Message from ABFI Institute Senior OfficersTo all ABFI INSTITUTE PERBANAS leaders, professionals and employees:

Initial step to have a discussion on a term of direction in Hotel Novus, Cipanas, West Java, Indonesia, on April, 6-8, 2009 was indeed a breakthrough practice for ABFI Institute Perbanas. Hotel Novus initiative has resulted in a strategic document that can be used as a business guideline unifying every strategic steps to be a better ABFI Institute Perbanas in the future.

By 2019 ABFI INSTITUTE PERBANAS will have been the top 5 Asian Bankers Center of Excellence where 80 % of alumni be professionally employed not more than 6 months after their graduation. And this document shows the path to achieve it.

To support the above initiative, we, ABFI INSTITUTE PERBANAS Senior Officers hereby endorse and approve this Strategic Planning 2009 – 2019 as a formal business guideline that must be used by all ABFI INSTITUTE PERBANAS leaders, professionals, and employees in their effort to achieve ABFI INSTITUTE PERBANAS end goals.

Jakarta April 30, 2009

Cyrillus HarinowoChancellor of ABFI Institute

Andi Mohammad HattaChairman of Executive Committee

Sigit PramonoChairman of Indonesian Banking Association

Sukatmo PadmosukarsoChairman of Perbanas Education Foundation

1

Two interrelated reports were produced to reflect ABFI Institute Perbanas Strategic Plan – 1) the Blue Print and 2) Detailed Business Plan Report, are as follows:

1. Blue Print0. Background & Methodology………………………………….……... 4

• ABFI Institute Perbanas Today’s Dimensions …………….… 5- 18

• The Assessment of Environmental & Education Industry Pressures 2009 – 2019 ………………………………………………….…... 19- 28

• Aspiration & Key Success Factors………………..…………. 29 -31

• The Road map & Blue Print to V 2019………………………… 32 -34

• Detailed Planning Committee & Project Planning • Time Table ….……………………………………………………35 -37

• Summary………………………………………………………………. 38

2. Detailed Business Plan1. Banking & Finance Based Curriculum & Program Study .2. Added Value Research & Publication Activities3. Continuous Professional Education & Certification4. Continuous Development of International Educational

Capability5. Creation of Effective Business Development Organization &

Task Force6. Active Participation in Community Services & Industry Linkage7. Future Oriented Physical Infrastructure & Technology System

Development8. Creative Finance /Funding Development & financial projection9. Value & Goal Based Human Capital Development10. Strict adherence to Core Value11. V2019 Communication Program

Separate Document (Part 2 of the Report)

This Document (Part 1 of the Report)

2

Background & Methodology• Based on the mandate from Chairman of Perbanas Education Foundation

No 037/Skr/Ypp/III/2009, dated March 19 2009 , a Strategic Planning Workshop was conducted on April 6 – 8, 2009 in Hotel Novus, Cipanas, Jawa Barat, Indonesia to set up an ABFI Institute Perbanas strategic direction for 2009 – 2019. The workshop was facilitated by Andi Mohammad Hatta, who is also the Chairman Of ABFI Institute Perbanas Executive Committee

• To ensure strong commitment from the participants, the process and methodology of the strategic planning were designed for active participation, consensus, and approval in every phase of the process.

• The Strategic Planning Workshop were attended by 36 participants from various field and expertise to enrich the plan.

3

1. ABFI Institute Perbanas to day’s dimension

4

A. History: • ABFI Institute Perbanas was founded and solely owned by Indonesian Banks

Association (PERBANAS) through it’s Education Foundation (Perbanas Education Foundation) on February 19, 1969 with initial name Akademi Ilmu Perbankan (AIP),

• In 1982 the name was altered to Akademi Akuntansi Perbankan (AAP) when Accounting Study Program was developed and introduced.

• In1985 AAP was transformed to Sekolah Tinggi Ilmu Ekonomi (STIE) to up grade its status from Academy to an Institute.

• In1993 The Perbanas Education Foundation created a new school called Sekolah Tinggi Manajemen Informatika dan Komputer to tap computer and IT educational market and consequently owned and managing 2 schools.

• In 2007 both schools were merged into Asian Banking - Finance and Informatics Institute to create better synergy and to address the fierce competitive educational market.

5

B. Infrastructure Dimensions• Campus is located in Jakarta Golden Business Triangle with 12.684 sqm2,

occupied by 6 independent buildings for classes and offices, with over 14.000 books in a Central Library, 15 laboratories for computers, finance, dealing room, English center, mini banks (Syariah and Conventional).

• 26.774 sqm2 empty land is available in Ciderum and Caringin, Ciawi West Java for future campus development

• Wang and IBM i-series computer based and system

6

C. STUDENTS’ PROGRESS

Stud

ent

Year

7

Students’ progress for D III:

• Declining number of students, all study majors in DIII, especially accounting computerization.

Year

8

Student progress for S1 Majoring in Management

Study:

• Increasing number of regular program majoring in management study.

• Rebounding number of student for non regular program in management study (intensive module)

• Initials introduction of international class program

Year

9

Students’ progress for S1 Majoring in Accounting Study:

• Increasing number of students in regular program, majoring in accounting study.

• Rebounding number of students for non regular program in accounting study (intensive module)

• Initials introduction of international class program

Year

10

Student progress for S1 Majoring in Informatics Study:

• Declining number of regular and non regular programs majoring in informatics study.

• Declining number of non regular programs in information technology study (intensive module) & computerization study

• Rebounding number of regular program majoring in information technology & computerization system studies.

Year

11

Students’ progress for Graduate Study:

• All graduate programs declined in 2008, except for MM Risk Management Program

Year

12

Total Graduates For All Programs

0

150

300

450

600

2004 2005 2006 2007 2008

Tota

l Gra

duat

tion

Year

SASMDADMSITISKDKA

13

D. Human Capital Progress

0

75

150

225

300

Dosen Tetap Dosen Tidak Tetap Karyawan Tetap Kary.Tidak Tetap

Tota

l Em

ploy

ee

Status

AkademikNon Akademik

14

E. Revenue Vs Cost Progress

30,000,000,000

40,000,000,000

50,000,000,000

60,000,000,000

70,000,000,000

2003/2004 2004/2005 2005/2006 2006/2007 2007/2008

Rev

enue

vs

Cos

t

Year

PenerimaanPenegluaran

15

F. Position in Banking Education Industry:• PERBANAS has been well known as the brand for best banking school in

Indonesia but contradictorily not many ABFI Institute Perbanas alumni are pursuing their careers in Indonesian Banking Industry. Unmatched learning curriculum with Banking Industry practices is believed to be the major reason for this problem.

• ABFI Institute Perbanas is directly or indirectly competing with thousands of Indonesian Economic Schools, and unfortunately is not capitalizing on its strengths in Banking & Finance. As the result its position in Education Industry is not prominent.

• 2nd tier student quality enrollments have been the case of ABFI Institute Perbanas. The Indonesian Students first choice enrollment are in the top 20 Indonesian Universities/Institutes.

• To day there are not many Banking & Finance Education players in Asian Education Market and therefore it is a great opportunity to tap niche market where ABFI Institute Perbanas can bank on it’s strength.

16

G. Conclusion of ABFI Institute Perbanas to day’s dimension:

ABFI Institute Perbanas is a relatively mature school, it has been in Indonesian education market for the last 30 years, back grounded by close ties with Indonesian Bank Association as sole owner, good campus location , and available land for further campus development are several strengths that should be capitalized forward.

ABFI Institute Perbanas however, has not been a target for 1st quality student enrollment and as consequences the student basic quality and intake are often in instable trend. Unmatched industry expectation curriculum and un-focused education industry target market are believed to be the root cause of this trend, and further result in low alumni absorption in Banking & Finance Job Market.

Refocusing ABFI Institute Perbanas target market by capitalizing it’s strength in Banking & Finance Education will be logical solution and worth pursuing.

17

2. Assessment ofEnvironmental & EducationalIndustrial Pressures 2009 - 2019

18

Assessment Of Environmental PressureSocial & Culture in 2019

Increasing number of high schools students to be accommodated in the universities, and more options to choose higher education to their preference.

Better family welfare and good financial planning will increase their ability to prepare for future study.

More banking and financial institutions will provide financial support, broadening opportunity to enroll in higher education.

School modernization, technology application (including life style), greater demand for good school governance will require different learning delivery system.

Positive paradigm and people literacy in banking industry will be inline with future banking & finance higher competency standard

19

Assessment Of Environmental PressurePolitical & Legal in 2019

20% of educational budget will be provided by Indonesian Government trough APBN but it will require higher qualifying standard to obtain.

Increasing demand for higher lecturers qualification including but not limited to English proficiency.

Issuance of new license for higher education will be more difficult.

Broader Authority for Regional Government to make decision in educational aspects.

More Asian players in higher education – education industry is getting competitive.

New opportunity to capitalize the present tax regulation in developing education infrastructure.

20

Assessment Of Environmental PressureEconomy in 2019

The economic environment is projected to grow: 4% - 8%, with annual inflation rate of 6% - 7%.

Increasing population of 1,2% per annum will create approximately 285 millions people.

GNP is in between USD 7,000 – USD 7,500 with uneven income distribution

As a result of economic, inflation and population growth, and along with banking and financial sector growth, real sector is expected to grow correspondently

Opportunity to go regional for most of the business will apparent when ASEAN ECONOMIC COMMUNITY is realized in 2015 including educational industry.

21

Revolution in computer power and price coupled with super wider bandwidth will color the IT application for educational purposes in the future. It will change the way higher education delivers the study content to the students.

More applications with the following capabilities:• Biometric based learning• Personal e-learning driven by on-demand technology• Virtual and contextual learning driven by broadband wireless and tele

presence multi interaction• Intensive collaboration with other parties as a result of highly integrated

value network system• etc.

Assessment Of Environmental PressureTechnology in 2019

22

• Student characteristics will be driven by self actualization, with age group of 15 – 60 years old, coming from regional student source and focus in international exposure with rapid accelerating capability

• Barriers to entry is liberal, wealthier, with global international exposure and global university ranking competition based

• More flexible and entertaining lifestyle, including in millennium generation, multi lingual capability, next generation communication style, multi culture and internalization interaction.

• Technology adaptation with 5G Speed bandwidth capability, integrated data center, advance ERP and hyper media gadget.

• Utilizing modern management approach, more empowerment on cross functional, application of high autonomous system with dynamic fund structure, and finally more interactive.

• Direction toward BHP (education legal entity) with fully liberalization structure at the end, after passing local joint venture and limited liberation stages.

Assessment Of Education Industrial PressureEvolution to 2019

23

• Program curriculum will be more demand oriented, flexible with cross disciplinary and dynamic multiple competency.

• Industrial characteristics will be driven by international competitors, lecturers, and output absorption.

• Facility will be driven by integrated technology availability, closely linked with fully customer relationship oriented.

• Learning approach will be more diverse, hyper innovative with interactive & self reflection learning assessment and highly educated student market segmentation.

Assessment Of Education Industrial PressureEvolution to 2019 (contd)

24

• The number of Asian higher institutions as well as market size will increase, more focus, borderless, English literate and consequently more competitive.

• More universities will base their learning delivery through IT based including e- learning, so that more alternatives in learning resources.

• Market concentration will gear to niche segment, differentiated, customized product, and on-demand orientation.

Assessment Of Education Industrial PressureStructure in 2019

25

• 20 top Indonesian Universities are indirectly competing with registered banking schools i.e. by running one or more banking learning modules in their respective Economic Schools. This situation is projected to continue until 2019.

• The Number of Asian higher educations directly competing in banking & finance programs are about 79 in Indonesia (18 are presently located in Jakarta including ABFII, STEKPI, IBS and one in Malang ), and 10 in Asia, they are:

- The Arab Academy for banking & financial sciences, Amman - Jordan - Egyptian Banking Institute, Cairo – Egypt - British University, Dubai, - MSc Finance & Bank - The Hajvery University for Commerce & Banking, Lahore India - The ICFAI University (Institute Of Chartered Financial Analyst Of India) for Bachelor & Master Degrees in Banking - Mahanakorn University for MBA-Finance & Banking, Bangkok, Thailand - Asian University for BBA Finance & Banking, Bangkok, Thailand - Banking University Of Ho Chi Mihn City, Vietnam - Central University Finance & Economic, MBA-Banking Management, Beijing China - The Chinese University Of Hong Kong, Banking University – Citibank

Assessment Of Education Industrial PressureCompetition in 2019

26

• The winner of future banking schools competition are believed to be those that could maximize technology in their course delivery system, including fast penetration into Asian market along with opportunity created by ASEAN Economic Community in 2015. As consequences, many non focus higher education institutes will be forced out of business.

• To day ABFII is not ranked in top Indonesian Universities/Institutes but it is believed to be Indonesian best banking schools. By focusing on it’s core as School Of Banking , maximizing its ties with Indonesian Bank Association and applying effective technology for it’s future course delivery, no doubt that ABFII will be a prominent Banking School in Asia in the future.

Assessment Of Education Industrial PressureCompetition in 2019 (contd)

27

3. Our Aspiration

28

…. Having analyzed our background, environmentalpressure , and education industry future competitive situation , weaffirm our aspiration as follows:

“ To be the most reputable Asian banking educationinstitute, aiming to be top 5 Asian banker’s center ofexcellent by 2019 where most of our alumni beprofessionally employed not more than 6 months after their graduation “

V2019

29

In pursuing our aspiration we will strictly guided by our COREVALUES as follows:

E = ENERGY & ENDURANCET = TRUSTH = HUMANITYI = INTEGRITYC = COMPETENCE

30

4. The Roadmap & The Blue Print To V2019

…..and a roadmap has been created to embark to V2019journey successfully.

Through SWOT analysis , 10 key success factors have been identified and 22 core initiatives (16 business & 6 supporting initiatives ) have been developed. These initiatives are clearly reflected in the following V2019 strategic plan blue print.

31

ContinueDevelopmentInternationalEducationalCapability

Continuous Professional Education & Certification

Value added Research Activities

Banking & Finance Based Curriculum & Program Study

Asian Most reputable Education Institute

VISION 2019 BLUE PRINT

Physical Infrastructure & Technology System Development# Future Oriented & Integrated Campus. # On demand technology architecture

Value & Goals Based Human Capital Development

#Mission Based Organization Structure # Performance & Career Management System

Goals

Asian top 5 Bankers Center of Excellence 80% alumni employed within 6 months after graduation

Creative Fund Raising Development# Donation Based Funding Scheme # Multi Optional Financing Scheme

Creation Of Business Development Organization & Taskforce

Active participation in Community Services & Industrial Linkage

• Redesigning curriculum and study programs including syariah.

• Various Degree programs

• Develop innovative course delivery

•e-Library & Learning

• Applied Banking / Finance Researches & Case Studies

•Based line Researches

•Executive/Professional Development Programs & certification Including Syariah

• Customize in house training & certification program

•Initial stage into internationalization

• Inter-University Collaboration.

•International exchange program.

• Development of focus organization unit •Development of marketing communication &Sales task force.Brand Image Improvement

• Innovative community assistant Services

•Banking/Finance field orientation for teachers & students

STRICT ADHERENCE TO CORE VALUE

…..and therefore our mission statements are concluded as :

WE ARE AN AFFILIATE OF INDONESIAN BANKS ASSOCIATION, OUR MISSION IS TO BE THE MOST REPUTABLE ASIAN EDUCATION INSTITUTE AIMING TO BE TOP 5 BANKERS CENTER OF EXCELLENT BY 2019 WHERE MOST OF OUR ALUMNI BE PROFESSIONALLY EMPLOYED NOT MORE THAN 6 MONTHS AFTER THEIR GRADUATION.

WE BELIVE WE CAN SUCCESSFULLY ACHIEVE OUR MISSION THROUGH THE IMPLEMENTATION OF:

Right banking/finance curriculum, Added value research activities, Continuous professional education International education capability, Focus business development organization, Active participation in community services, Future oriented physical infrastructure and on demand technology, Creative fund raising development program, Value & goal based human capital system, and most of all, Strict adherence to our core values.

33

5. Detailed Plan Committee &Project Timetable

34

….to ensure on the time implementation of our V 2019 initiatives a Detailed Plan Committee has been formally appointed to prepare and realize V2019 detail plan. Detailed plan must be completed not later than 31st of July 2009.

V 2019 Detail Planning CommitteeChairman : Dr. Fatchudin• Prof. Dr. Adler Manurung , Member• Prof. Dr. Sudarsono, M.Sc, Member• Prof. Dr. Narumi Lapoliwa, Member• Imam Wahyudi, Ph.D, Member• Dr. David Situmorang, Member• Novianta Hutagalung, MBA, Member• Edhi Juwono, M.M, Member

35

Project Plan Time Table

• Discussing first draft Mission Based Organization Structure to execute & monitor strategic plan progress and achievements ( Start processing April 29, 2009)

• Presenting the Strategic Plan to Broader Stake holders (May 6, 2009 forward)

• Monitoring the completion of Detailed Strategic Plan (April 8 to 31st July 2009)

• Strategic Plan Kick Off ( October 1, 2009)

• Strategic Plan Preparation (October – December 2009)

• V2019 Formal Implementation (January 1, 2010)

36

Summary

V2019 Strategic Plan is only the beginning milestone enabling ABFI Institute Perbanas to create a roadmap to be a prominent player in Asian Banking and Finance education market .

But the actual challenge however, is effective implementation of all key success factors and strategic initiatives.

To realize them successfully, Energy, Endurance, Trust, Humanity, Integrity and Competence are core requirements.

37