PT SARINAH (Persero)

Company Analysis, submitted by:

Name : Gede Satria Pujanggo, Pg
Class : MM55A
Attendee's number : 12
NIM : 51911645
I. COMPANY PROFILES
Company Name:
PT Sarinah (Persero)
HO address Jl. M. H. Thamrin No.11 Jakarta
Tel. (021) 31923008, Fax (021) 319318353

Company History
Taken from PT Sarinah (Persero) website; http://www.sarinah.co.id/company-profile/
Accessed in 24th January 2020

PT Sarinah (Persero) is an iconic Indonesian state-owned enterprise, best known for its
retail outlets and as a national center for the retail and trade of Indonesian handicrafts
and local products. Founded in 1962, the company established Indonesia’s first
department store; pioneering the introduction of the modern retail experience in the
country. Since its founding, Sarinah has expanded its areas of expertise beyond retail
to hospitality, trading and sourcing.

Sarinah provides local creative industries with a platform to showcase their best
offerings in retail outlets throughout Indonesia. Over the last five decades, Sarinah has
evolved into the go-to shopping destination for local consumers, tourists and an
expansive network of overseas buyers.

Championing local crafts and local talents, Sarinah also regularly hosts events that
showcase the very best in Indonesian musical and artistic talents including live music
events, pop up markets and art galleries.

Company Vision and Mission:

Taken from 2018 Company Annual Report

Vision:
“Become a leading retailer of superior products characterized by Indonesian culture.”

Vision Explanation:
Philosophically, the vision is on the one hand deeply rooted in the history, experience
and mandate of the company that has been carried out so far, namely as a pioneer of
modern retail business based on national cultural products; and on the other hand, this
vision is also very relevant to the mission of the Ministry of State-Owned Enterprises
(BUMN), especially the second mission, namely “increasing the competitiveness of
SOEs at national,
regional and international levels”.

Mission:
1. Increasing trade in Indonesia’s superior products that meet the expectations of all
stakeholders;
2. Become a catalyst for the development of small and medium micro enterprises
(MSMEs) in the field of creative industries characterized by national culture;
3. Realizing superior corporate culture and high credibility;
4. Optimizing all company property assets to provide optimal added value for the
company.

Mission Explanation:
Operationally, the Company’s mission is in line with:
1. The Republic of Indonesia Presidential Regulation Number 28 of 2008 concerning
national industrial policies, among others, mandates the development of creative
industries, namely the process of increasing the value added results of intellectual
property exploitation in the form of creativity, expertise and individual talents into
products that can be sold so as to improve the welfare of involved. Based on the
Presidential Regulation, the creative industries include: crafts and art items such as
batik, traditional weaving, embroidery and embroidery, paintings, sculptures,
fashion products and others.

2. Instruction of the President of the Republic of Indonesia Number 6 of 2009

concerning Creative Economic Development along with its attachments (targets,
direction and strategy for the development of the creative economy in 2009-2015),
especially point IIA, namely “Increasing Industrial Attractiveness in the Creative
Economy” through the following four strategies:
• Expanding the distribution range of creative products at home and abroad;
• Increasing market appreciation for creative products domestically and abroad;
• Conduct marketing research on creative products at home and abroad; and
• Promoting creative products at home and abroad.

Vision and Mission Formulation Scheme

Company’s Line of Business
According to company website, PT Sarinah (Persero) has three main businesses,
which are:
1. Retail
Retail is claimed to be the company signature business as stated in the web page
“longstanding department stores and retail outlets, renowned for their success in
deftly curating a unique product collection”. The tagline “The Window of
Indonesia” for the company is meant to be the leading platform for local craftsmen
who in need for opportunity to demonstrate their creation in larger and better
market. Sarinah Retail offers vast line of Indonesian authentic excellence products,
one-stop shop for all things Indonesian as it claimed to be; from Sumatra gourmet
fabric Songket to coffee beans cultivated in the mountain of Central Java.
Sarinah Retail offers vast line of product with uppermost quality, as such: Batik,
Handicrafts, Agarwood & Sandalwood, Artwork, Branded Clothing, Accessories,
Muslim Fashion (Shareena), Coffee, Chocolate & Organic Products, and Pup up
stalls.

2. Property and Hospitality

Second biggest line of company business is Property and Hospitality. In this line,
company runs some field of business such as: Restaurant, Chocolate boutique store
(named Pilpitin Cocoa), Hotels (Sari Pacific in Jakarta and Braga in West Java).

3. Trading and Sourcing

Another company line of business is trading and sourcing. Company’s trading
division plays an active role in ensuring the ready-availability of a handful of
commodities and essential goods to communities across the country. Trading and
sourcing division conducts its business by providing goods such as Wooden
furniture (mostly rattan), Batik, Alcohol beverage, Saccharin, and Rice grain.

The Chief Executive Officer (CEO) of Company

Name : Gusti Ngurah Putu Sugiarta Yasa
P/DoB : Denpasar, May 6, 1964
Tenure : 2017 –
Job Experiences : Director of Retail and Property at PT POS Indonesia (Persero)
w2014-2016
Director of HR & General at PT POS Indonesia (Persero)
August – December 2016
Education: : Master of Management at Gadjah Mada University in 1993
S1 POS Economic Management at Universitas Terbuka in 1992
Company Organization Structure
According to Company’s 2018 annual report, the organization structure is as presented below:
Company’s Employee
According to Company’s 2018 annual report, total employee in year 2018 and
recent are presented below:

Average growth
Year 2018 2017 2016
(2017-2018)

Total Employees 342 364 334 -6%

Subsidiary Entities
Line of Share
No Company Name Address
Business Ownership
Foreign Jl. M.H. Thamrin
1
PT Sari Valuta Asing Exchange 99.00% No.11, RT.8/RW.4,
Gondangdia,
Menteng, Kota
Jakarta
Pusat, Daerah
Khusus Ibukota
Jakarta 10350
PT Sari Arthamas Jl. MH Thamrin 6
2 Hotel International Hospitality 50.00% Hotel Sari Pan
Pacific Lantai 4
Jakarta, 10340
Indonesia
II. SWOT ANALYSIS
In this segment, we will discuss and try to formulate SWOT analysis in
accordance with some key criteria. In conducting so, firstly, we must establish what the
key criteria are and distinguish them from one another. Furthere step is we try to identify
Company current condition in manner with already established indicators. Performing
an assements is a necessity before we conclude those conditions either as a Strength,
Weakness, Opportunity or Treath. In conducting the necessary assesment, we will
perform a benchmark data which are prepared from companies in the same niche and/or
current market analysis.
Criteria we will use to analyze Company SWOT are: Financial, Political
Network (as PT Sarinah (Persero) is a state-owned company), Supply-Chain, and IT.

Financial:
PT Sarinah (Persero) has positif growth in total asset in 2018 compare to previous
years. Quoted from its annual report, a growth of 7.16% has been recorded; compared
to 2017 amounting to Rp341.51 billion. This achievement was 89.78% compared to the
2018 Corporate Work Plan and Budget (RKAP) of IDR 407.61 billion. In total, 2018
company assets is recorded Rp 365.964.587.016. In comparison with other company in
the same niche, PT Sarinah (set aside that the company hasn’t go pulic yet), recorded a
strong positive growth. Earning Before Interest and Tax recorded equivalent result but
more superior growth than other company in the same niche. But, according to annual
report, company hasn’t fully utilized its asets.

Toal Asset (In Millions) 2018 2017 growth

PT RAMAYANA LESTARI
SENTOSA Tbk Rp 5,243,047 Rp 4,891,922 7.18%
PT MATAHARI PUTRA PRIMA
Tbk Rp 4,808,545 Rp 5,427,059 -11.40%
PT HERO SUPERMARKET Tbk Rp 6,271,858 Rp 7,363,144 -14.82%
PT MIDI UTAMA INDONESIA
Tbk Rp 4,960,145 Rp 4,878,115 1.68%

PT SARINAH (Persero) Rp 365,964 Rp 341,511 7.16%

EBIT (In Millions)
PT RAMAYANA LESTARI
SENTOSA Tbk Rp 717,172 Rp 466,592 53.70%
PT MATAHARI PUTRA PRIMA
Tbk Rp (1,070,666) Rp (1,669,614) 35.87%
PT HERO SUPERMARKET Tbk Rp (1,252,995) Rp (251,647) -397.92%
PT MIDI UTAMA INDONESIA
Tbk Rp 197,098 Rp 123,249 59.92%
PT SARINAH (Persero) Rp 31,215 Rp 10,093 209.27%
Political Network
As a state-owned company with majority of the shares belong to state administration in
the name of Ministry of State Owned Enterprises, PT Sarinah (Persero) has relatively
close access to government controling bodies and policy makers. Another subject to
noted is how current President and his Presidental Cabinet lay more interest in
developing more robust and healthy business for state-owned companies. Mr. President
Joko Widodo appointed Erick Tohir, a renown businessman, to lead Ministry of State
Owned Enterprises in its quest to make State Owned Enterprises great again. Another
way to look at it, this so-called government support will increase the pressure to perform
well in an open market but with more rule to comply compared to other player in the
same niche.

Supply-Chain Management
By cooperating with local suppliers, the Company was able to reduce costs and speed
up procurement time. In addition, such cooperation indirectly played a role in
improving the economy of the community. Wide network of MSMEs (Micro, Small
and Medium Enterprises) is one of company best weapon in the market. The company
also has legal permission to import commodities and essential goods to distribute to
communities across the country. The down side of it is there is no product champion
who provides revenue and bussiness continuity.

Information Technology
"Sarinah for instance. In the e-commerce era, yet we still sell retail like the old days.
Well! No, you can't (keep doing that)" Erick Thohir https://tirto.id/erick-thohir-sebut-
sarinah-contoh-bumn-ketinggalan-zaman-ekh5
Information technology is a very important component for PT. Sarinah to remain
relevant in the retail industry. The rapid development of information technology
demands the use of information technology effectively and efficiently. IT integration
with business will reach more people and will gain new generation of customers.
Regretfully, the company information systems are not well integrated (finance,
procurement, HR, including core business). Company’s brand is being swapped away
by nowcomers in retail industry. These startup company are thriving by utilized IT in
their core business. PT Sarinah (Persero) is, regrettably, fall far behind in retail modern
market.
From those we learned form our analysis, we formulate SWOT matrix as presented below:

STRENGTH WEAKNESS

1 Has a strategic business location (Thamrin, Majapahit, The company information systems are not 1
Pancoran Jakarta, Basuki Rahmat, Malang, Jatiraya, integrated (finance, procurement, HR, including
Banyumanik Semarang) core business)
2 Sarinah as a State-Owned Company 2
The Sarinah brand is not nationally known

3 Wide network of MSMEs Internalization of corporate culture is not optimal 3

4 Positive financial growth Creativity and innovation that have not developed 4
optimally
5 There is permission as an exporter and importer which There is no product champion who provides 5
belong to Sarinah revenue and business continuity
Unclear retail marketing, trade (export, import, 6
distribution) and integrated property strategies
Not optimal utilization of assets owned 7

OPPORTUNITY TREATH

1 Government policy regarding the cooperation of State- The emergence of modern retailers 1
Owned Company
2 Opportunities for business cooperation with MSMEs and Inconsistent import regulation business from the 2
other government
3 Conducive national economy Government regulations that have not given full 3
freedom in conducting Sarinah business
4 The online retail market is considered to be getting bigger The existing Sarinah consumers are getting older; 4
in coming years Millennial consumers mostly do not recognized
Sarinah's brand.
5 The government encourages the creative industry
III. BUSINESS STRATEGIC
Long Term Plan
Long Term Plan is an essential topic to disccuss because it will decide what the future’s
hold for the company (at least what future’s look like or what they hope to look like). In
2018 annual report, stated that long term plan consist of human resource, information
technology and good corporate governance.

• Human Resource Roadmap

The company has developed an HR Development Roadmap that will be integrated in
reference to long-term or annual corporate planning. Such preparation aims to optimize
the potential of the Company’s HR based on the results of an analysis of measurably
accurate supply and demand, using reference reference data. The objectives of Sarinah
HR Human Resources Development are as follows:
a. Establishment of retail and trade SBU
b. The results of the analysis of the training needs of each profit center division;
c. Follow-up of training needs analysis results for a maximum of 30 days from the
results of the analysis;
d. Employee recruitment qualification standards;
e. Employee satisfaction survey results and follow-up recommendations.

• Information Technology
In 2018, the Company assessed the use of information technology media. After the
assessment, there are some inputs that can be followed-up in 2019. The plan for
developing information technology is not clearly stated in 2018 annual report, but it can
be conclude that the company IT policy in accordance with SOE Minister Regulation No.
PER-02/ MBU/2013 Article 3 concerning the IT Master Plan. In 2018, the Company’s IT
program allocation was recorded from an allocation of Rp3,10 billion and budgeting from
development costs of Rp1,52 billion.

• Good Corporate Governance

The Company prepares the GCG Roadmap as part of strategic planning in the
implementation of GCG on an ongoing basis. The GCG Roadmap was created to provide
clear direction for the implementation of GCG at PT Sarinah (Persero) in order to remain
in accordance with the Company’s vision and mission. An overview of the stages to be
achieved regarding the longterm GCG implementation process can also be found in the
GCG Roadmap. The company will have a road map in implementing GCG consistently
and continuously.
 Benchmark
Target
Become an industrial citizen and a
society that has good ethics and
shows high responsibility

Able to control business operations

well, especially in aspects of
business risk

Fulfill all provisions and regulations

regarding corporate governance

Annual plan
The company’s development strategy for 2018 are presented below:
• Market Development
o Business facilities and infrastructure development
▪ Increase outlets
▪ Improvement of parking facilities and management
o Development of trade volume and value
▪ Work on niche markets and prospective retail products
▪ Developing the import and export of prospective products
▪ Include MSME products for each outlet
• Strengthening market penetration
o Strengthening positioning and market penetration
▪ Increased participation in strategic trade exhibitions
▪ Extensification and intensification of strategic partnerships
(craftsmen/MSMEs, BUMN
o Maintenance of company branding
▪ Promotional improvements (above the line, below the line)
▪ Customer development (customer loyalty program, customer
database, customer relationship management)
▪ Compilation of customer databases
• Product Development
• Horizontal Integration
o Development of the function and economic value of assets
• Strengthening Corporate Culture
Financial statement
 Business and Financial Analysis
Rata-rata Pertumbuhan
Uraian Description 2018 2017 Average Growth (2017,
2018)
Liquidity Ratio
Cash Ratio 68.45 54.54 25.50%
Current Ratio 125.45 108.99 17.95%
Solvency Ratio
Debt to Asset Ratio 34.55 35.81 -3.52%
Debt to Equity Ratio 57.93 55.8 3.82%
Rentability Ratio
Gross Profit Margin 15.33 34.05 -54.98%
EBTIDA Margin 4.63 5.61 -17.47%
Return On Equity (ROE) 9.56 2.09 357.42%
Activity Ratio
Collection Period (CP) 8.08 23.64 -65.82%
Inventory Turn Over 68.45 18.46 270.80%

Liquidity Ratio
The liquidity ratio reflects the Company’s ability to fulfill its obligations, especially liabilities in
the short term. The level of company liquidity can be seen from the cash ratio and current ratio.
▪ Sarinah recorded a Current Ratio of 125.45% in 2018, higher than 2017 of 108.99%. This
shows that Sarinah’s ability to pay off its short-term obligations using available current assets
has increased in 2018. Such increase in capacity was due to an increase in Current Assets that
far exceeded the increase in Short-term Liabilities in 2018.
▪ Sarinah recorded a cash ratio of 68.45% in 2018, higher than in 2017 of 55.89%. This shows
that Sarinah’s ability to pay off its short-term obligations using available cash has increased.
Such increase in capacity is due to an increase in the amount of Cash and Cash Equivalents
that exceeds the increase in Short-Term Liabilities.
Solvency Ratio
Solvency ratio is a measure to assess the Company’s ability to pay off all its debts using all
company assets or capital. Solvency measurement uses Debt to Equity Ratio (DER) and Debt to
Assets Ratio (DAR).
▪ In 2018, Sarinah registered DAR of 34.55%, a decrease from 35.81% in 2017. This shows
that Sarinah’s ability to pay off its obligations using available assets has increased in 2018.
Such increase was due to an increase in current assets from the previous year by 22%
compared to the increase in debt of 6%.
▪ In 2018, Sarinah had a DER of 52.79%, a decrease compared to 2017 of 55.79%. This shows
that Sarinah’s ability to pay off its obligations using available capital has increased in 2018.
Such increase was due to an increase in capital from the previous year of 9.26% compared to
the increase in debt of 6%.
 Rentability Ratio
▪ GPM in 2018 was recorded at 15.33%, decreased from 2017 at 33.47%. The change shows
that Sarinah’s ability to control the cost of the load in relation to sales has decreased in
2018. Such decreased was due to an increase in the selling price of the proceeds (a decrease
in fees/margins) from import activities which is only 5%
▪ In 2018, Sarinah recorded NPM of 2.53%, increased from 1.74% in 2017. The changes
indicate that the net financial percentage obtained by Sarinah from sales has increased.
Such increase was due to an increase in sales of sticky rice imports of Rp50 thousand
m3/ton or Rp500 billion.
▪ Sarinah’s ROE in 2018 was recorded at 8.67%, increased from 2.55% in 2017. These
changes indicate that Sarinah’s ability to use all available Equity to generate net profits
has increased in 2018. Such increase was due to the increase in sales, especially 50,000
tons of glutinous rice imports, resulting in a significant increase in profit compared to last
year.

Activity Ratio
▪ Collection Period (CP) shows a decrease in value from 23,64 in 2017 to 8,08 in 2018. It
indicates that company performed well in collecting sales receivable. The lower CP the
better it is for the company.
▪ Inventory Turn Over of the company was recorded at 68.45 in 2018, an increase from
18.46. These changes indicate that Sarinah’s ability to sell their goods faster than they
used to in 2017. Such increase is favorable, that shows the company performed better in
selling goods which is very quickly, and that demand for their product exists.

IV. RECOMMENDATION
Based on the SWOT matrix, strategies purposed as presented below:
1. Market expansion strategies trough IT implementation
Expanding market share by developing an Online Store application. Company can
utilised concept of Online Shop (Home Shopping System) and Point-of-Sale System;
which has a function as a online oulet that provides information to customers worldwide
about the products sold (like a catalog of products sold), accepts orders for items in the
catalog, serves payment confirmation and provides a forum that handles complaints
(claims) from customers who concern about the quality of the product, the quality of
the distribution of ordered goods, and/or the quality of the information provided.

2. Strategy to increase company productivity by applying the concept of Supply Chain

Management (SCM) and Enterprise Resource Planning (ERP) in an integrated system.
Develop a conducive business climate with partners is an essential target for long term
succes, in order to reach a desired one, an integrated system of SCM and ERP will play
a significant role.