type here...
Home Blog Page 319

3G Euphoria, Where to from Here?

JAKARTA JIVE
-
0
3G Euphoria, Where to from Here?

How is 3G faring in Indonesia? While it is still being promoted, this third-generation cellular telephone service seems to be losing its sheen. The presence of this latest technology in the mobile phone industry, advertisements of which feature a number of celebrities ranging from Gigi and Krisdayanti to Muslim religious teacher Jefry, it appears to be a wilting flower.

It is true that when 3G technology was first introduced in Indonesia, users lacked proficiency in this technology. It calls for a change in the habit of making a telephone call, namely from merely speaking and listening to speaking, listening and viewing.

However, it is not the lack of proficiency in this latest technology that is responsible for the very slow development of 3G in Indonesia. According to several observers, 3G operators seem to pay more attention to video calling services while in fact subscribers need speedy data access.

Obviously, GSM operators in Indonesia have invested hundreds of millions of U.S. dollars to develop 3G service. A year after its introduction here, however, the number of 3G subscribers stands at fewer than 3.5 million people. Telkomsel, who had 3.2 million subscribers up to July 2007, claims to be among the 10 biggest operators in the world. Meanwhile, XL claims to have 100,000 subscribers making video calls every day (HandPhone magazine, October 2007).

These figures, however, are far from the estimate by International Data Corporation, a leading data institution, which has predicted that Indonesia will have 300,000 3G subscribers using video call-up by late 2008. The 3G euphoria in Indonesia, which operators have plugged since September last year, has failed to gain a proper response. GSM operators initially set a minimum target of 15 to 20 percent of their subscribers being users of 3G mobile phone technology. This means by 2008, there would be a potential for 10 to 12 million 3G subscribers.

The question is, how willing are these subscribers to spend money using 3G technology, which is certainly more expensive than using the ordinary mobile telephone? The number of subscribers may be real but they are not active users as they have simply registered. “My cell phone is 3G equipped, but I very rarely use it for video calls. I use this technology only when it is really necessary,” said A. Baihaqi, director of Tactic Communications.

Baihaqi is just one example. In fact, over the past year, the average revenue per user rate has continued to drop. It therefore comes as no surprise that some people question the future of 3G in Indonesia. Will it fizzle?

In 2003, the director of Pyramid Research, Ross O’Brian, predicted that 3G in the Asia-Pacific region would sell well only in Japan, South Korea and Australia. As for countries like Hong Kong, Singapore and Taiwan, he said it was not time to implement 3G serviced because the markets in these countries were not ready for 3G technology, plus the income level of Asians was still relatively low.

Perhaps the promotion period needs to be longer so that 3G investments in Asia will increase. In addition, in most Asian countries teledensity is still below 50 percent, while there is more concern about augmenting the capacity of the network for voice rather than building a new service based on 3G technology. Operators may claim that they are on the right track in developing 3G services, but facts illustrate the opposite, if not indicate that they have used the wrong tactic.

At the initial stage, operators prioritize the video calling service to lure the public. In fact, what subscribers need is not a video calling or video streaming service but high-speed data access, or an Internet service using HSDPA technology.

In countries where 3G has been successful, such as Japan and South Korea, video calling service is not overly popular. Most subscribers use this service for music downloading and Internet access. In addition, what’s more important is that the Japanese government, for example, fully supports 3G technology and imposes an upfront fee on the use of the 3G spectrum, while South Korea, which also imposes an upfront fee, offers incentives and assistance in the development of the broadband wireless network.

It is true that to operators providing 3G services in Indonesia, video calling — the rate of which is the same as that of ordinary phone conversations during this one-year popularization period — is merely a gimmick to lure subscribers to use other services. They are now beginning to sell a data package of high-speed Internet modem.

In addition, a number of operators have also begun to seriously set up communities of mobile Internet users. They have begun to popularize what is called Web 2.0 or Mobile 2.0, which enables subscribers to do mobile blogging, video sharing and avail of other content-sharing applications. Unfortunately, those most intensively involved in this campaign are mostly cell phone vendors, not operators.

Nokia, for example, has forged a strategic cooperation deal with three broadband wireless Internet providers, namely PT Telkom, PT Indosat Mega Media (IM2) and PT Cyberindo Aditama (CBN), while one content aggregator, PT Mobile Lifestyle Indonesia (MLI), is offering free Wi-Fi services. This cooperation will allow all users of Nokia N series handsets, which have a Wi-Fi feature, to access high-speed Internet free of charge at 1,000 hot spots owned by these three operators in more than 20 cities in Indonesia. However, to access free Internet services, N series users must first register through www.cooldesak.com, built by MLI.

According to the general manager of Nokia Indonesia, Hasan Aula, cell phones have become an inseparable part of modern life. A cell phone is not simply a device for making a phone call as it now has many other functions. Once the cell phone started enjoying its heyday as a device for talking and sending SMSes, more functions started to be included in the cell phone following increased capability to use various technologies, including making cell phones compatible with 3G technology, or even with 3.5 G, 4G or WiMAX technology.

What’s obvious is that GSM operators are hedging their bets with 3G service. This is not only because they have invested a lot of money in establishing this service but also because this service is a stepping stone for the operators to eventually enter the data service arena. (Burhan Abe)

The Jakarta Post, October 30, 2007

Between Popular Teen Novels and Religious Topics

JAKARTA JIVE
-
0
Between Popular Teen Novels and Religious Topics

As a commodity, books have been gaining popularity. Don’t be surprised, therefore, to see the emergence of new publishers in Indonesia. Some new publishers have published best-sellers, such as Gagas Media, which successfully launched teenage novels and other popular reading material generally considered part of pop culture.

Gagas Media has also adapted film scripts into novels, such as Jomblo, Tentang Dia, Heart, Mendadak Dangdut and many others. Successful films are expected to be followed by successful novels written on the basis of the scripts. Heart is a good case in point. Written by Ninit Yunita, this book has been printed eight times.

Interestingly, Gagas Media, developed by Moammar Emka, a popular writer whose first book was Jakarta Undercover (published by Galang Press), never hesitates to publish the works of very young writers. “These writers can depict their world accurately,” he noted. Neither does Gramedia hesitate to publish the works of new writers. To obtain manuscripts for its “metropop novels”, this publisher staged a writing contest with a prize that exceeded the regular fee paid for a story.

Indeed, teen novels are selling like hot cakes, especially because the reading community for novels in this category is developing. At least, this is the tendency that Gagas Media has captured with its establishment of a book club called Philobiblic on Sept. 13. Philobiblic is a book club that caters to the community’s reading and writing interests. Members of this book club are entitled to a 15-50 percent discount on all books published by Gagas Media. In addition, member are regularly sent the latest information about new titles. The publisher also invites writers to hold a discussion with readers.

Religious books have also gained popularity. Over the past four years, data compiled by the research and development division of Kompas daily shows that the sales of religious books have jumped to the upper position, following comics and children’s storybooks. Since religious books, particularly those on Islam, have gained greater popularity, bookstores now have special display areas for these books. Books giving practical tips such as a guide to Islamic prayers, for example, and “spiritual psychology” are topics that are in great demand.

These books sell well not only during the fasting month of Ramadhan but in other months as well. A book by Aidh Al Qarni, La Tahzan Jangan Bersedih (La Tahzan Don’t Be Sad), for example, has been a top seller for the past two years. Indeed, this book, which has been translated into 29 languages, is also a top seller in other parts of the world.

Other top sellers include Menjadi Wanita Paling Bahagia (To be the Happiest Woman), 7 Step Spiritual Quotients (7 Steps to Spiritual Quotients), Mukjizat Gerakan Sholat (Miracle of the Sholat Movement), Terapi Salat Tahajud (Therapy of Salat Tahajud) and Misteri Sholat Subuh (Mystery of Sholat at Dawn). The same can be said in the case of books written in English.

“In view of the great number of acts of terror in several parts of the world allegedly masterminded by hard-line Muslims and owing to the U.S. invasion of Iraq, many people are interested in learning about Islam,” said Judo Suwidji, managing director of Java Books, distributor of imported books and also manager of Periplus.

Indeed, topics covered in religious books cover a broad spectrum. Books written by Karen Armstrong about Islam, in their original or translated version, for example, have enjoyed high demand. Meanwhile, The Da Vinci Code by Dan Brown (in its translated version) has, since October 2004, enjoyed an upper position on the list of “Best-Sellers of Pustakaloka”. More than 100,000 copies of this controversial novel in translation, which is published by Serambi, have been sold.

Interestingly, also selling well are books written in response to the controversy produced by The Da Vinci Code such as Menjawab The Da Vinci Code (In Response to The Da Vinci Code), Mematahkan Teori-teori Spekulatif dalam The Da Vinci Code (Dispelling Speculative Theories in The Da Vinci Code), Fakta dan Fiksi dalam The Da Vinci Code (Fact and Fiction in The Da Vinci Code), Menguak Kebenaran di Balik The Da Vinci Code (Exposing the Truth Behind The Da Vinci Code) and Pengakuan Maria Magdalena (Confessions of Mary Magdalene).

Religious books have attracted a lot of attention because more open ideas are being published. In the Gramedia bookstore in Matraman, Jakarta, for example, religious books have enjoyed second position on the list of best-selling books, following books for children and teenagers (including comics) in the last three months.

Publishers that usually publish books on social and religious subjects are represented by Mizan (including Mizania and Hikmah, its subsidiaries), LKiS and Gema Insani Press. Indeed, not all the books they have published have enjoyed good sales because serious books about critical ideas do not sell as well as practical books and books on practical Islamic psychology.

Today, light reading material with a pop culture content are what readers seem to want. A publisher must think twice before publishing serious books containing critical and profound thoughts. That’s why publishers must find alternative themes and easily digestible popular writing styles if they want to survive. (B. Gunawan)

The Jakarta Post, November 28, 2006

Andreas Ruddy Diantoro: Crawl, Walk then Run!

JAKARTA JIVE
-
0
Andreas Ruddy Diantoro: Crawl, Walk then Run!


Aggressive in his career and a determination to learn are traits of Andreas Ruddy Diantoro. At present he holds the prestigious title of Dell Asia Pacific regional managing director for South Asia and emerging markets.

In 1991, Andreas, who smiles easily, started working as assistant manager at Babbage’s, a software store in New Orleans, the U.S., for US$2,000 a month. With the knowledge he acquired at university, he gave the impression of being aggressive in building his career. We was later named assistant branch manager at NeoStar Inc., a company headquartered in Dallas, Texas, U.S.

When he returned to Indonesia he joined PT Service Quality Center Indonesia as its accounts manager and trainer. He rose further up the ladder when he joined a giant IT company, Hewlett Packard (HP). At first he was the commercial sales manager for Non-Subsidiary Countries at HP Singapore. Three years later he was named market development manager of HP Australia. It took Andreas only a year to be named managing director and channel business director of HP Indonesia.

Andreas had worked for HP for about 10 years when he was offered a job with Dell, also a giant IT company and HP’s main competitor.

“An acquaintance of mine, an upscale headhunter, invited me for a cup of coffee and then told me there was a vacancy at Dell. At first, I looked at Dell with disdain as at that time the company I headed (HP Indonesia) was in direct competition with Dell, and HP almost always came out the winner,” Andreas said.

However, he felt challenged by the offer. Indeed, Andreas had always been closely associated with HP, not only in Indonesia but also in Singapore and Australia. What, then, convinced him to join Dell? “In my region, Dell was second or third rank and I saw it as a challenge to put it in first place,” he stressed.

When he first joined Dell, Andreas intended to make it the leading company in every country under his supervision by means of building strong basic infrastructure. When Andreas joined Dell in 2005, the company ranked fifth in Indonesia. Today it is the leader in the corporate segment in the Philippines and Indonesia, he said quoting IDC Quarter 2 of 2007.

According to Andreas, what is interesting about Dell is its efficient system. He can control Dell in a number of countries, including Indonesia, without having to stay in Singapore, which is the control center of Dell in Asia and the Pacific. “For me, allowing an Indonesian like me to lead and build a world-class company like Dell from his own country is a breakthrough that a world-class company rarely allows. This shows Dell’s seriousness and also its recognition that Indonesians can also fight in the world arena and that any talented personnel of Dell can live in any country of their choice,” he said.

The culture at Dell, he added, is highly efficient so that the company does not require its employees to meet one another personally in meetings. “Internal meetings can be conducted through tele- or video-conference. Meanwhile, face-to-face meetings are conducted only with customers and are maximized to maintain customer satisfaction,” he noted.

Strategy to embrace the market

Crawl, walk then run! This is a management strategy he implemented in his endeavor to embrace the market in view of the great number of players in this sector. Of the three market segments, namely corporate, small/medium enterprises (SMEs) and consumer/home segment, Andreas said, Dell began with the corporate segment (crawl) by applying a product strategy for reliable, stable and scalable corporations in accordance with the needs of large corporations with 500 or more employees. “Dell notebooks, Latitude, its desktops, Optiplex and its Server Power Edge and Dell Emc storage products are our top products in the corporate segment. When Dell begins to control the market (walk, run), we will start entering the next segment, namely SMEs,” he said.

In the SME segment, Dell applies a different strategy with products designated especially for companies with employees numbering fewer than 500 people, such as Vostro Desktop and Vostro Notebook. “When we begin to lead the SME market, we will enter the next segment, the consumer/home segment. In this segment, we offer sexy products in various colors such as Dell Inspiron desktops and notebooks,” he said.

Dell applies a different strategy for every market segment. “You cannot find a Dell advertisement for corporate products because we carry out below-the-line activities through direct marketing, solution seminars/technology tours and workshops directly with our customers,” he said. Andreas explained that the customer database is a highly valuable asset at Dell. Many companies have a customer database but it is not updated and is frequently not well utilized. The database at Dell is a “living and breathing” asset. “Our database is always updated by our marketing team and by our field sales and tele-sales teams, which always interact directly with the end-users,” said Andreas. As a result, the products differ in line. Dell Power Edge, Optiplex and Latitude are for the corporate segment; Dell Vostro desktops and notebooks for the SME market and Dell Inspiron desktops and notebooks are for the consumer/home segment.

Recently, the popularity of notebooks selling for less than Rp 5 million has increased. How does Dell react to this phenomenon in view of the increasingly competitive prices? “Low-cost notebooks are mostly intended for the consumer segment. While all our competitors deal in low-cost products, Dell in Indonesia has instead launched a premium-class notebook with the latest Dell XPS graphic card and processing power. This notebook was actually designed for competitive gamers and for those requiring workstation/super computer class processing power as well as the highest graphic processing level,” he stressed.

The bamboo philosophy
One gets the impression that it has all been plain sailing for Andreas. As it turns out, he has adopted the “bamboo philosophy” in building his career. “Take a bamboo tree, for example. It takes quite a while for the bamboo shoots to become a young bamboo plant as the roots must first be strong. However, once the young bamboo plant appears on the soil surface, it can grow tall quickly. When it is big and tall, its stems always bend. This means we must build a strong basic foundation in our careers. And when we move higher, like bamboo leaves, we must be prepared to bend,” he said.

At every level of his career, he has always found an exemplary figure, or mentor, whose actions and behavior he observes. “I have done this since I sat in on lectures in the United States. When I started working, I had such a mentor. Even to this day I have a mentor,” he said. Usually he chooses a mentor whose character differs from his. “Or someone who I think can help me in developing a particular set of skills,” he added.

His relationship with his mentor, he said, is informal and without strings. This means when he has a good mentor, he can quickly learn from the mentor’s experience and also from the way he behaves. “I take and apply the good things and I tend to discard those that are not so good,” he said.

In the course of his career, Andreas has been awarded various honors, including the Hewlett Packard President Club 1997, Hewlett Packard Winner’s Circle 2003 and the Hewlett Packard Asia Pacific & Japan High Achievers Award 1996 and 2000. He has also been named among Indonesia’s “25 CEOs to watch in 2006” by SWA Magazine, and among “2005 Business Leaders of the Future” by SWA Magazine, named the “Most Inspiring Chief Marketing Officer” by Warta Ekonomi Magazine in August 2005 and “Man of the Year 2002” by Male Emporium Magazine. (Iwan Suci Jatmiko)

The Jakarta Post, October 24, 2007

Timothy Siddik: Aggressively Competing Against Giant Brands

JAKARTA JIVE
-
1
Timothy Siddik: Aggressively Competing Against Giant Brands

He was not born into a family of entrepreneurs. However, his perseverance deserve kudos. Today, this gentleman, whose full name is Timothy Siddik, is the CEO of PT Zyrexindo Mandiri Buana (Zyrex), an Indonesian original equipment manufacturer (OEM) of technological equipment.

He set up Zyrex on Sept. 18, 1996. At that time, his dream was that every computer user in Indonesia would have access to the latest technology at affordable prices, and that Indonesia would never be a dumping ground for giant information technology (IT) companies.

In the early 1990s, he felt deeply unhappy that Indonesians had to spend 60 to 80 percent more money than Singaporeans to purchase the same IT equipment. “Our per capita income was smaller but we had to spend more money for technology that was availably globally. In addition, our country had become a dumping ground for outdated equipment,” Timothy said.

This situation made him obsessed with making Indonesians proud of their own products. As time passed, Zyrex’s branding power has become a force to be reckoned with in the IT sector. This was no easy feat. Seven years of working the United States trained him to be a responsible professional with the courage to debate with both colleagues and superiors in meeting rooms.

However, Timothy said, debates in meeting rooms must never drag on. “I mean, afterwards we should still be able to sit down and have lunch together and work as usual,” he said.

The main key to a successful career, he said, is to have a clear vision. “Namely, to know precisely what you want to do. Then focus on it and work consistently to realize this vision. I believe very much in knowing what you want, planning how to achieve it and consistently working hard on the plan,” he said.

At first, Zyrex gained access to the IT market by selling personal computers to corporate users and then to individual users. After 3.5 years Zyrex begin to market notebooks. Timothy said the process is inseparable from the power of branding. Branding, Timothy said, is indeed the most difficult thing. However, in Indonesia branding local products tends to be harder than the branding of something with a foreign nuance.

So, then, how to educate buyers about Zyrex as a brand on the local IT market? “To build a brand is a long journey. A brand must be built from many aspects. The name of the brand must be unique and distinct. The quality of the product must be designed and consistently improved upon. The product must be available and easily obtainable. The after-sales service must be of an established level and available in many locations across Indonesia,” he said.

In its development, Zyrex has become increasingly aggressive. Zyrex is quite smart in viewing the huge market potential in Indonesia. According to Timothy, the penetration of the computer market in Indonesia is only around 2.8 percent. This figure is relatively small compared to Singapore’s 80 percent, for example.

The low penetration is obviously an opportunity. Therefore, like it or not, Zyrex must always maintain its enthusiasm to develop. Today, Zyrex has 52 Zyrex service points throughout Indonesia and intends to increase the number to 70.

Zyrex completed the application of SAP Business One (SAP BO) in September 2005. This is a system of Enterprise Resources Planning (ERP), whose main function is to integrate the process of business and the information system of the company. This system has a number of integrated modules, such as finance, accounting, sales, purchasing, inventory and material resources planning.

The ERP systems makes a business process better. Besides creating time and cost efficiency, this system also leads to improved service quality. At the same time this will directly increase the company’s competitiveness in the market. Then, how is it implemented? “As Zyrex adopted ERP earlier, the implementation of SAP BO was a natural development. As some people in the top management of Zyrex master the ERP concept quite well, migration was also easy,” he said.

Information technology equipment is no longer a luxury but is the primary equipment for electronics users. Prices have also become very competitive as there is tight competition in this line of business. Zyrex would like to avail of this momentum. Zyrex no longer produces only computers but has expanded the scope of its technological product convergence by also producing LCD TVs, DVDs for home theaters and digital cameras.

“Soon, people will find it difficult to distinguish between a computer, a TV and a home theater, or between a camera and a cell phone. All electronic devices in the living room will be integrated in a network,” he stressed. Still, Timothy said it was harder to gain good access to the market of electronic products than to the IT market. The reason is that Zyrex has an IT background.

Prices and quality play a significant role in winning over the market. According to Timothy, these two elements are of equal importance. If the price is low but the quality poor, then a product will look good in appearance only. In this respect, there will be an impression that success was reached owing to large sales. In fact, sales will gradually disappear.

“Quality must be supported by price, but the price need not be too high; it must be appropriate. An expensive item is not necessarily of good quality. What must be considered is the value,” he said.

Of no less importance is the need to build customers’ trust. Timothy said that about 80 percent of Zyrex consumers tend to buy Zyrex products again. “This is a good figure although we expect to reach over 90 percent,” he said.

Every network built, he said, must be maintained in the best possible way by emphasizing loyalty to the network. Loyalty is a two-way commitment. “As we attach great importance to loyalty, we sometimes find it difficult to find the right network,” he said. (Iwan Suci Jatmiko)

The Jakarta Post, October 17, 2007

Sakti Wahyu Trenggono: Contributing to the Nation through Tower Business

JAKARTA JIVE
-
1
Sakti Wahyu Trenggono: Contributing to the Nation through Tower Business

Telecommunications is one of a few undertakings in the industrial sector undergoing rapid development in the aftermath of the 1997-1998 monetary crisis. Following the government’s abolition of the monopolistic system, this sector has continued to undergo significant changes from one year to the next.

Sakti Wahyu Trenggono considers the changes in regulation offer very promising business opportunities. He feels that a telecommunications industry open to competition will boom, in terms of both the number of customers and the number of operators offering telecommunications services. “Experience has shown that the development of technology, particularly information technology and telecommunications, serves as the main trigger for the economic growth of a country,” he said.

In addition, he believes that the development of the telecommunications industry will bring in huge investments to this country. “As a patriot, I try to tap this opportunity. Otherwise, the opportunity will go to foreigners. And once again, we will end up being a nation of laborers,” he said.

With this principle in mind, Sakti, who was born in Semarang on Nov. 3, 1962, and two of his colleagues set up PT Solusindo Kreasi Pratama (SKP) in 1999. Initially, their core business was selling telecommunications equipment and information technology, SKP being the marketing agent for the products of Lucent Technologies as well as being agents for a number of telecommunications products from Japanese and Korean manufacturers.

Information technology and telecommunications are nothing new to Sakti. As well as being a graduate of Informatics Management from Bina Nusantar University, he also spent six years in the information technology division of PT Federal Motor (now PT Astra Honda Motor.) His last position in this company was the MIS and Corporate Strategy Manager.

Given the aggressiveness of telecommunications operators in developing their networks, Sakti finally decided to turn the direction of his business to the leasing of a Base Transreceiver Station (BTS) called Indonesian Tower. He said that in expanding their networks, telecommunications operators would surely need a BTS tower. “In advanced countries, operators no longer build towers but resort to a transfer of power. Well, we wanted to develop this new industry in Indonesia,” he said.

Assisted by nine employees, Sakti began to offer his services to operators. Initially he did not get an enthusiastic response.were not discouraged. We believed that if we continued to focus on this line of business, we would be successful as the trend in advanced countries showed that the competition was no longer concerned with coverage. Coverage was left to the company leasing the tower,” he said.

Besides offering efficiency, he said, his business also helps maintain aphysical beauty. If every operator was to set up its own BTS tower, particularly in major cities, there would be a forest of towers.this would not be good,” he noted.

Today, Sakti, who is an avid golfer, is able to sit back and enjoy the fruit of his hard work. He claims that Indonesian Tower is a market leader among tower-leasing companies. He now owns no fewer than 700 towers in 21 provinces and all are leased to telecommunications operators in Indonesia.

Despite his success in this particular business, Sakti is not smug. There are still a lot of things for him to do in terms of his duties and responsibility as a citizen.profit I reap from this business will be invested to contribute bigger benefits to this nation,” he said.

One of his contributions to the nation is to develop the telecommunications equipment industry. Sakti said that at present, SKP was engaged in research and development for Wimax equipment. He has spent quite a lot of money on this project. “We have made the prototype and, thank God, Malaysia has placed an order. We have presented a demo of this product and are now waiting their review,” he said.

It is expected that the process of turning out this product will be completed before the end of 2007.would like to prove that Indonesians can also make a sophisticated product,” he said. Later, this product will be marketed not just in Indonesia but in other neighboring countries. “We hope to be able to enter the ASEAN market,” he noted.

In leading the company, Sakti, a father of three, strongly adheres to his principle.professional, create competency and do this in the interest of contributing to the nation,” he stressed.

He tries to spread this principle among his employees, now numbering about 200 people. “This is not an easy job and indeed, there is a special art in this regard,” he said.key is that we must be supported by good human resources,” he said.

Sakti said he was grateful to God for having worked for Astra as he had learned a lot about corporate management there. “Astra is a large private company capable of educating its human resources so that they may play an active role and be professional. I admit Astra has influenced my leadership style,” he said.

“My main goal today is how to produce Indonesian Tower human resources as unique and creative human beings always in search of and mastering competence,” he said. “And, thank God, the road toward this end has begun to be visible,” he added. (T. Hidayat)

The Jakarta Post, October 10, 2007

How to Handle Premium Clients

JAKARTA JIVE
-
0
How to Handle Premium Clients

Although the number of premium clients is small, they contribute the largest portion of a bank’s turnover. That is why banks have started to pay full attention to VIP clients by applying various marketing strategies, such as providing special interest rates, offering merchandise at discounted prices or offering personalized financial management.

There are various names for such services, with banks calling it personal, priority or private banking.

The premium banking market has a lot of potential as there are about 1.5 million people in the country with an average income of Rp 500 million per year. Some bank managers estimate the number to be double that.

As an example to demonstrate the size of the contribution to banks by premium clients, BCA says 80 percent of its assets originate from high income customers, making it no surprise that BCA is aggressively marketing BCA Prioritas. To join this program, a customer is required to deposit at least Rp 250 million. Currently, BCA serves its priority customers in special VIP rooms at 114 branches throughout Indonesia. In addition, there are also executive lounges at 20 main airports in the country. The bank also regularly offers such clients exclusive items at special prices, such as property, luxury cars, paintings and shares in line with the bank’s slogan for the products, “exclusively for BCA’s priority customers”.

Undeniably, today’s customers demand that a bank understands their needs specifically and individually. Wealthy clients demand not only topnotch services, but also return on investment, security and convenience.

These are some of the challenges faced by domestic banks in the form of private banking and wealth management with facilities that meet customers’ requirements. Also provided are personalized and customized services. Each customer is served by a special “relationship manager” who provides consultation and various facilities, including specially designed programs that cover banking and non-banking transactions.

It is not only BCA that is being aggressive in this field. Bank Internasional Indonesia (BII) also strives to keep its premium customers happy. On Aug. 27, the bank held an event called “Grandparents’ Day” in appreciation of its BII Platinum Access wealth management customers at Hotel Darmawangsa, South Jakarta.

The event was a family program offering activities for all members of a family — grandchildren, parents and grandparents — such as story telling, face painting, handprints of grandparents and grandchildren, T-shirt painting and a children’s performance. “All this is in line with our theme, family banking, which has been incorporated into BII Platinum Access,” said Sanjay Kapoor, director of BII consumer banking.

BII Platinum Access has been developed with the bank’s wealth management program as one of its priority services. BII also provides services that give clients end-to-end benefits through highly personalized service by trained investment staff.

Among the services and facilities offered by the bank are asset management, wealth management, special privileges, global information services, personalized assistance and worldwide services. Some of the products offered are bancassurance, mutual funds, time deposits and savings and checking accounts. Other investment tools are structured investment and government bonds.

BII Platinum Access was introduced in May 2003 and is available at branches in Jakarta (BII Thamrin, Wisma Mulia, Kelapa Gading, Pondok Indah and Puri Kencana), Medan, Surabaya and Bandung.

Wealth management is becoming increasingly popular. Next to BCA and BII, Bank Permata is also catering to this elite segment. Bank Permata has expanded its network by opening a new branch at Sunter Royal Jakarta to make it easier for clients in North Jakarta to access its wealth management products.

The bank has also teamed up with the Astra Group to attract customers. “With the extension of our networking, we are confident that it will be a positive contribution to both our company and Astra Group’s customers, who will get personalized service that is up to date and of high quality,” said Bank Permata director of wholesale banking Ongki W. Dana.

According to Ongki, Bank Permata presently has 5,000 premium clients with assets totaling Rp 8 trillion. The bank’s target for 2007 is an increase of between 12 and 15 percent and total funds of Rp 10 trillion.

Of course, not only domestic banks are active in wealth management. One foreign bank, HSBC, has launched HSBC Premier, while Standard Chartered Bank has Wealth Management Account. This priority banking product, launched in May 2001, has a minimum deposit requirement of Rp 100 million for individuals and Rp 150 million for corporations.

Among the foreign banks, Citibank is the pioneer in priority banking. The bank, with its local main office located in Jakarta’s Golden Triangle business area, calls its product Citigold Wealth Management Banking. There is a Rp 500 million minimum requirement.

Some of the services include investment and financial management planning, exclusive use of Citigold Center, such as safe deposit boxes, special merchant discounts and invitations to exclusive programs and events, like fashion shows, music concerts and seminars.

Citigold Wealth Management Banking, which was launched in 2002 and currently has about 20,000 clients, is an extension of Citigold Priority Banking, a Citibank product first introduced in 1980. While Priority Banking focuses on services with exclusive facilities, the Wealth Management focuses more on the management of clients’ funds deposited at the bank.

Indeed, banks can no longer serve very wealthy clients with just a smile and a promise to understand their needs. Private banking here is more than 10 years old. What is required is more customer-oriented services rather than product oriented ones.

Exclusive clients obviously need exclusive services. They expect tailor-made products and facilities, not run of the mill products and service. Although many alternative investments are available on the market, what is most important is to fulfill a client’s financial plan and targets. (Burhan Abe)

The Jakarta Post, October 07, 2007

Plastic Card that Brings Happiness, Changes Lifestyle

JAKARTA JIVE
-
0
Plastic Card that Brings Happiness, Changes Lifestyle

Like or not, the credit card has become an indispensable part of urban life.

Plastic money can indeed be a supportive tool in today’s life of comfort. It bring happiness to those who like shopping as they can pay the bills over several months. “I just charged it and went home with a new laptop,” Ira Lestari, an entrepreneur, told The Jakarta Post.

“Particularly for those who like traveling, having a credit card can be so helpful. It is very convenient since you don’t have to carry much cash to a place where you are a stranger,” she added.

“And when you need more cash, a credit card’s cash advance service enables holders to withdraw money at any major ATM worldwide.”

Furthermore, many restaurants offer significant discounts to credit cardholders. And the credit card automated billing program enables you to avoid standing in long lines to pay utility bills. In addition, purchasing merchandise, booking airline tickets or hotel rooms online is just a matter of tapping away at a computer keyboard at your convenience.

Indeed, this 8.5 by 5.5 cm card can be a great financial help if a person can make use of it wisely. Not only does it facilitate making purchases when cash is not on hand, but also allows people to delay payment for 30 days or more with no interest depending on the terms and conditions set by the credit card issuer.

“As long as you don’t bite off more than you can chew, a credit card is really helpful,” Ira continued.

It means that a credit card should be seen as a basic need rather than a luxury. Otherwise, “If we are unable to pay for the expensive goods or services we buy, it is not unthinkable that the interest will end up costing more than the actual product purchased,” Ferry Hartono (not his real name), a government official who chooses not to have a credit card, asserted.

A credit card is nothing but a clever deception, Ferry continued. “Despite all the advantages, no credit card gives you free money. The interest rate is simply a sly way to take your money.”

Whether you agree with Ira’s or Ferry’s sentiments, the fact that the increasing number of credit cards being offered to the public by many financial institutions is an interesting phenomenon. Tight competition between credit card companies gives cardholders more attractive incentives such as reward points, cash back, education and health services.

American Express (AMEX) Card Services of Bank Danamon Indonesia introduced September last year its latest membership rewards program, in which AMEX cardholders can redeem their reward points with hundreds of reward items such as a round trip to Singapore with 38 airlines, fashion merchandise and other exclusive items. The reward program offers up to five times bonus points to its members at participating merchants.

“That way our privileged members can earn points faster and enjoy their rewards sooner,” Darwin Tan, senior vice president for AMEX Card Business Head, explained to The Jakarta Post.

The company collaborates with a number of premium multi-industry business partners such as Harley-Davidson and Nokia, “AMEX card members now can redeem their reward points for either a Harley-Davidson motorcycle or a Nokia E-90 Communicator,” Darwin added.

In addition to reward points, credit cardholders now can enjoy the cash back program. HSBC Visa and MasterCard, for instance, offer up to Rp 800,000 in a cash back reward upon approval of an application. This promotion is valid until Oct. 31 this year.

GE Money, in cooperation with Kartu Belanja Carrefour, Smart Shopping Cash and Manulife Gold Card, also offers an array of benefits to cardholders, such as education and health services.

GE Money credit cards offer convenient tuition fee payment arrangements from kindergarten to university level. “And GE money credit card facilitates easy access to health services at participating hospitals,” GE Money CEO, Harry Sasongko, told Kompas.

However, all the attractive incentives are no more than a marketing approach by credit card companies. Many cardholders admit that such incentives were one of the reasons they applied for a credit card.

Interestingly, quite a number of cardholders have become trapped by unrestrained use of their credit card. Obviously they find it easier to spend that to manage their finances. Unless a person earns a steady income, they should put on hold any plan to get a credit card. Moreover, timely financial management is crucial for those with plastic money.

Eko B. Supriyanto, director at the InfoBank Research and Bureau, advised that a credit cardholder should not charge more than 30 percent of his or her monthly income to their card in any given month. “Otherwise, a problem will gradually emerge, especially when they have to pay off other debts like car or mortgage payments,” Eko was quoted by Kompas as saying.

A credit card, thus, should not be treated as an instrument to incur debt. Rather, it should be used as a convenient tool to make a transaction. (Ollie Sungkar)

The Jakarta Post, September 28, 2007

Virtual Office: Office Image and Solution

JAKARTA JIVE
-
0
Virtual Office: Office Image and Solution

Tipuk Satiotomo has a major headache. After devoting herself to being a housewife for several years, Tipuk, a public relations officer, yearns to be active again. She would like to start up her own business, especially since a large company has entrusted her with its public relations affairs.

It would be impractical for her to set up an office in her home in Bekasi, West Java. Tipuk, a mother of three, would like to have a decent office in Jakarta. She imagines the ideal office to be several rooms in a building that is furnished with standard office furniture, such as desks, chairs and communications equipment. It also would have a secretary or a telephone operator. Unfortunately, due to financial constraints, she does not think she can have the office that she envisions.

Tipuk is not the only one to get a headache thinking about an office. Many people would like to start their own business but, for financial reasons, cannot afford to rent a house, a shop-house, let alone office space in a high-rise building, to use as their place of work. If only they were familiar with the instant office concept, or the virtual office, then their problem would be solved.

Indeed, providers of instant office services can be found in major cities like Jakarta, where rent for office space is high. CEO Suite was the first to provide this particular type of service. Today, however, more and more companies offer business services and facilities at relatively low rates. Such services are often advertised, offering virtual offices located in prestigious places such as in Jakarta’s Golden Triangle.

Virtual office services are offered at rates ranging between Rp 500,000 and Rp 1 million monthly. Meanwhile, if you want to rent office space, the rates range between Rp 7.5 million and Rp 15.5 million a month. As the rates are in rupiah, they will not be burdensome to lessees in Indonesia.

Although the rates are relatively low, it should not be assumed that only minimum facilities are provided. Besides basic facilities — such as a fully furnished office, electricity, air-conditioning, a telephone line, a fax machine and a photocopier — receptionists and a 24-hour security system are also provided.

There is also a lobby where you can receive guests and a meeting room, which you can rent on an hourly basis and use for internal meetings or for meetings with clients.

To make all this operational, a virtual office comes with a secretary, who will take phone calls and receive your clients. For extra, telemarketing can even be conducted.

One instant office provider is Asia Suite. As advertised, Asia Suite facilitates business people in organizing business activities, such as correspondence, communications and meeting venues.

The following may serve to illustrate the services that Asia Suite provides. Jeff, for example, has a software business with a workshop in his house. To facilitate his business, he uses the Virtual/Instant Office service from Asia Suite. One of the benefits of using this service is that Jeff no longer needs to take his business partners to his house, which is far from the city center, for business or coordination or for a product demo. His business partners simply go to the Virtual/ Instant Office of Asia Suite, which is located downtown.

Jeff may use the address of Asia Suite on his business cards and on his letter head, therefore augmenting the value of his business prestige. If a letter addressed to Jeff arrives or if someone phones to speak to him, he is immediately notified by SMS so that he can pick up the letter or phone back the caller.

That is the main selling point of a virtual office. Besides providing facilities in office services, a virtual office offers a prestigious address. Understandably, in business, image and credibility are absolutely necessary.

It is also quality services and facilities in office matters that are offered by CEO Suite, a company run by Mee Kim. Born in Seoul, South Korea, in December 1962, Kim, who has lived in Indonesia for many years, used to be the senior manager at an Australian instant office provider assigned to develop the company’s branch office in Jakarta in 1997. It was then that she became interested in starting her own business under the flagship of CEO Suite.

Learning from the company where she formerly worked, Kim offers a different concept in her CEO Suite. Most instant office providers in Indonesia, she says, come from big countries like the United States and Australia. However, in providing services, they usually stick to the business practices prevailing in their own countries. “There is a gap between the business pattern prevailing in Australia or America and the one adopted in Asia,” she noted.

Therefore, CEO Suite offers not only a physical office service and all the necessities but also virtual office services. A client does not need to rent space but can use the address of CEO Suite as his company’s address. The lessee gets a telephone number facility plus a secretary to handle all the company’s needs. In addition, CEO Suite also takes care of other things for its clients, such as attending to tax matters and visa applications or finding the right local partners. “The pattern we adopt is a one-stop solution,” Kim says.

The occupancy rate at CEO Suite, Kim claims, never drops below 80 percent. “There is a great demand for not only physical offices but also virtual offices,” she said.

Following its success in three locations in the Golden Triangle in Jakarta, CEO Suite expanded its business to major cities of the world where business is flourishing, such as Kuala Lumpur, Singapore, Shanghai, Beijing, Bangkok and Seoul. Unlike Tipuk in the illustration above, there is no longer any need for a business person to consider not having an office a constraint.

Now that there is the opportunity to rent an instant office, which ranges from a virtual office providing basic secretarial services only to a small office large enough for three to 15 people, not having actual business premises is no longer a problem. You only have to take your laptop and you can have your own office and carry out your business.

It is true that unlike in advanced countries, in Indonesia the trend of the instant office has yet to develop well. However, many see the concept of a small office, instant office or virtual office as an attractive option given the fact that some companies are designed to be small-scale businesses or that some firms have trimmed their businesses for better efficiency. (Burhan Abe)

The Jakarta Post September 04, 2007

Welcome to the Show!

JAKARTA JIVE
-
0
Welcome to the Show!

A hotel is not merely a place where you can spend the night but is also a place to enjoy some entertainment. That’s why nearly all star-rated hotels provide entertainment, both for people staying the night and for outsiders seeking some merriment. These facilities may range from a music lounge, a cafe to a karaoke hall and even a club.

There are hotels that offer serenity, mostly those adopting the resort concept, and also those that sell entertainment. Hard Rock Hotel Bali, for example, has made itself a center for activities linked with entertainment. This is indeed a positioning that this hotel, whose name is borrowed from that of a famous cafe established in London on June 14, 1971, wishes to feature. “The name Hard Rock itself is associated with a place of entertainment. We want to check out the most Rockin’ Hotels around,” said Dewi Endah Banowati, marketing communications manager of Hard Rock Hotel Bali.

Hard Rock Hotel Bali is not only located next to Hard Rock Cafe, which presents live music shows every night, but also has its own music stage, which is located in the lobby above the bar and is called Centerstage. It rocks from 11 a.m. to 1 a.m.

In addition, nearly every space of the hotel is named after something to do with music and connotes entertainment. Each type of room is named on the basis of a music genre, as is Lil’ Rock Kids Club, a playground for children. The area of the main swimming pool, for example, presents music and has a bar that serves Tequila, Reggae and Limbo.

This hotel, which is filled with decorative memorabilia of the world’s top musicians, treats guests like music superstars. Guests staying at Hard Rock Hotel are called “stars” while hotel staffers are “band members”. Children are nicknamed “lil’ rockers”. Every guest is given a room key that they can wear around their necks just like a stage pass. Welcome to the Show!

Hard Rock Hotel, which uses “rest, relax and rock” as its motto for service, is a top example of how a hotel treats entertainment as the most important part in the concept of a hotel.

Other star-rated hotels also make an effort to make entertainment a major part of their services. If you have ever stayed at Hotel Mulia, Jakarta, for example, you are surely familiar with CJ’s. The bar, which was renovated in December 2006, opens from 5 p.m. to 2 a.m. on weekdays and is open until 3 a.m. on weekends.

What better way to end the day than with a well-deserved cocktail and rocking live music? A hit among guests and locals alike, CJ’s is the place to see and be seen. “So let your hair down, hit the dance floor and get set for a wild night of non-stop partying!” said Romy Herlambang, director of communications of Hotel Mulia Jakarta.

According to Romy, entertainment is indeed an important part of a hotel. Many people visit the hotel not to stay but to eat at one of its restaurants or to hang out with friends. That’s why The Kafe has enjoyed particular attention from the management, as is evident from the expansion of its space so that it can now accommodate 361 people instead of the original 298.

There are five main elements at the hotel that will kick off in mid November 2007. These five elements are the lounge, the Japanese food area, the Middle East area, the Italian area and the international area. “All this is intended to accommodate the needs of hotel guests and is in response to requests by customers who do not necessarily stay at the hotel,” he said.

The same strategy is also employed by Ambhara Hotel Jakarta. Located in Kebayoran, this hotel is situated opposite a major shopping center and is near the central business district. It has the Arios Music Lounge and is in the process of establishing a music lounge with a new concept called The One.

If you are familiar with Hotel Sari Pan Pacifik Jakarta, you would have heard of its Pitstop Bar & Lounge. This place has indeed undergone a change of name. Originally called Pitstop, it was later renamed Avenue but has since assumed the new name of Pitstop Butterfly.

Pitstop’s concept leans toward live entertainment. The music genres on the menu include classic disco, acid jazz, R&B and Unplugged. The new Pitstop has two VIP rooms with karaoke. In addition, Pitstop also has one VIP room called Butterfly Lounge. This room is twice as large as the other two karaoke rooms. Besides the karaoke facility, Butterfly Lounge is a suitable venue for private parties. Visitors can also enjoy the aromatic Sisha. Spirits and wine tend to be the dominant beverages. The lounge has tables to accommodate 200 people and standing room for about 350 people.

Meanwhile, newcomer Grandkemang Hotel, which is located on Jl. Kemang Raya, South Jakarta, realized from the start that entertainment is an inseparable part of a hotel’s facilities. This hotel boasts its d’lounge, which is a posh lounge suitable for private events with business partners or family members.

Located on the ground floor opposite the Sperta all day dining venue, this is a VIP lounge with a minimalist modern design. It has a sound system and a lighting system that can be adjusted to your wishes while you enjoy high tea or a glass of wine with cheese platter. d’lounge has a capacity for 20 to 25 people.

As a more sensational choice, B.A.T.S., located in Hotel Shangri-La Jakarta, is also a good option for a night out. This is a legendary music lounge, which was operational well before it became trendy here for people to hang out in a bar or a pub.

With a stylish interior design, which depicts a bar in a subway station in New York City, B.A.T.S. reflects the lifestyle of urbanites. It is here that urbanites spend their time socializing, chatting or just hanging out. Don’t forget to order Urban BATS, a blue soft cocktail with a refreshing, sweet taste, which represents the dynamic and passionate spirit of urbanites. (Burhan Abe)

The Jakarta Post, September 23, 2007

Pursuing Environmentally Friendly Fuel Sources

JAKARTA JIVE
-
0
Pursuing Environmentally Friendly Fuel Sources

The current kerosene scarcity has again brought home the fact that sources of energy derived from the earth are limited. Fossil-based fuels are not renewable and there will come a day when their sources are depleted. Added to this worry is the realization that this type of fuel is not environmentally friendly and is a major source of pollution.

The fuel used by motor vehicles today generates toxic substances such as hydrocarbons, nitrogen oxides and carbon monoxide. These substances can cause respiratory problems, cancer and infertility in women.

It is undeniable that the supply of non-renewable fuel is limited while demand for it, as well as its price, continues to rise. This means that demand will always outstrip supply. The demand for petroleum-based fuel in Indonesia stands at 215 million liters a day while domestic production reaches only 180 million liters a day, meaning the shortfall has to be imported.

Indonesia is a member of the Organization of Petroleum Exporting Countries (OPEC) but it has unfortunately become a net importer of crude oil.

Most of the demand for fuel for low-income or poor people, particularly in rural areas, is for kerosene, the price of which is affordable as kerosene is subsidized by the government. However, as kerosene is also used for industrial purposes and for other businesses, there is sometimes a kerosene scarcity. In addition, people who live close to forests collect wood for firewood and frequently cut down trees in protected forests, posing a threat to the country’s forests and the wildlife within them.

The government decision to make liquefied petroleum gas (LPG) the preferred fuel among poor households instead of kerosene may be a wise move, but it faces a lot of constraints. For one thing, switching from kerosene to LPG has been met with resistance from the targeted market. LPG could be one of the solutions, although Indonesia is rich in fossil-based non-oil fuel such as natural gas and coal as well as in renewable energy such as geothermal heat, biomass, hydropower and solar heat.

The problem is not just a matter of alternative energy. It assumes a greater complexity when connected to the resulting environmental destruction. Enforcement of the Kyoto Protocol to reduce the emission of greenhouse gases is a breath of fresh air to the development of technology and the use of environmentally friendly energy. International producers now vie with one another to respond to this challenge by launching environmentally friendly automobiles.

These environmentally friendly or green automobiles have been exhibited at a number of motor shows. Toyota, for example, has introduced a hybrid car, the creation of which it pioneered over 10 years ago, followed later by other car producers. The trend to manufacture cars with low emissions is a great development. This is in line with the ambition of carmakers to lower motor vehicle emissions from 20 percent to 6 percent of total emission of carbon dioxide in the air.

A hybrid car uses a combination of electric engine and combustion engine, which maximizes the power of these two sources of power while at the same time complementing each other. The result is the efficient consumption of fuel followed by outstanding performance.

Hybrid cars and fuel cells are not uncommon on the streets of advanced countries, particularly the United States, Europe and Japan. However, it will take Indonesia some time to follow suit. There are a number of reasons for this. First is price. Second, the fuel efficiency achieved is outweighed by the high price of the car and its expensive maintenance.

And therefore the search for a non-conventional source of energy continues. The government should pay special attention to the development of environmentally friendly alternative fuel sources, usually called biodiesel.

Wikipedia defines biodiesel as an oil-based fuel derived from renewable sources. These sources may be oil made from plants or animal fat. Types of biodiesel already developed are castor oil, crude palm oil and gasohol. Gasohol, the name of which is a combination of gasoline and alcohol, is a mixture of ordinary gasoline and processed cassava.

Gasohol was put to the test by the state minister of research and technology a number of years ago in the compound of the Agency for the Assessment and Application of Technology (BPPT). The fuel, called Gasohol BE-10, is the outcome of years of research by a team of researchers at the Center for Starch Technology (B2TP) of BPPT Lampung. This particular oil fuel is a mixture of gasoline (90 percent) and bio-ethanol (10 percent).

Another pure biodiesel, which is no less interesting to note, is jatropha oil. This has been developed by scientists at the Bandung Institute of Technology (ITB) and the Mitsubishi Research Institute, Japan. This alternative oil fuel is 100 percent natural biodiesel.

Jatropha oil is vegetable oil obtained from the seeds of the Jatropha curcas L, or physic nut plant, a shrub of the Euphorbiaceae family. As physic nuts are abundant in Indonesia and can be cultivated here, Dr. Robert Manurung, a lecturer in industrial chemical engineering at ITB, can confirm that the government is serious in exploiting physic nut plants as an alternative oil fuel source.

“We can save a lot of foreign exchange by using jatropha oil as a substitute for the 2.5 billion liters of diesel oil used per year by PLN state electricity company at its power generating plants outside Java,” he noted.

Another team of researchers from ITB has also come up with another alternative oil fuel with palm oil as the source. This time ITB is collaborating with the Oil and Gas Institute (Lemigas) and BPPT to develop an oil fuel that will be internationally accepted under the name of Crude Palm Oil (CPO).

In countries like the United States and Australia palm oil biodiesel has been applied in a lot of cases. Mass use of this particular biodiesel is found in Latin America and Africa, where the production of oil palms is high. Even in Germany, biodiesel has been used for vehicles and industrial machinery. Regarding the construction of the biodiesel factory in Germany, Director of Campa Biodisel GmbH and Co, based in Ocshenfurt, Dr. Ralf Truck, confirmed the positive aspects of using biodiesel.

“Biodiesel made from palm oil is suitable for many types and makes of automobiles. It is sulfur-free and is renewable energy source. In addition, it contains no toxins, is energy-intensive and can be used in winter when the temperature is above 20 degrees Celsius,” he said.

When fuel shortages loom, the development of sources of alternative energy seems pressing. Otherwise, just be ready for an energy crisis. (Burhan Abe)

The Jakarta Post, September 18, 2007

1...318319320...326Page 319 of 326

Editor Picks

Must read

Popular categories

Cyber Media Guidelines
- Advertisement -spot_img

Copyright © 2011 - 2021 Jakarta Jive, All Right Reserved