Citibank Indonesia Essay

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CITIBANK INDONESIA Assignment in økonomiske styringssystemer. In this paper I am going to write about the case study Citibank Indonesia and discuss around what Mr. Mehli Mistri should do with the budget issues discussed in the beginning of the case study. Mr. Mehli is the primary spokesman for Citibank in Indonesia and he has the primary responsibility for determining the budget. Mr. Mehli gets after the presentation of the budget in 1983 a restriction from his headmaster that he needs to increase the country's after tax profit by $ 500.000- $ 1,000,000. What opportunities does he have to make changes on the budget? What factors affected the choices he made and will he be willing to make changes eventually how? Indonesia is a young country that became independent as recently as 1949. Citibank has been a leading bank in Indonesia since 1968 when the president permitted eight foreign banks to install in the capital Jakarta. The reason for this interest was to get a steady economic growth in the country. These banks where supposed to help the country by transferring capital, establish a modern banking infrastructure, supplying well-trained personnel and by this attract foreign investment. At this time, the Indonesian economy had enormous opportunities. Indonesia is the fifth largest country in the world based on population and the economic growth had been great in previous years because of the country's wealth of raw materials, oil and tin and not to mention their great interest in the development of the industry. Citibank was in the 1980s one of the largest banking sectors in Indonesia and was engaged in three main markets: institutional markets, individual markets and capital markets. Mr. Mistri was employed as the mainhead of Citibank Indonesia in 1979. Citibank Indonesia injected skilled and wealth educated employees, which created great interest
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