TURNAROUND RECAPITAL’S WAY CASE STUDY OF PT AETRA AIR JAKARTA

Recapital acquired PT Thames PAM Jaya (TPJ), in year 2007, when the performance of the company experienced a downturn for three consecutive years (2005-2007). Besides, for about 9 years operating in Indonesia, PTJ never reached the target set by Government. However, after Recapital acquired 95% shares, the company experienced a turnaround, where the company’s condition gradually improved and experienced significant growth in over the next 3 years (2008-2010). Recapital made changes to the management of the company ranging from changing the name of the company, until the renewal in human resources, culture, and organizations in it.

Recapital already had a good reputation and well-known expert in revamping companies that were in bad financial conditions. From 2002 to 2008, there were at least 6 companies being acquired and successfully improved by Recapital. This was a strong indicator that explained PT Aetra’s significant growth after the acquisition.

This case study describes the success story of Recapital’s turnaround strategy in PT Aetra, what kind of turnaround strategy they used, how the turnaround strategy could be accepted, and what made this strategy successful.