Case Document

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.

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.

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.

STOCK-OUT!

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.

TOYS ‘R’ US: THE DEMISE OF THE TOY EMPIRE

The case study tells the story of Toys ‘R’ Us which used to be the most prominent player in toys business. Founded in 1957 by Lazarus, Toys ‘R’ Us had grown tremendously in the industry. Proclaimed as “one of the outstanding companies in all of retailing” by Goldman Sachs in 1985, Toys ‘R’ Us started to see its downfall after Lazarus had stepped down in 1994. Having led by different CEOs since then, Toys ‘R’ Us saw a hope in John Eyler who led Toys ‘R’ Us in 2000. In his 5 years serving as its CEO, Eyler, described as “an innovative and passionate marketer with entrepreneurial leadership and the energy needed for the toy market”, had tried many strategies. However, did he manage to save Toys ‘R’ Us from falling deeper?

Author

Sukma Putra, SE., M.Ed.

Sukma Putra, SE., M.Ed.

Michael Setiawan, S.Pd., M.Hum.

Michael Setiawan, S.Pd., M.Hum.

Stefanny Mathilda, S.Pd., M.M.

Stefanny Mathilda, S.Pd., M.M.

HARRIS HOTELS: CONNECTING THE DOTS BETWEEN HARRIS DAY AND CSR

HARRIS Day was a program that combined CSR and marketing programs. The program took various themes and activities which aimed to order to raise community awareness on HARRIS Hotel existence as local hotel with International Network. HARRIS Day was fully supported by Mark Steinmeyer, the founder of Tauzia Hotels. Although HARRIS Days has been implemented for 10 years, Marc was still looking for ways  to formulate HARRIS Day program that meets CSR and marketing objectives. It must be able to encourage HARRIS stakeholders to accept the program properly and willing to execute it successfully. It was not easy to carry out activities involving many people and simultaneously held in some areas. The biggest challenge was to determine the theme and concept of HARRIS Fun Bike because it had to accommodate many things such as brand development and budget allocation. The most important thing was the committee because it consists of internal stakeholders who also had high workloads. Moreover, it also took time to select the venue for HARRIS Fun Bike. The venue will be rotated every year. Every mid-year THM and all HARRIS Hotels chain started looking for sponsors and decide the theme and concept. GM Cluster in each city who was pointed by THM must be able to lead the preparation and responsible for the success of the events. GM Cluster must establish the operational team in their area. THM corp. team (Brand, Marketing, Event, and CSR) and operational teams in each cities coordinate each other to work together to carry out the event simultaneously. To boost the excitement of events outside Jakarta, senior managers from THM Jakarta were sent to each cluster to attend the HARRIS Fun Bike. The evaluation obtained from each chief operating officer after the event was completed would be an input for the next event preparation.

Author

Yunita Kartika Sari, MM.

Yunita Kartika Sari, MM.

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

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

FAKE NEWS: A LOOK AT COMPLETELY UNTRUE HEADLINES

In a world where democracies are important, news organizations play a crucial role in the development of modern society. In other words, media organizations significantly influence society through their content. The character of the media is interesting in this regard. The media serves as a surveillance for public institutions and society, but media outlets are also business entities with the baggage of potential bias and interests that come with money.

As the press has grown into a massive and powerful existence, especially with the emergence of online media, there has been a significant change in reporting news from things that already happened to things that are happening. However, in order to provide 'real-time' news, the essence of journalism, which should strictly rely on the verification of facts, seems to be often neglected. Some of the most important aspects of the media's social responsibilities lie in the areas of ethical journalism, news accuracy, and media bias. The failure to appraise upon those aspects might cause public misinformation and, in the Indonesian context, social conflict.

In 2017, in West Kalimantan, Maman Budiman, a 53-year-old man was on March 26 attempting to visit his son in Amawang village in Mempawah regency when he was beaten to death by local people who suspected him of preying on children. Maman, who was a trader in petai beans (bitter beans), had been intending to deliver some rice and other foods to his son, Tedi (26) when he stopped to ask for directions. He was brutally bashed and detained at the village hall. At the time, false information on “massive” child kidnapping was being spread in the country through social media and chat apps which lead people to believe it. As people rely more on social media for news, there is a real risk of fake news hijacking Indonesian democracy. It is crucial that Indonesian schools teach children to practice critical thinking, so they can distinguish between facts and lies because media have a strong influence towards our children these days in order to get the standard perspective of the news and prevent bias on news media.

Author

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

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

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