STRATEGI PEMANFAATAN OBLlGASl PEMERINTAH DALAM RANGKA REKAPlTALlSASl (Studi Kasus di PT Bank Negara Indonesia (Persero) Tbk)

The prolonged economic crisis began in 1997, as globalization impact, dragged the national banks into a crushing condition. As known, more than 55% or around 93 from the total Of 168 Indonesian banks experienced financial losses due to NPL, interest rate pressure and depreciation on Rupiah. Infact, a number of banks dropped to negative equity forced to be liquidated or being mergered with other banks to maintain their capital sufficiency. Meanwhile, some others followed the recap program under Government Policy on bank restructuring to increase their Capital Adequacy Ratio (CAR). Bank BNI, with no exception, had to be recapitalized with around Rp 61,8 trillion in year 2000 to be complied with the minimum CAR of 4% subject to Bank Indonesia regulation. Although Bank BNI have been making some progresses after taking the recap program, but still dominated by coupon bonds on their interest income. We realize that the bank, as the financial intermediary, should play a role to finance the real sectors to support the acceleration of the economy growth instead of maintaining Government Bonds. There will be some alternatives to expand the bank's portfolios on credit or other productive assets by converting their bonds into cash using schemes such as selling down repo or creating asset securitizations by considering the mark to market value of the bonds to minimize losses. The objectives of this study are : (1) to know how BNI utilize their government bonds to increase their portfolio on other productive assets and (2) to analize the alternatives strategy of utilizing government bonds that can be recommended to the owner in restructuring their assets composition to reach the optimum condition. Descriptive method is applied in this analysis. In addition, Strategic Management is also developed to describe both internal and external factors affecting the company's performance in which the results of analysis are provided with quantitative and qualitative measurements