DESIGN STRATEGY FOR PROPERTY DEVELOPER ADDRESSING THE POLICY OF BANK INDONESIA

Abstract

The background of this research is the issuance of “Surat Edaran Bank Indonesia (SEBI) No.15/40/DKMP” dated to September 24, 2013, which explains the regulation of Loan To Value (LTV) in the property industry. This leads to a decrease in property sales nationwide in Indonesia, and in particular for property developer company CitraLand Surabaya, which will be used as a study case for this research.The aim of this study is to: 1) find and analyze internal factors that affect the property developer after the issuance of ”SEBI No.15/40/DKMP 24 September 2013”; 2) find and analyze the external factors that affect the property developer after the issuance of ”SEBI No.15/40/DKMP 24 September 2013”; 3) recommend strategical design suited for property developer based on internal and external factors identification after the issuance of ”SEBI No.15/40/DKMP 24 September 2013”.This research utilizes quantitative descriptive approach by using IFE (Internal Factor Evaluation) matrix, EFE (External Factor Evaluation) matrix, IE (Internal Eksternal) matrix, SWOT (Strengths Weakness Opportunities Threats) matrix, QSPM (Quantitative Strategic Planning Matrix) and in depth interview result that aim to figure out the internal condition of the company when research is conducted, the response of the company towards the external condition that is happening, recommend alternative strategical design that is based on the strengths, weakness, opportunities, and threats that happen, and recommend strategical design that should be prioritized by the company to be done. The population in this research includes company management, bank management, and consumers. The sample in this research are 2 respondents from company management, 2 respondents from bank management, and 2 respondents from consumers. Technique used in picking up samples is Non Probability Sampling with Purposive Sampling. Based on the analytical result done, it is known that the strategic internal position of the company is located in the present condition and respond quite well with external condition (opportunities and threats) that is happening in the property industry. Recommended strategies are comprised from financial and non-financial sectors, equipped with execution details. Based on the company and bank management’s view, it is wise to prioritize strategy from financial sector, whereas based on consumers’ view, strategy from both financial and non- financial sectors have to be carried out in balance to increase sales in property industry.