Balancing Exploitation & Exploration: An Ambidextrous Organization Framework in the Digital Transformation Process of Bank Perekonomian Rakyat (BPR) Saridana Surabaya (International Journal of Economic Business Accounting Agriculture Management and Sharia Administration (IJEBAS))

Summary

• BPR overall market share across credit segmentations declined from 1.98% in 2021 to 1.86% in 2024.p.2
• The market share of BPRs in retail lending experienced a decline from 3.22% in 2021 to 2.99% in 2024.p.2
• Phase 1 of the explore product digital framework requires a minimum IDR 6 Billion paid in capital as compliance cost.p.8
• Phase 2 of the explore product framework requires a minimum IDR 15 Billion paid in capital as compliance cost.p.8

Key insights

1. Industry consolidation, mergers, and licenses revoked by OJK due to fraud or inadequate capital requirements caused the reduction in the number of BPRs.p.2
2. POJK No.7 issued in 2024 enabled foreign ownership of BPRs through an Indonesian incorporated company to bring in needed capital and capabilities.p.3
3. The research synthesizes four key criteria for BPR digital transformation: Capital/Investment, IT resources, Business Potential, and Shareholder Willingness/Mindset.p.4
4. BPR Saridana Surabaya serves as the representative research object for rural banks struggling to adjust to digital transformation while operating under resource constraints.p.3
5. The Analytic Hierarchy Process (AHP) results show that Consumer Lending is the highest priority digital banking product alternative for BPR Saridana.p.8
6. Successful digital transformation for resource-constrained financial institutions relies primarily on leadership mindset and market pragmatism rather than initial technological infrastructure spending.p.1