Citibank Indonesia
Encyclopedia
History
Citibank has had a presence in IndonesiaIndonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
in one form or another since 1918 when its precursor, The International Banking Corporation, set up branches in Batavia (present-day Jakarta
Jakarta
Jakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
) and Surabaya
Surabaya
Surabaya is Indonesia's second-largest city with a population of over 2.7 million , and the capital of the province of East Java...
. The International Banking Corporation withdrew from Indonesia in the late 1920s, but Citibank reopened in Jakarta in 1968.
Company Profile
Citibank Indonesia offers retail bankingRetail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
in 19 branch offices and 102 ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s in the cities of Jakarta, Surabaya, Bandung
Bandung
Bandung is the capital of West Java province in Indonesia, and the country's third largest city, and 2nd largest metropolitan area in Indonesia, with a population of 7.4 million in 2007. Located 768 metres above sea level, approximately 140 km southeast of Jakarta, Bandung has cooler...
, Medan
Medan
- Demography :The city is Indonesia's fourth most populous after Jakarta, Surabaya, and Bandung, and Indonesia's largest city outside of Java island. Much of the population lies outside its city limits, especially in Deli Serdang....
, Semarang
Semarang
- Economy :The western part of the city is home to many industrial parks and factories. The port of Semarang is located on the north coast and it is the main shipping port for the province of Central Java. Many small manufacturers are located in Semarang, producing goods such as textiles,...
and Denpasar
Denpasar
Denpasar is the capital city of the province of Bali, Indonesia. It has a rapidly expanding population of 788,445 in 2010, up from 533,252 in the previous decade. It is located at .-History:...
. Citibank also began mobile banking
Mobile Banking
Mobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant . The earliest mobile banking services were offered over SMS...
in 2003.
Time Line
2004 - Citibank launches Citifinancial.2005-2007 – Citibank receives the Indonesia Best Brand Award from SWA Magazine.
2006 – Citibank ranked Best Bank On Service Quality by a banking sector customer service poll conducted by Infobank magazine in collaboration with the Institute of Service Management Studies (Trisakti University
Trisakti University
Trisakti University is a private university in Jakarta, Indonesia. Founded on 29 November 1965, the university has more than 30,000 students.It has several campuses and nine faculties:*Faculty of Law*Faculty of Medical Sciences*Faculty of Dentistry...
, Jakarta).
2007 – Receives the Employer of Choice Award from Warta Ekonomi.
2007 – Receives the Indonesia Bank Loyalty Award in the Savings Account and Credit Card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
Category from InfoBank.
2007 - Receives the Best Internet Bank
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
Award from Global Finance
Global financial system
The global financial system is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level...
.
2007- Receives the eCompany Award from Warta Ekonomi.
2007 - Receives the Best Financial Performance Award from Infobank.
2007 - Receives the Best Foreign Bank from Finance Asia.
2007 - Receives the Indonesia Most Admired Company 2006 Award (for 2 consecutive years) from Business Week
BusinessWeek
Bloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
and FrontierMarketing Research.
2007 - Receives the Best Wealth Management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
and Retail Bank & Service Satisfaction Index from Marketing Magazine & CCSL.
2007 - Receives the Best Corporate PR Program award from Mix Magazine.
2007-2008 – Receives the Banking Service Excellence Award from InfoBank.
Products and services
Citibank Indonesia began issuing credit cards in 1989. It currently offers nine types of credit cards. Its payment network in Indonesia consists of more than 11,000 payment points, 13 banks and one post office from which customers can pay their credit card bills. An online payment facility is also available.The main expertise of Citibank Indonesia is in the area of wealth management, where it provides financial advisory services to customers. Citibank has a 24–hour CitiPhone banking helpline for customers. Citibank Indonesia also offers bank loans, deposit account
Deposit account
A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
s and insurance to its customers.
Divisions
Citifinancial has 56 branches in the six major cities of Jakarta, Bandung, Semarang, Surabaya, Medan, and Denpasar. Since 2007, Citifinancial has been collaborating with PT Pos IndonesiaPos Indonesia
Pos Indonesia is the state-owned company responsible for providing postal service in Indonesia. It was established with the current structure in 1995 and now operates 11 regional divisions.-History:...
to expand Citifinancial's position in the Indonesian market by leveraging the wide post office distribution.
Key people
Tigor Siahaan - Citi Country OfficerSuparman Kusuma - Card Business Head
Kahar Anwar - Citi Business Head
Ditta Amahorseya - Director, Country Corporate Affairs Head
Sponsorship and corporate responsibility
As part of its corporate social responsibilityCorporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
(CSR), Citibank Indonesia runs a program called “Use Credit Wisely” to educate its customers and the public.
Citibank has launched several CSR activities under the umbrella of Citibank Peka (Peka is an acronym of peduli (care) and berkarya (to do good). Initiated in February 1999, Citibank Peka (CP) focuses on education, communication development and natural disaster relief.
Scandals
(Inong) Malinda Dee, who held the position of senior relationship manager in Citibank Indonesia's Landmark Building branch, was arrested after being accused of embezzling at least USD 2 million from her customers' accounts.On April 6, 2011 the Central Bank (Bank Indonesia) has banned Citibank from taking in new customers for its Citigold business until police investigation into the case is completed.
In an unrelated incident that happened to occur close in time to the previous one, Citibank has also gotten tangled up in the circumstances of the death of Irzen Octa
Irzen Octa
Irzen Octa was a minor businessman and secretary general of the National Unifying Party , a small Indonesian party.. On March 29, 2011, aged 49, he was found outside a Citibank branch in Jakarta and died of a brain hemorrhage on the way to hospital. The police found traces of blood on the wall and...
, who served as secretary general of a small local political party. Octa, who had racked up a sizable debt to Citibank, was found dead on the bank's premises after being interrogated by third party debt collectors hired by Citibank to deal with long overdue debts. There are conflicting reports on the circumstances of his death, as multiple autopsy reports have shown different results. Despite this uncertainty, on April 7, 2011, the Indonesian Central Bank (Bank Indonesia) decreed that Citibank must stop processing new credit card applications until the investigation into the death of Irzen Octa has been completed. Due to torture and false imprisonment in relation to Mr. Irzen's death, 5 people, including 2 Citigroup employees have been charged.
Citibank Indonesia's senior management has subsequently been summoned by the local congress (Dewan Perwakilan Rakyat) for hearings in relation to the incidents.
After a month of investigation, Indonesian Central Bank (Bank Indonesia
Bank Indonesia
Bank Indonesia is the central bank of The Republic of Indonesia. Bank Indonesia is currently governed by Darmin Nasution, former interim governor. The last governor before the interim phase, Boediono, resigned due to his vice presidential candidacy in the Indonesian presidential election...
) clamps firm sanction on Citibank Indonesia. Since May 6, 2011 Citibank Indonesia:
- was banned from receiving new customers for its prime Citigold service for one year
- was banned from issuing new credit cards for its customers for two years
- was banned from using debt collectors from the third party for two years
Since May 9, 2011 Central bank conducted a repeated fit-and-proper test on about 20 Citibank's executives and management for a maximum 40 days. Central Bank also insisted Citibank to fire the officials involved directly in the Citigold and credit card cases.