Analysis of Obstacles in Implementing The Finished Banknotes Business Model (A Case Study on Banknotes Printing in Indonesia)

Abstract

The company changes its business model to respond to changes in its business environment. In the banknotes printing industry in Indonesia, the business model used to date is Perum Peruri as a banknote printing service provider, while Bank Indonesia is both a consumer and a banknote paper provider. Bank Indonesia has planned to change the banknotes printing business model from printing services to finished banknotes or end-to-end processes. This study aimed to analyze the constraints while implementing the finished banknotes business model by Perum Peruri. Nine obstacles were identified based on the literature researched and discussions with five experts from the banknotes printing industry, Bank Indonesia as a consumer and regulator, the Ministry of State-Owned Enterprises, and the Indonesian Printing Security Association. Interpretive structural modeling analysis is used to measure the strength of the relationship between constraints, develop hierarchical levels, classify and rank each of these constraints. It was found that limited working capital, dependence on supplies of banknotes from abroad, the complexity of procuring banknotes, and barriers to accessing banking, were the main obstacles. The solution is that Perum Peruri must improve its capabilities and get support from Bank Indonesia and the Ministry of SOEs.