The Study On Developing Competitiveness Strategy of PT. Bank Muamalat

As a financial institution, Bank Muamalat Indonesia conducts its businesses based on Sharia principle, performs its functions as a bank by executing its principal business activities, namely collecting funds from the public and distributing the funds to the public through financing services. In the current situation, the Sharia Banking industry keeps on developing and increasing. Within the spiritual market, Bank Muamalat has a competitive advantage as the first stand-alone sharia banks in Indonesia and has become a better entity and grabbed long-term growth. The authors focus on three objectives; 1) Strategizing the time frame of FTP rate calculation 2)Providing Bank Muamalat with a new equation of FTP 3)Increasing the competitiveness of Bank Muamalat in Segmenting, Branding, and Promotion. Since the rapid growth of Sharia Banking Industry in Indonesia, PT. Bank Muamalat should analyze its current issues and their potential to compete within the market. Through this study, the authors will analyze the competitive advantage using Porter's 5 forces, VRIO analysis, SWOT and TOWS analysis. The other issues that were discovered in PT. Bank Muamalat internal system is their current implementation of Fund Transfer Pricing (FTP) calculation, where they have the annual calculation which has the inability to adapt towards volatile situations in taking place on uncertain time phases throughout the period, producing outcomes of unsatisfactory. In conclusion, PT. Bank Muamalat Indonesia should utilize its brand as "Indonesia's Sharia Bank Pioneer" and maximized the targeted market engagement of the spiritual market by creating a mindset of ―BERKAH‖. On the other hand, for the calculation of Fund Transfer Pricing (FTP), PT. Bank Muamalat Indonesia should consider changing its timeframe from annual to the monthly calculation to help the company in facing volatile situations. Keywords: Sharia Banking, Spiritual Market, Fund Transfer Pricing