The owner of Artotel group comes from the family who own the Marriott Surabaya. Wishing to expand to another market, Artotel was established with the idea of making art available to everyone. The hotel was aimed at marrying the concept of a boutique hotel decorated with art works produced by local artists, resulting in a comfortable and memorable place to stay. Artotel has undergone several changes in its strategic direction. Being an entrepreneurial company, it sees expansion to other businesses and types of accommodation as a way to survive in the turbulent environment. Artotel realizes that its main strength is its ability to have a ‘breathing brand DNA’, i. e. a brand that keeps on evolving depending on its market environment. This case will discuss the different methods that Arotel has employed to gain more market share and maintain its brand DNA.

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.

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.

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.

This case discusses Garuda Indonesia’s 2018 financial report which is deemed to be misstated with respect to its revenue account. Despite this, the auditor issued an unqualified opinion. As a public company and national flag carrier of Indonesia, this case attracted a lot of attention from and was scrutinized by many stakeholders. A financial report should contain certain characteristics to it (usually referred to as qualitative characteristics of financial information), so that users can rely on it to help them make business decisions. Two commissioners of Garuda decided that Garuda’s 2018 report did not satisfy the accounting standards, and hence they refused to sign the report.

After receiving high publicity and conducting a thorough investigation, in June 2019, regulators finally announced that Garuda had manipulated its 2018 report and required Garuda to publish a restated financial report. In addition, Garuda was also required to pay a fine. The regulator also imposed sanctions to the auditor for failing to perform the audit process according to the auditing standards. In a sense, this case is yet another example of an accounting scandal and audit failure. Nevertheless, there is always another side of the story, which is expected to be discussed during the class discussion.

As almost all activities can be executed with just a smartphone and internet connection these days, companies should consider to provide online services unless they do not wish to stay in the market any longer. That does not exclude tourism industry which involves airlines, hotels, trains and other types of accommodation and transportation. People, including Indonesian, prefer to sit and relax while planning their trip rather than waiting in a long queue just to book their plane tickets. This gives Traveloka the ability to stay on the top of the as number one solution for all kind of travel needs. Traveloka itself was established as the founder, Ferry Unardi, often had difficulty in plane reservations, especially when he wanted to return to Padang, Indonesia, from the United States. Even though it began as a search engine to compare the price of airline tickets from various other sites, Traveloka succeeded in becoming a ticket reservation website, where users can place an order on its official website. A while later, hotel booking services are also available on the Traveloka website.

Traveloka started on early e-commerce era which made Traveloka encountered several obstacles as other e-commerce companies had to deal with at that time. One of them was to gain customer trust. People were not feeling comfortable about giving their money without seeing the products with their own eyes yet. Especially in Traveloka case, where people actually had to hand a big sum of money for it is a plane or hotel reservation. But Traveloka has proved themselves as trustworthy to the market with their security guarantees such as a secure payment gateway (Exhibit 1) and customers’ personal data protection. Traveloka also managed to expand its business in Southeast Asia, namely Thailand, Malaysia, Singapore, Vietnam, and the Philippines. However as time passes by, customer trust is no longer the only obstacle they have to face in this e-commerce industry.

Tea is the second favorite beverage after water globally (Exhibit 1) due to the fact that it gives health benefits, such as increasing the function of blood vessel, battling the fatigue, decreasing the cholesterol ratio and keeping our body fit. Such benefits can be obtained by drinking tea routinely for about four to six times a day. People are consuming tea on daily basis for these benefits and the growing population has created a big market for worldwide tea producers including Indonesian market. Indonesia as a country itself has been a major tea producer and ranks as the seventh on the world’s largest tea producers list supported by large consumer increase. Sariwangi, a domestic brand, was introduced back in 1973 with a ‘tea bag’ concept. This was a fresh and modern concept comparing to old concept tea which was the brewed tea. This concept made Sariwangi able to crawl to the top of tea market easily and became the biggest tea bag brand in Indonesia. In 1989, Unilever Indonesia, a consumer goods company has acquitted brand Sariwangi and started to act as the distributor of Sariwangi. For over 40 years, the brand Sariwangi has committed to give the best quality of tea for Indonesian tea consumer with lot of campaigns and innovations in between. The founder company has wished to increase the tea production and invested a large sum of money in drainage system. However the outcome didn’t go as expected and left them in a big debt. Big debt as well as the decreasing tea export volume resulted in bankruptcy of the founder company of Sariwangi in 2018 as the tea bag of the brand Sariwangi will still be produced by Unilever Indonesia.

The case study is a case study on energy efficiency accounting that leads to energy saving and CO₂ reductions with cost saving as the financial result. This case study describes how Grundfos Indonesia as a pump supplier for PT. SRM, a chemical company in Indonesia, contributes to energy saving and Co2 reduction that can lead to wider access to clean water by providing its advanced inverter pump technology to its consumer.

The case study covers the introduction on Grundfos Group and Grundfos Indonesia, followed by the understanding of pump life cycle cost to enhance students’ experience and learning in studying the case. The role of PT. SRM in the case study is as the background of the case in which Grundfos has successfully delivered its services.

The main concept of the course specific topic that is relevant to the case study is the consumers and suppliers engagement. Under the concept of stakeholder engagement, the case study describes how a seemingly marketing-oriented activity conducted by Grundfos as part of engagement agreed by PT. SRM can actually lead to energy saving, CO₂ reduction and cost saving. In this case study, the stakeholder engagement is slightly different from the stakeholder engagement of consumers and suppliers described in the text book (Chapter 6). In the book, stakeholder engagement is generally described as an engagement “allowed” by the inviting organization. However, in the case study, the engagement started with the pro-active approach of Grundfos that eventually agreed to solution phase in which Grundfos becomes one of the suppliers of PT. SRM in pumping system. This difference in starting point can enrich student understanding on stakeholder engagement between suppliers and consumers. The kind of report and energy accounting done in the case study will also expose the students to actual practices of communication or accountability in the making between a supplier and a consumer.

Facebook was released on February 4, 2004 by Mark Zuckerberg along with 4 other friends such as Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes.

Since 2004, Facebook has introduced some of the features contained in the website. The News Feed feature introduced in 2006 allows users to communicate and view their friends' activities on the website. It also allows for direct advertisement to the user's News Feed. In 2007, Facebook introduced the Beacon feature, which collects data about its user activities, focusing on the habits of user shopping activities.

Beacon Tool is used to track user's search data and purchases from partner sites, Facebook then broadcast this information to the user's network. No need to wait too long, this feature reaps a lot of controversy and protests from the online community. Many communities believe that the Beacon Tool is a privacy violation and a user agreement violation by the company. The Beacon Tool records Internet activity of Facebook users and sends this activity back to Facebook which then publishes across the network of Facebook users. The Beacon Tool is applied to all Facebook users by default.

The world community faces unprecedented ecological challenges in the 21st century, including climate change, resource scarcity, and threats to biodiversity. A critical task in coming decades for government policymakers, civil society organizations, corporate leaders, and entrepreneurial innovators will be to find ways to meet simultaneously both economic and environmental goals.

 

PERTAMINA has been awarded two platinum awards in the CSR Award (ICA) 2017, and an Appreciation Award presented by Sindo News Media for conducting CSR in the same year. However, PERTAMINA is also linked to controversial cases, such as the devastating oil spill in Balikpapan Bay in 2018 due to a leaked oil pipe. This is not a surprising news, as PERTAMINA allegedly experienced a leak from its oil pipes previously, in the year of 2004 and 2017.

 

The PERTAMINA oil spill case in Balikpapan Bay causes multiple adverse impacts to the environment, the surrounding society, and to the business itself. The ecological damage itself is estimated to be US $8.27 billion. The spill is said to be Indonesia’s worst environmental disaster from the last ten years. How can PERTAMINA manage environmental and business sustainability by reducing ecological damages and promote sustainable development? More importantly, how can the government help impose laws, regulations, and sanctions to help support environmental sustainability?