DBS global survey reveals increased investor confidence in Indonesia
Indonesia, 29 Jul 2024 - Bank DBS Indonesia disclosed the results of a global survey conducted in partnership with Financial Times Longitude, which reveal the strategic role of corporate finance and treasury departments in determining the long-term trajectory of global businesses. Their recommendations are crucial in the face of new trade and value creation opportunities arising from digital technologies, growing demand for sustainable business models, and a shift in the economic balance of power in emerging economies due to globalisation.
The report, "
Pivotal: How treasury and finance enable a new era of globalisation
", which surveyed 570 executives from 15 markets across Asia-Pacific, Europe and North America, revealed that the top strategic priorities for businesses in Indonesia in the next two years are improving productivity and operational performance (83 percent), as well as increasing customer satisfaction and retention (77 percent).
Indonesia has abundant natural resources and has experienced steady growth in the metals, mining, and manufacturing sectors that satisfy demand from the electric vehicle (EV) industry. Massive investment in infrastructure has boosted investor confidence in the country.
Head of Institutional Banking Group at PT Bank DBS Indonesia
Kunardy Lie
said, "As sustainability efforts such as securing financing for widespread decarbonisation initiatives are becoming increasingly important, we believe that the significant increase in investor confidence in Indonesia underscores its strong economic fundamentals and promising growth prospects. Bank DBS Indonesia is committed to leveraging our regional expertise and resources to support Indonesia's sustainable development and deepen economic integration in the region."
On top of that, Indonesian executives also see business diversification as a key objective, with many of them (73 percent) stating that improving their business growth in Asia and securing new skills and talents are the primary focus.
However, businesses in Indonesia face various challenges, with access to capital and financing and geopolitical uncertainty at the top of the list, followed by economic downturns and volatility. As many businesses in the country have considerable reserves to fund their expansion and digitisation objectives, these challenges may arise especially in other countries in Asia where their local affiliates aspire to expand operations.
To boost strategic priorities and facilitate diversification strategies, the executives indicate that corporate strategy is the strategic endeavour most likely to be undertaken by Indonesian treasury and finance teams (87 percent), followed by procurement and supply chain (83 percent). However, when compared to the global average, Indonesian executives are relatively less likely to state that treasury and finance are involved in sustainability and decarbonisation (60 percent versus 71 percent) and risk management (63 percent versus 71 percent).
So, what's next for treasury and finance teams in Indonesia? Nearly six in ten (57 percent) companies in Indonesia believe that treasury and finance teams are critical to their success in this era of globalisation. Indonesian companies reveal that their treasury and finance departments excel at aligning strategies with larger organisations (70 percent), as well as securing favourable financing for diversification projects (67 percent).
In keeping with value creation and adaptation to the digital age, Bank DBS Indonesia consistently provides integrated solutions that combine various banking technologies and processes to create a system that seamlessly connects to customer operations. Integrating products and services into customers' business processes through DBS RAPID’s integrated channels or Real Time Application Programming Interface (API) by DBS allows customers to connect through the latest API technology for real-time transactions.
Our proven ability to process large volumes of payments using API (DBS RAPID) and a host-to-host solution (IDEAL Connect) enables businesses to process a wide range of payment types. DBS IDEAL can be accessed via website and mobile app to provide a comprehensive suite of cash management, supply chain and trade finance services. Bank DBS Indonesia's competitive and comprehensive liquidity solutions allow corporate customers to maximise returns while providing transparency and flexibility in accessing and monitoring their funds.
Head of Global Transaction Services at PT Bank DBS Indonesia
Dandy Indra Wardhana Pandi
said, "These technology solutions not only streamline financial operations but are also key to success in improving productivity and operational performance as well as enhancing customer satisfaction and retention. In addition, the synergy between all business units ensures efficient banking operations, enabling businesses to achieve their goals more effectively."
Conclusion
These findings provide a deeper understanding of the evolving role of treasury and finance in the new era of globalisation. Companies that embrace these changes by upskilling, embracing new technologies and instilling the right culture to enable teams to adapt to these new responsibilities will unlock new opportunities in a dynamic global marketplace.
For more information:
The full report "Pivotal: How treasury and finance enable a new era of globalisation":
here
Indonesia report fact sheet:
here
About Global Transactions Services Bank DBS Indonesia:
id/id/corporate/solutions
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named
“World’s Best Bank”
by Global Finance,
“World’s Best Bank”
by Euromoney and
“Global Bank of the Year”
by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named
“World’s Best Digital Bank
” by Euromoney and the world’s “
Most Innovative in Digital Banking”
by The Banker. In addition, DBS has been accorded the
“Safest Bank in Asia
“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as
World’s Best Bank in Indonesia
for three consecutive years from 2020 to 2022.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments that focuses on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.
PT Bank DBS Indonesia
is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
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Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
