maintenance, so repair requests are challenging to respond quickly to because of the unpredictable nature of the case. Complaints and bad reviews on after-sales service lead to lost customers and significant revenue loss. This study aims to identify the gap between current and ideal capacity, look for the root causes through the business process review to find where improvement is needed and provide a suitable solution for the company. The qualitative and quantitative methods were used in this study. The qualitative method was through interviews and discussions with the head of service support and the branch operation head to understand the situation and process. The business process related to the issue was then analysed with Business Process Modeling and Notation (BPMN) and the root cause was found using the Current Reality Tree (CRT) method. The quantitative method was through the sales and capacity data collected from the company. The best alternative solution was selected using the Analytic Hierarchy Process (AHP) using XLSTAT. This study showed that the problem happened because of two root causes: an inadequate number of mechanics and no sufficient integrated system to support the information flow through related divisions. Three alternative solutions were proposed based on the root causes. After the AHP calculation and analysis, the results were confirmed with the head of service support, and it was concluded that the solution that could be implemented in the company is providing service points with a priority result of 71.03%. The next alternative is to implement the cloud ERP system with a result of 15.04% and outsource mechanics with a result of 13.93%. With this solution, the company considered a long-term approach with more sustainability and scalability criteria than ease of implementation. The order of criteria priorities are cost, effectiveness, sustainability, scalability, and ease of implementation, with a consecutive result of 47.87%, 24.3%, 12.64%, 6.6%, and 8.59%.

Analytical Hierarchy Process (AHP) Method for Marketing Agency Selection at PT Kirana Mitraabadi

/in /by

E-Commerce growth in Indonesia sets the stage for PT Kirana Mitraabadi, underlined by statistics indicating a substantial increase in e-commerce users. PT Kirana has identified the need to embrace and make a shift from a B2B-focused business model to the dynamic B2C market. The company aims to leverage this momentum, recognizing the potential to broaden its customer base and drive sales through the introduction of a new product line derived from its core offering of paraffin wax. However, the complexities of this shift reveal a major challenge in PT Kirana’s marketing division, which specializes only in B2B strategies. The key responsibility is developing B2C marketing strategies, required to be employed with a competent marketing agency. The assessment is conducted using 5 Whys technique and a fishbone diagram, examining the current factors and challenges that PT Kirana faces. Then, the process of choosing the agency involves a thorough decision making approach that takes into account both qualitative and quantitative factors. The Analytic Hierarchy Process (AHP) is the preferred method for assessing and choosing the best marketing agency to partner with. The findings of the AHP analysis offer actionable insights, facilitating a seamless transition for PT Kirana Mitraabadi’s as it ventures into the B2C market, supported by the strategic expertise of the chosen marketing agency. This will help the company to capitalize on the e-commerce market in Indonesia, expand its customer base and successfully introduce their new product line also increasing their sales through the B2C market strategies.

A Comparative Analysis of the Most Prioritize Five Bold Moves Strategy in Telkom Indonesia

/in /by

Telkom Indonesia is a state-owned telecommunications company in Indonesia that operates in the telecommunications industry. As a digitally transformed telecommunications company, Telkom needs to be agile in facing the dynamics of the industry. Telkom Indonesia has launched Five Bold Moves, which are five major strategies, to become a world-class telecommunications (telco) company. In general, these five major strategies are implemented by investing in telecommunications infrastructure and digital platforms in a balanced manner to meet shareholder aspirations and address industry challenges, such as the sustainability of Telkom’s business in the future and improving the company’s valuation and profits.

The objective of this research is to determine the hierarchical structure of criteria, sub-criteria, and key alternatives in the selection of the Most Prioritized Five Bold Moves Strategy in Telkom Indonesia. This study employs the Analytic Hierarchy Process (AHP) method with the assistance of the Expert Choice application. The research subjects are employees of Telkom Indonesia, and the number of participants in the study is 31.

The results of the research indicate that competitive advantage and strategic are the main criteria for selecting the Most Prioritized Five Bold Moves Strategy in Telkom Indonesia. And for The main alternatives indicate that “fixed and mobile collaboration (FMC)” and “data center Co” have a dominant influence in the hierarchy structure. The suggestion that the researcher can convey related to the results of this study is to add alternatives to similar research and combine the Analytic Hierarchy Process method with other Multi Criteria Decision Making techniques enabling decision-makers to make informed choices regarding their implementation. This research contributes to the strategic management literature by offering a comparative analysis of Telkom Indonesia’s five bold moves strategies using the AHP model. The findings provide valuable recommendations for Telkom Indonesia’s management team and serve as a basis for further research in the field of strategic decision-making in the telecommunications industry.

 

Corporate Renewable Energy Procurement Prioritization Using Analytic Hierarchy Process (AHP) by Energy Service Company Perspective in Response to COP26

/in /by

To be able to participate in the COP26 commitment to work together to make clean and sustainable solutions, making clean power is the most affordable and reliable option for Indonesia to meet its power needs efficiently by 2030. The purpose of this research is to create a prioritization of prospective renewable energy projects from the point of view of a service company as an oil and gas company’s contractor. These include Indonesia’s prospective projects, which are geothermal or carbon capture and utilization, and decarbonization or reduction emission from existing services. This research also decides criteria that important for service company in providing renewable energy. A literature study, interviews with key decisionmakers in the company, questionnaires to company experts, and a questionnaire to practitioners in the industry were done to determine the criteria and prioritization technique. Four criteria of governance, marketing and sales, financial and project management were found to support the prioritization process using the Analytical Hierarchy Process (AHP). Among the nine sub-criteria, the sub-criteria with the highest global weights are profitability, cashflow, and service quality assurance.