Case Document

TRANSFORMATION OF THE FORESTRY INDUSTRY THROUGH SUSTAINABLE FOREST MANAGEMENT IN INDONESIA

On 6 January 2022, President Joko Widodo announced the cancellation of forest concession permits granted years ago to companies that never used their concession and abandoned the land (KLHK, 2022). These covers an area of 3.13 million hectares. The concessions would be given to other companies that could show their true intention to use the permits, utilize the land and manage the forest based on sustainable development principles. Therefore, it was expected to contribute to Indonesia's economic growth and enhance living conditions by transforming unproductive forest lands into productive forests and reducing the deforestation rate.

Author

Dr. Asnan Furinto

Dr. Asnan Furinto

Vidayana, ST., MM

Vidayana, ST., MM

SUSTAINABLE ADVANTAGE, IS IT A STRATEGY?

As the pandemic transformed various aspect buying behavior of the consumer, so did the retailers follows to match it. However, one of the legacies of the 2020 pandemic and the result of long restrictions of lockdowns, not all retailers are able to follow suit. This created an extensive list of malls and retail establishments questioning their existing business model and why could not bear the new business environment, which forced those retailers to file for bankruptcy. Yet, other retailers who prepared to tailor to the restriction saw it as opportunity to lead them to the market. During this same period, as consumers increased their reliance on online shopping, consumer spending shifted to the available retailing types. It increased sales for eCommerce in Indonesia, namely Tokopedia, Bukalapak, Shoppe, and many others. Though, the eCommerce boom during the pandemic was then challenged by the sudden consumer shift, which consumers flock back to malls and other entertainment venues. The lessen restriction on social interaction by the government has impacted the consumers’ not only toward buying patterns but also how they change their leisure preferences. This begs the question of the retail practitioners on what strategy is and whether their applied business model is sustainable. They should evaluate the advantages and disadvantages of the cautions they must prepare. With this rising phenomenon, while nowadays, e-commerce has become a vital element of retail strategy, the coming success of retailers will, in the long run, hang on constructing a cohesive customer experience, both online and in stores.

Author

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

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

IMEXINDO

PT Imexindo as a group has 160 employees with an average working period of 5 years and above consisting of several divisions, the organizational structure is led by a board of commissioners, then there are directors who serve in several divisions below, namely Operations, Business and Product Development, and Finance and Administration. 60% of the total Imexindo employees are millennials, therefore an organizational structure is needed to clearly define responsibilities and roles in providing work results reports to top parties.

Mr. Dedy, the director of PT. Imexindo Intiniaga establishing good relations or relationships and good motivation between employees can provide a different work experience and provide individual satisfaction for employees. In a company that has limited employees, it certainly presents its own challenges both in designing the organizational structure and the roles and responsibilities of everyone in the PT Imexindo company. This limitation provides insufficient space, thus necessitating the existence of multiple positions, especially in the finance division.

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

PT UNITED TRACTORS: THE NOT SO-PROMISING FUTURE

It was one bright afternoon in the month of April 2019. It was just one week ago that Franciscus Xaverius Laksana Kesuma was appointed as the Chief Executive Officer of PT United Tractors Tbk. The bright afternoon, did not seem to be quite bright just yet, as the price of coal continues to fall and the dream of making a comeback for one of the leading company in heavy equipment in Indonesia might only be just a dream. The eerily look on the future of Indonesia mining industry which heavily related to the main business of PT United Tractors who delve in heavy equipment business somehow painted a bit darker grey of the bright afternoon. As Franciscus gazed in the afternoon shades and wonder if the storm would pass?

Author

Tengku Mohd. Khairal Abdullah., BBA., MBA., Ph.D.

Tengku Mohd. Khairal Abdullah., BBA., MBA., Ph.D.

GOOGLE’S CHINESE COMPROMISE: A CAPITALIST CAPITULATION?

For global businesses, the Chinese market is tempting due to the sheer size of the population. According to World Bank data (2018), China has a population of 1.4 billion citizens. However, the Chinese market is notoriously difficult to crack (Stalk & Michael, 2011; Stevenson, 2017; Yongfu, 2014). According to Horowitz (2018), “doing business in China comes with a long list of demands”. Alphabet, the parent group of Google, was listed as having the third largest market value in the world (Statista, 2018), but it has still had its share of ups and downs in the Chinese marketplace. China’s harsh line on censorship has made it impossible for a company whose main raison d’etre is the availability of information on the internet. Having withdrawn from the market in 2010 due to China’s political overreach, what message is Google sending to the world by re-engaging with the nation? Is the quest for global dominance - and the accompanying advertising dollars - enough for Google to capitulate to China and grant them their censorious wishes?

Author

Martin James Moloney, BSc Hons, M.I. Kom.

Martin James Moloney, BSc Hons, M.I. Kom.

PT. PUCO: STRUGGLING ON BECOMING INDONESIAN VALVE MANUFACTURE

PUCO is ambitious to be the only one Indonesian valve control systems, they aimed to convince their customer to use their product. But in order to convince, they know that they need to struggle to get certification “American Petroleum Institute (API)”, that is not easy to get. Baskoro thought that all efforts that he has been taking is enough to get API’s auditors impression, but unexpectedly PUCO didn’t pass the certification, and receive reports from API around mid-April 2018, one month after certification process. From the reports, Baskoro was in terrible disappointed, since one of the findings mentioning PT. PUCO need to evaluate and improve their documentation also their quality control.  

Author

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

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

PT SUMMARECON AGUNG TBK: THE CONSTANT PURSUIT OF PERFECTION

The case is about PT Summarecon Agung Tbk (SMRA), one of the successful property developers in Indonesia. Throughout its journey, SMRA has undergone a differentiation strategy for its business model, starting with developing a remote area in the eastern fringe of Jakarta and successfully transforming it into a bustling neighbourhood. SMRA has undergone “the constant pursuit of perfection”, starting from the beginning of its existence. The company is an expert in discovering ‘hidden gems’, refining them into perfection and transforming them into marketable accommodation. With the property segments now heavily fragmented, tougher competition and the scarcity of land banks, SMRA needs to diversify its products and look for new ideas for its next ‘hidden gems’. The case is about how SMRA’s leader, Mr Herman Nagaria is exploring the idea of introducing the condo villa concept as a new product as its next hidden gem.

Author

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

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

THE THREE-WHEELED GIANT: THE BAJAJ GROUP CASE STUDY

Bajaj Auto went from a small company in one town in India to being a world leader in vehicles, finance and other areas.
For the people of Jakarta, Indonesia the bright orange three-wheeled bajaj used to be a very common sight. In recent years the blue model, which uses natural gas, has taken the place of the once ubiquitous orange model. Similarly the citizens of Bangkok, Thailand are accustomed to the ever-present so-called tuk-tuks or “'sam lor' (three-wheeled)” (Tuk-tuks in Bangkok, 2018). In many countries and numerous Indian cities (Mani, 2010) these three-wheeled vehicles are an important part of daily transportation.
What many people don’t realize is all these vehicles, also known as auto-rickshaws, originate from one very successful Indian company, in fact, one Indian family, the Bajaj family. The company was founded in 1926 by “humanitarian, freedom fighter, philanthropist, social reformer and a devoted Mahatma Gandhi follower,” Jamnalal Bajaj. (Jamnalal Bajaj Foundation, 2018)
The company that created the common three-wheeled auto-rickshaw has become a world leader in two and especially three-wheeled vehicles. The company, started by an Indian man in the 1920s has become an extremely successful diversified group of companies.

Author

Charles M. Schuster, M.A.

Charles M. Schuster, M.A.

BATTLE THE OF OLD VS SHARING ECONOMY: HOW GO-JEK & GRAB DUEL FOR INDONESIA AND CRIPPLED BLUEBIRD

The timeline of this case began in the early of 2017, just after Go-Jek experienced one of its first violent engagement with public transportation such as minibus and angkot drivers. The incident took place all over Jakarta and Tangerang area causing one fatality, in which one of Gojek driver were run down by angkot driver, sparking massive retaliation among Gojek drivers which in retaliation performed violent sweeping activities towards these angkot drivers. Many angkot drivers were reluctant to drive their angkot the very next day to evade these sweeping activities causing the road to have some extra space which otherwise would be normally congested. The case examines the strategic challenges faced by Gojek as one of Indonesia’s startup companies with ‘unicorn’ status. The company can be categorized as disruptor, as it totally disrupts the well-established ‘conventional’ public transportation company by providing solutions in the ever-congested traffic of many Indonesian big cities. As disruptors, Gojek continuously facing new challenges in every ground both internally and externally. Externally, they were facing fierce competitions from many types of public transportation including taxis, minibus and angkot, which few times escalated into physical and violent, as well as un-ready regulations from the Government which many times showed their unpreparedness in embracing the new era of sharing economy. Internally, they were also facing difficulties from their partner-driver with many arising issues such as changing commission rate from time to time as well as the ever-changing structure in the calculation of bonus points. These relationship with Gojek partner-driver were quite challenging to manage as their position was not considered to the staff of the company and yet they were the one that delivers the core product. Hence, one central issue of the case will Gojek sustain their business model by having so much problem and difficulties in the dawn of the new era of sharing economy.

Author

Tengku Mohd. Khairal Abdullah., BBA., MBA., Ph.D.

Tengku Mohd. Khairal Abdullah., BBA., MBA., Ph.D.

PT INDOFOOD SUKSES MAKMUR: INTEGRATING SUSTAINABILITY INTO CORPORATE STRATEGY

In general this case study describes the major drivers and activities of PT Indofood Sukses Makmur to become a sustainable organization. This case also dwells on Indofood business environment scanning process in order to map out the real problems that have to be attacked. The objectives of Indofood sustainability strategy was to reduce the company’s negative impact on the social and natural environments. This case study also describes other benefits that Indofood received from their sustainability initiatives such as the company’s competitive advantage.

The case discusses the local and global environment changes which forced Indofood to make adjustments to their business strategy. It also portrays Indofood’s competitive environment that was affected by the local and global situation changing. This case also covers Indofood’s social sustainability (labor conditions and community development) as well as the environmental sustainability management initiatives as the biggest instant noodle producer in Indonesia.

Author

Vidayana, ST., MM

Vidayana, ST., MM

1 2 3