CITI: 50 Years of Dedication for Indonesia

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50 Years of Dedication for Indonesia

Batik, the art and craft of dyeing patterns onto fabric, was first used by the Javanese royal court to design formal garments charged with symbolic meaning. The Kawung batik motif chosen to commemorate the 50th anniversary of Citibank Indonesia is inspired by the fruit of the arenga palm. Every part of this tree, from the roots to the shoots, have some use. This symbolizes Citi's role in providing the products and services needed to enable growth and economic progress for customers, clients, partners, employees, and the people of Indonesia.

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50 Years of Dedication for Indonesia

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This book is dedicated to our esteemed clients and community, without whom our journey in Indonesia would not have been possible.

50 Years of Dedication for Indonesia

For 15 years, from 1985 to 2000, Citibank Indonesia was headquartered in the aptly named Landmark building in the heart of Jalan Jenderal Sudirman, Jakarta’s main business avenue. Many of Citi’s products and innovations were conceived here

50 Years of Dedication for Indonesia

Batavia, as Jakarta was formerly known, served as a gateway for Asian and European traders to the Spice Islands and the East

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50 Years of Dedication for Indonesia

Jakarta today is one of the great metropolises of the world, drawing companies and talent from around the globe

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50 Years of Dedication for Indonesia

Batara Sianturi Citi Country Officer/Chief Executive Officer Indonesia

A Half Century of Service

This year marks the 50th anniversary of Citi Indonesia.

In the half-century since our modest beginnings, Citi Indonesia has developed from an institution providing basic transactional and collateral credit, to a multi-faceted provider of sophisticated banking services supporting individuals and businesses at all levels of society.

When we look back and reflect on Citi Indonesia’s 50-year history, our legacy will be remembered for two things: talent and innovation. Citi continues to attract the brightest young Indonesians, who often view a career at Citi as the gold standard for banking and good corporate governance.

In this book, we’ll let our distinguished Citi Indonesia alumni tell their own stories. From the start, it’s been their sophisticated perspective that has guided Citi Indonesia’s policies that benefit both the local community and stakeholders. Our greatest asset has always been the people.

As we look forward to the next half-century, we hope that Citi Indonesia’s performance as a whole in serving the financial needs of the people and companies who call this country home will continue to be judged a success.

My warmest gratitude to those who have been a part of the Citi family and to our clients, for entrusting Citi Indonesia with fostering your financial growth and well-being.

We hope you enjoy reading about our history in Indonesia as much as we have enjoyed the journey.

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Foreword

Batara Sianturi is a truly global banker. He joined Citibank Indonesia in 1988 as a Management Associate, after which he was appointed to various leadership positions in several countries. Batara was the first Indonesian to lead a Citi franchise outside of Indonesia (Hungary in 2007, Eastern Europe in 2008, as well as the Philippines and Guam in 2013) before returning to Jakarta in 2015 as the CEO of Citibank Indonesia.

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50 Years of Dedication for Indonesia

Amol Gupte ASEAN Head & Citi Country Officer, Singapore

The Next Digital Frontier 2018 marks the 50th anniversary of Citi in Indonesia. As a country, Indonesia is an important franchise for Citi. As the fourth most populous country in the world, the largest economy in ASEAN coupled with a growing middle class and a tech savvy population, Indonesia is often seen as one of the next global frontiers for e-commerce, which is an important emerging segment for us at Citi.

When one thinks about how the world looked 50 years ago, it was a very different place. There were no personal computers and mobile phones, the internet was not even invented, sectors such as e-commerce and FinTech were non-existent and digital money was unheard of. Technology has come a long way since and it has profoundly transformed the global economy and the face of banking. Today, banking stands at a crossroads with numerous new competitors and a client base that is increasingly demanding digital solutions. Fortunately for Citi, we are no stranger to innovation and have been transforming the world of finance, trade, communication and banking since the beginning of our existence over 200 years ago.

In just half a century, Citi Indonesia has grown to become one of the largest foreign banks in Indonesia, employing about 3,000 people. Increasingly, we are delivering our full suite of banking solutions to various client segments on our digital platforms. I am very proud of the fact that throughout our history in Indonesia, Citi has introduced a number of digital firsts in the country such as ATMs and electronic banking in the 1980s, One Bill in the 1990s, Pemberitahuan Impor Barang (e-PIB) in the 2000s, and CitiDirect BE and Smart branches in 2010s. These innovations have enabled growth and progress for our clients, and made it possible for Citi Indonesia to receive top honors from Global Finance Magazine as The Best Consumer Digital Bank as well as The Best Corporate/Institutional Bank in Indonesia in 2017–2018.

Beyond business, Citi is demonstrating the value we contribute to the communities we serve by supporting Indonesians in the areas of financial inclusion, youth economic empowerment and micro-entrepreneurship under the umbrella of Peduli dan Berkarya (Citi Peka). To date, 34 sustainable programs have been launched in partnership with 56 organizations. These programs have since reached more than one million Indonesians.

Citi Indonesia’s success would not have been possible without the dedication and commitment of our people, past and present. I congratulate everyone who has contributed to the success of Citi Indonesia’s first 50 years. Looking ahead, the possibilities truly are endless if we continue to focus on our clients, collaborate and build on our strengths.

Please accept my best wishes for this important milestone. Have an enjoyable celebration and best wishes on another 50 years of success.

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Foreword

A 29-year Citi veteran, Amol Gupte is the ASEAN Head & Citi Country Officer for Singapore. Prior to assuming this role in 2016, he was the Regional Head of Treasury and Trade Solutions (TTS) for Asia Pacific. Before that, he held numerous senior positions in Citi’s TTS business globally. Amol started his career at Citi in its consumer banking division in India and held roles in sales, product management and treasury.

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Francisco A. Aristeguieta Chief Executive Officer Asia Pacific

Building a Strong Legacy

It’s been 50 years for Citi in Indonesia and a fantastic run so far. Starting with a local banking license in 1968, we are now one of the largest international banks in the market with a talented workforce of about 3,000 people. When I think of our journey in Indonesia, I think it can be aptly summed up by Citi’s Mission, which is to Enable Growth and Economic Progress.

Over the past five decades, we have built a credible and well-respected franchise, characterized by strong relationships with our clients and partners including the Government and local regulators, investing in talent and efforts to establish deep roots in the local community through our Citi Foundation and philanthropy work. We have successfully combined a profound understanding of the local market with our regional and global network, connecting Indonesia to the rest of Asia and beyond that, the world. We are also proud of the role we have and continue to bring capital into Indonesia and support outbound investment.

Citi has also had multiple market-firsts in Indonesia. We were the first to introduce electronic banking in the country, followed by ATMs and credit cards. In the community, Citi Indonesia, through Citi Peka, has partnered with over 55 organizations to implement over 34 sustainable programs that have reached more than one million people. It is clear that in just 50 years, we have already built a strong legacy, thanks to the support of all our stakeholders. Today, Citi Indonesia is well-positioned to support corporate clients as they explore new opportunities and ways of doing business and our consumer clients as they increasingly embrace digital in their day-to-day lives.

I must say thank you to all my colleagues, both past and present, who have served at Citi Indonesia with distinction. Our first 50 years are as memorable as they are thanks to the efforts of those who have constantly exceeded our clients’ expectations of a trusted banking partner.

It has been a memorable half-century. I know our next 50 years and more in Indonesia will be as rewarding as the first.

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Foreword

As the CEO of Citigroup Asia, Francisco A. Aristeguieta is responsible for all businesses in 17 Asia Pacific markets. He also oversees the Consumer businesses in five markets in Europe, Middle East, and Africa. Prior to his current role as the CEO of Asia Pacific, he served as the CEO of Latin America, where he was responsible for the region’s 23 countries.

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50 Years of Dedication for Indonesia

Michael L. Corbat Chief Executive Officer Citi

Growing with Indonesia

On the occasion of Citi Indonesia’s 50th anniversary, I’d like to congratulate current colleagues and alumni as you celebrate a half century of growth, innovation, and exemplary client service.

We’ve come a long way from the small office we established in 1968 with a staff of 15 to our present footprint as one of the largest and most capable foreign banks in the country. Indonesia is a vital link in our global network and a key strategic market for Citi in Asia.

Our success in Indonesia over the past five decades is a reflection of the country’s dynamic economic growth. With over 250 million people and abundant natural resources, Indonesia is now the largest economy in Southeast Asia and the world’s 7th largest measured by purchasing power parity.

We’re honored to play a key role in that development, as we continue to serve multinational firms looking to expand their operations in Indonesia and help local clients realize their increasingly regional and global ambitions.

None of that success would have been possible without the dedication and commitment of our employees, past and present. Their efforts over the past half century have driven some remarkable innovations in this market, including the launch of Citi Mobile, CitiDirect™ BE, and Citi Virtual Card Accounts. As a result of these and other achievements, Citi remains one of the leading global banks in Indonesia.

I hope you will join me in reflecting with pride on our legacy of service in Indonesia.

Congratulations again on achieving this historic milestone. We thank you for your support and commitment in the past, present and the years and decades to come.

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Foreword

Michael L. Corbat is Chief Executive Officer of Citigroup, the world's global bank, with approximately 200 million customer accounts and activities in more than 160 countries and jurisdictions. Since becoming CEO in 2012, he has focused on leveraging Citi's unique global network to serve its institutional and consumer banking clients with an emphasis on strong execution and the highest ethical standards. Mr. Corbat has been at Citi and its predecessor companies since his graduation from Harvard University with a bachelor's degree in economics in 1983.

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50 Years of Dedication for Indonesia

"When we look back and reflect on Citi Indonesia’s 50-year history, our legacy will be remembered on two things: talent and innovation."

Batara Sianturi Citi Indonesia CEO

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Contents 10

Foreword

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Table of Content

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Prologue: How It All Began

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Introduction: A Remarkable Journey

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50 Years of Progress

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Citibank Indonesia Historical Timeline

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Putting Down Roots

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Paradigm Shift

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1968—1979

1980—1989

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Resilience 1990—1999

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Branching Out

World-class banking throughout Indonesia

Citi Peka Serving the community

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Citi Community Diversity and inclusion

Reform & Restructure 2000—2009

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Wave of Innovation 2010—2018

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Awards and Accolades

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Citibank Indonesia Leaders (1968-2018)

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Acknowledgements

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Sources

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Photo Credits

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Index

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50 Years of Dedication for Indonesia

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The modest building second from right was the Batavia head office of the International Banking Corporation in the 1920s. The IBC was the forerunner to the global financial services network that would eventually become Citi

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50 Years of Dedication for Indonesia

Prologue

How It All Began

In 1918, the International Banking Corporation (IBC), a subsidiary of a U.S. lender then known as National City Bank, set up offices in Batavia (today’s Jakarta) and in Surabaya, in East Java, to facilitate trade between what was then known as the Dutch East Indies and the United States, as part of its East Asia network. For a bank wishing to promote and facilitate trade in East Asia, this was a wise move. The region was already an agri-business powerhouse, supplying a significant portion of the world’s sugar, rubber and tea. It was also so strongly associated with coffee that U.S. aficionados called the drink by the name of the island where much of it was grown: Java.

While the Dutch colonial government monopolized the export of most major commodities, the general affluence of the bustling economy created endless other business opportunities, which IBC was well-suited to facilitate. The bank would remain in Batavia for only a decade, however, with the market crash and subsequent depression forcing it to close most of its Asian offices. Forty years later, the bank’s parent entity, now known as First National City Bank (FNCB), would return, this time not to a colony of a European power, but to a sovereign nation determined to mark its place in the global economy.

News clippings reporting on the takeover of the International Banking Corporation by National City Bank in 1927

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Prologue: How It All Began

The International Banking Corporation (IBC) branch in Batavia in the 1920s. A common mode of transport back then was the delman, a horse-drawn cart

The Flower Flag Bank The International Banking Corporation was founded in 1901 by a group of U.S. businessmen seeking to promote trade in Asia. Over the next decade, IBC established branches in every major commercial hub in the region, leveraging an on-the-ground familiarity with local customs and conditions to facilitate trade at every level. In China, IBC earned a Chinese-language sobriquet: Hua Qi Yin Hang, “Flower Flag Bank,” in reference to the then 48 stars on the U.S. flag. In 1915, National City Bank acquired a majority share in IBC and expanded the network, an auspicious beginning to Citi’s long-term engagement with Asia, including in Indonesia.

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50 Years of Dedication for Indonesia

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Prologue

Woodworking has long been a source of pride for Indonesia, long before its independence. The exterior of the Batavia branch of the International Banking Corporation featured a wood carving above the door that was considered one of the best artworks of its period

Like many colonial buildings of the time, the bank branch at No. 4 Kali Besar, West Batavia, was stately and elegant. The teller’s cage and counter were both made of teak. The 1,700-square-meter building previously served as a convent, and was one of the oldest Dutch colonial-style structures in the capital

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50 Years of Dedication for Indonesia

Introduction

A Remarkable Journey

Citibank Indonesia marks its 50th anniversary in Indonesia this year. What makes this milestone particularly special is seeing how far Indonesia has come as an economic powerhouse, as a people, and as a nation since then—and knowing that Citibank Indonesia has been right there for much of the journey.

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First National City Bank announced its new branch in Jakarta through advertisements in regional English-language magazines

Few countries in the world have experienced the kind of economic, political and social trajectories that Indonesia has gone through in the past five decades. The country today is one of the most boisterous democracies in Asia, if not the world, with an unrivaled economic, resource and demographic potential. Citibank Indonesia has been witness to this growth, and in many ways contributed to it as one of the leading financial institutions with a continued presence in the country.

Indonesia today boasts a population known to be tech-savvy and early adopters of the latest digital trends. That’s always been the case, going back decades. As the country started to embrace the nascent technology of electronic banking in the 1980s, Citibank Indonesia became the first international bank to introduce ATMs and credit cards. In recent years, Citibank Indonesia introduced the concept of the Smart Branch.

Citi’s product and service innovations continue to address the needs of retail and business clients today by leveraging the ever-evolving technology in use.

Citi’s continued presence in Indonesia owes a lot to the people: the clients, the community, the Government, and of course the staff. Citibank Indonesia today employs 3,000 people across Indonesia, nurturing a pool of young talent that will in time contribute to the nation’s ongoing development. As a bank that has been in the country for half a century now, Citi’s engagement with the people has always been a long-term investment in human capital. Many Citibank Indonesia alumni have gone on to become leaders and prominent figures in industry, government and society, making valuable contributions to the community.

A dedication to clients has also been the hallmark of Citibank Indonesia. As clients’ ambitions become increasingly global, Citibank Indonesia is well-placed to meet these evolving needs.

Innovation, people, and clients—these are where Citibank Indonesia’s values lie, and where they will continue to be focused in the decades to come. Fifty years ago, Citi embarked on a journey with Indonesia. Today, that journey continues, and Citi is still right there.

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50 Years of Dedication for Indonesia

50 Years in Progress Citibankers in Indonesia

In the past half century, the number of people working at Citibank Indonesia has increased from a handful to many thousands.

Source: Citibank Indonesia (numbers are in average count)

(Per Fine Ounce*) Gold remains the preferred option for storing personal wealth for diversification of savings accounts and other assets.

2018

USD 39.26 USD 1,300

Source: World Bank, U.S. Geological Survey

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2018

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3,000

Market Capitalization

Gold Price

1968

1968

*1 Fine Ounce = 31.1 grams

The financial deregulation package of 1988 revitalized the Indonesian equities market. Citibank perfoms a vital role as a custodian bank in Indonesia.

1977

2018

IDR 2.7 b

IDR 6.6 t

Source: Indonesia Stock Exchange (IDX)

Indonesian GDP

Population

Indonesia is now the largest economy in Southeast Asia, and the world’s 7th largest in purchasing power parity.

During Citibank Indonesia’s tenure, the population has doubled, giving the nation a large work force and the biggest market in Southeast Asia.

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2018

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2018

USD 5.7 b

USD 1.0 t

107 m

266 m

Source: World Bank

Source: United Nations Department of Economic and Social Affairs: Population Division

Life Expectancy Millennial Indonesians live almost two decades longer than their grandparents, thanks to nationwide publichealth programs and better nutrition. Citibank Indonesia wealth management helps to ensure that Indonesians will enjoy their golden years.

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2017

53.4

73

Source: World Bank, Central Intelligence Agency World Factbook

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Citibank Indonesia Historical Timeline 1968–2018

Citibank Indonesia's History

Indonesia's History

1986

1968 Under the new Indonesian president, Soeharto, the country strives to create a business-friendly environment Established as a full branch under First National City Bank (FNCB) in Jakarta

1988

First global bank to introduce ATMs in Indonesia

The Government and Bank of Indonesia (BI) issues Banking Deregulation Policy Package of 1988 (Pakto 88), which heralds further opening of the economy

1976 FNCB obtains approval from Bank Indonesia (BI) to change its name to Citibank National Association (Citibank N.A.) on July 1, 1976

1989

1980 A stabilized economy and banking system enables a steadily increasing level of international trade First bank to introduce electronic banking

First global bank to introduce credit cards to the Indonesian market

GDP growth rate in Indonesia is 6.9 percent (average for 1980–1997)

2002

1993

Introduces Eazy Pay Plan (EPP) and CitiDirect Online Banking

Pioneers 24/7 customer service via CitiPhone

Reformation era sees new interest in investment, manufacturing and an export drive.

ASEAN becomes an increasingly relevant player in finance

1998

2005

Launches the Citi Peka Center for community engagement

Increasingly robust financial institutions help underwrite steady economic growth driven by the commodities boom Indonesia withstands the Asian financial crisis, which spurs a change
in government and widespread reforms.

Indonesia's GDP growth plummets to -13.4 percent in 1997–1998 (annual average)

1999 Launches One Bill, a smart billing service platform

Indonesian Bank Restructuring Agency (IBRA) continues to promote the Indonesian economy recovery e.g. through banking sector and corporate debt restructuring

Launches first cash back credit card in Indonesia

2007 Launches e-PIB for online import tax payment

Economic growth sprints ahead as domestic and foreign players explore new opportunities

2010 Establishes equity brokerage operation, PT Citigroup Sekuritas Indonesia (PT CSI)

2013

More than 400 companies are listed on the Indonesia Stock Exchange

Local e-commerce players grow significantly in Indonesia

Launches CitiDirect BE Mobile and Tablet

2011

The rupiah holds its value firmly as all ASEAN economies pick up investment and export momentum

2014 First Smart ATM in Pacific Place and Plaza Indonesia

Launches Premier Miles and Rewards Cards

2015 2012 Launches Ready Credit, an innovative personal loan card

Strong consumer demand, including for luxury vehicles and travel on new budget airlines, fuels GDP growth in excess of 6 percent

Launches four Smart Branches in Indonesia

Number of smartphone users in Indonesia reaches 74.8 million. The percentage of Indonesia's banked population who are digitally active increases rapidly

2016

2018 Indonesia’s economy continues to grow at a robust pace with domestic demand being the main driver of growth

Launches Citi Prestige Card, Citi Simplicity+ Card, Citi Priority, and Virtual Card Accounts.

Strengthening digitization via MobilePASS and Citi Mobile

Citibank Tower relocation to Sudirman Central Business District (SCBD). The office is the first LEED Platinum certified project in Indonesia

2017 Widespread adoption of mobile and Internet banking as digital payment services grow in popularity

MoU Signing with National Development Planning Ministry (Bappenas) on Sustainable Development Goals (SDGs) focusing on youth economic opportunity

Launches Account Operator Service, “Citigold on Your Terms” campaign, Citi Indonesia Young Investor, and Smart Branch relocation in Surabaya

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50 Years of Dedication for Indonesia

Putting Down Roots

1968–1979 34

In 1968, a year of social and political upheaval in the United States and Europe, Indonesia was entering an unprecedented period of stability for the young nation. A new government had installed top-ranked economists and technocrats to lead the nation toward sustained economic growth. The top priority was to invite international oil and mining companies to assist in the exploration of Indonesia’s vast treasure of natural resources.

In 1973, this strategy yielded an unexpected dividend.

The oil-exporting nations of the world, which included Indonesia, flexed their economic muscles and sent the price of oil skyrocketing. Oil revenues quadrupled overnight. Flush with cash, the Indonesian government focused on promoting industrial development and improving physical infrastructure.

Indonesia directed a considerable portion of its oil windfall to lift the population out of poverty, ill health, and numerous other problems. Electrification spread across the archipelago. Palapa, the nation’s own satellite, linked regions with reliable communications. Roads and irrigation systems raised villages from isolation and dire poverty.

By the end of the decade, only the most remote settlements lacked access to health clinics and schools. Indonesia was riding toward prosperity on a wave of oil.

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50 Years of Dedication for Indonesia

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Banyan Tree (Pohon Beringin) by Affandi, 1968 Affandi Kusuma (1907–1990) was an Indonesian artist whose paintings are highly regarded among art collectors.

The subject of “Banyan Tree” is something that resonates strongly with the Indonesian people. The banyan tree is one of the five symbols that make up the national emblem, Garuda Pancasila, and encapsulates the third principle of Indonesia's national ideology, which is national unity.

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50 Years of Dedication for Indonesia

Banking in the East Citi’s precursor First National City Bank opens office in Jakarta

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he 1960s were a bountiful time for Indonesia and First National City Bank (FNCB). Indonesia was settling into what would become a long period of stability and strong economic growth and development.

Toward the end of the decade, it was looking forward to employing its vast oil wealth and other natural resources to power its economy.

The bank also had a long and credible institutional memory, having been in the Asia Pacific region since 1902 and with many of its branches in emerging economies such as Singapore.

These branches could be quickly tapped for relevant experience and talent, with star employees sent to the head office in New York for further training.

A precursor to FNCB, the International Banking Corporation (IBC), had operated in Jakarta and Surabaya for around a decade since 1918. This depth of history with Indonesia gave FNCB, which would eventually become Citibank, an advantage over other foreign banks looking to enter the country. The bank’s staff, like Indonesia itself, were young, energetic, eager to learn, and willing to adapt. FNCB had a long reputation for training financial leaders, and in Indonesia it had adopted what was then a very progressive policy of hiring the best candidates regardless of racial or gender preferences.

Setting up a reputable banking operation in Indonesia in those early days was more of a challenge then, but one that FNCB was confident it could face. Over the next decade, FNCB would play an important role in bringing Indonesian legal and financial practices in line with the global business community.

"FNCB...had adopted what was then a very progressive policy of hiring the best candidates regardless of racial or gender preferences."

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A group of First National City Bank employees in the 1970s

1968–1979

Value

People

Indonesia in the 1960s and 1970s was a nation brimming with optimism and opportunity

Innovation

Putting Down Roots

Clients

Hired on the Spot

Herman Gunadi—Citi Alumnus

Herman Gunadi was one of the first few First National City Bank (FNCB) recruits with prior banking experience.

After setting up a small-business loan operation inside another bank, Herman thought of emigrating to Canada to hone his skills by working in a bank there. But a friend suggested that he drop by the Hotel Indonesia and apply at FNCB in person, a common business practice during those years when the telephone service was not as widespread. Herman impressed the interviewer with his determination and fearless attitude toward banking practices.

He was accepted on the spot. To Herman's surprise, the interviewer pointed to a desk and told him to sit down and get to work.

Herman said he wanted to think it over and

talk to his wife. At any rate, he pointed out, he was not dressed for the occasion. The interviewer retorted that if Herman was serious about banking, he would accept the job now, as the offer was open for that day only. So Herman sat at the desk, started to work, and in just a few months he would be sent to Singapore to attend his first training. Herman would stay at Citibank Indonesia for 12 years until 1980, where he took on several positions from the credit department in commercial banking to making the shift to corporate banking.

After two and a half decades at the bank, he kept three valuable lessons from his time at Citibank Indonesia until today: integrity, character, and promptness.

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50 Years of Dedication for Indonesia

Oil-fueled Development Oil exports fund industrialization efforts

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ndonesia’s economic growth in the 1970s was defined to a large extent by oil.

Indonesia’s oil industry is one of the oldest in the world, with the first well being drilled in Tjibodas, West Java in 1871. By 1884, exploratory drill had begun and the first commercial quantities of oil were found at Telaga Tunggal, also in East Sumatra. To fulfill state oil transactions and manage the fields of North Sumatra, P.T. Permina, a state-owned enterprise, was formed in 1957 and a year later it began exporting.

On the international front to manage the demand for oil by the West and emerging nations, in 1960 the Organization of Petroleum Exporting Countries (OPEC) was formed.

Indonesia joined in 1962 as the sole Asian member. In the late 1960s, there was consolidation within the oil industry, resulting in Pertamina becoming Indonesia’s only state-owned petroleum entity.

New explorations were conducted throughout Indonesia and the first offshore oil drilling was carried out in the Java Sea. Unrest in the Middle East prompted OPEC to implement an embargo in 1973. In just a year, oil prices went from $3 a barrel to $12 a barrel, rapidly increasing the value of Indonesia's exports. During the 1970s, Indonesia’s GDP growth rate was averaging 7 percent annually and the state focused on petroleum production.

These conditions allowed for the rupiah to be established, and foreign investment to flow.

Vast deposits of hydrocarbons sit under the archipelago

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1968–1979

Value

People

Innovation

Putting Down Roots

Clients

Oil was extracted, with some difficulty, from deep in the rainforest

A Holistic Experience

Frans Indrapraja—Citi Alumnus

Most of the initial batch of recruits to the First National City Bank branch in Jakarta were young Indonesians with the brightest of prospects. Graduating at the top of their classes from leading colleges and universities, and fluent in English, they applied to FNCB in the belief that their best opportunity for success lay with a global company.

Frans Indrapraja, ranked among the most capable of the first Indonesian Citibankers, relished his early days as he was rotated through the departments of the thensmall operation, gaining familiarity with the fundamental aspects of international banking. But after several weeks on the fast track, Frans was astounded, and profoundly

disturbed, to be reassigned to a teller’s position. Frans assumed that he committed some unknown transgression that had derailed his promising banking career.

Frans soon discovered that his brief stint as a teller was an essential stage of his training. Being a banker was as much about crunching numbers as about human engagement, and the skills he acquired through face-to-face interactions as a teller–explaining banking procedure in an easily understandable way, and remaining steadfast when engaging with a diverse range of people–would serve him well throughout his career.

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50 Years of Dedication for Indonesia

In the Beating Heart of Jakarta First National City Bank sets up in Jakarta’s prime meeting spot

W

hen First National City Bank (FNCB) entered Indonesia in 1968, its initial base of operations was the Hotel Indonesia, at the time the most prestigious public address in Jakarta. Opened in 1962 as a showcase attraction to host visitors to that year’s Asian Games, the Hotel Indonesia was the only international-standard hotel in the capital and the preferred option for most international visitors.

FNCB leased office space on the ground floor fronting the Olympic-size swimming pool. The expansive mural in the ballroom representing the astounding diversity of the Indonesian nation was mirrored in the FNCB offices, with young men and women from throughout the archipelago working alongside the rotating roster of expatriates.

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The social opportunities provided by the hotel setting also allowed FNCB staff develop a dense network of contacts that would be essential to the continued success of the FNCB operation.

The residence at the Hotel Indonesia would be brief. The bank set up its customer-service facilities in a nearby building owned by national oil company Pertamina, which would become a major client, and soon moved all operations to that building and various sub-branches throughout the city. Nevertheless, nostalgia for the Hotel Indonesia remains among early FNCB alumni, who share fond memories of the place they still call the “Grand Old Lady” that generously served as their first home.

Change in Career

Andi Suprianto—Citi Alumnus

Andi Suprianto had graduated from a teacher’s college in Malang, East Java in 1967, and in 1968 answered a recruiting ad for FNCB in a newspaper. He turned up at the Hotel Indonesia for an interview on May 13, and, to his surprise, was accepted immediately. During subsequent weeks he underwent training, becoming immersed in the world of “checks,” “letters of credit,” “clearing,” “bank statements,” “for collection,” and other banking arcana.

Come June 17, 1968, opening day of the main branch in a nearby office building, Andi had mastered the basics sufficiently

to be assigned to a teller position. But the job still held a few surprises. A few days in, a client presented him with a check that featured a panoramic background of the American West. In his training, Andi had never come across a “background check,” and was flummoxed until the client prodded him to cash the check.

Albeit brief, Andi’s two years at FNCB were filled with fruitful experiences.

From a fresh graduate who knew little about banking, Andi was assigned by FNCB to become a teller at the U.S. Embassy—a prestigious station at the time.

1968–1979

Value

People

Innovation

Putting Down Roots

Clients

The first batch of Indonesian Citibankers featured in a TIME magazine advertisement, 1969

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50 Years of Dedication for Indonesia

A Bank on Coffee Street First National City Bank opens a sub-branch in the old commercial district

C

iti and its precursors have had a long history in Asia. In 1916, the bank then known as National City Bank acquired the International Banking Corporation (IBC), a U.S.-owned bank established a decade earlier to facilitate trade between East Asia and the United States. After the acquisition, IBC expanded, establishing branches throughout the region, including two in Java. IBC maintained a presence until the Great Depression of the 1930s forced the bank to consolidate, closing all but a few Asian branches.

In 1969, First National City Bank revisited that heritage by opening a sub-branch in the shophouses of the old town in the north of Jakarta.

Jalan Kopi (Coffee Street) and the adjacent Jalan Teh (Tea Street), Jalan Lada (Pepper Street), and Jalan Cengkeh (Clove Street), evoke the days when Indonesia supplied the world with exotic spices. By the 20th century, ethnic Chinese traders operated out of these shophouses, using personal and clan connections with counterparts throughout East Asia to import manufactured goods such as motorcycles, refrigerators, among others.

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The Jalan Kopi presence was only a sub-branch providing limited services, in accordance with Indonesian banking regulations of the time.

Even then, most of those services were not wanted by the clients. The traders used the bank only for routine business transactions, preferring instead to borrow against property or request items on credit from regular suppliers.

The task of the staffers at the Jalan Kopi branch was to get the traders to adopt commercial banking practices. At every opportunity, staffers would expound on the benefits of business credit and other products to clients visiting the branch for routine transactions. Outreach efforts included formal seminars and training, and attendance at informal social gatherings such as weddings. In all cases, the staffers would patiently explain the benefits of formal institutional banking to even small businesses, and remind them of the advantaged over traditional practices of raising business capital.

Stationed in Kota

Segara Utama—Citi Alumnus

Segara Utama was in the first batch of Indonesians recruited to First National City Bank (FNCB) in 1968, and one of the few in his cohort with previous experience in banking. This experience, and impressive communication skills, resulted in Segara being chosen to lead the Kota (old commercial district) branch, a major Citibank Indonesia operation for its domestic corporate business. There, he also helmed outreach efforts to the main

trading community on Pintu Kecil area.

Liked and respected in the community, Segara understood that reaching out to the businesspeople enjoying the boom times required meeting them on their turf, even if that happened to be nightclubs or golf courses. It was in these milieus that Segara and his colleagues would push through their mission of signing up businesses large and small by expounding on FNCB’s services.

1968–1979

Value

People

Innovation

Putting Down Roots

Clients

The Glodok district, home to many of Jakarta’s ethnic Chinese community, was the commercial center of the capital in the 1960s

"The impact on my life of those four years in Indonesia are among the most profound and memorable. The people, the art, the music and the openness of different backgrounds are rarely found in this world today."

Thomas C. Crouse, CCO/CEO of First National City Bank, 1970–1974

45

50 Years of Dedication for Indonesia

Early Showcase of a Global Bank Providing support to manage funds for an expanding business

I

n June 1968, when First National City Bank (FNCB) began operations in Jakarta, Indonesia was just about to enter its 24th year as a sovereign nation. For centuries, the vast natural resources of the Indonesian archipelago had been under colonial control.

The top priority of the Government of Indonesia was to bring all natural resources firmly under state control, so the export revenue could be used to fund economic and social development. Petroleum had the greatest potential to generate revenue. So in August 1968, the government created the state-owned oil and gas giant Pertamina by the merger of Permina and Pertamin, formed in the 1950s and 1960s, respectively.

Pertamina was established as the sole company that could extract oil and gas throughout Indonesia, but quickly found that foreign oil companies could help fulfill this mandate.

Headquartered in Jakarta, Pertamina was expected to work closely with the Indonesian Government. FNCB, as a foreign bank, was confident that its expertise in global finances would contribute to the success of Pertamina's growth.

Pertamina soon became a major client of FNCB.

When Pertamina establishes production sharing contract with foreign oil contractors, together they begin exploration and the development of production facilities throughout Indonesia

46

1968–1979

Value

People

Innovation

Putting Down Roots

Clients

Oil refineries in Balikpapan, East Kalimantan

47

50 Years of Dedication for Indonesia

Fully Automatic Online interbank transfers rolled out in Indonesia

O

ne of the reasons First National City Bank chose to establish its office in a wing of the Hotel Indonesia in 1968 was because Jakarta’s top-ranked hotel was one of the few buildings in the capital with a reliable power supply.

A decade later, the bank, renamed Citibank, would select the Jakarta branch as one of the first outside of North America to fully automate banking services, including interbank transactions. Citibank’s Indonesia franchise would successfully implement cutting-edge computer technology because, for a time, it would be one of the most profitable banks in the international franchise.

Bankers and investors were fully aware that Indonesia’s size and wealth of resources, both natural and human, were a recipe for success.

As the number of new investors accelerated, linking up with local entrepreneurs or established conglomerates, they came to Citibank as a trusted, large-scale institution able to handle both domestic and worldwide transactions, for which Citibank continues to enjoy an unrivalled international reputation.

And the multinationals piled in, looking to tap a consumer market of about 140 million, while a global boom in oil prices drove prosperity upwards for many Indonesians. Citibank Indonesia was turning into one of the most profitable franchises. Thus, the branch was chosen to install National Cash Register (NCR) hardware, driven by consultancy and software expertise already available in Indonesia in the form of current and former Citibankers.

Since 1970, the Government of Indonesia had overcome the challenge of communications between islands of the archipelago by investing heavily in satellite technology; communication was seen as a national unifying force. Having been selected to spearhead banking automation abroad, Citibank Indonesia became a working laboratory for the onrushing tsunami of automated consumer banking that was going to rearrange the landscape fundamentally for the banking business in the 1990s and beyond.

"Citibank Indonesia was turning into one of the most profitable franchises."

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The Indonesian workforce, in the 1980s as well as now, was quick to adopt the latest technological innovations in their field.

Indonesian bankers, in particular, were receptive to automation

1968–1979

Value

People

Innovation

Putting Down Roots

Clients

Implementing Automated Banking Since the 1980s, Peter Gontha, the founder of an international jazz festival and the president director of Indonesia’s first commercial television station, has been a leading figure on the Jakarta social scene.

Few realize that Peter began his professional life as a number-crunching computer geek.

While working in the Netherlands as a bookkeeper, Peter was recruited through a chance meeting with a senior management member of Citibank Indonesia, Alex Frans. His affinity for numbers and a comprehensive grasp of enterprise financial software led to reassignment to the New York headquarters of what was now known as Citi. There, he helped

Peter Gontha—Citi Alumnus develop and implement the changeover to automated interbank transfers, the technology which would, in the coming years, cement Citi’s reputation as a truly global bank. In the early 1980s, Peter moved back to Indonesia to supervise the changeover to automated international transfers in Jakarta, and then to do the same in Singapore, Malaysia, and the Middle East. Peter left Citibank in 1984, but the success of the automation program, and the exceptional profitability of Citibank Indonesia during that period, shored up the bank’s standing and contributed to the growth of business in Indonesia.

Electronic typewriters and calculators, once at the cutting edge of technology, are now museum pieces

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50 Years of Dedication for Indonesia

A New Name for a New Role First National City Bank becomes Citibank as it goes global

W

hen First National City Bank (FNCB) opened its doors at the Hotel Indonesia in June 1968, much of the instant goodwill the bank acquired was due to the name. Most knew that the "City" in the name referred to New York City. For Indonesians, this was a definite plus point. The United States had made a significant contribution to Indonesia's struggle for independence two decades before, and was regarded as a beacon of economic power and stability.

For most of its history, the bank was unabashedly American. The bank was founded in 1812 as the City Bank of New York and played an early role financing war bonds for the brief conflict between the United States and the United Kingdom. The bank in 1853 underwrote $50 million of war bonds for the Union during the Civil War, and two years later opened the first foreign exchange department of any U.S. bank. In 1865, the bank joined the national banking system of the United States and became the National City Bank of New York. By 1894, it was the largest bank in the United States and would go on to help finance the Panama Canal and intervene in the Panic of 1907. By 1918, it had become the first U.S. bank with assets of $1 billion, and by

1921 was one of four national banks operating in New York.

In 1955, the bank changed its name again to the First National City Bank of New York. The expansion of FNCB into Latin American and Asia was intended to facilitate transactions between entities in those nations and the economic powerhouse that was United States in the 20th century. However, by the 1970s, as global networks expanded and flourished, it became apparent that in many of the overseas franchises, including Indonesia, customers were using the bank for transactions and other purposes having no relationship with the United States.

The extensive network of branches throughout the world made FNCB a good, and often the best, option for making financial transactions between any two nations in the world.

In recognition that the FNCB had become a truly global bank, in 1968 FNCB restructured, establishing a holding company called, simply, Citicorp. In 1976, the bank itself was renamed to Citibank, a symbolic acknowledgment that the bank was no longer just American, but "a citizen of the world."

“Most knew that the "City" in the name referred to New York City. For Indonesians, this was a definite plus point.�

50

1968–1979

Value

People

Innovation

Putting Down Roots

Clients

The Citibank name and logo are found in financial centers throughout the world

Logo Evolution The adoption by banks of graphic design for visual distinction was a break from past traditions of discretion and keeping a low public profile.

1998 The umbrella theme of Citigroup symbolized the 1998 merger of Citibank and Travelers Group into a comprehensive financial services provider.

1958 The effort to gather more retail consumers saw banks present themselves like consumer goods companies, adopting a more attractive logo and consumer-friendly names.

2007 By simply presenting itself as "Citi," the bank was confident of its global reputation as a household brand.

1976 Simplicity implied efficiency: “First National City Bank” was quite a mouthful—the newly coined “Citibank” was a much handier brand to fit on signs, letterheads, vehicles and uniforms.

2012 Later, bolder, “Citi” turned blue, still with the streamlined umbrella above it—designers evidently hard at work, abiding by the “less is more” paradigm.

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50 Years of Dedication for Indonesia

Paradigm Shift

1980–1989 52

As the 1980s dawned, five years of windfall oil revenues saw the face of Indonesia changing drastically. Jakarta, the nation’s capital, began to display a distinctive skyline as high-rise office buildings sprouted amid the traditional cramped single-story dwellings. Other urban centers sprawled beyond historical boundaries, as property developers offered modern residential units to house a growing middle-income population.

The drop in oil prices in the middle of the decade slowed this growth, prompting the Government to diversify from natural resource extraction and exports toward upgrading the manufacturing and service sectors.

Policies were enacted to encourage the processing of raw materials such as logs and rattan inside the country, while Government programs sought to expand export markets for finished goods. The Government also embarked on programs to attract tourists to the nation’s famed attractions, and nurture development of small and medium-scale industries.

These measures succeeded in bringing about an economic rebound, which also served to highlight opportunities for advancing banking and equity market regulations. By the end of the decade, the Government of Indonesia sought to consolidate its gains and build a modern, stable platform for sustained development, by instituting a comprehensive reform of the financial system. In 1988, financial institutions were let loose, in the expectation that the free market would be the new driver of industrial development.

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50 Years of Dedication for Indonesia

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A Thousand Herons by Widayat, 1984 Widayat (1919-2002) was one of the most influential Indonesian painters from Java. His influence continues to be felt even in the contemporary art space.

In the 1980s, affluent Indonesians increasingly turned to collecting art as an integral part of their investments, if not to showcase their social status.

The artworks of the time were rich with hidden meanings meant to bypass the political restrictions and censorship imposed by the authorities.

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50 Years of Dedication for Indonesia

Looking Beyond Oil Indonesia diversifies into manufacturing and tourism

I

n the early 1980s, the oil windfall continued, powering impressive economic growth across all sectors of society. But things slowed with the drop in oil prices in 1982. The Government saw this as an opportunity for diversification and growth in two areas in particular: manufacturing and tourism.

When First National City Bank (FNCB) entered Indonesia in 1968, manufacturing accounted for only 8 percent of GDP, making Indonesia the least industrialized nation of the then five ASEAN states. The introduction of foreign investment regulations in the late 1960s to facilitate cooperation with multinational resource extraction companies also served to create broad-based industrial growth for the first time since independence.

These policies helped energize the manufacturing sector, which became more competitive in international markets. The increase in foreign investment also impacted tax revenues and the country gained from the transfer of knowledge.

Many domestic manufacturers, particularly in the automotive sector, entered into joint ventures with foreign brands to assemble end products from parts fabricated abroad. Many of these local companies turned to Citibank Indonesia to facilitate complex, multi-currency transactions and other engagements with global financial markets.

Tourism was the other sector that the government identified for growth. Foreign tourist arrivals once meant wealthy Dutch visitors decamping to sites across Java. But by the 1920s

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and 1930s, U.S. and European travelers had discovered Bali, transforming the idyllic island into an international phenomenon.

The cruise ships stopped at the outbreak of the World War II in the Pacific.

Three decades later, mass tourism returned to Indonesia in the form of international surfers and counter-culturalists flocking to Kuta and Ubud.

The opening of the Grand Bali Hotel in 1966 at Sanur was the beginning of a maturing market, and high-standard accommodation and facilities soon spread to Kuta and across Javanese destinations such as Yogyakarta.

The tourist industry can be surprisingly complicated. Hotel, airline, and tour-operator guests can pay on the spot in local currency, previously to a travel agent at point of origin, or in any currency by traveler’s check or credit card. For large chain hotels, some goods for sale must be imported, and a portion of revenue repatriated.

All this involves transfers in multiple currencies.

Citibank’s expertise in seamless international transactions and strategies for minimizing foreign exchange exposure was welcomed by the industry.

Former Citigroup Chairman and CEO John Reed (1984-2000) meets with the President of Republic Indonesia, Soeharto, in 1985

1980–1989

Value

People

Innovation

Paradigm Shift

Clients

Indonesian Government pushes for tourism growth to heritage sites like the Borobudur temple

Turn-around Expert

Andy Ralie—Citi Alumnus

The drive to increase hard-currency revenue through boosting the export of manufactured and value-added products meant that many Indonesian companies would now have to vie with international competitors on the open global market.

Domestic manufacturers needing to enhance operational and financial efficiency often found ex-Citibankers on their short lists of potential CEOs or CFOs. Andy Ralie was an early First National City Bank (FNCB) recruit, starting at the bottom as a ledger keeper and rising rapidly in the Corporate Banking, Consumer Banking Regional Director of South East Asia Pacific (six countries) for Citicorp Services Inc., as well as Financial Institution arena.

Since then, Andy has gained a formidable reputation as a turn-around expert, turning the balance sheets of companies

foundering in the new competitive atmosphere from bright red to solid black.

Andy regards his formative years in FNCB as instrumental to his subsequent success. The core values of hard work, discipline, and hewing to a firm ethical compass supported him while making difficult decisions for a company.

Andy also credits another aspect of Citi life, the ability to perform in a complex global corporate structure, that contributed to his success. As an outsider brought in to make sweeping changes to operations, Andy would encounter as much opposition as support from long-term managers. The organizational savviness learned throughout his time at Citibank Indonesia has equipped him with distinctive leadership skills many did not have at the time.

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50 Years of Dedication for Indonesia

The First ATM in Indonesia Citibank installs a revolutionary machine at its Jakarta headquarters

T

he teller is the human face of banking.

The professional demeanor and practiced, precise motions of a teller were a reassuring sign that a customer’s money was in good hands. However, the increasing pace of urban life and growing cost of skilled human resources compelled the banking industry to consider alternatives to the trusty and friendly bank teller.

In 1960, First National City Bank (FNCB) installed a Bankograph in several branch lobbies in New York, for customers to pay utility bills without contact with a teller. The machine accepted cash and checks, but could not dispense cash, and was removed after six months due to lack of customer acceptance.

Despite this early disappointment, one FNCB executive was certain that the future was in the hands of machines, or more accurately the whirring spindles and sliding trays of an

automated cash dispenser. John Reed, later to become CEO of Citigroup, was firmly convinced that automating the physical task of accepting and dispensing banknotes was the natural result of the bank’s focus on moving the processes of interbank transfers and reconciliations from telexes and ledger books to the spinning tape drives of mainframe computers.

Not surprisingly, Reed faced considerable resistance from his colleagues, who believed that putting such a core banking function into the hands of machines would be a recipe for disaster. But Reed persisted, and, full of confidence in his vision, forged ahead. By 1977, the ATM in Citibank branches in New York had proved their reliability and customer appeal. In 1986, the first ATM at any bank in Indonesia was installed in the new Citibank headquarters in the Landmark building on Jalan Sudirman, Jakarta.

"In 1986, the first ATM at any bank in Indonesia was installed in the new Citibank headquarters in Jakarta."

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John Reed, later to become Chairman and CEO of Citigroup (1984–2000), championed the switch to automated cash transactions

1980–1989

Value

People

FNCB pioneered the development of automated teller machines in the early 1970s

Innovation

Paradigm Shift

Clients

Visit with a robot It started out as a typically balmy Saturday afternoon in Jakarta in 1986. But for 8-year-old Harsya Prasetyo, it would become a day he would always remember.

Harsya’s father suggested that he accompany him to Citibank.

“Why do I have to go to the bank?

It’s closed anyway?” Harsya whined.

“We’re going to see a robot,” his father replied.

Sure enough, there was a shiny new robot at Citibank—a cash robot that counted out fresh 500-rupiah notes behind glass, and then slowly opened to deliver the money, much to Harsya’s delight.

Little did he know, that he would one day step in Citibank Indonesia's office as a Management Associate, and would later on sit as one of the youngest directors currently in Citibank Indonesia.

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50 Years of Dedication for Indonesia

Deploying the Banks Deregulation packages revitalize the financial sector

B

y the mid 1980s, the guiding hands of the Indonesian economy were convinced that updating the regulations governing the financial sector were key to boosting growth. By encouraging more Indonesians to open bank accounts, the banking system would get the funds needed to supply business development credit. So a comprehensive series of deregulation packages were rolled out in 1988, allowing the formation of new banks and permitting unlimited branch expansions.

Foreign banks also had their expansion limits lifted and non-banking financial institutions were allowed to expand to several cities.

State-owned enterprises were permitted to invest up to 50 percent of their deposits into non-state banks and the reserve requirements among various classes of banks and deposits were unified and reduced to 2 percent. A supervisory system was introduced and the central bank supervision now included rural banks and non-bank financial institutions. Single borrowers or related groups of borrowers had legal limits enforced and capital requirements were raised. To improve the money and capital markets, interest from bank deposits now attracted a withholding tax that removed the privileged tax treatment afforded bank deposits over other debts and equities.

Banks and other non-banking financial institutions were now permitted to issue shares. Bank Indonesia organized a network of dealers and

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agents to trade with their share certificates, or SBIs, on secondary markets. The effect was to change the regulatory structure of the banking sector and reduce the entry barriers to financing while mobilizing funds and increasing efficiency in the financial markets.

This overnight transformation of Indonesia’s financial sector would cast Citibank Indonesia into an important new role. As a member of a network of banks with a long-standing presence in both developing and developed economies, Citibank Indonesia could draw on a wealth of experience in creating and promoting consumer banking products that would entice affluent Indonesians to repatriate funds from overseas or trade their gold jewelry (the traditional method of wealth storage) for certificates of deposit and other savings instruments.

In addition, the explosion of new private banks, and the growing sophistication of financial markets created a huge demand for qualified banking professionals. Many recruiters looked first to Citibank Indonesia, aware that the demanding training programs and merit-based promotion regimes ensured that anyone who had risen through the ranks to manager level would be knowledgeable and dedicated. In two decades of operation in Indonesia, Citibank Indonesia had become the “gold standard” of the banking industry, and a few ex-Citibankers on staff would enhance the image of any new bank.

1980–1989

Value

People

Innovation

Paradigm Shift

Clients

A Helpful Hand

Gunarni Soeworo—Citi Alumnus

In the half-century that Gunarni Soeworo has been a banker, starting as a client representative and now a senior independent consultant, she has seen massive changes in the industry. Comprehensive overhauls of regulatory practices, the introduction of innovative products and services in both corporate and consumer sectors, and the adoption of digital portals to banking services have transformed the industry almost beyond recognition since she joined First National City Bank in 1970. On another, more personal level, Gunarni notes that the relationship between bank and client has also been transformed.

During the first years of FNCB operations in

Indonesia, almost all new recruits required intensive training in the art and science of banking. In those days, Gunarni remembers, many clients regarded banking as merely simple business transactions, when in fact, banking services are instrumental to their businesses’ growth and sustainability. FNCB then would print brochures listing training courses designed for staff that were also available to clients. In one case, Gunarni temporarily assumed the role of “Chief Financial Officer” to the clients, visiting them each week to monitor the payables and receivables, and suggesting cash flow strategies.

In 1988, Bank Indonesia rolled out new banking regulations that opened the door to a more marketfriendly financial sector

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50 Years of Dedication for Indonesia

Diving Into Consumer Banking Citibank pioneers modern concepts of retail banking in Indonesia

O

ne of the key components of the 1988 deregulation package was to lift restrictions on the types of products a bank could offer depositors. Banks could historically only offer two types of savings accounts, both with low interest rates and restrictions on when cash could be withdrawn.

There was also a general public reticence to save with banks. People would instead opt to buy gold jewelry or bullion, or simply to store large sums of cash at home. One of the primary purposes for the deregulation package was to get this money circulating back into the economy.

Citibank Indonesia was thus a pioneer in mass-market retail (or consumer) banking in Indonesia, as the country got rolling toward the heady growth of the 1990s. With a strong global reputation, it was able to encourage middle- and upper-middle-class Indonesians to bring home money from overseas, offering more convenience and work-oriented products as a profusion of new businesses opened up.

In 1989, Citibank Indonesia leveraged the new regulations to offer a fresh array of savings and loan products to Indonesian consumers, based on products that had proved attractive and successful in both developed and developing markets where Citibank also operated.

The New Rupiah When First National City Bank (FNCB) entered Indonesia in 1968, the country had just regained economic stability after a period of hyperinflation. In 1965 the “new rupiah,� worth 1,000 of the old, was introduced, and by 1970 the government had set a fixed exchange rate of 415 to the U.S. dollar, providing a solid foundation for investment and trade.

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The financial deregulation package of 1988 by Bank Indonesia fuels Citibank Indonesia to open up a wider range of savings and loan products

1968

1976

The iconic red 100-rupiah note commemorating General Sudirman, the military commander during the struggle for independence, then worth 26 U.S. cents, would be the most widely used denomination for the next 10 years

The 1,000-rupiah note commemorating national hero Prince (Pangeran) Diponegoro, worth $2.40, could be used to purchase daily necessities for most Indonesians

1980–1989

Value

People

Innovation

Paradigm Shift

Clients

The old banking district in Jakarta in the 1980s. Citibank Indonesia sought to make banking a more appealing option than the traditional savings vehicles of purchasing gold jewelry or keeping cash at home

1980

1992

2005

2016

A gamelan musician graced the 10,000-rupiah note.

Worth nearly $16, it was the highest-valuation note in circulation

A spectacular bird-ofparadise fronts the 20,000-rupiah note, at the time the largest note in Indonesia and worth nearly $10

After the decline of the rupiah during the Asian financial crisis, the 50,000-rupiah note commemorating Balinese national hero I Gusti Ngurah Rai and worth about $5 became the most commonly dispensed note at ATMs

All dominations were redesigned to commemorate a new pantheon of national heroes. Pride of place on the highest denomination, 100,000 rupiah, worth about $8, went to Founding Fathers Soekarno and Muhammad Hatta, the first president and vice president of the Republic of Indonesia

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50 Years of Dedication for Indonesia

Credit to the Nation Citibank introduces credit cards to Indonesian consumers

A

fter the 1988 financial deregulation package, Indonesia’s middle class was starting to spend. The decision by Citibank to launch credit cards in Asia came that same year, as the bank promoted the advantages of ease of payment, security, and a detailed record of transactions. The first business for Visa and MasterCard through Citibank in Indonesia was launched in 1990. Citibank Indonesia’s strategy was to launch simultaneously across multiple geographies.

By choosing managers with proven track records not necessarily in cards, a robust credit process, and a world-class technology platform, this objective was achieved in less than four years.

When moves were made to transfer the Asian card processing to the U.S., Citibank’s Asian team adopted U.S. technology that improved credit scoring functionality, faster batch processing, and a single screen containing all relevant customer data on a CardPac version.

The team then spent a further six months adding innovations that included an automated billing dispute management system, a parameterized rewards system later used in the banking system, a system to discriminate authorization limits, co-branding, and a fraud early warning system.

This became the basis of the Enhanced Cards System that was subsequently rolled out across Asia, the Middle East, and Eastern Europe to replace the earlier CardPac system. By the 1990s, this had resulted in a standard system around the world with three regional codebases sharing enhancements across regions and bringing worldwide costs per card.

The introduction of Visa and MasterCard into Indonesia was so successful that by the mid-1990s, credit cards accounted for a significant amount of Citibank Indonesia’s operating income.

Citibank Indonesia was the first bank in Indonesia to launch Visa cards with the cardholder's picture

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1980–1989

Value

People

Innovation

Paradigm Shift

Clients

Citibank Credit Card

The ease and reliability of Citibank Indonesia’s credit cards made the bank the issuer of choice for affluent Indonesians

When introducing credit cards to Indonesians, Citibank had to deal with two types of unfamiliarity and resistance. First, Indonesians who had never lived abroad were not accustomed to purchasing with plastic; this was a cash society. Also, both cardholders and retailers were naturally uneasy at the prospect of a credit card being misused and the issuer refusing to honor the debt. Meanwhile, the mail was flooded with unsolicited credit cards–often

a recipient would marvel at receiving plastic he had never applied for. The problem of redemption was dealt with initially when Citibank officers with briefcases bulging with cash would hustle through retail areas like Glodok or Blok M and pay out credit card balances on the spot, to gain the trust and acceptance of suspicious shopkeepers. Soon, all manner of retailers, particularly food and beverage outlets, realized they could do more business if they accepted credit cards.

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50 Years of Dedication for Indonesia

The Bankers’ University Boot camp for future business leaders

B

anking in the modern age demands a broader range of knowledge, in terms of technical competence (particularly information technology) and varied life skills.

A tightly integrated global banking network is essential today for successful commerce, and many of the competencies are simply not taught in ordinary institutions of higher learning–even in developed nations.

Dealing in urgent financial environments requiring tact, finesse, and cultural competence in addition to technical knowledge, bankers must be nimble, innovative, and ready for creative improvisation in fast-evolving and competitive day-to-day operational settings, frequently involving important discussions with government authorities.

For these and other reasons, Citibank invests heavily in time, technology, expertise, and money in the formal educational preparation of its staff. Because of its high profile and desirability, especially in Indonesia, Citibankers frequently apply right out of college. As part of their first meaningful work experience, Citibank instills in them corporate values of discipline, assertiveness, and “owning your mistakes.”

From those willing to be held accountable, Citibank will always forgive an honest mistake.

Looking with a long view, Citibank aims to train skilled talent, which may eventually attract other banks, financial institutions, the public sector, and companies in unrelated fields.

Citibank Indonesia is justly proud of its reputation as a supplier of CEOs across the

66

business spectrum; men and women who have been inculcated with proper business values for dealing in today’s rapid, high-pressure world. Citibank training is founded on on-the-job experience and incremental instruction, in an environment where employees return net value to the bank within a short period after undergoing training.

Citibank’s corporate culture emphasizes personal initiative.

Even junior staffers are encouraged to survey a given situation, map a career course, and then personally convince their superiors that they are capable and deserving of a desired position.

Time and again, highly capable Citibank staffers advance to a point where their career options within the bank are limited. They thus become prime targets for head-hunters. In most of these cases, the parting is on agreeable terms. Even though Citibank may have invested a considerable amount of resources and funds in their education, it is amenable to their departure, as potential envoys of Citibank values and customers in future transactions. Apart from holding senior positions in leading local banks, numerous former Citibankers have gone on to make their mark in business, industry, and government.

Management Associates attend their graduation in 2017 with CEO Batara Sianturi

1980–1989

Value

People

Innovation

Paradigm Shift

Clients

From time to time, Citibank Indonesia builds a network of high-performing students from Indonesia and abroad, to inspire them to new heights

A Formative Experience

Jerry Ng—Citi Alumnus

For Jerry Ng, his five years at Citibank were, quite literally, a formative experience.

Jerry applied to Citibank Indonesia in 1986, freshly returned to Indonesia after three years at the University of Washington in the United States. At the time, there were few options for a young Indonesian with a foreign education wanting to join a prestigious international company. Citibank Indonesia was his first choice because of a fond memory: Jerry had accompanied his uncle to the Citibank Indonesia branch to purchase the bank draft required at the time to enroll in foreign universities.

Jerry started at Citibank Indonesia just

as the bank was restructuring its training program. Jerry joined the first batch of Management Associates, or MAs, and was sent to Singapore for training. As a person who values independence and self-determination, Jerry flourished in the program.

In this inaugural year, the trainers were given a high degree of flexibility in how they would structure the new program, and the trainees, the “guinea pigs” as Jerry terms himself and his colleague, were allotted a much greater amount of face time with management than is usual.

This exposure provided him with a strong ammunition to excel in his leadership roles.

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50 Years of Dedication for Indonesia

Resilience

1990–1999 68

Entering the final decade of the second millennium, Indonesia seemed poised for self-sustaining industrial development. An influx of foreign capital into the revitalized financial sector had spurred considerable industrial growth, raising employment levels and lifting millions out of poverty.

By the middle of the decade, however, Indonesia was dragged down into a financial crisis that swept Southeast Asia. From July 1997 to February 1998, the rupiah plummeted in value.

The resulting economic upheaval spurred protests and demands for government reform, led primarily by university students. They protested the seeming inability of the Government to protect Indonesian citizens from the economic downturn. The crisis came to a head in May 1998, after civil unrest in Jakarta and other urban centers led to the resignation of President Soeharto, after 32 years in office.

Nevertheless, the 1990s would end as they had begun: on a note of optimism. Spurred by the student movement and a general public consensus, reform-minded politicians revamped election procedures and implemented a round of elections, resulting in a more representative legislative assembly and a new president, reformist leader Abdurrachman Wahid.

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Temple Near Ubud Bali by John van der Sterren, 1997 The Netherlands was for three and a half centuries the colonial power in Indonesia, and Van der Sterren was one of many Dutchmen born and raised in the archipelago. Now a citizen of New Zealand, Van der Sterren remains fond of Indonesian nature and tranquility. He lives in Yogyakarta, Central Java, near the Borobudur Temple, with a second studio in Hua Hin, Thailand. His work is popular among collectors throughout Indonesia and internationally. “Temple Near Ubud� draws inspiration from the terraced rice paddies, Hindu temples, and shrines that surround the cultural idyll of Ubud in Bali, Indonesia.

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50 Years of Dedication for Indonesia

The Roaring Nineties Expediting business in a hot economy

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wo years after the 1988 financial deregulation package loosened restrictions on banking and investment, Indonesia was on a roll. Glowing economic forecasts by leading financial pundits, who hailed the nation as “an Asian tiger,” attracted the attention of global investors. As the 1990s dawned, mild economic recessions in North America and Europe temporarily restricted high-yield investment opportunities. The world was awash in money, and Indonesia, along with the other East Asian tigers and cubs, seemed the best place to soak it up.

In Indonesia, there was no shortage of eager sponges. Though the deregulation package had removed most of the restrictions, inefficiency still plagued the industry. Banks relied on double-digit spreads to cover high costs and frequent loan defaults. The excessive cost of borrowing meant that in many sectors, funding expansion through long-term debt was not financially viable.

Cheap foreign loans seemed an ideal solution.

During the first years of the decade, local businesses signed up for hundreds of millions of dollars, pounds, and yen in offshore financing.

However, the nation’s nascent financial sector was ill-equipped to handle the torrent of funds flowing into the domestic economy. Several

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companies entered into arrangements involving advanced financial instruments like derivatives, and were badly burned when minor reversals in distant money markets resulted in disproportionately large losses. But these early missteps did nothing to dampen enthusiasm. All parties expected the nation’s senior management to maintain economic stability through careful adjustments of interest rates, the value of the rupiah, and other levers of state power.

At Citibank Indonesia, the need for due diligence on clients clamoring for offshore funding intensified an already demanding workload.

Long nights in the office became the norm as credit analysts would spend business hours on client visits and other field investigations, then be required to write their reports by the next morning. These reports, destined for readers in the financial capitals of world, had to be letter-perfect.

Citibank Indonesia, acting as a bridge between the domestic and international financial worlds, looked forward to supporting Indonesia’s efforts to rise into the ranks of industrialized nations.

1990–1999

Value

People

Innovation

Resilience

Clients

A Defining Experience Miming Satyono—Citi Alumnus

The global financial press were effusive in their praise of the Indonesian economy and conducive investment climate

The boom in private banking unleashed by the 1988 financial deregulation package also brought an unprecedented level of competition into the Indonesian financial sector. Though Citibank Indonesia, a bank with a sterling reputation, had little to fear from the new and inexperienced private banks, credit analysts and other Citibankers did feel an increased pressure to perform as the economy heated up and demand for debt financing grew.

Citibank alumnus Miming Satyono was thrust into this hothouse environment in 1992 to punch numbers into databases.

Within three months she had demonstrated her dedication to her career and so was granted the full benefits of Citibank training.

The pressure was relentless and unforgiving.

Miming persisted, and after 11 years left Citibank as a vice president. With her fearless attitude, Miming decided her best option was to form her own company, PTÂ Samuel Sekuritas Indonesia. Her company would thrive during subsequent decades, thanks to her early trial-by-fire at Citibank Indonesia, as Miming readily admits.

Her company would thrive during subsequent decades, thanks to her early defining experience at Citibank Indonesia, as Miming readily admits.

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50 Years of Dedication for Indonesia

Phoning It In Citibank sets up first telephone banking service in Indonesia

I

n the 1980s, the twin banes of urban life in Jakarta were the traffic and the telephone system. Heavy congestion meant hours might be wasted simply getting from one place in the city to another. However, personal visits were often the only option available for transacting business. Dialing a number didn’t always guarantee a reliable connection with the intended recipient. Dropped calls, phantom voices breaking into conversations, and entire neighborhoods being disconnected after a major rainstorm were routine occurrences.

By the 1990s, advances in communications infrastructure brought the telephone system up to international standards, at least in Jakarta.

As the telephone system became more reliable, Citibank Indonesia sought to make customers’ lives a little easier by removing the necessity to physically visit their branch to perform routine transactions or inquiries.

In 1993, Citibank Indonesia launched CitiPhone, Indonesia’s first 24-hour telephone banking

service. Better technology and best-in-class customer service coincided to give customers a much-improved user experience. Money could be moved and transactions carried out just by saying the word—whether in English or Indonesian—365 days a year.

In the banking industry, call-center operators require more than just a pleasant voice. Banking transactions can be highly consequential, and clients are sometimes reticent to trust their money to a disembodied voice. As such, the entry bar is high for an online-banking representative. Besides being a skilled communicator with customer-service experience, an operator must be capable of mastering banking procedures and have a deep knowledge of banking products. Thus, being accepted as a CitiPhone operator is considered to be a significant achievement. The job attracts capable young Indonesians who, after a few years, often decide to put down their headsets and continue their careers armed with the skills and experience gained from life as a CitiPhone operator.

In the 1990s Citibank Indonesia also offers a customer contact center for corporate clients, CitiService

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1990–1999

Value

People

Innovation

Resilience

Clients

Online Banking Pioneer

Jakarta never sleeps, and neither does CitiPhone, which provides 24/7 telephone banking service

In the late 1990s, an era of screeching modems and glacially slow data connections, Citibank Indonesia nevertheless offered Indonesians their first online banking experience. With the registration of the citibank.co.id domain in January 1997, Citibank Indonesia began to offer basic facilities such as account-balance checking from home or office. As a pioneer of automated banking and an early adopter of client-facing applications, Citibank took the lead and remained at the forefront of online-banking technology in Indonesia.

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50 Years of Dedication for Indonesia

Wanted: Citibankers Citibank’s strong reputation makes its employees a valued target

C

iti has always been justly proud of its role in Indonesia and other nations as a “training ground” for banking executives, many of whom sought rapid career advancement, often times by accepting positions in local banks who needed their global expertise.

Banking laws in the 1990s made it simple to set up a new financial institution: the number of licensed banks in Indonesia soared from fewer than 50 to more than 200, most of which were “piggy-bank” adjuncts to corporate groups with no previous experience in finance. All new banks needed qualified staff, from junior customer reps to senior financial officers.

Among the preferred source they looked to was Citibank Indonesia.

In former years, other banks would hire away mostly mature, highly experienced staffers. For the most part, these senior employees felt they had accomplished all they could in the Citibank environment. In the 1990s, however, desperate recruiters poached at all levels of the corporate tree. Citi’s intensive training program signified that for each departing staffer, there would be one or more fully qualified subordinates ready to fill the slot.

It wasn’t just other banks. Companies in different sectors also coveted Citibankers for their expertise and discipline, thus helping spread the Citi ethos and best practices throughout the business community.

Former Citi Consumer Banking Head Indonesia Ravi Bahl and former Citigroup Vice Chairman Pei-yuan Chia in 1993

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1990–1999

Value

People

Citibank's strong culture of employee development has produced talented Indonesians who continue to be sought out by other institutions

Innovation

Resilience

Clients

The Story Teller

Gita Wirjawan—Citi Alumnus

During the 2000s, as Indonesia was putting its financial house in order, Citibank alumnus Gita Wirjawan held senior management positions in several domestic and international financial institutions. At the end of the decade, Gita was called upon by the Indonesian government to work the other side of the street, first as Chairman of the Investment Coordinating Board (BKPM) and, in 2011, as Minister of Trade. Gita says his primary task during this period was to tell stories, or in more formal terms, craft and deliver a narrative to inform the world of Indonesia’s potential as an investment

opportunity. His responsibility was to keep a steady eye on the bottom line to ensure that the benefits generated by foreign investment were evenly distributed among all stakeholders, including the people of Indonesia. Gita credits his early experience at Citibank with developing these essential skills. In their meritocratic culture, Citibankers must be adept at telling their own stories, convincing superiors of their potential worth to the bank, in order to advance. This skill is easily applied to telling the stories of others, or in Gita’s case, of a whole nation.

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50 Years of Dedication for Indonesia

The Perfect Storm Bad loans and unfettered expansion undermine the sector

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n the mid-1990s, a financial crisis was the last thing on the minds of Indonesian financial controllers. Indonesia had low inflation and a healthy trade balance and foreign exchange reserves. Since the start of the decade, the Indonesian rupiah had undergone a managed devaluation against the U.S. dollar.

Corporate financial controllers felt confident that this responsible stewardship of the exchange rate would continue, allowing their companies to seek dollar-denominated funding with the assurance that they could accurately forecast the future value of the rupiah, and budget loan repayments accordingly.

And loans were there for the taking. The surging economy and decades of political stability had attracted the attention of investors and finance institutions from across the globe.

Citibank Indonesia was at the forefront of the burgeoning corporate credit market because of two competitive advantages. After 25 years of operation, Citibank Indonesia was a fixture in the Indonesian corporate world, with a sterling reputation. Many local companies looked first to Citi to help them tap into the cheap foreign-denominated credit ready to flood into Indonesia

at the stroke of a pen. For offshore investors eager to grab a slice of the growing Indonesian pie, the global Citi brand was their assurance of probity, especially if they did not have the resources to undertake their own due diligence of a potential debtor.

Citibank Indonesia, most other international banks, and the top tier of established domestic banks operated on a solid base of sufficient capitalization and good governance. But among the scores of banks that had sprung into existence after the 1988 deregulation package, a lack of prudential standards and safeguards, low capitalization, an overexposure to single customers and affiliated companies, and an increase in competition between banks for customers meant trouble was brewing.

Bad debts were also piling up, among others, as lenders gave out money to companies without adequately assessing the debtors’ ability to repay, especially since many of these companies did not adhere to international accounting practices. Easy access to credit also saw large-scale exposure to property developers, which by 1997 accounted for a large number of all bank loans.

“ Citibank Indonesia, most other international banks, and the top tier of established domestic banks operated on a solid base of sufficient capitalization and good governance.�

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Overexposure and a growing pile of non-performing loans spelled trouble for the Indonesian banking sector

1990–1999

Value

People

Innovation

Resilience

Clients

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50 Years of Dedication for Indonesia

The Hammer Falls The Asian financial crisis strikes Indonesia

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n July 1997, the seemingly unstoppable rise of the Asian Tiger economies, Indonesia among them, took a massive hit. International currency speculators had identified weaknesses in East Asian currency markets, largely due to overexposure to foreign-currency debts. In one day, Thailand was forced to devalue the baht, triggering the Asian financial crisis. The contagion spread rapidly, as Indonesian authorities attempted to safeguard the rupiah.

By August the rupiah was under full-scale attack. The managed floating regime was replaced with a free-floating exchange rate that resulted in the rupiah falling from 5,000 to the U.S. dollar to nearly 17,000. Some companies holding foreign-denominated loans discovered that, with the new exchange rate, their foreign exposure exceeded the book value of the entire company. Many gave up any hope of servicing even the interest on their debts.

The International Monetary Fund (IMF) believed that Indonesia’s structural weaknesses made it vulnerable to the external developments, citing domestic trading regulations, import monopolies, lack of transparency, a weak banking system, and high levels of overseas debt taken out by corporations as contributing factors. In November 1997, the IMF approved a stand-by line of credit for Indonesia, authorizing drawings of up to $10.14 billion over three years in support of

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Indonesia’s macroeconomic stabilization and structural reform program. A comprehensive restructuring of troubled financial institutions was enacted, under which 16 unviable banks were closed, and weak but viable institutions were required to quickly formulate and implement rehabilitation plans. At the same time, steps were taken to strengthen the legal and regulatory environment and establish strong enforcement mechanisms and clear exit policy.

These actions were part of the restructuring program put together with technical assistance from the IMF, the World Bank, and the Asian Development Bank (ADB).

Citibank Indonesia was in a better position than most to weather this storm. With treasury and retail banking providing the bulk of the bank’s revenue, corporate loan defaults were a manageable issue. However, this reliable revenue stream was also vulnerable. The price of imported goods, which made up a disproportionate fraction of consumer products, soared, in the process driving up prices of essential goods such as cooking oil. This in turn triggered protests in towns and cities across Indonesia, setting the stage for a major upheaval.

1990–1999

Value

People

Innovation

Resilience

Clients

Master of the Universe

Fauzi Ichsan—Citi Alumnus

Until mid-1997, Fauzi Ichsan was master of his own small universe. As a 26-year-old Jakarta native assigned to the dealing room in Citibank Singapore, his days were filled selling loans from Indonesian companies to buyers around the world. Investors were keen for a piece of Indonesia’s booming economy.

But things turned sour in August 1997, when the rupiah began its precipitous slide and debtors defaulted on their loans. Suddenly, Fauzi’s days were spent fielding calls from

frustrated clients demanding their money.

To get through his day, Fauzi drew upon his training to hunker down and document all transactions and interactions, as he was certain that his superiors would support him if he could prove that he had always acted according to ethical standards. Fauzi credits this training as giving him the ability to stay cool under intense pressure, which has served him well in his subsequent career.

The Asian financial crisis unfolded rapidly in mid-1997

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50 Years of Dedication for Indonesia

Seizing the Opportunity Citibank Indonesia keeps faith in the nation to rebound

W

ith a presence in 80 nations, many of them with only partially developed economies, Citibank has seen its share of financial crises. A particularly bad item in the bank’s institutional memory was the “Tequila Crisis,” a contagion that hit Mexico in 1994–1995 after its government devalued the peso against the U.S. dollar, causing a sudden devaluation of the peso that sent inflation soaring and triggering a severe recession. That event in December 1994 became one of the first international financial crises started by capital flight. The “Tequila Effect” would quickly spread to other South American economies.

The Asian financial crisis followed less than four years later. When rioting broke out in major cities in Indonesia in May 1998 in protest against the government, Barry Lesmana had been in the position of Head of Consumer Banking at Citibank Indonesia for just a month.

He was the first Indonesian to occupy the

position, and was aware that the unrest might unnerve Citibank’s top management in New York about their Indonesian business.

Barry decided to take the initiative and proposed a branch and an "ATM Boutique" network for Citibank Indonesia before senior management could demand cutbacks. He won over his immediate superiors in Singapore and Hong Kong, who then took the message to New York, arguing that despite the lingering malaise, the Indonesian economy was fundamentally sound and that Citigroup should seize the opportunity and double down on their Indonesian franchise. This advocacy was successful. Citibank Indonesia would receive funding, but the vote of confidence in Indonesia paid off. In the following years, Citibank Indonesia would reinvent itself and secure a strong market position as the Indonesian economy rose again and soared to greater heights, just as Barry Lesmana predicted.

Barry with former Citibank Indonesia CEO Piyush Gupta (1998–2000) and former Citigroup Global Corporate and Investment Bank Asia Pacific CEO Stephen Long

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1990–1999

Value

People

Innovation

Resilience

Clients

Barry Lesmana meets President Abdurrachman Wahid in 2000, as the economy begins to recover after the Asian financial crisis

Banking on Resilience Barry Lesmana—Citi Alumnus

Not long after the May 1998 riots, newly installed consumer banking head Barry Lesmana invited his regional manager, Frits Seegers, to fly to Jakarta from Singapore to survey the situation first hand. Unaware that senior bank officials making such visits are escorted by armed guards, Barry himself picked up his manager at the airport, and drove the bemused, somewhat nervous banker through the areas hardest hit by the rioting. After an hour of viewing smashed windows and damaged buildings, Barry and Frits stopped at an upscale mall for lunch.

Frits was astounded to see the restaurants and food courts filled with residents, as though this were a normal Saturday afternoon, even as international news reports breathlessly described “a city in turmoil.” Frits believed that Barry might be correct about the innate resilience of the Indonesian people—and their economy.

In keeping with the makeshift nature of the occasion, Barry wrote up the rough outline of his business plan on a napkin and explained it to Frits for his consideration.

Since then, Citibank Indonesia's business in consumer banking grew even further.

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50 Years of Dedication for Indonesia

Doing Good in Difficult Times Citibank Indonesia responds to crisis by initiating programs in local communities

I

n an era when businesses, large and small, are called upon to recognize their corporate social responsibility (CSR) and act upon it, Citibank Indonesia responded with an appropriate and intelligent series of programs encouraging sustainable self-sufficiency. At the end of the tumultuous year of 1998, Citibank Indonesia set up Citi Peka (Peduli dan Berkarya), a CSR effort structured as an umbrella for all community activities, mainly funded by the Citi Foundation.

Citi Peka concentrated on developing programs focusing on personal and group empowerment.

The programs seek to bolster the capabilities of young entrepreneurs, as well as providing necessary financial-literacy education to school-age children, farmers, and mature women, particularly around the areas where Citi operates.

These programs were continually adjusted and reworked as Citi Peka collaborated with local authorities, religious and social organizations, and scores of both local and international non-governmental organizations.

As the saying goes, “Give someone a fish, they will eat for a day; teach them to fish, they will eat for life.” Citi Peka takes that principle a step further, saying, essentially, “Help them breed their own fish, and their neighbors will eat as well.” Citi Peka programs strive to make available the knowledge and resources communities need to build and manage sustainable businesses, by providing a dependable revenue source for communities throughout Indonesia.

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The establishment of Citi Peka was partially a response to the Asian financial crisis that broke out in 1997. As the value of the rupiah plummeted, the Indonesian economy underwent severe disruption, exacerbated by the weakness of the under-regulated financial system. Though some regions of the archipelago prospered, thanks to production of export commodities such as rubber and palm oil, densely populated Java was hit by sweeping unemployment and subsequent social instability as jobs were lost and prices of basic goods soared.

The hardest hit was marginalized urban villages and rural agricultural communities, so in the beginning of its inception, they became the focus of Citi Peka’s programs.

Over the years until 2018, 34 appropriate-focus programs were implemented across the archipelago. During this time, more than $12 million in funding has been wisely disbursed to deserving Indonesians and institutions. In fact, more than one million citizens have benefited since 1998. Success was certified by the presentation of awards to individual entrepreneurs and micro-finance institutions. Guided by the principle of “More than Philanthropy,” Citi Peka involves more than 90 percent of Citi employees and families as volunteers in various community activities.

The launch of Citi Peka Community Center in Landmark building.

Citi Peka provides the education and training necessary for disadvantaged Indonesians to build sustainable businesses

1990–1999

Value

People

Innovation

Resilience

Clients

Many Citi Peka programs focus on young Indonesians, the nation’s future

Citibank Indonesia visits the local Papuans, one of the most remote areas in eastern Indonesia

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50 Years of Dedication for Indonesia

OneBill to Pay Them All Consolidated bill payments for greater convenience

I

n 1999, two years after the start of the Asian financial crisis, Indonesia was clearly on the road to recovery. With the rupiah strengthening, the banking sector restructured, and a milestone democratic election in June harking a return to political stability, Indonesians again turned their attention to their careers and daily lives. As consumer spending returned, so did anxiety about overdue bills.

In Europe and America, the struggle to pay monthly bills is humorously portrayed as a disheveled homeowner sitting at the dining-room table, furiously scribbling checks amid piles of mail-delivered notices. In Indonesia, the situation was far more complicated. Few bills were delivered by mail. Paying an electricity bill, for example, involved a visit to a physical payment point, waiting in line for the bill to be printed, and then paying the full, often sizable, amount in cash.

Utility bills, installment payments, insurance premiums, and other monthly obligations all fell due on different dates. In addition, few institutional creditors offered delayed payment or grace periods. Each month, many telephone subscribers would lift their handset on the first

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morning of the month only to hear an “out of service” tone reminding them that they had forgotten, or had insufficient funds on hand, to pay their telephone bill the previous week.

In 1999, Citibank Indonesia leveraged the growing popularity of credit cards among the nation’s middle class by introducing OneBill, a consolidated payment service that automatically tracked and settled multiple monthly payment obligations.

With the OneBill service, users needed only pay their credit card bill each month, partially or in full. Citibank Indonesia settled all monthly bills on their respective due dates by charging the amount against the cardholder’s balance.

And as credit-card interest is generally lower than the late fees and penalties charged by Indonesian utilities and other service providers, anyone with basic money-management ability was relieved of overdue bill anxieties even when temporarily cash-strapped because of unforeseen expenses—a common occurrence for many families still enduring the lingering effects of the economic downturn of previous years.

1990–1999

Value

People

Innovation

Resilience

Clients

Busy middle-class urbanites appreciate the safety and convenience of paying all routine bills with a single monthly payment

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Reform and Restructure

2000–2009 88

With the new millennium came a renewed sense of optimism about the future of Indonesia. As the decade progressed, consumer confidence rose at all levels of Indonesian society, driving a strong year-by-year growth of GDP. A reform-minded administration and newly empowered legislative assembly instituted a wide-ranging overhaul of the economic and political environment. Political power and budgetary resources were divested from the central government to the regions, giving local residents considerably more autonomy in deciding how public revenue was to be spent.

Justly concerned about a repeat of the previous decade’s financial meltdown, in 2003 the government placed strict regulations on state financing practices, confirming the strong independence and oversight authority of Bank Indonesia (BI), the nation’s central bank. In 2006, BI wielded this authority by issuing a comprehensive set of regulations setting stringent guidelines for proper corporate governance at commercial banks.

The government’s commitment to impose order on the commercial-banking industry paid off in the events of 2008, when the United States and other developed economies suffered their own financial crisis, triggered by unwise lending practices. While suffering a contraction in export markets, Indonesian banks and depositors were not seriously affected by the crisis in the West. The decade ended with consumer spending driving the economy to unprecedented heights.

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View of Borobudur from Paddy Field by Nasirun, 2009 A contemporary artist, Nasirun lives in Yogyakarta, the cultural heart of Java and the city from which he draws much of his inspiration. Though financially successful, Nasirun still rides his beloved motorbike from 1997. “View of Borobudur From Paddy Field� is one of his many works focused on the ancient temple and UNESCO World Heritage Site.

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50 Years of Dedication for Indonesia

Banking on Quality A shift to retail banking focus

T

he 1990s were a boom time for Indonesia, as the growing middle class became acquainted with new credit instruments—primarily credit cards. As the first foreign bank to issue credit cards in Indonesia, Citibank Indonesia was at the forefront of this trend. Cardholders were able to spend heavily within their credit limit and allowed to pay down just the minimum each month, carrying over the balance with a monthly interest. The percentage of defaults was sufficiently low to allow being written off as a manageable cost of doing business.

The Asian financial crisis curtailed this trend.

Defaults on credit card debt rose as formerly liquid employees lost their sources of income.

Cardholders who remained solvent cut down on expenses and paid off their balances, worried that they too might lose their jobs (as colleagues, family and neighbors had) in the economic downturn.

But as the crisis receded into history and the economy began to recover, other banks jumped back into the credit card business. At this point, Citibank Indonesia reasoned that the

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entrance of so many new players would result in commodification of the business, consequently reducing its margins to unsustainable levels.

In consideration of this, Citibank Indonesia in 2000 put a renewed focus into widening its retail banking offerings.

Citibank Indonesia opened spacious branches in upscale malls, with a single ATM and prominent signage. The campaign was spearheaded by hundreds of financial consultants sent out to recruit high-net-worth customers. The strategy was to leverage Citibank Indonesia’s reputation as a safe, quality bank to recruit well-to-do Indonesians more interested in depositing significant amounts for safekeeping than using the bank for daily transactions.

The new strategy yielded impressive results, propelling Citibank Indonesia to become one of the most profitable units by 2005. The products on offer were revamped as well. Citibank Indonesia developed original savings instruments, based on a deep understanding of the middle-class Indonesian mindset. Some of these new banking products were so attractive that they merited export to other countries.

2000–2009

Value

People

Innovation

Reform and Restructure

Clients

Citibank Smart ATM in Plaza Indonesia. As the economy recovered, the bank attracted, once again, affluent Indonesians by opening showcase branches in upscale malls

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50 Years of Dedication for Indonesia

Global Expertise Citibank occupies an important niche in the Indonesian economy

N

ew York and Jakarta are half a world away. But the daily trading activities on the New York Stock Exchange and other financial bond markets, and the decisions taken in corporate boardrooms—or in government offices in Washington, D.C.—have significant impact on Indonesian business and capital markets. The growing integration of the economy with global markets, and the effect of international financial forces on domestic corporate bottom lines, highlights the essential role that franchises of global banks can play in Indonesia.

Operating in 160 countries and jurisdiction, including world financial centers such as London, Zurich, Frankfurt, Tokyo, and Singapore, Citi has the unique ability to convey

outlook and expert analysis as global bankers to clients in Indonesia. In a world where information is power, this competitive advantage, along with Citi’s on-the-ground familiarity with financial practices and local regulations throughout the world, gives Citibank Indonesia clients the edge they need to compete as equals in global markets.

Citi’s value to Indonesia is not restricted to international finance. The bank’s reputation in Indonesia as a steady hand was reinforced after it successfully weathered the Asian financial crisis in 1998.

The activity of the New York Stock Exchange (NYSE) has global ramifications, including for Indonesia

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2000–2009

Value

People

Citibank Indonesia, as with counterparts throughout the world, has mastered the skill of incorporating global expertise with local knowledge, drawing on the best of both worlds to provide the best in banking services

Innovation

Reform and Restructure

Clients

“The bank’s reputation in Indonesia as a steady hand was reinforced after it successfully weathered the Asian financial crisis...”

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50 Years of Dedication for Indonesia

Globalizing Leaders Cross-border opportunity to reach higher

W

ith its global presence, Citi gives local talents the opportunity to leverage its network for their career advancement. The Global Mobility program at Citi was created to develop high caliber global professionals for their career development, through mobility across regions and working with Citi business overseas.

Citibank Indonesia has a proven track record to send people overseas by putting them on a fast track to reach senior position in Citi franchises around the world.

Citi Philippines (2017–Present*) Country Risk Manager

Erwin Wiriadi Country Risk Manager Citi Philippines

Current Citibankers*

Citi Japan (2010–2014) Head of Risk Management Citi Cards

Citi Hungary (2005–2011) Consumer Bank Head

Francisca Mulyanto Head of Consumer Risk Citi Indonesia

Citi Hungary (2007–2013) Chief Executive Officer

Batara Sianturi

Citi Hungary (2008–2013)

Citi Country Officer/ Chief Executive Officer Indonesia

Chief Executive Officer & Regional Head for Citi Hungary and 12 other countries in Eastern Europe

Citi US (2014–2016) Senior Audit Manager

Citi Philippines (2013–2015) Chief Executive Officer & Regional Head for Citi Philippines & Guam

Sitti Verny Virnansya Head of Internal Audit Citi Indonesia

*as of 2018

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2000–2009

Value

People

Innovation

Reform and Restructure

Clients

Citi Alumnus

Citi Philippines (2001–2004)

Citi US (2001–2003)

Country Risk Director Global Consumer Bank

Vice President Structured Trade Finance

Citi Germany (2004–2008)

Ahmad Siddik Badruddin

Country Risk Director Global Consumer Bank Citi United Kingdom (2008–2011) Regional Senior Credit Officer Central & Eastern Europe, Middle East & Africa Region Global Consumer Bank

Riko Tasmaya Last position: Managing Director, Head of Global Subsidiaries Group (2015–2018)

Citi US (2011–2014)* Managing Director North America Credit Cards & Private Label Cards and Global Unsecured Products, Global Consumer Risk Management

Citi US (2000–2003) Vice President Institutional Remedial Group

Tigor M. Siahaan Last position: Citi Country Officer/Chief Executive Officer Indonesia (2011–2015)

Citi Philippines (2003–2006) Cards Business Director Citi Philippines (2006–2007) Retail Bank Director

Michellina Laksmi Triwardhany

Citi Malaysia (2007–2009)* Country Business Manager

“ The Global Mobility program at Citi was created to develop high caliber global professionals...”

*also last position at Citi

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50 Years of Dedication for Indonesia

Making Shopping “Eazy�

Citibank Indonesia introduces EazyPay installment payments

T

hat the middle class is growing is an often-mentioned, and often-misunderstood, aspect of the Indonesian economy. When referring to the consuming class, it often portrays a family having a monthly income greater than the amount required to purchase the basic necessities of shelter, food, clothing, and education.

In Indonesia, the middle-class threshold can be surprisingly low, with some economists placing the line at $7,500 annually—much less than half of the poverty threshold in the developed world.

Nevertheless, an urban family at this economic level will have some degree of discretionary income. For most Indonesians, the priority will be to spend this on one of the necessities of middle-class life in Indonesia: a refrigerator, a television, or a motor vehicle. As in developed economies, most people pay for such big-ticket items in installments. The usual method is third-party financing arranged by the store. This is hardly ideal.

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In 2002, Citibank Indonesia addressed this issue by introducing EazyPay for credit card customers. With EazyPay, large purchases can be paid for in fixed installments at a rate much lower than that of a standard credit card. Under this system, the purchase is charged to the credit card, but the full amount is not added to the monthly balance. Instead, the purchase amount is charged to the credit card balance in monthly installments, sufficiently low that the customer is able to settle the balance each month.

With EazyPay, only the monthly installment amount is subject to the full interest rate on unpaid monthly balance. In addition, EazyPay will automatically convert transactions of more than 1 million rupiah into monthly payments.

Citibank Indonesia credit card holders can use EazyPay to purchase big ticket items like televisions in fixed installments with low interest charges

2000–2009

Value

People

Innovation

Reform and Restructure

Clients

Citibank Indonesia billboard at Jakarta's city center, advertising EazyPay in early 2000s

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50 Years of Dedication for Indonesia

The Art of Banking Citibank Indonesia supports Indonesian arts and literature

T

hroughout history, most of the priceless works of art we appreciate today were created as citations of wealth, spiritual eminence, or worldly power. The paintings of such masters as Leonardo da Vinci had initially been made possible by regal or religious patronage, as warlords, popes, merchants, and kings sought to enhance their own power and prestige. Rich and powerful families of Europe commissioned paintings, sculptures and murals from talented artists of the day, sealing their own and the artist’s place in history.

Citibank was perceived as the first U.S. financial institution to apply this tradition in the modern age. In the boom years following World War II, National City Bank, as the institution was then known, commissioned leading artists to illustrate its mass-media print advertisements. Apart from creating memorable and prestigious ads, this patronage yielded generous commissions to deserving artists of the day.

As the Indonesian economy began its dramatic recovery at the turn of the millennium, Citibank Indonesia began to champion Indonesian literary culture, art, and artists. Artistic patronage has a long history in Indonesia. A generation of painters in an earlier age, such as Raden Saleh, Ida Bagus Made, Lee Man Fong, and Basuki Abdullah, left behind works that are admired internationally, and fetch extremely high prices.

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Many of these painters were Dutch-educated and had traveled to the West, acquiring mastery of oil-painting techniques. The educated Indonesian elite has a long tradition of art appreciation, and used art as a tool to elevate the national spirit. Jakarta, Surabaya, and Denpasar have a profusion of art galleries, and openings are faithfully attended by leading figures in culture, business, industry, and Government.

In consideration of the august personages who patronize the galleries, Citibank Indonesia took the initiative to sponsor painting exhibitions. Among the first to benefit from a commission was Sasya Tranggono, daughter of a prominent family. At her exhibition at Bimasena in 2001, Sasya displayed her expertise in the demanding technique of decorative watercolors, creating artworks based on Indonesian themes and motifs. The Jakarta elite turned out in force for the exhibition, driven by a genuine interest in artistic expression and wishing to champion national cultural development.

Citibank Indonesia sponsored Sasya Tranggono’s first major exhibition in 2001 in Jakarta

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Ubud market is the go-to destination for tourists to purchase arts and crafts

Getting the Word Out In 2010, Citibank Indonesia assumed naming-rights sponsorship for the prestigious Ubud Writers & Readers Festival, held each year in October in Ubud, an arts-oriented tourist town situated in one of the most spectacularly beautiful locations of Bali. From modest beginnings in 2004, the Ubud Writers & Readers Festival has grown to become the premier gathering for literati in Southeast Asia, with creative people from around the nation, region, and the world in attendance.

For more than a century, Bali has hosted

creative visitors from all over the world, who are awed, charmed, and inspired by the island and its people. The Ubud Writers & Readers Festival carries on this tradition by creating a forum where writers can introduce their visions to new and appreciative readers.

As a global bank, Citibank Indonesia prides itself on its ability to connect clients who might be, literally, a world away. As a sponsor of the festival, Citibank Indonesia has helped bring together voices from around the world.

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The Greatest Love of All

by Sasya Tranggono, 2014 The painting tells the story of the Javanese, a culture with strong and ancient traditions. The Javanese constitute the largest ethnic group in Indonesia, accounting for the approximately one-third of the total population. All the country’s presidents, bar one, have been Javanese, and the group’s values and cultures have predominantly influenced how the nation has been led

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The second decade of the 21st century commenced with strong consumer demand driving the economy. Successful elections at both regional and national levels inspired renewed confidence, as growing affluence lifted more Indonesians into the middle class. A decline in commodity and oil & gas prices in the middle of the decade prompted the Government to roll out a series of stimulus packages.

The Government also instituted a tax amnesty program to boost state revenue by expanding the tax base and repatriating offshore assets.

With a strong slate of highly qualified technocrats at senior levels of Government and Bank Indonesia, serious efforts were made to more closely guide and nurture the domestic banking industry.

This decade is generally regarded as the genesis of the digital era, with widespread adoption of broadband communications and the near-ubiquity of personal digital devices.

Indonesia became an enthusiastic participant in the global digital revolution, with intense social-media participation and the blossoming of innovative online enterprise. The digital revolution provided a significant boost to Indonesian businesses, both large and small, as they became increasingly enmeshed into the global economy.

In all, positive economic performance, an official commitment to create a more conducive commercial environment, and the increasing affluence of the Indonesian public all point toward a bright future for the nation.

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Digitization: the infographics

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Banking on the Future

Labuhan Parangtritis by Djokopekik, 2017 Djokopekik was born in Grobogan, Central Java, in 1938. “Labuhan Parangtritis� shows a traditional Javanese ceremony in which adherents in this largely rural part of the country cast offerings out to sea as part of prayers for a good harvest.

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Immersed in the Digital Landscape Citibank Indonesia redefines the consumer banking experience

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iti occupies a unique position in providing services that meet the needs of both corporate and retail clients.

Citi’s digital banking focuses firmly on three pillars: Customer Centric, Globally Common, and Digitally Connected.

Indeed, 95 percent of Citi customers’ banking activities take place outside branch offices, and more than half of customers are active users of digital banking platforms. Over 50 percent of Citi clients get their monthly statements electronically, and 14 percent of credit card use happens online. These figures solidify Citi’s commitment to digital banking.

Citi continues to innovate to introduce banking solutions into the digital space. The Digital Innovation Lab, recently established in Singapore, is tasked with exploring digital banking solutions that are fast, secure, and efficient.

In Indonesia, the bank opened four Citi Smart Branches in 2015 as part of its commitment to bringing the best innovations as well as beneficial products and services for customers.

These branches, an affirmation of the bank’s continued commitment and investment in Indonesia, aim to extend Citi’s mission of simpler and more flexible banking experiences for customers in affluent residential areas. This Citi

Signature Experience provides customers with remarkable and world-class banking products and services.

Among the highlights of each Citi Smart Branch is the Citi Workbench, which allows customers to perform various banking transactions including account opening and maintenance, Citibank Internet Banking registration, and other paperless application processes. The new branches also feature meeting rooms and video conference facilities that customers can use for private discussions with specialists and relationship managers, as well as the Citigold lounge concept, specially designed to elevate customers’ level of comfort and convenience.

By combining world-class technologies with digital banking innovation, each Citi Smart Branch improves the banking experience and caters to the increasingly diverse and dynamic financial needs of Citi customers in Indonesia. Along with the opening of six Smart ATM boutiques, also in 2015, and a focus in wealth management services, the bank has increased it Citigold customer base by 15 percent. These efforts have garnered widespread recognition, including an award for “Best Wealth Management Bank in Indonesia” from Asian Banker Magazine.

Citibank Indonesia was awarded “Best Wealth Management Bank in Indonesia” by Asian Banker Magazine at the Excellence in Retail Financial Service Awards 2015

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The launch of a Citibank Smart Branch in Jakarta, 2015, with former Citi Indonesia Consumer Banking Head Lauren Sulistiawati, CEO Batara Sianturi, and former Citi Indonesia CEO Michael Zink

A modern, high-tech Citibank Smart Branch with a world-class service namely Citi Signature Experience. The branch puts forward technological advancement in banking transaction and wealth management advisory

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“ Citi continues to innovate to introduce banking solutions into the digital space.�

Banking on the Future The economy as we know it has been revolutionized. With digitization incorporated into every facet of commercial transactions and financial services, consumers and businesses are more connected than ever before. Since pioneering the use of computers in banking in the 1970s, Citi has

remained an industry leader in the digital revolution. After signing their account registration, a client would rarely need to visit a Citi branch. From individuals to corporate financial officers, the strength of Citi's domestic and international services network is, quite literally, in the palm of their hand.

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Seizing a Golden Opportunity With Citigold, customers enjoy wealth management on their own terms

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or affluent Indonesians, the concept of wealth management has changed over time. A maturing economy and ongoing political reforms have created a climate conducive to keeping wealth onshore, whether in financial institutions or domestic investments.

The Citigold suite of products and services caters to the requirements of Indonesians in the upper income bracket. Those with assets in excess of 1 billion rupiah (approximately $70,000) are served by a dedicated team of investment advisers or relationship managers, who counsel them on how to respond to recent changes in the investment climate or the client’s evolving financial condition.

A reliance on human interaction complemented by advanced online investment tools is Citigold’s dual-pronged approach to wealth management.

One-on-one discussions between Citigold investment advisers and clients are crucial.

In these conversations, clients are advised on how to diversify and grow their assets to better optimize their investment and achieve their financial goals.

A recent study conducted by Citibank Indonesia on customer trends and preferences in the affluent segment shows a 20 percent increase in digital service usage for investment by Citigold customers from 2015. That increase is driven by the number of customers 45 years and older with growth-oriented investments. This shows that Citigold customers are increasingly focused on asset growth rather than just savings. This trend is supported by the ease of use of Citi Mobile digital banking applications such as touch ID and soft token technologies.

Citi also provides internet banking for easy monitoring of investment fund performance, anytime and anywhere, and e-mutual fund features such as performing top-up activities, selling, and switching. All these features add up for an experience that makes life that much more enjoyable for Citigold customers.

Addressing changing Citigold customer preferences, Citibank Indonesia in 2017 launched “Citigold On Your Terms,” which offers wealth management through digital banking services and financial solutions tailored specifically to customer aspirations. This program aims to respond to Citigold customer preferences, which are growing increasingly global and digital.

Head of Consumer Banking Cristina Teh Tan (left) launched "Citigold On Your Terms" in 2017

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Social Media Management In July 2016, Citibank Indonesia carved a niche in the social media universe by launching its own corporate page on Facebook. This was a savvy move, as Indonesia has the third-largest base of Facebook users in the world, and the platform appeals mostly to older users— Citibank’s target market for wealth-management services. The Citibank page

Citigold uses advanced digital tools to assist clients in making the right decisions. Underlying the system is the combined global perspective of a 400-strong team of analysts, covering all regions of the world. High-networth individuals benefit from this unique insight into real-time global opportunity and risk, provided via online market alerts, newsletters, webinars, and risk profiling

provides customers with access to financial literacy resources and market forecasts through features such as live chats, short videos, and video sharing, including livestreaming of the high-demand market outlook event. Following the success of the Facebook page rollout, Citibank Indonesia has expanded its social media presence to Instagram and Youtube.

Citibank Indonesia holds a quarterly Citigold Seminar Series to equip Citigold customers with insights on economic and political trends.

In 2015, Coordinating Minister for Political, Legal and Security of Republic of Indonesia Luhut Binsar Pandjaitan shares his knowledge to invited customers

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Gateway to Wealth Management Citi Priority offers financial advice for the wealthy-to-be

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ndonesia’s young urban professionals are on a roll. As the economy expands and becomes increasingly integrated into the global marketplace, both local and foreign companies have an insatiable need for skilled and knowledgeable employees at every level.

Whether educated overseas or at a top domestic university, graduates in a business-relevant field such as marketing or law can expect to earn generous salaries almost from their first day of work, and be assured that their earnings will multiply throughout their careers.

The younger generation often adopts the “spend now, save later” habit. Only later in their careers, generally after they have begun to raise a family, do they tend to shift focus to asset acquisition.

In 2016, Citibank Indonesia launched Citi Priority, a comprehensive suite of wealth management services for Indonesians designed to serve the financial interest of successful entry-level and mid-career professionals and

businesspeople. Open to anyone with savings of at least 300 million rupiah, Citi Priority services include personalized financial advisory, a broad range of savings and investment products, and access to cash and credit from anywhere in the world.

The key advantage of Citi Priority is the type of preferential access to personal bankers and investment experts usually only available to dollar—not rupiah—millionaires. Based on a personal analysis of the client’s needs and goals, this support team can design a mix of savings and investments tailored to their individual needs. These portfolios can be adjusted at any time, and further advice is as close as the client’s mobile phone.

And since few customers are willing to give up all the perks of being young and affluent, Citi Priority offers a debit card with a number of bundled features to track and control spending both locally and while traveling.

Citi Priority assists young professionals to balance lifestyle spending with future goals

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Citi Priority was launched in 2016 to introduce urban professionals to sophisticated wealthmanagement services geared to their requirements and priorities

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Holistic Approach to Digitization Interconnected solutions for an electronic age

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here’s a lot more to digital banking than transferring money via smartphone.

Many of the banking applications found on devices today turn out to be little more than digital interfaces laid on top of traditional banking practices.

Citibank’s approach to digitization is more holistic. It reflects a very high level of automation as well as the way the bank is responding to the disruptions created by emerging financial technology (fintech). Despite the rapid pace of change, illustrated by how non-bank players have suddenly appeared on the scene, Citibank offers a single digital hub that brings together all financial activities of an individual or organization. From the customer’s perspective, being able to access money and financial information on the go is crucial. But when this capability involves a device that is cluttered with third-party specialty apps, the benefits drop off.

And no one is surprised when the apps do not function as advertised, resulting in frequent calls to client support.

Digitization at Citibank is different. Operations are automated vertically and horizontally throughout the system within a secure transactional environment. Meanwhile, a single app provides simultaneous access across all Citibank accounts, as well as real-time transaction management and a wealth of data-driven analysis and insight. A single app does not mean that one size fits all. Citibank continually learns what customers want to do and need to know

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and these capabilities are integrated into the application. Citibank continues to pioneer innovative technologies that facilitate secure transactions, convenient monitoring, and powerful analysis for individual and corporate clients.

For corporate clients, cash-management products like corporate cards and virtual accounts let financial officers access actual financial situations, in real time, and execute transactions. National borders are no obstacle here. For individuals, Citibank aims to serve as a single hub for a user’s financial life, thus eliminating the need for additional financial tracking and budgeting apps.

Data awareness is an important aspect of digitization. Whether generated internally or by outside experts, real-time access to external data, such as currency rates and market analysis, is also “right there.” Already, some customers use Citibank primarily for the financial insight the bank provides, such as information on spending versus income or how to unlock opportunities to save. This insight is used to identify once invisible strategies and develop healthy financial habits that will endure for a lifetime. In the coming decades, Citibank will remain at the forefront of digital banking and wealth management, co-creating new solutions with customers.

A collaboration between Citibank Indonesia and Indonesian Alliance of Independent Journalists (AJI), the “Master Class Program: Digital Financial Literacy” is dedicated to business as well as digital and technology journalists to educate them on financial technology (fintech), e-commerce and digital banking. The closing ceremony is attended by the Minister of Communication and Information Technology of Republic of Indonesia Rudiantara (center)

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Global Mobile brings all products and services Citi provides into the palm of the user’s hand

Entering the digital space beyond banking Leveraging the growth of social media, in 2018 Citibank Indonesia launched a digital social campaign to fundraise for 5,000 school uniforms for underprivileged children. With the hashtag #MaafJadiManfaat, the bank invited customers and netizens to participate in the sharing of a Ramadhan greeting video on Citibank Indonesia’s Facebook page. Within a month, #MaafJadiManfaat achieved a total of 2,667 shared videos, and was consequently awarded “The Best in Social Marketing” by Marketing Magazine.

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CitiDirect™ BE Digital Banking Evolving beyond ‘bricks-and-mortar’ branches

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ince ancient times, the islands of Indonesia have stood at the crossroads of the world. Lying astride the sea route connecting East Asia with Europe, the coastal settlements were the provisioning and transshipment points for vessels from all regions of the world, making Indonesia a vital component of the global economy.

The modern nation of Indonesia is once again a focal point of world business. As one of the vibrant economies of Southeast Asia, Indonesia is linked to supply chains and markets throughout the region and the globe. Anyone doing business in Indonesia, often even at the lowest levels, must be linked into global financial networks. Raising efficiency in regional and international transactions, minimizing risks from currency fluctuations, and assisting clients in keeping track of multiple accounts in various currencies have become essential services in the new globalized economy.

Seamless connectivity and efficient monitoring has become the top priority of Citibank’s customer service. Citibank Indonesia’s

connectivity is fully integrated with the global institutional e-banking platforms.

CitiDirect™ BE provides a single, centralized point of access for corporate clients to a full range of global cash, trade, liquidity, and investment services. Institutional users are able to conduct most of their finance-related duties from their own mobile devices, using Citi’s proprietary access-verification technology.

Managers with fiduciary responsibilities can execute routine transactions from any location having a workable internet connection. They can release single and batch payments and authorize trade documentation such as letters of credit. Real-time intra-day cash positions and payment-status inquiries greatly simplify the execution of time-critical tasks.

Executives with strategic responsibilities can use the tablet-specific application to aggregate and view financial information previously available only on a computer monitor. Fully customizable data visualizations and advanced data discovery present the critical, real-time information needed to make far-reaching business decisions anywhere and at any time.

MobilePASS With the advent of digital access, the old authorization method of a scrawled signature on a bank slip has been replaced by a bewildering array of remote access codes and protocols, any one of which is vulnerable to fraud or hacking. Meanwhile, the token, can be as impractical as it is secure: a small plastic object easily forgotten or misplaced.

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In February 2017, Citibank Indonesia launched a corporate account solution that eliminates the need for a physical token.

MobilePASS is an application running on the user's smartphone or other digital device that can generate dynamic passcodes to log into Citibank’s award-winning range of institutional e-banking platforms.

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Coca-Cola Amatil Indonesia Citibank Indonesia has been appointed as the main bank for Cash Management and Trade Finance solutions to Coca-Cola Amatil Indonesia (CCAI). Through a partnership signed in early 2018, Citibank Indonesia’s industry-leading solutions are expected to help CCAI in boosting operational efficiency, improve visibility and control, and minimize transactional risk. One of the

ingredients that make this possible is the comprehensive suite of cash management and trade financing services provided by Citibank Indonesia’s Treasury and Trade Solutions (TTS) business. “We know that Citi brings decades of experience, innovation, and cutting-edge technology which—we believe—will add value to our plan to grow,” said CCAI President Director Kadir Gunduz.

Citibank Indonesia signs partnership with Coca-Cola Amatil Indonesia in providing cash management and trade financing solutions

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Drumming Up Business Guiding foreign investors into Indonesia

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n the 1970s, foreign direct investment was the key component of lifting Indonesia previous years and setting the nation firmly on the road to prosperity. During subsequent years, as the economy matured, joint ventures with local firms or wholly domestic investment using a mix of international and domestic funding flourished.

Indonesia is seeking to boost its competitiveness by improving the nation’s ports, highways, railways, and power grid, which foreign investment can help fund. As Citibank Indonesia is frequently regarded in the global financial community as one of the preferred financial-services provider, the bank proves to be the right partner to carry out this task.

Throughout the world, the Citi brand has built solid and long-established institutional relationships covering major corporations, financial institutions, public-sector entities, and local market infrastructures, along with important relationships at senior levels in the industry.

the Indonesian Investment Coordinating Board (BKPM) with a proposal to actively attract foreign investors through roadshows in international financial centers.

Another important component of this push is a continuing program to attract investors from other Asian economies to Indonesia. Citi’s “Asia to Asia” program aims to attract major companies in Japan, South Korea, and China who are operating at the level of established multinational U.S. and European companies. A major priority of the “Asia to Asia” program is to facilitate investment related to China’s Belt and Road Initiative.

Once an investment plan is approved, Citi’s role changes to providing support structures, including capital markets, lending, securities services, advisory, hedging foreign exchange and interest rates across different currencies, and managing cash-management needs, acting as a bridge between domestic and foreign stakeholders in terms of consultations and investment activities.

In 2016, Citibank Indonesia signed a Memorandum of Understanding (MoU) with

The Foreign Banks Association of Indonesia (PERBINA) aims to strengthen the relationship between foreign banks and the country, to contribute to Indonesia’s banking system and to make positive impacts to the society. In March 2016, the association selects Citibank Indonesia CEO Batara Sianturi as Chairman of PERBINA

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Citibank Indonesia CEO Batara Sianturi presents the case for investing in Indonesia

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A Global Vision

Riko Tasmaya—Citi Alumnus

The prime mover behind the push to attract international investors was former Citibanker Riko Tasmaya. After joining Citibank Indonesia in 1995, Riko was fasttracked, rotated through all departments to, as he puts it, “learn the foundations of banking.” In 2000, Riko was one of the few young Citibankers in the Asia Pacific region to be assigned to New York and London. There, he played with senior executives, working on large, complex deals such as aircraft purchases. From this international perspective, Riko began to envision how the global Citi network might be brought to bear to develop his nation.

On his return to Indonesia, Riko was assigned to the team charged with

restructuring the finance department to cover the function of both corporate and retail. This, Riko notes, is typical Citi practice, granting significant authority and pushing employees to accept challenging tasks that they might believe are beyond their capabilities. Riko worried he might not succeed, but, as in most cases, his superiors were right.

The successful restructuring among additional experiences in managing Transaction Banking business and driving foreign direct investment through multinational businesses, taught Riko valuable lessons in leadership, value creation and crisis management.

U.S. Vice President Mike Mence (sixth from left) and U.S. Ambassador to Indonesia Joseph R. Donovan (seventh from left) meet CEO Citibank Indonesia Batara Sianturi, among key Indonesian business leaders to strengthen economic cooperation between the U.S. and Indonesia Memorandum of Understanding (MoU) signing between Citibank Indonesia and BKPM, 2016. Celebrating a historic cooperation between a private foreign bank and a government agency to attract offshore investment

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A Trusted Custodian Citibank Indonesia streamlines equity market operations

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n 1991, Citibank Indonesia was awarded a license to serve as a custodian bank for investors in the Indonesia Stock Exchange (IDX). For Citi, already one of the four biggest custodian banks in the world, this was a natural role, and for the Indonesian franchise it meant taking on significant responsibility for the safe and secure trading of equities on the market.

This was yet another sign of market authorities’ enduring trust and confidence in Citi and the wealth of global expertise it brings to its operations in Indonesia. In fact, Citibank Indonesia is the only onshore Bank to have a fully integrated "Global Markets" platform, offering global solutions across rates, currencies, commodities, credit, equities, hybrid, advisory, and capital markets origination and distribution.

In the same vein, in 2018 Citibank Indonesia became the first custodian bank in the country to have live and running account operator services with a local broker client. This account operator service allows local brokers to shift their operational fixed costs to a variable cost model, minimizing their operational footprint.

Under this framework, Citibank Indonesia’s Securities Services is keen to help the Indonesia Clearing and Guarantee Corporation (KPEI) inspire more custodian banks to offer the same

services and contribute to market development and the growth of the Indonesia capital markets. The bank is also the first foreign custodian bank to implement real time Straight Through Processing (STP) with Indonesia Central Depository (KSEI) settlement system.

In Indonesia as elsewhere, Citi's Markets and Securities Services business provides worldclass financial products and services to meet the needs of corporations, institutions, governments, and investors. One of which is Citibank Indonesia’s newly-launched Instant FX that offers multi-currency pricing, enabling clients to price their services/goods in local currency to their end customer using guaranteed rates provided by Citi. All this serves to enrich the relationships, products and technologies that define the bank's market-making presence.

Citibank Indonesia has been receiving the award as one of the "Best Primary Dealer" from the Ministry of Finance, six times in a row

The global breadth, product depth and strength of Citi’s sales and trading, distribution and research capabilities span a broad range of asset classes, currencies, sectors and products such as equities, commodities, credit foreign exchange, and emerging markets, providing customized solutions that support the diverse investment and transaction strategies of investors and intermediaries worldwide.

Full Speed Ahead Marrying cutting-edge technology with market-leading intelligence and execution has long been one of Citi's key strengths everywhere it operates, including Indonesia.

Institutional investors are constantly seeking an edge for their investment decisions, and Citibank Indonesia provides this through Citi

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Velocity®, a suite of research, commentary, video, data, and analytics. The award-winning capital markets platform, leverages the power of agile business and technology teams, bringing two software releases per day on average to a global client base.

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Citi celebrates its 50th year in Indonesia by opening the stock exchange together with employees

Smooth Operator Citibank Indonesia’s local equity brokerage subsidiary, PT Citigroup Sekuritas Indonesia (CSI), listed on the Indonesia Stock Exchange (IDX) in 2010. Since then, it has become one of the top five brokerages in the country based on transaction value.

In 2018, following the signing of a memorandum of understanding between Citibank Indonesia and PT CSI, the bank became the first custodian bank in Indonesia to have live and running account operator

services with a local brokerage client. The account operator supports brokers seeking to leverage the full services offered by custodian banks, including settlement and asset servicing. Citibank Indonesia leads the market in offering local brokers the opportunity to minimize their operational costs to focus on their core activities: research and trading of marketable securities, and to further contribute to the growth and development of Indonesia’s capital markets.

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Sharia Mutual Funds Citibank Indonesia offers Islam-compliant investment options

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ndonesia is the largest Muslim-majority nation in the world. Though the Government is based firmly on civil law, a significant portion of the nation’s Muslim population adheres to religious laws to govern personal behavior. These laws, collectively called Sharia, deal mostly with social conduct, such as prohibitions on consuming alcohol or gambling, and have little effect on material well-being.

One aspect of Sharia practice poses a caveat for affluent, observant Muslims. Sharia law prohibits the concept of interest: charging money for the use of money. This has led to the rise of Sharia-compliant banks or bank subsidiaries throughout Indonesia. Customers of these banks are assured that the returns on their deposits are derived not from interest charged to borrowers, but from returns from compliant lending practices such as asset leasing and profit-sharing.

In the modern diversified global investment climate, where the investor often has no direct control of fund-management decisions, affluent Indonesians trying to maximize yields often fear that they might be inadvertently violating their standards of conduct. To resolve the issue and allow observant Indonesian Muslims to fully take advantage of overseas investment opportunities, the Financial Services Authority (OJK) opened the door for the selling of Sharia mutual funds with investments of up to 100 percent in overseas portfolios. In February 2016, Citibank Indonesia was appointed to be global custodian and local fund administrator for three Indonesian Sharia mutual funds, managed by

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several leading fund managers in the country.

Together with the bank's retail banking business to market the products to clients, Citibank Indonesia's Markets and Securities Services perform its role in administering, safekeeping and facilitating settlement for investment portfolios of the Global Sharia Funds, investing in both the domestic and global capital markets.

Citibank Indonesia believes that this segment of the finance industry has a promising future, as the appeal to investors is not restricted to complying with religious proscriptions. In Sharia funds, a special board of overseers qualified in Islamic jurisprudence monitors the investment decisions, ensuring that no money is invested in companies that derive the majority of their income from businesses dealing in products and services not in compliance with Sharia.

The board audits the financial reports for cases where the rules have been transgressed, usually inadvertently. In such cases, the returns are donated to charity.

Sharia funds avoid the obvious non-compliant investments such as distilleries and casinos. But adhering to Sharia practices also tends to bring the portfolio in line with environmental and social responsibility criteria.

Sharia calls for responsible stewardship of the natural environment, as well as social justice and maintaining harmony in the community.

In this way, Sharia-compliant investing is a little different from conventional ways of investing.

The ‘Indonesian Global Sharia Funds: Leading the Momentum’ event was organized by Citibank Indonesia for relevant stakeholders and featured renowned keynote speakers including regulators and economic experts from Citibank Indonesia

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With the largest population of Muslims of any nation, Indonesia has a large potential market for Shariah-compliant investment products

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Cash(less) Is King Tailored solutions for tech startups

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he recovery of the Indonesian economy during the first decade of the new millennium was driven by booming consumer demand. This explosion of spending generated an echo: the massive volume of cash passing through the cash registers of department stores, supermarkets, and other retailers of necessities and luxuries. For high-volume retailers, handling and monitoring the huge quantities of cash generated during the course of a business day could be a serious challenge.

This same period also saw an explosion in smartphone penetration between 2005 and 2010—even the ojek (motorcycle taxi) drivers on the corner were connected.

These seemingly disparate themes—the persistent use of cash over non-cash payment alternatives, and the widespread adoption of smartphones and the technology they promised—provided a golden opportunity for Citibank Indonesia to step in. The bank, after

all, already has a sterling reputation as a leading financial services institution with a strong focus on delivering digital solutions and a proven track record to improve cash-flow management.

Cash management solutions from the bank's Treasury, Trade & Solutions business are today in use by Indonesian unicorns, or billion-dollar startups such as GOJEK and Traveloka.

Citibank Indonesia’s engagement with the new wave of e-commerce platforms also extends to the consumer banking end. In March 2018, Citibank Indonesia announced a “50% off for Next Transaction” campaign in partnership with Blibli.com, Bukalapak.com, Lazada.co.id, Shopee.co.id, and Tokopedia.com. The program provides discount vouchers for credit card customers to redeem at the five e-commerce merchants—cementing the drive to get consumers to use safe, secure, and hassle-free digital alternatives to cash.

GOJEK Founder and CEO Nadiem Makarim signs partnership with Citibank Indonesia, represented

by Head of Corporate & Investment Banking Gioshia Ralie and CEO Batara Sianturi in 2016

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Virtual Card Accounts Corporate credit cards are useful tools for expediting and monitoring supplier purchases and other business transactions.

However, they also carry the same security risks as a consumer card. In September 2016, Citibank launched Indonesia’s first virtual credit card for institutional clients. Unlike plastic counterparts, a Citi Virtual Card uses

temporary account numbers and security codes that, even if stolen, cannot be used for illicit transactions. Besides increased security, Citi Virtual Card Accounts offer flexibility and streamlined purchasing as well as easy, fast, and completely customizable reconciliation and reporting.

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Building Bridges Citibank Indonesia links local companies with global funding and solutions

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hen the bank first put down roots in Indonesia 50 years ago, it served exclusively institutional clients. And the roots still hold strong today as the company continues to cater to local and international companies, as well as public sector.

Among the corporate banking services provided

by Citibank Indonesia are cash management and the issuance of special credit cards for use by corporate clients’ employees. Commercial cards, as they are termed, assist companies in streamlining and monitoring business-related spending by pre-authorizing spending limits and types of purchases for individual cards. This avoids the common bottleneck of time-sensitive purchases being delayed because the authorizing official is not available to sign off on a purchase order.

Commercial cards also allow for the automatic generation of detailed records of every transaction. Citibank corporate cards are today used by more than 2,000 companies in Indonesia, including 40 state-owned enterprises. This includes PT Pelabuhan Tanjung Priok, the operating authority of the country’s biggest port in Jakarta. In April 2016, Citibank Indonesia entered into a cooperation agreement with PT Pelabuhan Tanjung Priok to implement a comprehensive program of cash management through digitalization of most transactions, including the provision of commercial cards for port authority officials.

Corporate banking often calls for teamwork, and in the case of big companies seeking services of scale, Citibank Indonesia has been at the forefront of marshaling syndicated loans—funds contributed by a group of banks.

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That’s been the case with Garuda Indonesia, the national flag carrier, which in 2012 was facing stiff competition from regional airlines and local budget carriers. The airline embarked on a “Quantum Leap” program to expand its network and revitalize its aging fleet to bring it up to world-class standards, in time for the implementation of the ASEAN Open Skies policy in January 2015.

Citibank Indonesia had previously arranged a syndicated loan for Garuda, and so was again entrusted with assembling a consortium of leading Indonesian and regional banks. Enthusiastic responses from the selected lenders and others encouraged Garuda to raise the loan amount to $120 million—an impressive show of confidence in the national air carrier by international financial institutions.

Citigroup CEO Michael L. Corbat presents 200 Years Book of Citi to President of the Republic of Indonesia Joko Widodo during his visit to Jakarta in 2014

As Indonesia’s economy grows amid tight global competition, local companies are looking to borrow large amounts to fund expansion and facility upgrades. That’s where Citibank Indonesia comes in, with its decades of experience in bridging local companies with international financial institutions, and the only integrated corporate and investment banking platform in Indonesia.

Citibank Indonesia and PT Pelabuhan Tanjung Priok representatives sign a memorandum of understanding to develop cashmanagement systems in 2016

2010–2018

Value

People

The busy sea port at Tanjung Priok handles more than 50 percent of the nation’s shipping-based imports and exports

Innovation

Wave of Innovation

Clients

A Trial by Fire

Tigor Siahaan—Citi Alumnus

Tigor M. Siahaan is the first Indonesian CEO of Citibank Indonesia. Since joining Citibank in 1995, Tigor had been on the fast track, assigned in almost every key position in the bank in Indonesia and overseas including New York Head office as he pursued his career goal of becoming a top-tier banker at the peak of the Indonesian corporate world.

Tigor was appointed CEO in June 2011 when Citibank Indonesia was in the spotlight for two crises. To contain the fallout, Tigor ran crisis management meetings before the start of business each morning to assess the situation and implement rapid responses.

Through various approaches, Tigor made enormous progress with relevant government officials, regulators, customers, media and other stakeholders. Tigor’s careful handling of the situation led to a reassessment of global policy regarding local country perception. The CEO is now empowered to address situations involving the nuances of their bank’s host culture and required to take full responsibility for the consequence of their decisions.

That trial-by-fire was one of the tempering forces that helped him become the exemplary banking industry leader he is today.

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50 Years of Dedication for Indonesia

Guiding Global Bonds Citibank Indonesia continues to be a trusted partner in Indonesian bond issuances

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hen the Indonesian Government sought to take a majority stake in the Grasberg mine, one of the biggest copper and gold mines in the world, it was a historic inflection point in the nation’s development trajectory. The move promised to direct the vast wealth of the mine for the benefit of the local community in Papua province, and of the nation at large.

The cost for such an ambitious endeavor would be high: $4 billion to get the mine’s current operator to divest a majority stake to PT Inalum, the state-owned aluminum producer appointed by the Government to hold the stake. Inalum's funding instrument of choice was thus a global bond sale, and so it turned to financial services institutions with a reputation and track record for successfully pushing such large deals through. In the end, it was no surprise when Citi was in 2018 named as one of the joint bookrunners for the deal.

Citi’s expertise in advising deals of this magnitude and sensitivity is beyond doubt. Also in

2018, Citi was appointed a joint lead bookrunner for a $3 billion issuance of Islamic Government bonds, known as sukuk. One tranche of the issuance involved the first-ever sovereign green sukuk in the world, and made Indonesia the first country in Asia to offer a sovereign green bond. It was, as Citibank Indonesia CEO Batara Sianturi called it, “A historic milestone for the country.”

That Citi continues to be the go-to bank for global bond issuances that break new ground demonstrates the continued trust and confidence in the bank shared by both the Indonesian Government and international investors and financial institutions. By leveraging its global network spread over more than 160 countries and jurisdictions, Citi is strongly positioned to target potential investors who are now beginning to show a high level of interest in environmentally friendly investment instruments in Indonesia.

“Citi helped Inalum in raising USD 4 billion global bond, and I am extremely impressed with the support and professionalism of Citibank Indonesia. But outside of normal banking support, I also realize that many Citi employees have become prominent in the Indonesian banking landscape.

We wish Citibank Indonesia a wonderful and prosperous celebration for the 50 years operation in Indonesia and I do personally hope that Citi will keep contributing not only to the success of Indonesian corporates, but also to the Indonesian people and Indonesia as a country.”

Budi Sadikin, Group CEO Inalum (Indonesia Resources Holding Company)

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Minister of Finance of the Republic of Indonesia Sri Mulyani (second from right) together with Citibank Indonesia team (left to right): Head of Corporate and Investment Banking Giosha Ralie, CEO Batara Sianturi, Global Head of Corporate and Investment Banking Coverage for the Public Sector at Citigroup Julie Monaco, and Director of Corporate and Investment Banking Zia Husnullabib Ahmad

2010–2018

Value

People

Innovation

Wave of Innovation

Clients

Right on Track

Ignasius Jonan—Citi Alumnus

Ignasius Jonan joined Citibank Indonesia in 1999 to run the private equity department. In 2001, he moved to the public sector to helm a state-owned investment firm, then returned to Citi in 2006 to head the investment banking department.

In 2009, Jonan moved to the public sector again, this time as head of PT. Kereta Api Indonesia, the state-owned railway operator.

While a decade of supervising deal-makers and number-crunchers might not seem the best preparation for managing a sprawling network of heavy machinery, Jonan believes that the core values inculcated during his time at Citibank Indonesia, particularly good governance and punctuality, helped him to institute the wide-ranging reforms

needed to transform the railway service into a model of inter-urban public transport.

As Minister of Public Transportation from 2014 to 2016, Jonan oversaw the initial stages of a similarly ambitious project: tackling Jakarta’s perennially appalling traffic with a long-delayed commuter transit system. He also expanded the runways of many remote area airports and built many seaports for better connectivity across the country. Again, his background at Citibank Indonesia provided the skills he required to perform his role.

Jonan now sits as the Minister of Energy and Natural Resources (ESDM), having been appointed in 2016.

Operations at FreeportMcMoRan Inc.'s Grasberg Gold And Copper Mine, in Papua province, Indonesia.

Citibank plays a key role as Indonesia takes back control of a major mine

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50 Years50 Citibank of Dedication Years for Indonesia for Indonesia

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“ The bank must make proper arrangements for the removal of the books and cash in case for the development of Jakarta city and Indonesia.�

Citibank private lobby with a panoramic view of modern skyscraper in Jakarta

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50 Years of Dedication for Indonesia

Branching Out World-class banking throughout Indonesia

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Like the “paperless office,” “branchless banking” is more of an ideal than a reality. Although Citibank has migrated products and services to the digital realm to such an extent that most clients need never set foot in a branch after opening their accounts, a bank must have a physical presence in the region it serves in order to monitor and forecast economic, social, and political conditions to better gauge its client’s current and future banking requirements.

Citibank Indonesia maintains its headquarters in the capital Jakarta and one branch each in Medan, Semarang, Surabaya, Bandung, and Denpasar. Each branch serves a region in which a thriving, rapidly expanding economy constantly creates new opportunities for starting or expanding a business and handling personal wealth.

Citibank Indonesia branches serving the focal points of the Indonesian economy ensure that the bank maintains and enriches the local knowledge and personal connections that form the foundation of good banking.

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Connecting the Archipelago

Right Where Our Clients Need Us The 1988 financial deregulation package granted foreign banks the right to establish branch offices in cities outside of the capital Jakarta. In the five cities strategically chosen

by Citibank Indonesia to set up branches, the branch managers faced and overcame numerous challenges in their task of bringing global banking to provincial regions. As always, their training gave them the tools to overcome these challenges as they brought seamless global connectivity and innovative banking products to assist the economic development of all regions of Indonesia.

Surabaya

Bandung

1990

1994

Iskandar Sutadisastra

Armand Furhad

First Branch Manager in Surabaya

Second Branch Manager in Bandung

“

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“

On August 4, 1994, Citibank Indonesia launched the Bandung branch with a grand ceremony inaugurated by the West Java Vice Governor at the time, Ukman Sutaryan. I still remember the preparation for the event; our team was so excited that we stayed and decorated the branch until 2 in the morning, and only went home after our beloved Branch Manager, Rennes Alamsjah, told us to go home!

“

“

When there was a deregulation package allowing foreign banks to operate outside of Jakarta, I immediately volunteered to help pioneer the Citibank operation in Surabaya. Back in 1988, it was difficult to find a suitable location and a proper building. Since office buildings in Surabaya were scarce, we had to choose an old house that had enough land for parking space. Two years later, in 1990, the Surabaya branch opened its doors and I was appointed as Branch Manager.

Medan

Semarang

Denpasar

2001

2001

2004

Linawaty Noor Shandra

Rangga Widjaja

First Branch Manager in Medan

First Branch Manager in Semarang

First Branch Manager in Denpasar

“

Prior to joining Citibank Indonesia as the first branch manager of the Semarang branch, I’d been working in the banking industry for 18 years. Still, despite my experience, Citi’s advanced systems were beyond anything I could imagine. In its golden anniversary, I hope Citibank Indonesia continues to shine as as exemplary bank that is trusted and beneficial to all stakeholders.

“

Happy 50th birthday, Citibank Indonesia! I’ll never forget that the anniversary falls on June 14, because that’s my birthday too!

One of my most cherished memories during my time at the bank was the grand opening of the Denpasar branch in Nusa Dua, where we gifted Ciibank Platinum credit cards to all the VIP guests. I truly had a wonderful time working at Citibank Indonesia, especially because of my team in Bali. Keep on being the best for our clients! Citi never sleeps.

“

I joined Citi in March 2001, a week after my marriage, which was truly memorable for me. New life, new job! I started in corporate banking and was given an expanded role to handle retail banking, a great experience for me to learn from both sides of the business. I was convinced to join Citi by the saying “One has not become a true banker until one becomes a Citibanker.” Citi is a great institution and I am blessed to have been a part of it. My best wishes for Citibank Indonesia and Citibankers on the 50th anniversary!

“

“

Harapman Kasan

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50 Years of Dedication for Indonesia

Jakarta

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n Indonesia, as in most emerging economies, there is a lopsided concentration of population, business, industry and government in the capital city. Nearly 500 years old, and now with a population (including satellite communities) nearing 30 million, Jakarta (known as Batavia in colonial times) is where all business of consequence is concentrated–and Citibank is right in the center of it all.

All national government agencies and most major corporations (as well as country offices of multinationals) are headquartered in Jakarta.

From Jakarta, Citibank’s Institutional Clients Group provides comprehensive financial and banking services to larger companies, Government agencies, and foundations. Aside from corporate and investment banking, Citibank offers a range of markets and securities services, evaluating and facilitating deals as well as handling several public offerings each year. Through its affiliate, Citigroup Sekuritas Indonesia, the bank has been active as a member of the Indonesia Stock Exchange since 2010.

Citibank maintains five branches in Jakarta.

The main branch, along with corporate offices,

is strategically located in the Sudirman Central Business District. The four other branches are located in the affluent suburbs in outlying districts of the capital, including Pondok Indah to the south, Kelapa Gading to the east, Pantai Indah Kapuk to the north, and Kebon Jeruk to the west.

Businesspeople, lawyers, doctors, investors, and all manner of high-net-worth individuals have a presence in Jakarta, even if their actual base of operations is elsewhere in the vast archipelago.

In an era of electronic banking, they need ever-more-sophisticated services, and Citibank can rely on its worldwide network to assist in providing them.

Today, when Indonesia is minting new millionaires faster than Hong Kong or Singapore, Citibank’s wealth management services are prominent in Jakarta. Citibank’s very extensive Global Consumer Banking network, backed by high-quality research, appeals to a wide range of investors and wealth management specialists.

Services include investments in bonds and mutual funds, as well as Citigold services.

From 1985 to 2000, Citibank Indonesia was headquartered in the Landmark building at the north end of Jalan Sudirman, Jakarta’s main thoroughfare

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Branching Out

Citibank Indonesia was one of the first multinational organizations to relocate to the Sudirman Central Business District, moving into the Bapindo building in 2000

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50 Years of Dedication for Indonesia

Citibank Tower relocation in the beginning of 2018

High-tech Headquarters In February 2018, Citibank Indonesia moved into its head-turning new corporate headquarters in the Sudirman Central Business District, a flagship multi-use commercial development that is becoming the focus of the capital’s financial services industry. Located a short and rather pleasant walk from the Indonesia Stock Exchange, the 40-floor Premium Grade A tower is the first in Jakarta to have been granted LEED Platinum certification, signifying adherence

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to high standards of energy and resource efficiency. The office areas incorporate the latest advances in workspace technology and design, freeing employees from their desks to gather with their colleagues in the space best suited to a particular task. As Citibankers, by choice as well as necessity, spend most of their time at work, the building features a full range of recreational amenities, including a club floor with a swimming pool.

South Quarter Tower, from 2016 until today. Citibank Indonesia maintains additional office space in Lebak Bulus in the southern suburbs. In 2019 an MRT line will connect the two locations

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Surabaya

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urabaya has an august history of trade and commerce, dating back hundreds of years, and even today remains a major port and the gateway to eastern Indonesia.

Fortunes were amassed from the spice trade, and in modern times the tobacco giants enjoyed great success, as today they are among the nation’s top taxpayers. Surabaya was one of the earliest ports in Asia, and 300 years ago considerably larger than Batavia (modern-day Jakarta); today it counts a population of nearly 10 million if satellite towns are included. As a financial hub, it is second only to Jakarta, and its port of Tanjung Perak carries goods to and from the hundreds of islands to the east.

In recent years, Surabaya has seen a building boom as skyscrapers and residential developments rapidly expand through East Java. The majority of the population of Surabaya work

in services, industry, and trade, including shipbuilding (state company PT Pal), heavy equipment, food processing and agriculture (cigarette manufacturing employs several hundred thousand Indonesians), electronics (Polytron, among others), furniture and home furnishings, and handicrafts. Many major multinational companies are based in Surabaya, and fast-moving consumer goods suppliers in particular look to expand market share into the eastern regions of Indonesia.

Two main full-service branches of Citibank serve retail and business customers: one is located on Jl. Basuki Rahmat and the other on Jl. Mayjen Sungkono, Darmo Park. Citibank ATMs are conveniently located at Bonnet Supermarket, Graha Pacific Card Center, Pakuwon Supermall and Tunjungan Plaza 3, in addition to those at the branch offices.

The new Surabaya branch, opened in 2001

Citibank Indonesia opened a full-service branch in Surabaya in 1990 as the eastern islands of the Indonesian archipelago were beginning to realize their potential

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Branching Out

The five-kilometer Suramadu bridge connecting the town of Surabaya with the island of Madura is the longest in Indonesia

“ In recent years, Surabaya has seen a building boom as skyscrapers and residential developments rapidly expand through East Java.�

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50 Years of Dedication for Indonesia

Bandung

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he largest city in western Java after the capital of the nation, and the seat of government for the province of West Java, Bandung has a rich history of manufacture and trade, including textile empires several hundred years old. Much small-scale manufacturing from Bandung is exported through Jakarta, and property development in the area is very brisk.

A mountainous urban environment of stylish architecture, during Dutch colonial times Bandung was known as the “Paris of Java,” and in addition to its garment and other medium- and small-scale enterprises hosts major multinationals such as Ford, Nike, Cummins, Texas Instruments and Coca-Cola. Indonesians consider Bandung, along with Yogyakarta, the education capital of the nation, with more than 400 institutions of higher learning.

Major telecommunications research and development companies as well as Telkom University prepare young Indonesians to go into this steadily expanding field, soon aimed for export

of hardware and software as well. The city has great historical significance as it was the site of the Asia-Africa Conference of 1955, where world leaders gathered at the invitation of Indonesian President Soekarno to try to agree on a “third way” to evade the dangerous political games of the Cold War superpowers. The conference building, along with some real art-deco architectural marvels, still stands.

In addition to the Citibank branch at Jl. Asia Africa No. 137, two free-standing ATMs offer a range of services: one is at Istana Plaza and the other in Setiabudi. Citibank offers local and expatriate businesspeople a full range of wealth advisory services, in both Indonesian and English.

Gedung Merdeka in Bandung was the venue for the 1955 Asia-Africa Conference, a historic gathering for the heads of state from Asian and African nations

At an altitude of 700 meters, Bandung is known for a pleasant climate that complements a dynamic business environment and vibrant cultural scene

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Medan

T

he third most populous urban center in Indonesia, Medan has also historically served as a center of business for northern Sumatra, dating from an era of heavy commodities exports and cross-channel ventures with British Malaya (today’s Malaysia and Singapore). Even today Sumatra’s economy is largely commodity-based, exporting coal, palm oil and other raw materials overseas.

Sumatra has long vied with Java for the attention of local and foreign investors, building and expanding enterprises. A vast labor pool, cheap land, and social stability offer much to the greenfield investor; there is already a sizable volume of Malaysian money invested in the region, primarily in mining for coal and gold, and oil palm plantations. Sumatran marine resources have barely been developed, and tourism offers good foreign exchange for a moderate investment.

The forthcoming completion of the Trans-Sumatra Toll Road will link Medan more closely with businesses across Sumatra and down into Java, as manufacturing and other such enterprises seek new territories, allowing industry, agriculture and tourism to expand through the vast island. Citibank in Medan, with a branch on Jl. Imam Bonjol, is appreciated for its worldwide access, which would otherwise have to detour through a Jakarta institution.

Citibank Indonesia is well-positioned in Medan to benefit from the vigorous growth in a promising area of Indonesia, with close connections to Singapore, Malaysia and Thailand.

Citibank Indonesia opens a full-service branch in Medan, inaugurated by Citibank Indonesia CEO Michael Zinc and Branch Manager Harapman Kasan in 2001

An ornate plaque commemorates the opening of Medan branch

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Branching Out

Toba lake is the picturesque tourist destination nearest to Medan. Traditional Batak-style roofs are common around the lake

“ Citibank Indonesia is well-positioned in Medan to benefit from the vigorous growth in a promising area of Indonesia, with close connections to Singapore, Malaysia and Thailand.�

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50 Years of Dedication for Indonesia

Semarang

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he city of Semarang, on the north central coast of Java, has historically been the hub for the region’s export trade to the world, much of it in commodities but also food products and furniture, for which nearby cities like Jepara are world-renowned.

The area has historically had the advantage of a great supply of hardwood trees for raw material, although today most of the forests have disappeared.

Government and business leaders in Central Java’s fifth-largest city (and provincial seat) are engaged with an ambitious, rapidly expanding population and pervasive urbanization of the economy. The millions of workers in the area are considered to be Semarang’s most valuable asset. Technological upgrading and foreign investment generate new jobs and livelihoods, mostly sited within Semarang’s massive 2,700-hectare Kendal industrial zone–complete with its own deep seaport. The $300 million project has seen foreign investors from Singapore teaming up with local entrepreneurs, while respective national and regional government authorities have provided strong support for the project.

In fact it has the potential to significantly expand the local economy, creating as many as 100,000 jobs over the next three years. By promising plentiful labor and a lower minimum

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wage, Kendal is creating a much-needed alternative to the Jakarta-area industrial corridor, where most Java-based manufacturers have located their operations in the past. Even so, the region is committed to transitioning into a service economy as soon as possible.

Java’s north coast industrial corridor is entering the digital economy, and Citibank digital financial management services are proving to be a good fit for the businesspeople of Central Java. Before long, new toll roads will link traffic from the eastern tip of Java at Banyuwangi through Semarang all the way to Jakarta and Merak, the seaport linking to Sumatra. Meanwhile, Citibank customers in Semarang can either transact business at the branch on Jl. Pahlawan No. 5 or via the sophisticated mobile banking service, supported by advanced telecommunications networks.

The post-modern Citi branch building counterpoints the old-world charm of much of Semarang

Branching Out

Lawang Sewu, the Building of 1000 Doors, is a notable remnant of the colonial period in the city

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Denpasar

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he first foreign tourists arrived in Bali by steamship and included celebrities like Charlie Chaplin, Mae West, Greta Garbo and Rita Hayworth, drawn by the rich culture and scenic landscapes. Cheap jet travel starting in the 1960s opened the island to mass tourism, and was welcomed by the enterprising Balinese.

Today the tourism industry has magnified beyond all imagination, as some 14 million international visitors pass through Bali annually, arriving from all over the world–notably in great waves of package tours emanating from a newly prosperous China in recent years. The economy of Bali and the livelihoods of a large percentage of its people are closely allied with tourism and its manifold support services, and the tourists themselves have come to expect all sort of modern conveniences–with an exotic view, naturally. New investors from Europe and the U.S. are purchasing villas, opening restaurants and in the process employing many Indonesians. All this implies sound financial service backup.

It is clearly important for a world-class financial institution to maintain a prominent profile in such a prosperous market, and Citibank Indonesia has thus opened a branch on Jl. Teuku Umar in Denpasar, the provincial capital,

reasonably close to tourist areas. It also offers ATM access at Ngurah Rai International Airport, the enclave of luxury hotels at Nusa Dua, and in Sanur, to the east.

Through its credit card programs, the bank collaborates with airlines, hotels, travel booking platforms, and rewards programs–all important aspects of the tourism industry, ensuring that visitors can purchase goods and services while they are in the country. Meanwhile, Indonesian hotels and tour operators based in Bali need to be able to transact with foreign banks and other financial partners.

Decades of continual growth in the tourism industry have lifted two generations of Balinese (and other residents) into the upper-middle and beyond income brackets.

Financial planning and wealth management are two key services that Citi provides to clients, advising them on how to protect assets and grow wealth. For the growing population of affluent foreigners who make Bali their idyllic second home, Citibank Indonesia facilitates interactions with their principal base of operations wherever in the world that might be.

The first Denpasar branch manager, Rangga Widjaja (center), with fellow branch team

Old Garuda Wisnu Kencana (GWK) statue as a Bali landmark

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Branching Out

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50 Years of Dedication for Indonesia

Citibank Indonesia’s office in South Quarter building, South Jakarta, established in 2016

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Citi Peka Serving the community

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A core value of Citi’s corporate culture is the importance of nurturing talent: identifying employees who show exceptional skill and dedication and providing them with the opportunities they need to advance to their optimal level of expertise and responsibility. The employees and the bank are not the only ones to benefit from this system. It also inspires and motivates others within the organization to see how their colleagues can build a fulfilling career on the strength of their own merit. Citibank Indonesia also brings this paradigm to bear in its corporate social responsibility initiatives. Through Citi Peka (Citi Peduli dan Berkarya— Cares and Create Something Impactful), the bank collaborates with social organizations to provide financial literacy and education, business mentoring and coaching, as well as awards. While empowering the target communities, this is also aimed at inspiring others—friends and neighbors—to strive for the same level of success.

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50 Years of Dedication for Indonesia

Social Impact Our Pillars Pathways to Progress

Financial Inclusion

Sustainable Cities

Our response to the persistent issue of youth unemployment globally by creating youth economic opportunities particularly for low income youths

Financial products and capital to support financial inclusion and the growth of business enterprises that provide new income generation and/ or employment opportunities for lowincome individuals

Support the development of vibrant, environmentally sustainable and economically inclusive cities

Impact

Enable

Build

Catalyze

Financial Stability

Thriving and Resilient Communities

Jobs

Spreading the Benefits

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Indonesians have long been culturally gregarious, preferring to act in groups rather than individually. Citi Peka leverages this cultural disposition to ensure the benefits of the programs are widely distributed. When evaluating potential recipients of grants or training programs, Citi Peka prioritizes those

most likely to include fellow community members in the resulting enterprise, such as producers of hand-woven textiles, herbal products, Indonesian cuisine, or handicrafts whose production can be shared among neighbors.

More Than Philantrophy

Established in 1998, Citi Peka is the umbrella organization for all community activities in Indonesia mostly funded by the Citi Foundation.

Citi Peka focuses on supporting small-scale enterprises through empowerment programs, micro-finance, and grant competitions. Citi Peka also develops programs to foster entrepreneurial opportunities for young adults, and to

Impacts (1968—2018)

raise levels of financial literacy for school-age children and for adults in marginalized communities. Guided by the principal of “More than Philanthropy”, Citi Peka draws on the efforts of Citi employees and partner-agency volunteers to implement activities in communities throughout Indonesia.

Grants 2018

US$ 1,060,000 > 1 m beneficiaries

2017

With a total investment of

> USD 12 m

US$ 725,000 2016

US$ 850,000 Collaborate with

Implement

> 55 non-profit organization

> 34 programs

2015

and institutions

US$ 900,000 2014

US$ 900,000

Volunteering ± 90% employees and familes

Awards* 2014

2016

2017

• PR of The Year Award— Social Campaign: Petualangan Agen Penny

• Best Employee Volunteering Program • Top 10 Best Corporate Social Initiatives­—Social Campaign

• Indonesia’s Best Corporate Social Initiative • Best Employee Volunteering Program • Best of The Best Philantrophy

*by Mix Magazine

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Citibank Indonesia touches lives through volunteering activities Our approach is "More than Philanthropy."

Since the beginning of Citi Peka, Citibankers have always been passionate in allocating their time and expertise for communities in need.

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Nurturing Tomorrow’s Entrepreneurs Citibank Indonesia partners with Prestasi Junior Indonesia to support high-school startups

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any young contemporary Indonesians dream of becoming entrepreneurs by starting their own businesses. While studies in the 1990s revealed that most Indonesians in their 20s aspired to work for an established company, today’s millennials tend to dream of starting their own business.

This is fortunate, as widespread entrepreneurship will be necessary to grow the economy in the decades ahead. Consequently, Citibank Indonesia pays great attention to the empowerment of Indonesian youths, especially in providing better economic opportunities, such as through entrepreneurship and financial education.

In 2015, Citi Peka partnered with Prestasi Junior Indonesia (PJI) to conduct entrepreneurship development programs and competitions for students from selected high schools and vocational schools in Jakarta, Bandung, Semarang, Surabaya, and Denpasar. Several programs, including Student Company, Be Entrepreneurial, and Job Shadow, taught students the fundamental principles of entrepreneurship. Under the guidance of Citibank volunteers and PJI members, students formed companies, assigned positions and responsibilities, defined business strategies, and marketed products.

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Students were not only expected to generate a profit from their business opportunity—they were also expected to enhance their personal and teamwork skills, to develop the discipline and dedication needed to be a self-starter, and to foster the creativity needed to imagine and produce innovative products with a competitive edge in the marketplace. As part of the program, students were invited to conduct site visits to various companies so that they could witness first-hand how the corporate world operates.

PJI Job Shadow session at Citibank’s office in 2016. The program participants tagged along with Citibankers at work

The national winner of the 2015–2016 program, SMAN 3 Semarang, used an innovative digital technique to market a distinctive product—a bag that can be worn as a backpack, tote, or sling—through offering discounts for winners of a game played on the customer’s smartphone.

In 2016, Citibank Indonesia holds “Citi Talks: More than Philanthropy for Indonesia” featuring young national leader Emil Elestianto Dardak (far left) who is renowned as one of the youngest doctors of economic development at the age of 22 (now Vice Governor of East Java). He encourages the synergy between corporations and the government in amplifying a financial literacy and entrepreneurship movement.

This is aligned with Citi Foundation’s pillar on youth economic opportunity and Pathways to Progress initiative

Citi Peka: Serving the community

Investing in Youth Fully funded by the Citi Foundation, the Skilled Youth Program is a business competition for Indonesians ages 16-25, including vocational school students. The program forms an integral part of Citibank Indonesia’s CSR activities by providing Youth Economic Opportunities. Through this program, Citi expects more young people

to reach their full potential, by boosting both their employment opportunities and their entrepreneurial expertise, and thereby contribute to economic development in general. The Skilled Youth Program works to enhance participants’ hard and soft skills, and provide business entrepreneurship assistance, along with job guidance.

Students at SMAN 3 high school in Semarang won the 2016 award for designing and marketing a multi-use tote bag

“ Citibank Indonesia pays great attention to the empowerment of Indonesian youths, especially in providing better economic opportunities...”

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Learning by Numbers Introducing financial literacy through innovative teaching methods for children

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their students. In addition to the performances, Citi Peka supplied each school with comic books and other materials so they could carry on the learning after the performance.

In one segment of the presentation, Agent Penny and her sidekick, Will Power, help a student whose father had been laid off to learn the importance of planning for unexpected events through savings plans and insurance policies. In another, students laugh at the comical misfortunes of a fellow student addicted to purchasing expensive items just for the sake of prestige. School officials were invited to make suggestions on how to improve the performance and make it more relevant and appealing to

Entering an era where children are digital natives, Citi Peka evolved to a new and innovative way of teaching financial literacy to children. With children as young as nine having their own digital devices, the most effective conduit for reaching children is no longer the television, but the mobile phone. In 2016, Citi Peka and Prestasi Junior Indonesia (PJI) introduced the “Digital Financial Literacy for Children” program for elementary school students in grades three, four and five. This program aims at providing financial education to increase financial literacy, particularly with regard to performing routine banking transactions through digital devices. During the sessions, “The Adventures of Agent Penny” comic books are also distributed in the form of e-books.

o introduce young Indonesians on financial literacy, Citi Peka used theatrical performances to enlighten and educate. In 2007, Citi Peka joined with Teater Koma, one of Indonesia’s leading theatrical company, to mount performances of “The Adventures of Agent Penny” in 60 elementary schools in Jakarta. The performances sought to teach fifth- and sixth-graders how to save, spend money wisely, and manage money to realize their life ambitions.

“ Entering an era where children are digital natives, Citi Peka evolved to a new and innovative way of teaching financial literacy to children.”

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The Agent Penny program included comic books and other printed material designed to entertain as well as educate

Teater Koma gave the Agent Penny shows a professional polish, even when presented in a classroom

In celebrating 50 years, Citibank Indonesia donates 50 million rupiah to help renovate an early childhood development school (PAUD) in West Jakarta

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Financial Literacy for Women Citibank Indonesia teaches basic money management skills to low-income women

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n many Indonesian families, the husband will hand the entire amount of his salary, revenue for their shop or small business, or proceeds from crop sales over to his wife to manage. While this system worked well in the past, when the money was used to buy daily necessities or to stash away against future costs like education or emergencies, this traditional system of cash-flow management is inadequate for the lifestyles, rural or urban, of modern Indonesians. The growing use of credit facilities and stored-value payment systems mandate a more sophisticated knowledge of financial matters.

To address this concern, many Citi Peka programs are aimed at increasing levels of financial literacy among Indonesians, particularly those in lower-income and educational brackets. For example, Citi Peka partnered with the Center

for Women’s Resource Development (PPSW) to initiate a financial education program for marginalized women in both rural and urban areas. In this program, women are introduced to the concepts of household and small-business budgeting, calculating interest on credit and installment purchases, and strategies for longterm saving. Participants are encouraged pass on their new skills to friends and neighbors, spreading awareness of the importance of financial literacy.

As Indonesia strides into a new future as an economic power, raising financial literacy among the population will help the nation to properly manage and benefit from their growing affluence, and help to lift greater numbers of lower-income Indonesians into the middle class.

Financial Education for Mature Women, PPSW Program held in 2010 - 2015.

Mature women discover that it is never too late to learn effective moneymanagement techniques

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Citi Peka holds a graduation ceremony for the women who have successfully completed the program

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Rewarding the Entrepreneurial Spirit Citi Microentrepreneurship Awards celebrate grassroots ingenuity

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aunched in 2005, the Citi Microentrepreneurship Awards (CMA) is a global financial inclusion initiative that recognizes the contributions of microentrepreneurs to their local economies and highlights the importance of microfinance in supporting the economic development of low-income individuals. The CMA has recognized the efforts of more than 6,000 microentrepreneurs across 51 countries, with an average of 26 countries participating in the program each year. The program also enables the Citi Foundation to convene stakeholders—including peers, community leaders, regulators, and policy makers—around this issue to help influence sector-wide policy and regulation while encouraging innovation around the world.

With the CMA program, Citi Peka also aims to encourage women to build their businesses beyond providing supplemental income for their families. Most Indonesian women do not possess the requisite skills—or even awareness of the possibilities—to start a viable business and market their products beyond their immediate neighborhood.

In recognition of this vast, untapped potential, in 2014, Citi Peka added a new category into their Citi Microentrepreneurship Awards (CMA): Female Entrepreneurs. This category

supports the best examples of a woman building a small business from scratch, and to foster a broader awareness of the possibilities of ways in which women can provide their families with additional income without abandoning their responsibilities as mothers and wives.

Indonesia has many examples of traditional crafts and consumer products that can be produced in large quantities and marketed in domestically and abroad with the right systems of quality control and distribution in place.

Batik and woven-pattern textiles, herbal products, and other handicrafts such as decorated woven baskets can be fashioned in village homes and then sold throughout the world. The CMA program target women who have not only developed and grown their own business, but have worked to empower other women—their friends and neighbors—through raising skills sufficiently to subcontract production and increase volume.

News travels fast in Indonesia, and Indonesians are quick to emulate a successful idea. By supporting women in their business ventures and disseminating news of their success, Citi Peka hopes that other women in neighboring communities will start their own ventures. This multiplier effect can produce exponential economic growth, a high return on a modest investment.

As a Citi Foundation’s global flagship program, Citi Microentrepreneurship Awards (CMA) has received applications from 13,000 Indonesian microentrepreneurs and awarded more than 240 of them since it first began in Jakarta in 2005

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Citi Peka: Serving the community

In Indonesia, the awards cover nine categories, including Agriculture and Fishery, Arts & Creative Design, Culinary, Green, Service and Innovation, to Youth, and Woman.

The winner of the Youth category in the 2017-2018 period was Hafidh Rifky Adiyatna. Early and auspicious start in business will hone the entrepreneurial skills of innovative Indonesian youths

Rita Indriana won two CMA awards in the 2016–2017 period. She was honored as both the “Best Creative Microentrepreneur” and “Microentrepreneur of the Year.” Through her work, she provides job opportunities for the disabled

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Tourist Business Citibank Indonesia partners with UNESCO to increase tourism-related revenue

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n the late 1960s, artist Bagong Kussudiardja combined the ancient Javanese tradition of batik, dyeing patterns on fabric, with modern painting to create “batik painting,” an easily mastered form of artist expression. The project was intended to help the large numbers of unemployed youth in Yogyakarta earn revenue by making souvenir items to sell to the foreign tourists trickling through to visit the nearby Borobudur and Prambanan temple complexes.

A half-century on, the temples have been declared World Heritage sites, and the trickle has become a flood of hundreds of thousands of visitors each year. But unemployment is still a problem for the area’s youths, so in 2016, UNESCO and Citibank Indonesia, supported by the Citi Foundation, joined forces to create a tourism-related employment program, this time scaled to the economic environment of the new century.

The program, Youth Economic Empowerment in Indonesia’s Heritage Sites through Capacity Building and Sustainable Tourism, seeks to create and promote locally owned tourism businesses around Borobudur and Prambanan by selecting and training 350 young-adult residents of living in the vicinity of the site. Participants

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are taught to build sustainable businesses based on intangible cultural heritage treasures such as batik and pottery, or are trained to provide high-value travel services such as guided tours offering deep knowledge of the history, symbolism, and cultural influences of the attraction.

Mentors from UNESCO and Citibank Indonesia instruct the participants in the fundamentals of running a small business: financial and inventory management, product branding, and networking. Established artisans brought in from Yogyakarta and other areas share their knowledge of quality control, design selection and other commercially valuable techniques for producing physical products such as ceramics.

While the program provides the immediate benefits of a steady income, the final goal is more than selling souvenirs to tourists. The business management and customer interaction skills that the youths acquire running souvenir stalls will serve them well in later life.

Tourists participated in the Batik workshop hosted by UNESCO and Citi. Visitors learn the art and craft of batik from local experts

Citi Peka: Serving the community

Celebrating National Batik Day on October 2018 at the UNESCO-Citi Foundation Site in Borobudur, Yogyakarta

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50 Years of Dedication for Indonesia

Global Community Day Standing as the biggest employee engagement event within Citi globally

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he Citi Global Community Day (GCD) is an annual event in which tens of thousands of Citi volunteers, their friends and families get together with community and nonprofit partners for a range of social service activities aimed at helping create thriving neighborhoods. These activities take in various local needs, from urban revitalization to environmental conservation to literacy and education. In 2018, the Citi Global Community Day involved more than 100,000 volunteers in more than 450 cities spanning 90 countries and territories. In Indonesia, as elsewhere, these activities centered on the betterment of local communities.

various projects in hundreds of cities. More than 3,000 Citibank Indonesia employees and their families joined the Citi Global Community Day in 2018, which ran on the theme “Our Care for You.� The five community organizations engaged as partners in the event focused on children, teenagers, people with disabilities, women, and the elderly. Each year, Citibank Indonesia comes up with a range of activities for the event, in which all volunteers can take part and make a meaningful impact on deserving communities.

Since the inaugural Global Community Day in 2006, Citi volunteers have contributed nearly four million combined hours of service to

Citibank Indonesia donates 278 pairs of shoes to schools at the GCD in 2017. Chairman of Creative Economy Agency Triawan Munaf and Minister of Village, Development of Disadvantaged Areas and Transmigration of the Republic of Indonesia Eko Putro Sandjojo show their support

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Citi Peka: Serving the community

The first Global Community Day in Indonesia on November 18, 2006

“ Citi volunteers have contributed nearly four million combined hours of service to various projects in hundreds of cities.�

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Indonesian Citibankers have a zoo day out during the Global Community Day in 2007 A collaboration between YCAB Foundation, Greeneration, and Do Something Indonesia, Citibank Indonesia encourages urban youth to care for the environment in a campaign themed "Nyampah itu Kuno". The campaign provides more than 1,200 youth across five cities with a series of training on reuse, reduce, and recycling waste

Global Community Day (GCD) reaches beyond Jakarta, with Citibank branches in other cities also participating in the celebration Thousands of Citibankers are dripped in blue for the Global Community Day in 2017

The fifth annual GCD in Indonesia gathers employees to donate blood

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GCD in Indonesia stands as the biggest employee engagement event within Citi globally

Indonesian Citibankers align themselves to form the number "50" to commerate the golden anniversary

In the spirit of diversity and inclusion, Citibank Indonesia launches a campaign with the theme “Main Bola Bareng Yuk� (Let’s Play Soccer) encouraging U-12 soccer team to have a friendly match with soccer players from underprivileged schools

The Global Community Day in 2018 sees the donation of thousands of t-shirts to NGO partners

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Citi Community Diversity and inclusion

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In Indonesia, the formal term for the combined human resources of an organization and their dependents is keluarga besar, or “extended family.” At Citibank Indonesia, this term is especially apt. As with a family, the performance-oriented corporate culture creates rivalry and competition for attention and privileges. Nevertheless, as with a functional, loving family, Citibankers take pleasure in each other’s company, are mutually supportive in times of need, and, during special occasions, gather together in celebration. The “extended family” aspect of Citibank Indonesia is expressed in Citi Community, the internal organizations established and maintained by Citibankers to pursue recreational interests and discuss issues relevant to a specific group. The clubs and focus groups comprising Citi Community promote a healthy work-life balance and ensure that all who are employed at Citibank Indonesia are made to feel that they are part of the family.

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Expatriate and Indonesian Citibankers enjoy a day out with the governor of Jakarta in 1974 In the first few years of Citi's beginnings in Indonesia, the bank's employees have already formed themselves as a family and would frequently participate in "extracurricular" activities together. In 1974, Jakartans celebrated Indonesia's 29th independence day with a Big Walk encompassing seven and a half kilometers at the city-center.

Enthusiasm wasn't the only thing 84 Citibankers brought with them on the walk— they wore matching colorful Citibank t-shirts that even caught the eye of the then Governor of Jakarta, Ali Sadikin, who approached them and took a group photo.

The occasion was captured in the bank's print newsletter of the same year.

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50 Years of Dedication for Indonesia

Citi Alumni Network Building bridges beyond the bank

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he Citi Alumni Network was established in 2012, and today has a global reach with more than 20,000 members in more than 100 countries, including Indonesia. All former Citibank employees who worked for the bank or one of its subsidiaries for at least a year and left with a good reputation are eligible to join.

The network provides a platform for members to catch up on Citibank news, just-released research, and job opportunities, as well as join Citibank colleagues in volunteering activities and other non-profit events.

private sectors. Since then, the gatherings have become annual events, where illustrious former Citibankers are honored for their achievements.

The recipients of the Distinguished Alumni Awards are the late Houtman Zainal Arifin, a messenger-turned-vice president at Citibank Indonesia, the late Robby Djohan, who was a key figure in merging four Indonesian stateowned banks and was also the CEO of the country state flag carrier, and Peter Gontha, a prolific businessman and pillar of the Indonesian media industry. The 2018 recipient is Gita Wirjawan, Indonesia’s former minister of trade and former chairman of the Investment Coordinating Board of Indonesia (BKPM).

In Indonesia, the Citi Alumni Network launch in 2016 was attended by hundreds of former employees, many of whom today occupy various leadership positions in both the public and

CEO Citigroup Asia Pacific Francisco A. Aristeguieta and CEO Citibank Indonesia Batara Sianturi host 2017 Citi Alumni Network event

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Citi Community: Diversity and inclusion

Recepients of the 2017 Distinguish Alumni Awards, Peter Gontha and the late Robby Djohan

Distinguished Alumni Award recipients from 2016 to 2018:

The late Houtman Zainal Arifin (2016)

The late Robby Djohan (2017)

Peter Gontha (2017)

Gita Wirjawan (2018)

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50 Years of Dedication for Indonesia

Citi Indonesia Women Council Encouraging support to the advancement of women

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omen opting for a career in banking often find that their profession plays to their strengths. Many women excel at the precision and attention to detail necessary for credit analysis, and also have the personal skills required for marketing and client relations.

However, even in contemporary Indonesia, conservative attitudes regarding the place of women in business can put female staff at a subtle disadvantage. The Citi Indonesia Women Council (IWC) provides a forum for women to address and work toward resolving concerns that their male colleagues might not face.

Mentoring is essential to professional development in any field. However, in finance, where brilliant work by females can be buried in dense reports or classified spreadsheets, women often have difficulties finding a suitable role model. An informal function of Citi IWC is facilitating connections between promising new employees and accomplished seniors to provide the guidance and encouragement needed for advancement in Citi meritocratic corporate structure, and the soft skills needed to provide a reassuring human touch in an increasingly tech-oriented industry.

Citi IWC Sharing Sessions have proven to be a productive method of addressing the particular concerns of female Citibankers, such as strategies for balancing the equally intractable obligations of career and parenting. In these sessions, moderated by female professionals, even the most junior participants are encouraged to share their perspectives in an open and supportive environment. The council also frequently invites female government officials of the Republic of Indonesia like Minister of Foreign Affairs Retno Marsudi, Minister of Environment and Forestry Siti Nurbaya Bakar and former Minister of Trade Mari Elka Pangestu, to inspire Citibankers.

Citi IWC also devotes considerable resources to outreach, identifying and providing opportunities for female students and other community members who might have a promising future in finance. Through connections with counterpart organizations in the Citi global network, Citi IWC can provide valuable international experience to young Indonesian women. In one recent case, the winner of an essay competition found herself in the Citibank headquarters in New York having a private one-on-one mentoring session with a top-ranked head of global operations.

Citibank Indonesia is acknowledged by Indonesian Breastfeeding Mothers’ Association (AIMI) as a bank that fully supports breastfeeding by providing a nursing room in the office

“ Citi IWC also devotes considerable resources to outreach, identifying and providing opportunities for female students...�

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Citi Community: Diversity and inclusion

Chairwoman of Citi Indonesia Women Council, Novita S. Djani, gives her remarks at the International Women’s Day event

Citi Indonesia Women Council supports Resonation 2018, the biggest women conference in Indonesia.

Female Citibankers are appointed as group facilitators for many Indonesian women who seek to pursue their ideal career and dreams

Citi Indonesia Women Council in 2017

Citi supports the US-Indonesia Women’s CEO Summit by the American-Indonesian Chamber of Commerce in Washington DC in 2017. Minister of Finance of the Republic of Indonesia Sri Mulyani gives a keynote speech and meets female university students from Indonesia, who are chosen by Citi through an essay competition

Minister of Foreign Affairs Retno Marsudi inspires Citibankers at the International Women's Day in 2016

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50 Years of Dedication for Indonesia

Almsgiving In-house prayer groups give back to the community

C

itibankers comprise a representative sample of the Indonesian population, and as such, the employees vary in religions. Creating religion communities within the bank developed—Citibankers of the same belief would gather and attend services or prayers together. These religious communities also became a vehicle for charitable contributions.

As one of the largest employee communities at Citibank Indonesia, the Citibank Muslim Family (Keluarga Muslim Citibank or KMC) works to ensure that members can integrate their religious obligations into their work day without disrupting office activities or inconveniencing those of their colleagues. One of the obligations for Muslims is zakat, or sharing a portion of their wealth with the less fortunate in their community. By agreement with the bank, employees can opt to have an agreed percentage of their monthly pay deducted and handed over to the community for distribution.

KMC also works together with Dompet Dhuafa, an authorized zakat body in Indonesia, to

disburse the contributions.

Most of the funds are directed toward economic empowerment programs for underprivileged communities, such as purchasing hair-salon equipment, setting up mobile telephone repair shops, or upgrading farm tools and fishing boats. The rest goes toward providing educational opportunities for promising students or even for Citibank Indonesia employees such as the office help and messengers.

Similarly, Christian and Catholic Citibankers would organize several programs annually to celebrate Christmas. From caroling, where several employees would go to each office floors to sing Christmas songs, to Citi Christmas, the annual mass service. Each year, the committee of Citi Christmas would select one social foundation where it will donate the entirety of the Citi Christmas offerings made during the service.

During the holiday season, Christian and Catholic Citibankers sing Christmas carols around the office

The 2018 annual Citi Christmas service where funds are donated to an orphanage

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Citi Community: Diversity and inclusion

Digitizing donations Being part of an institution that is known as part of global innovators of fintech, the members of the Citibank Muslim Family wasted no time in developing a mobile app to monitor and promote their charitable activities. Together with Dompet Dhuafa, they introduce a donation program through a public website that is maintained by Dompet Dhuafa under the program "bawaberkah. org". The public website, the app allows users to track contributions and monitor the results. Those not enrolled in the automatic payroll deduction program can also access the website to make one-off contributions.

In 2018, Citibank Muslim Family appoints a new chairman, Ardhi Wibowo

Aside from hosting gatherings for prayers, the Citibank Muslim Family is also active in social activities as part of the zakat belief of giving back

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50 Years of Dedication for Indonesia

CitiClub A club for every sport or special interest

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nstead of creating a work-life balance by separating the two, Indonesian Citibankers take life to work, forming more than a dozen clubs covering a range of activities. As with most Indonesian organizations, Citibank Indonesia has a tradition of supporting employee special-interest social groups. That practice was given a major boost in the early 2000s, when Citibankers put in long hours as the bank recovered from the effects of the Asian financial crisis. Those efforts soon paid off in high profits for the bank, and to keep up enthusiasm, Citibank Indonesia management decided to set aside a certain percentage of revenue to be directed to providing in-house recreational activities.

That support has created a smorgasbord of recreational opportunities for employees.

Often wearing matching T-shirts, Citibankers gather in or out of the office to engage in a wide variety of social and sporting activities. Some

clubs facilitate popular Indonesian sports like badminton and table tennis, which can be enjoyed by Citibankers of any age and physical condition. Others attract the fit and adventurous to engage in mountain biking, scuba diving, and extreme sports. Aficionados of contemporary activities are also represented, such as Citi Zumba and Citi Futsal.

Besides the established club activities, Citibank Indonesia supports special events like fun runs and other light-hearted competitions. And even when at play, Indonesians love structure and formality. So in 2017, the various clubs banded together to elect a president and form a management committee to coordinate the activities of the 15 official clubs currently on the Citibank Indonesia roster.

“ Often wearing matching T-shirts, Citibankers gather in or out of the office to engage in a wide variety of social and sporting activities.�

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Citibankers have gathered together since the first years of the bank in Indonesia

Citi Community: Diversity and inclusion

Each year, Citibank Indonesia hosts a family day for all employees and their families

Labor Union The Citibank Indonesia Labor Union (SPCI) was established in September 1979 by employees determined that Citibank, with its reputation as one of the best international bank in Indonesia, could and should be the best possible place to work. It was an objective shared by the Citibank Indonesia management, who also wanted to ensure the welfare of their employees, in whom they were investing time, training, and resources.

Membership in the union was initially open only to clerical staff, but the union successfully lobbied to have a wider swath of

employees across the institution free to join.

Another key achievement was the successful push for paid leave for all employees.

A key part of the union’s mission is the collective bargaining agreement that it pushes for on behalf of all its members.

The bargaining with management takes place once every two years, in pursuit of increased benefits. To date, the two parties have successfully reached agreements on this key point 21 times, underscoring the shared interests and goals of both the employees and management.

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50 Years of Dedication for Indonesia

Citi Divers brings their enthusiasm on their trip, as they celebrate the bank's 50th anniversary underwater

CitiClub offers various sports and hobby activies for all Citibankers, among them soccer, badminton, diving, and martial arts

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Citi Community: Diversity and inclusion

Citi Adventure is dedicated for nature-lover employees who like to hike great heights and explore tropical forests

(Above) Citibankers gather together to attend a morning cycling exercise (Right) Citi Basketball volunteers to teach students about the game

Citi Music often provides the entertainment during Citibank Indonesia's events

CitiClub often invites all Citibankers to participate in Sunday morning exercises

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Awards & Accolades

Achieving Excellence

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Bankers, like lawyers, prefer to keep a low profile, tending to their clients’ interests while remaining discreetly in the background.

Nevertheless, they can be thrust into the spotlight. As representatives of an institution widely regarded as the nest international

bank in Indonesia, Citibankers in senior positions frequently find themselves the center of attention as they accept awards for outstanding service or product innovation on behalf of Citibank Indonesia.

Outstanding Recognitions

Finance Asia Best International Bank in Indonesia for 3 Consecutive Years (2016–2018) Best Foreign Commercial Bank in Indonesia for 7 Years (2007, 2008, 2009, 2010, 2012, 2013, 2014)

The Asset Best Bank-Global in Indonesia for 17 Consecutive Years (2001–2018) Best Bond Adviser Global in Indonesia for 2 Consecutive Years (2017–2018) Best E-Bank in 3 Consecutive Years (2015–2017) Best Digital Bank in Indonesia (2018) Best Retail Mobile Banking Experience (2018)

Global Finance Best Consumer Digital Bank in Indonesia and Best Corporate/ Institutional Digital Bank in Indonesia for 2 Consecutive Years (2017-2018) Best Consumer Digital Bank in 4 Years (2011, 2012, 2013, 2015)

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50 Years of Dedication for Indonesia

Citi Country Officer/ Chief Executive Officer Indonesia

190 190

Charles Stockholm

Tom Crouse

Earl Glazier

1968–1970

1970–1974

1974–1976

Philip Markert

Mehli Mistri

James Collins

1984–1987

1978–1984

1976–1978

James Hunt

Maarten Hulshoff

Colin Woolcock

1987–1994

1994–1995

1995–1998

Peter Eliot

Michael Zink

Piyush Gupta

2004–2008

2000–2004

1998–2000

Shariq Mukhtar

Tigor M. Siahaan

Batara Sianturi

2008–2011

2011–2015

2015–Present

Citi Consumer Banking Head Indonesia

Chris Roberts

Bob Thornton

Ravi Bahl

1982–1985

1985–1990

1990–1997

Nicole Reich

Barry Lesmana

John Lorimer

2005–2005

1998–2005

1997–1998

Shariq Mukhtar

Joel Kornreich

Lauren Sulistiawati

2005–2012

2012–2014

2014–2016

Cristina Teh Tan

Batara Sianturi

2017–Present

2016–2017

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Leaders of Today

Celebrating the Present In the past half-century, Citibank Indonesia has become a hub for talent desired by many institutions.

Left to Right Ardhi Wibowo

Tim Utama

Compliance Director

Head of Treasury & Trade Solutions

Cristina Teh Tan

Batara Sianturi

Head of Consumer Banking

Chief Executive Officer

Yardley Young

Franziska Wagiu

Head of Human Resources

Head of Markets & Securities Services

Warren Huang Chief Financial Officer

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Left to Right Francisca Mulyanto

Giosha Ralie

Harsya Prasetyo

Head of Consumer Risk

Head of Corporate & Investment Banking

Head of Retail Banking

Harlan Ligawirady

Elvera N. Makki

Patrick Wong*

Commercial Bank Risk Head

Country Head of Corporate Affairs

Head of Commercial Banking

Hotman Simbolon

Vera Sihombing

Wit Oemar*

Head of Government Affairs

Country Legal Counsel

Head of Global Subsidiaries Group

Imelda Sebayang

Sri Yuanita Mukti

Tajindrapal Singh*

Country Head of Securities Services

Branch Sales & Distribution Head

Acting Head of Operations and Technology

Suryadi Ong

Marita Alisjahbana

Country Treasurer

Country Risk Manager

Sitti Verny Virnansya

Ramon del Rosario

Head of Internal Audit

Head of Cards and Loans *picture not shown

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50 Years of Dedication for Indonesia

Celebrating 50 Years of Dedication for Indonesia As Citibank Indonesia marks a half-century of operations in Indonesia, we’d like to reflect on just how important a milestone this is. So let’s take a moment each day of 2018 to remember that every one of us, in the past or at present, has had a role in advancing the franchise to where we are today.

January

Citi Indonesia Women Council "Dispel the Myths" on International Women's Day

April

Citi Indonesia donates more than 550 computers to 50 schools in Indonesia

The inaguration of Citi Indonesia's new office in SCBD

February Coca-Cola Amatil Indonesia mandates Citi Indonesia as its main bank for cash management and trade finance solutions

"50% Off on Your Next Visit" with Sushi Tei

Citi Indonesia sends 50 Citi Visa cardholders and partners to watch the 2018 FIFA World Cup™ live in Russia

Garuda Indonesia Citi Card “Bring More Home” Campaign

March

Citi Club invites Citibankers to celebrate sports day themed "Live Well at Citi" The inaguration of Citi Indonesia Insurance Forum 2018

May

Exclusive partnership with five e-commerce partners

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Global Community Day: Our Care for You

June Citi Indonesia supports Indonesia 2018 Asian Para Games

"#MaafJadiManfaat" digital campaign to fundraise 5,000 school uniforms for underpriviledged children

October

July Hosting IDX market opening ceremony with Citi Indonesia employees

Citi Indonesia donates 300 million rupiah for Palu earthquake and tsunami

Citi Indonesia and Telkomsel introduces the “Live Large” campaign

Citi Indonesia and UNESCO celebrates national Batik Day

The first Citigold Intergeneration Successor Program

November Citi Indonesia and Independent Journalist Alliance (AJI) Indonesia holds graduation of Digital Financial Literacy Master Class

August Citi Indonesia "Thought Leadership" digital training seminar

Citi Indonesia signs MoU with Bappenas as a commitment to Indonesia's young generation

December

September Citi Indonesia becomes the first custodian bank to go live with Account Operator Services

Citi Indonesia's Alumni Network event and the launch of Citi Indonesia 50th anniversary book

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Citibank Indonesia's News Highlights in 2018

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50 Years of Dedication for Indonesia

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The sunset light show on the facade of the Citibank Tower in the Sudirman Central Business District, celebrates the end of yet another productive day

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50 Years of Dedication for Indonesia

Acknowledgements

This book you’re holding now has been one and a half years in the making—a labor of gratitude for the halfcentury that we’ve been in Indonesia.

We kicked off the 50th Anniversary campaign at the start of 2018, after six months of preparation.

The planning ranged from coming up with a logo for the jubilee and brainstorming the program with colleagues across different functions, to promoting the upcoming anniversary to all employees.

Our goal: to ensure that this is a celebration for all to be a part of and to cherish.

The 50th Anniversary Book is the last, but certainly not the least, piece of the overall campaign. In putting it together, we’ve shed ink, yes, but also sweat and tears. It wasn’t an easy project to accomplish, given the number of stakeholders to consider and layers of approval to go through. But that was never going to stop us from completing this once-in-a-lifetime project. And we continued to be driven by the knowledge that what unfolds before you on these pages is not just a story, but a source of inspiration.

Over the course of producing this book, we interviewed outstanding Citi alumni, sought testimonials from customers, carried out in-depth research, and consulted with Citi Cultures, the New York-based repository of documents and archival material about Citi worldwide going back more than 200 years.

We are forever grateful to all involved in this process. As we celebrate five decades in Indonesia, let’s take a moment each day of the year to remember that every one of us, in the past or at present, has had a role in advancing the franchise to where we are today.

Thank you Citibankers for being part of this journey and for making this celebration a memorable one for all.

God bless all,

Elvera N. Makki Project Lead 50th Anniversary Director, Country Head of Corporate Affairs Citi Indonesia (Citibank N.A., Indonesia)

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Our appreciation to the following for the contribution in the creation of "50 Years of Dedication for Indonesia":

Adam Abdurrahman

Gita Wirjawan

Peter Gontha

Amol Gupte

Gunarni Soeworo

Rangga Widjaja

Andi Surprianto

Harapman Kasan

Richard Tesvich

Andy Ralie

Harsya Prasetyo

Riko Tasmaya

Ardhi Wibowo

Hartono Kurniawan Halim

Sasya Tranggono

Armand Furhad

Herman Gunadi

Scott Merrillees

Barry Lesmana

Ignasius Jonan

Segara Utama

Batara Sianturi

Iskandar Sutadisastra

Sri Yuanita Mukti

Budi G. Sadikin

Jenny Zou

Stephen Fenichell

Cristina Teh Tan

Jerry Ng

Sunarjo Sampoerna

Djokopekik

Kerri Anne Burke

Thomas C. Crouse

Dwi Laningsih

Lans Brahmantyo

Tigor Siahaan

Duma Intan

Lay Fang Tan

Tim Utama

Ed Skyler

Linawaty Noor Shandra

Vera Sihombing

Erik Iskandar

Louise Levesque

Yardley Young

Fauzi Ichsan

Marita Alisjahbana

Yassin Tadjoedin

Francisco A. Aristeguieta

Michael L. Corbat

Yoanna Darwin

Frans Indrapraja

Miming Satyono

Zia Husnullabib Ahmad

Giosha Ralie

Nasirun

Sincere apologies for any inadvertent ommisions

201

50 Years of Dedication for Indonesia

Sources

The sources for this book include a number of unpublished and published documents, as well as interview transcripts in the collection of Citibank Indonesia archive. Much useful information is contained in annual reports, and other internal documentation produced over the years.

Several present and former employees consented to be interviewed—their names are listed in the Acknowledgements.

The published sources are listed below: Borsuk, Richard (01 January 1990) Indonesia Attracts Foreign Interest As Economy Surges, The Asian Wall Street Journal. Retrieved from digital archive

Ricklefs, M.C. (1993) A History Of Modern Indonesia Since c.1300, London: MacMillan

Companies Rediscovering Indonesia, (06 December 1994) The New York Times.

Retrieved from digital archive

Schwartz, Adam (1999) A Nation In Waiting, Second Edition: Indonesia's Search For Stability, Avalon Publishing

Central Intelligence Agency World Factbook

Sipahutar, Tassia (21 November 2014) OJK Targets Deeper Financial Market With New Rules, The Jakarta Post. Retrieved from digital archive

Erlanger, Steven (11 October 1989) Indonesia Moving Quietly Toward A More Private Economy, The New York Times. Retrieved from digital archive Hunt, Christopher (01 January 1990) Applications To Invest In Indonesia Hit A Record Last Year, The Asian Wall Street Journal. Retrieved from digital archive IBC Picturesque Batavia Branch, (01 May 1922) Number Eight.

Retrieved from digital archive Indonesia Stock Exchange (IDX) Indonesia Special Report, (01 December 1985) The Asia Letter.

Retrieved from digital archive Indonesia's Coal Surge Is In Peril , (12 January 2007) Wall Street Journal Asia.

Retrieved from digital archive

Starr, Peter (2012) Celebrating The Past, Defining The Future: 200 Years Of Citibank, Editions Didier Millet Tang, Winny (09 March 2018) Banks Rely On E-Commerce To Drive Credit Card Business, The Jakarta Post. Retrieved from digital archive The Best Is Yet To Come, (15 December 1989) Asian Finance.

Retrieved from digital archive United Nations Department of Economic and Social Affairs: Population Division U.S. Geological Survey

Indonesia: Steady Progress Toward Industrialization, (01 December 1989) Institutional Investor. Retrieved from digital archive

Vatikiotis, Michael and Schwarz, Adam (12 October 1989) The Fruits Of Freedom, Far Eastern Economic Review. Retrieved from digital archive

Indonesian Bankers See Diversity As Road To Economic Independence, (25 September 1988) The Journal of Commerce. Retrieved from digital archive

Vickers, Adrian (2005) A History Of Modern Indonesia, Cambridge University Press

Indonesian Banks Face Tight Credit, (04 December 1990) International Herald Tribune. Retrieved from digital archive

Whittington, James (09 June 1995) New Rules Are Welcome, Financial Times.

Retrieved from digital archive

Jin-Bee, Ooi (30 June 1982): The Petroleum Resources of Indonesia, Oxford University Press

World Bank documentation

"Dari Puing-puing ke Masa Depan Refleksi & Visi: 1957–1997", (1997), Pertamina

202

Special Survey Of Indonesia, (07 September 1989) The Financial Times.

Retrieved from digital archive

Photo Credits

Adrianus Adrianto: 54–55

Iskandar Sutadisastra: 64; 140

Andi Suprianto: 42;43

Jafriyal: 32; 39; 41; 44; 61; 77; 81; 83; 85; 115; 127; 172–173; 179; 186

CIMB Niaga: 97; 127

Jez O’Hare: 8–9; 65; 141; 143

Citi Asia Pacific: 15

Kurniawan Wigena: 36–37; 70–71; 90–91; 106–107

Citi Brand Central: 30; 51

Lans Brahmantyo: 18; 30; 31; 39; 48; 49; 57; 61; 62; 67; 77; 89; 98; 139

Citi Center for Culture: 23; 25; 56; John Batt (58); 85

Mandiri: 97

Citi Singapore: 13

Mario Wibowo: 51; 130–131; 150–151; 206–207

Citibank Indonesia archive: 4–5; 24; 27; 31; 32; 33; 45; 56; 63; 66; 67; 74; 76; 77; 82; 83; 84; 85; 93; 96; 97; 99; 100; 101; 108; 109; 110; 111; 112; 113; 115; 117; 118; 119; 120; 121; 122; 124; 125; 126; 128; 136; 137; 140; 144; 156; 157; 158; 159; 160; 161; 162; 163; 164; 165; 166; 167; 168; 169; 170; 171; 176–177; 178; 179; 180; 181; 182; 183; 184; 185; 186; 187; 192; 193; 194; 195

Men’s Obsession magazine: 11

Citigroup: 17 Danamon: 97 Elvera N. Makki: 94; 95 Garuda Indonesia: 179 Getty Images: Bloomberg (59); Bettmann (129) GOJEK: 125 Hartono Kurniawan Halim: 65; 138; 198–199 Hendra Tanzil: 135; 146; 147 Herman Gunadi: 30; 38; 65

Miming Satyono: 73 Pertamina: 40; 41; 46; 47 Peter Gontha: 49 PT Inalum: 128 Rangga Widjaja: 148 Riko Tasmaya: 119 Scott Merrillees: 6–7; 20–21; 39; 45; 63 Shamow’el Rama Surya: 31; 32; 81; 99; 120; 127 Shutterstock: Suwit Ngaokaew (31); Tropical Studio (33); Em Faies (57); Sere Yordan Silaen (75); Everett - Art (79); Olha Solodenko (83); Mark Wolters (101); By Natali_ Mis (116); Juan Herbert Girsang (123); Sony Herdiana (142); Footage Lab (145); Tropical studio (149)

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50 Years of Dedication for Indonesia

Index

A

E

J

ATM 58,92,147

EazyPay 98

Jalan Kopi 44

Affandi Kusuma 37

Enhanced Cards System 64

Jepara 146

Agent Penny 160 Andi Suprianto 42,201 Andy Ralie 56 Asia Africa Conference 142

Jerry Ng 67,201

F FNCB 38,40,42,44,50,56,58,60 Facebook 110,114

K

Fauzi Ichsan 80

B

Kebon Jeruk 136

First ATM 58

Kelapa Gading 136

Bandung 142

First National City Bank 38,40,42,44,50,60

Bank Indonesia 30,60,62

Freeport McMoRan Inc 128

Bankograph 58

Frits Seegers 83

Bapindo 137 Barry Lesmana 83 Basuki Abdullah 100 Batavia 6,20,24,136,140 Batik 164,166,195 Bimasena 100 Blok M 64 Borobudur Temple 70,

GOJEK 124,125 Garuda Indonesia 126 Gedung Merdeka 142 General Sudirman 62 Gita Wirjawan 76,178 Global Mobile 114 Glodok 44,64

CIMB Niaga 202

Grand Bali Hotel 56

CardPac 64

Grasberg 128

Cash Management 116 Citibank Smart ATM 92 Citibank Smart Branch 108 Citibank Tower 138,198 Coca Cola Amatil Indonesia 117 Consumer Banking 62,82

D Denpasar 100,148 Digitization 33,109,114

Landmark 58,84,136 Lebak Bulus 138

C

Citi Peka 84,152,158,160,162,164,166,168,170

L

G

Global Sharia Funds 122

H Herman Gunadi 39,201 Hotel Indonesia 38,42,48,50

M Malaysia 144 MasterCard 64 Medan 144 Mexico 82 Middle East 15,40,49,64,97 Miming Satyono 72 MobilePASS 33,116 Muhammad Hatta 63

N National Batik Day 166 New York 38,48,50,58,82,118,180,200 New York Stock Exchange 94 Nusa Dua 148

I Ignasius Jonan 129 Institutional Clients Group 136 International Banking Corporation 22,23 Investment Coordinating Board 118 Iskandar Sutadisastra 201 Istana Plaza 142

204

John Reed 58

O OPEC 40 OneBill 86

P PT CSI 120 PT Citigroup Sekuritas Indonesia CSI 120 PT Inalum 128,202 PT Kereta Api Indonesia 129 PT Pal 140

Spice Islands 6 Sudirman Central Business District 33,136,138,198 Sumatra 40,144,146 Suramadu 140

PT Pelabuhan Tanjung Priok 126

T

PT Samuel Sekuritas Indonesia Her 73

Tanjung Perak 140

Panama Canal 50

Tanjung Priok 126

Papua 85,128

Teater Koma 160

Permina 46

Telkom University 142

Pertamin 46

Thailand 144

Pertamina 40,42,46

Thomas Crouse 45,201

Peter Gontha 49,178,202

Tigor M Siahaan 96, 126

Plaza Indonesia 93

Tunjungan Plaza 140

Polytron 140 Pondok Indah 136 Prambanan 166 President Abdurrachman Wahid 82 Prestasi Junior Indonesia 158

U UNESCO 166 Ubud Writers Readers Festival 100 United Kingdom 50 United States 34,44,50,66,88

Q Quantum Leap 126

W Will Power 160

R Rita Hayworth 148 Robby Djohan 178

World Bank 29,80

Y Yogyakarta 90,142,166

S

Youth Economic Empowerment 166

Sasya Tranggono 100,102,201 Segara Utama 44,201 Semarang 135,146,158 Sharia Mutual 122 Smart ATM 32,93,108 Soekarno 62

205

50 Years of Dedication for Indonesia

206

207

Project Lead Elvera N. Makki Producer Lans Brahmantyo Published by

Writer

Citibank N.A., Indonesia Citibank Tower SCBD, Lot 10 Jl. Jend. Sudirman Kav 52-53 Jakarta 12190, Indonesia

Jeremy Allan

Designed and produced by Afterhours Books

Editors

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any other information storage and retrieval system, without prior permission in writing from the copyright owner.

Copyright Š 2018 by Citibank N.A., Indonesia Any copy of this book issued by the publisher as a hardcover or paperback is sold subject to the condition that it shall not by way of trade or otherwise circulated without Citibank N.A., Indonesia and the publisher’s prior consent in any form of binding or cover other than in which it is published and without a similar condition including these words being imposed on a subsequent purchaser.

ISBN: 978-602-6990-37-2

208

Contributing writers Byron Black John Moyle Jessie Morgan

Elvera N. Makki Andhikaputri Himawan Tito Pasaribu Ananta Wisesa Hayat Indriyatno Jafriyal Book designers Rie Naftali Yesica Stefanie Assistant designer M. Nasrullah Production Reza Inovani

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50 Years of Dedication for Indonesia

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50 Years of Dedication for Indonesia

This Thisisisaastory storythat thatbegan began50 50years yearsago, ago, when whenCiti Citifirst firstput putdown downroots rootsininIndonesia.

Indonesia.

With Withaamission missionto toenable enablegrowth growthand and economic economicprogress, progress,Citibank CitibankIndonesia Indonesiahas has been beendedicated dedicatedto todelivering deliveringthe thebest bestand and upholding upholdingthe thehighest higheststandards standardsof ofintegrity integrity and andprofessionalism. professionalism.At AtCiti, Citi,the theworld's world's global globalbank, bank,this thisisiswhat whatwe wedo doto toserve serveour our clients clientsand andmake makean animpact impacton onsociety. society.

Today, Today,the theroots rootsgo godeeper deeperand andthe the branches branchesreach reachhigher. higher.As Asthe thefuture future beckons, beckons,Citibank CitibankIndonesia Indonesiawill willbe bethere thereto to see seethe thecountry's country'sfull fullpotential potentialblossom. blossom.

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