Case Document

A SHARIA HOTEL CHAIN: STORY OF ARABIA HOSPITALITY GROUP

The story of the Arabia Hospitality Group centers on the Grand Arabia Hotel in Banda Aceh, Indonesia. Established in 2017 and later acquired by the Arabia Hospitality Group in 2021, it's strategically located near the Baiturrahman Grand Mosque. The group's focus is on luxurious hotels adhering to Sharia law, with over 7 locations across Sumatra. They offer upscale accommodation targeting medium to upper segments, pricing rooms from 800,000 to 4,900,000 rupiah. Competition mainly arises from large hotel brands like Accor, Four Seasons, and local brands, though the strict adherence to Sharia law in the region discourages some major brands from entering the Banda Aceh market. However, the hotel faces human resource challenges, notably high turnover due to various factors. Issues range from infrastructure discomfort (power outages, poor internet) to employees' reluctance to adhere to Sharia law's standards, causing disciplinary problems. Potential solutions include providing comfortable accommodations for employees, addressing infrastructure issues, conducting more informative sessions about the importance of Sharia law compliance, and offering computer literacy training. In conclusion, while the Arabia Hospitality Group presents a unique approach catering to Sharia law conformity, addressing employee needs and reinforcing the significance of Sharia law adherence within the company culture are vital for sustained success in this niche market.

Author

Dr. Sekar Wulan Prasetyaningtyas, S.Si., M.Pd.

Dr. Sekar Wulan Prasetyaningtyas, S.Si., M.Pd.

SAYURBOX: LEADING THROUGH DISRUPTION

This case study illustrates how a start-up business that promotes integration between farmers and end users through a technology platform becomes an intermediary to form a new business model. In addition, in the current disruptive era, technology is very much needed in winning market competition. For this reason, Sayurbox is very relevant to be studied by students. In this case study, there are two important points that are conveyed, namely in the form of challenges and opportunities faced by Sayurbox to be able to adapt.

Author

Dr. Ir. Dewi Tamara, MM., MS.

Dr. Ir. Dewi Tamara, MM., MS.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

Dr. Abdul Rohman, S.Pd.I., MM

Dr. Abdul Rohman, S.Pd.I., MM

DREAMDELION: DREAMING WITH YOUR EYES OPEN

Dreamdelion was founded in 2012 as a non-profit organization. Initially, their concentration was solely on community development initiatives engaging underprivileged people. Dreamdelion has expanded to five Indonesian cities: Jakarta, Jogjakarta, Cianjur, Surabaya, and Ngawi. The projects were mostly based on assessment; once they believed that the project was complete, they would leave it. In terms of volunteers, Dreamdelion employs three distinct strategies. There are event volunteers, project volunteers, and long-term volunteers. Dreamdelion welcomed volunteers to be a part of its entrepreneurial and open organizational culture.   Dreamdelions had worked with government agencies, commercial corporations, and other organizations. Among its collaborators were the Ministries of Manpower and Transmigration, Communication, and Informatics, CIMB Niaga, Indonesia Power, and Bank Danamon. Eva, Dreamdalion's creator, understood that to thrive as a non-profit organization, Dreamdelion needed to do a lot of things. First, she had considered enlisting new collaborators so that they might continue to work on collaborative projects. She also intended to recruit additional volunteers, particularly those who could assist on a long-term basis. Eva also considered creating more particular programs geared to solving difficulties that may occur in civilizations because of the pandemic. However, there are several difficulties that she has been considering. How can we ensure that Dreamdelion receives enough volunteers and support from diverse stakeholders?

Author

Dr. Adilla Anggraeni, B.Bus., MBA.

Dr. Adilla Anggraeni, B.Bus., MBA.

Dr. Anita Maharani, S.E., M.M.

Dr. Anita Maharani, S.E., M.M.

PEOPLE STRATEGY AT TOKOTALK

TokoTalk is an Indonesian e-commerce solution platform that has various features to enable merchants of various business scales to carry out end-to-end online selling activities. TokoTalk's mission is to provide a seamless connection to all merchant needs in selling online, including integration with logistics, digital payment options, 100++ premium website templates, a comprehensive order management system, and digital marketing tools. Amidst the onslaught of the tech war, Tokotalk has implemented several people strategies which are considered successful in making people development in Tokotalk run smoothly. amidst the storm of layoffs experienced by many startups in Indonesia, what strategy did Tokotalk take? what modifications will other startups need to implement in order to survive?

Author

Dr. Sekar Wulan Prasetyaningtyas, S.Si., M.Pd.

Dr. Sekar Wulan Prasetyaningtyas, S.Si., M.Pd.

MEIKARTA .... WILL ALL THE DREAMS COME TRUE?

For the sake of promoting the ambitious project, Lippo has poured more than Rp 1.5 trillion in marketing funds. The massive Meikarta advertisements have been seen since the beginning of 2017. Almost all promotional media such as television, radio, newspapers, billboards, and social media are full of Meikarta advertisements, which offer classy metropolitan residences in the east of Jakarta. The buyers' interest was so high that the order for apartments in Meikarta had reached 16,800 units and these sales got the MURI record as the most apartment unit sales in one day until it was discovered that the Meikarta Project did not have an Environmental Impact Analysis (Amdal) and Building Permit (IMB) permit. The Consumer Protection Act prohibits businesses from offering, promoting, and advertising goods or services that are not yet available. The Flats Act states that the developer must at least have a permit to construct flats if they market before construction. The government should strictly prohibit the sale of property that is not accompanied by a full license. Buying and selling an unfinished apartment needs to be stopped because it may be hazardous for the buyer. Apartment consumers are always in a weak position if the project is stalled or the developer goes bankrupt.

Author

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dicky Hida Syahchari, S.T., M.M., Ph.D

Dr. Maria Grace Herlina, S.Sos., M.M.

Dr. Maria Grace Herlina, S.Sos., M.M.

PALM OIL CONTROVERSY

Palm oil is one of the world’s most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as a source for biofuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because the trees require warm temperatures, sunshine and plenty of rain in order to maximize production. In Indonesia, PT Perkebunan Nusantara as one of the companies owned by Government who specialized operating the palm oil production was challenged by the controversial cases in Sumatra. The case arises after the land clearing activities for the palm oil plantation that caused haze spread throughout several countries in Southeast Asia.

 

The land clearing cases in Sumatra island causes multiple adverse impacts to the environment, surrounding society, and to the business, itself. The 2015 Southeast Asian haze was an air pollution crisis affecting several countries in Southeast Asia. It was caused by PTPN from illegal slash-and-burn practices to open new palm oil plantation due to land clearing, principally on the Indonesian islands of Sumatra and Kalimantan, which then spread quickly in the dry season. This case has been the worst disaster not only for Indonesia but also other countries surrounded.

Author

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

FILM PIRACY IN INDONESIA: HAVE ACTIONS AND REGULATIONS TAKEN BEEN EFFECTIVE?

The film industry in Indonesia began around 1950 marked by the production of the first film in Indonesia entitled Darah & Doa on March 30, 1950, and now celebrated as National Film Day. In the 1950s and 1960s cinemas began to appear in big cities like Jakarta, and the Indonesian cinema business community was formed, called the Indonesian Cinema Association (GABSI). From 1965 to 1970, the film industry experienced a difficult period due to the G30SPKI incident, which caused massive inflation and a decline in consumer purchasing power. In the 1980s videotape piracy began to emerge due to the limited number of cinemas. After going through difficult times, the Indonesian film industry began to rise with the emergence of the extensive Studio 21 cinema network in 1987 and began taking the small cinema market. In the 1990s, the film industry experienced a decline due to the irregular regulation of film registration in Indonesia so that the data on films produced became unclear. The emergence of VCD and DVD technology also caused interest in watching in the cinema decreased. Entering the 2000s, the film industry in Indonesia rose again with the emergence of several best-selling films in the market such as Petualangan Sherina, Ada Apa dengan Cinta, Eiffel I'm in Love, and Gie, which attracted the attention of various groups of people to watch in theatres.

 

Author

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

ADAPTION

The case is hypothetical events of an Australian based company operated in Indonesia with background of 1998 financial crisis. The case demonstrated cultural differences amongst Indonesian staffs with Australian expatriates in business context, ignited by major financial crisis that hit Indonesia in 1998 when its currency plunged from 2500 to 15000 against USD. The case demonstrated the dynamics in business decision where different leadership styles was encountered amongst multiple stake holders in a cross-culture management set up.

Author

Ir. Elia Oey, M.Eng., M.Sc.

Ir. Elia Oey, M.Eng., M.Sc.

FICTIONAL ORDER IN INDONESIAN RIDE HAILING SERVICES

The development of modern technology has penetrated the world of transportation in Indonesia. It can be seen from the emergence of ride-hailing application models in major cities in Indonesia (Exhibit 1). This ride-hailing application is a combination of motorcycle taxi transportation services and communication technology. This application is intended to make it easier for users to access transportation media that will be used in daily mobility. This online-based transportation application is also called the ride-hailing application, whose appearance in Indonesia began to rise in 2014 and peaked in 2017 (Exhibit 2). The phenomenon of online-based applications is an answer to people's needs for transportation that is easy to get, convenient, fast, and inexpensive. The most popular online transportation provider in Indonesia is Gojek and Grab.

The issue that is now the concern is the widespread finding of cases of fictional orders that aim to get massive bonuses, including the use of fake GPS to rig the driver's partner position. Fictional orders appear after new regulations from online transportation providers are considered to be harmful to the drivers. Service rates are lowered, and minimum payments are also deleted. The company also added a performance appraisal system for its drivers. This policy certainly has a positive and negative impact on the driver and management. The new rules will add to the list of burdens borne by drivers, namely pulses, gasoline, and vehicle service fees, while receipt of orders must reach 70 per cent to get a daily bonus. This new rule seems to eliminate the opportunity for the driver to get the daily bonus. This new rule also makes drivers unable to reject passenger orders directed by company management. Drivers only have 10 seconds to take the order, and if not taken, it will affect their performance as a driver.

Author

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

FINTECH IN INDONESIA: DILEMMA OR CONFLICT OF INTEREST

Fintech’s business in Indonesia is growing rapidly nowadays, proven by the existence of many Fintech-based startup companies in the last few years. Fintech startup itself is starting to occupy a large part of the Indonesian startup industries. Fintech helps people to access financial products, facilitate transactions and improve their financial literacy easier. Fintech became highlight in September 2015 when Indonesia’s Fintech Association established. The goal is to set a trusted and reliable partner to build up Indonesia’s Fintech ecosystem. It come up from Indonesia enterprises and for Indonesians. Up to now, there are at least 140 Fintech players in Indonesia, with 55 of them joining the organization as full members.

 

In 2016, the Indonesia Financial Service Institution (POJK) issued new regulations and policies about fintech on off balance sheet (marketplace) lending and by Central Bank (BI) on Payment Transaction Processing. The growth of Fintech players has been skyrocketing, from only 7% in 2006/2007 to 78% a decade later. The number of the players are recorded around 135-140 companies. 43% of them play in the payment sector, such as mobile payment as well as payment gateway startups from various sectors, ranging from payment startups, lending, financial planning (personal finance), retail investment, crowdfunding, remittances, financial research, and others. Fintech reaches the younger generation who are more familiar with the internet and make use of the internet for all their needs. Fintech can also make things simpler and more efficient. Fintech uses technology, software and big data, it also uses social media data from its users that Fintech uses in conducting risk analysis.

Author

Dr. Peri Akbar Manaf, B.Sc., MBA.

Dr. Peri Akbar Manaf, B.Sc., MBA.

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