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Michael D. Ruslim, Captain of a Huge Ship: Astra Group

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Michael D. Ruslim, Captain of a Huge Ship: Astra Group

Looks can be deceiving, so never judge a person from their appearance, such as from their clothing, footwear, glasses or hairstyle. Many important and powerful people dress simply, just like regular people. This applies to Michael D. Ruslim, chief executive officer of the Astra Group, one of Indonesia’s business giants in control of dozens, if not hundreds of companies, ranging from automotive companies to oil palm plantations and employing no fewer than 120,000 people.

The figure could be three or four times more than that if vendors of vehicle components, authorized workshops and retailers selling Astra’s products were taken into account. Thus Michael could be considered the captain of a huge ship.

Despite his high position, Pak Michael, which is how his employees and fellow directors address him, remains modest in fashion and in word. “I’m but just one of Astra’s components,” said the executive, who earned a Bachelor of Science degree in industrial engineering from the University of California at Berkeley, U.S., and an MBA in finance and operations research from the University of Wisconsin, Madison, U.S.

Upon the completion of his MBA program in the U.S., Michael returned to Indonesia and worked at Citibank NA, Jakarta from 1978 to 1983. His last position at the foreign bank was Investment Banking Division head. Then he moved to Astra and was placed in the company’s finance division. Michael said, however, that he never dreamed of being appointed the top gun in this highly diversified business group.

His observant mind, perseverance and agility were already apparent early in his career. While he was at Citibank, for example, Michael, who was born in 1953, already had a far-reaching vision about his future. If he remained at Citibank, the highest position he could possibly attain would be the second position as the top position would always go to an expatriate. “And at that time I wanted to work only in Indonesia, so I looked for opportunities outside of Citibank,” he said.

His decision to move to Astra proved wise. The finance division where he was placed was directly involved in the restructuring of Astra in the early 1980s. Om Willem, then the owner and top leader of Astra International (AI), was developing his business in the financial, agricultural, manufacturing and infrastructure sectors. “I was part of this business development,” Michael said.

Michael dealt well with every challenge that came his way. He felt at home at Astra despite the many challenges he faced because of a favorable working environment and strong teamwork. One of the major challenges that AI faced during the financial crisis of 1997-1998 was mounting debts of US$1 billion while the sales of motorcycles and automobiles dropped substantially. “But with our strong fighting spirit as a solid team, we continue to overcome adversity even today,” he noted.

Another thing that has shaped Michael into the person he is today is the corporate values of this group. He has carefully observed the ups and downs of AI’s business over the last 30 years, during which the company’s shareholders have been replaced several times. “This experience shows me that Astra has a good working pattern, cultural foundation and philosophy,” said Michael, a father of two and an avid reader.

Michael was referring to the company’s Sapta Dharma philosophy. AI used to run various types of businesses but later decided to focus on just four areas. The first area is the automotive chain, from the upstream part of the business to its downstream part, namely from auto parts to auto finance and insurance, including Toyota Astra Finance and Astra Buana. “AI’s business in automotive is focused on distribution and manufacturing. There are no automobiles with an Astra trademark, though,” said Michael.

The second area is agribusiness, with Astra Agro Lestari as the spearhead. The third area is mining, spearheaded by United Tractor, which sells tractors and heavy-duty equipment for the mining, forestry and infrastructure industries. It also sells mining services. Under the flagship of Pama, this mining part of the group controls a major share of the Indonesian market (40 percent). “Pama does not control any mining sites but if there are opportunities, AI could buy them,” Michael said.

AI is also involved in infrastructure such as toll roads and water. In this respect, AI is motivated by a desire to help the government build the country’s economy. AI’s involvement in infrastructure is relatively recent, though. “We try to learn from the Tangerang-Merak toll road, which is operational, and also from Palyja clean water,” said Michael. “We have bought both in the context of preparing our competence in infrastructure and gathering experience in this field.”

This year AI celebrates its golden anniversary but the group did not go all out to celebrate owing to the occurrence of various disasters, such as floods and earthquakes, for example. When asked in what direction he would take AI in the future, Michael said, “I don’t have any personal ambition but as a CEO, basically I will try to honor the trust given me. I will try to build Astra just like Om Willem did before.”

On his management style he said, “I would like to see continuity but certainly it is not a status quo. When there is continuity, we have to keep abreast of changes. I have the responsibility to bring AI to the next stage so that AI can quickly develop and be something like a banyan tree that shelters many people.”

AI principles, he added, are supported by the 3 Ws, namely a winning concept, a winning system and a winning team. To make all the plans come true, Michael stresses the significance of communication, especially two-way communication. Communication is important in social and organizational relations as well as in relations with fellow principals. “Communication allows us to understand the other party. It helps us understand why someone asks for this or that. Perhaps we won’t come to an agreement but at least we understand each other,” Michael said. “Understanding leads to trust,” he added.

Aminuddin, senior vice president and corporate secretary of AI, confirmed that Michael always stresses the significance of communication. “He always says ‘If our employees do not understand, how can we reach our target?'” Aminuddin said, quoting his CEO.

To ensure there is two-way communication, Michael holds a meeting of the AI board of directors twice a week. These meetings discuss things related to business strategies. Michael also tours the regions, visiting AI’s branch and sub-branch offices, two to four times a year. In his regional tours, Michael, who takes along a core team of directors, meets employees and conveys to them the company’s vision, mission and plans.

Another principle that Michael strongly adheres to is that he always works under one system. “This principle also conforms to the Japanese culture, which believes that plans are important and can be implemented,” he said.

Michael maintains that there are problems with any position but it all depends on the attitude of the individual coping with the problems. When the government decided to raise fuel prices, for example, the public’s purchasing power became weaker. Then there were also problems when the Toyota and Daihatsu principals opted for restructuring. However, nothing specific has caused difficulties for Michael. He faced all these problems unwaveringly and resolutely.

“We must try but we also must let God decide. That’s why I try not to get stressed or I could make the wrong decisions,” said Michael, who, regarding this principle, acknowledged the influence of Subagyo Wiroatmodjo, his first superior. Michael learned how to analyze a problem from Subagyo so that other people could understand it and help solve it. In the 1980s, Michael used to exchange ideas with Edwin Soeryadjaya, one of the children of AI’s owner, Om Willem, who was also his friend and partner.

Michael also specifically mentioned Teddy P. Rachmat, former AI president director, who always stuck by him whenever they had to agree on an important step to take. From someone far senior to him in Citibank, he learned about the courage to make a decision or take a stance. (Lily G. Nababan and Ardimas Sasdi)

The Jakarta Post, April 4, 2007  

Orie Andarie Sutadji: Taking Care of 35 Percent of the Population

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Orie Andarie Sutadji: Taking Care of 35 Percent of the Population

PEOPLE should never be judged by their age but in a holistic manner — spirit and mental agility. Orie Andari Sutadji, the president director of PT ASKES (Persero), is a striking example of this. It would appear that Orie never runs out of energy. She is seen as being so determined that colleagues have nicknamed her the “Iron Mare” after Britain’s “Iron Lady”, Margaret Thatcher.  

Luckily Orie is fond of horses and horse ornaments of various sizes and materials are scattered throughout her spacious office. Her stamina makes it apparent that the Ministry of Health made no mistake in appointing Orie to manage state-owned PT ASKES health insurance firm. The company provides health insurance to around 14 million civil servants, pensioners, members of the Indonesian Military/Police Force, veterans and 1.5 million private sector workers and their families.  

Today PT ASKES, which has millions of participants, needs someone not only knowledgeable about health matters and insurance but who is also reliable and has strong leadership skills. The giant task became even greater recently when the government assigned PT ASKES to handle health insurance for the country’s 60 million poor people.

Therefore, Orie could be viewed as the CEO of an insurance company with the biggest number of participants in Indonesia (over 74 million people or about 35 percent of the country’s population.)  

All these health insurance participants are served by just 2,300 employees in 12 regional offices, 92 branch offices and 204 offices in regencies all over Indonesia. To overcome the shortage of human resources, PT ASKES recruits temporary employees, especially to deal with the poor.  

How does Orie deal with this challenge? “Initially, honestly speaking, I was worried,” said Orie, a mother of three, when reminiscing about her first days as director of general affairs of PT ASKES. She was worried not because she was afraid but because, “I was worried I would not be able to meet the government’s expectations.”  

Her worries were understandable because how pensioners fare lies in her hands. If she were to fail, it would affect millions of people. Her concerns were even more understandable given the fact that she was just a bureaucrat and PT ASKES had just been transformed from a state corporation to a limited liability company. “To manage a limited liability company, you need the spirit and enthusiasm of a professional, just like leading a profit-oriented private company,” she said, explaining that the greatest challenge was to transform her own paradigm and that of the people around her.  

To this end, as her initial step, Orie revamped the human resources system in PT ASKES. First she changed the human resources assessment system usually adopted at government ministries and state-owned enterprises. The assessment method, which used to be based on rank or position, is now more complex as it encompasses an employee’s competence and performance.  

This system helped Orie decide which people would remain at PT ASKES and who would be returned to their former ministries or accept early retirement. A number of employees protested her new policy, but Orie was firm in her decision. “I solved this problem by means of a golden shake hand,” said Orie, a 1974 medical graduate from Semarang’s Diponegoro University.  

Thanks to her perseverance and other basic changes — Orie later received the Prof. AM Kadarman Award (in the category of Strategic Leader of Change in Market Development) from her alma mater, the IPPM institute of management, in 2006. She also introduced a new salary system at PT ASKES. “Competence helps determine a person’s salary, meaning that salary is no longer based on position alone,” said Orie, who was born in Purwokerto on Oct. 29, 1947.  

Employees of PT ASKES now also have the opportunity to join a number of educational institutions. Under the new scheme, employees are paid according to competence and performance. This has borne fruit for Orie, who is still full of optimism and enthusiasm, and has seen her remain at the helm of PT ASKES for over 14 years, even though she should have retired in 2005 when she was 58.  

Orie, who is married to Sutadji, said music brought balance to her life, which is filled with routine activities. “Sometimes I have missed things, like the times when I should have been with my children when they needed me,” she said.  

However, she says it had a positive impact as it also made her children independent and they learned to solve problems on their own. Orie is successful in managing not only the company but also her family. She said she learned a lot from her mother, Soejati, in matters related to family management and firmness, and carefulness in taking action from her father, Soedirman Partosoepeno, a police officer who became a businessman later in life.  

Regarding corporate management, Orie, who loves reading, said she did not adhere to any particular method. “I admire Steven R. Covey with his 7 Habits and 8 Habits or Philip Kotler, the world’s marketing guru, but still we have to adjust these theories with the real conditions in Indonesia and with the character of Indonesians,” she explained.  

When asked for her opinion on how Indonesians view life, she said she was concerned that Indonesians did not pay attention to health and insurance matters. She is also worried about the lack of standardization in medical services, medical therapy and hospital rates. “This absence of standardization has led to high costs in the health sector as an unnecessary examination, for example, can be forced upon a patient. Some doctors write a prescription for expensive drugs even though cheaper drugs are available,” she said, partly blaming poor public awareness about health matters.  

Orie expressed hope that PT ASKES would lead to the emergence of national health insurance in Indonesia. “I hope health insurance for all will one day no longer be a dream,” said Orie, a lover of light jazz.  

As to her retirement years, Orie said she plans to continue contributing her ideas about health and health insurance. “Perhaps I will teach,” she said, adding that she had never aspired to be in the health or medical sector. “I used to dream about being an architect!” said Orie.  

What about a president director? “I was born and bred in the small town of Kebumen in Central Java. I didn’t even dare dream about going abroad, let alone of being a president director!” she said. C’est la vie, Madame! (Arif T. Syam)  

The Jakarta Post, March 28, 2007

Hendy Setiono: Successful Entrepreneur at 23

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Hendy Setiono: Successful Entrepreneur at 23

Being rich and successful at a young age is everybody’s dream. For Hendy Setiono, however, it is no dream. At the age of 23, Hendy owns and leads a very successful company that he established three and a half years ago. The young executive, who takes his laptop with him wherever he goes, is the owner of Kebab Turki Baba Rafi (Baba Rafi Turkish Kebab), a franchise-based Middle Eastern fast food business. Today Kebab Turki Baba Rafi has over 100 outlets in Indonesia (either owned by Hendy or by franchisees).

The idea of starting this business struck Hendy while in Qatar with his parents. “I often bought kebab there. One day I asked myself why not introduced this delicious food to Indonesians,” said Hendy, explaining that his father is an engineer who works for an oil company in Qatar.

Hendy made a business plan. “Something I always remember from seminars featuring Mr. Tung Desem Waringin, which I often attend, is that we must have the courage to start a business even if it is only small, in line with our capability,” he said.

So, in mid-2003 he hired one person and opened his first kebab outlet — a cart — on the roadside of Jl. Semolowaru, Surabaya. The out was named Kebab Turki (Turkey Kebab) not Kebab Qatar. “In Qatar it is kebab from Turkey that is famous and delectable.”

The name Baba Rafi? Well, Rafi is the name of Hendy’s first child. The word baba is Arabic for “father”. “So Baba Rafi means Rafi’s father. I didn’t call it Kebab Pak Hendy because that doesn’t have a nice ring to it,” said the elder of two siblings, who not only started his business at a very young age but also married at an age considered too young for the average Indonesian. He already has three children.

Recalling the early days of his business, Hendy said that one day his sole employee fell ill and so he had to man the cart himself. “Thank God, there was heavy rain that day. And I only earned a small amount of money as I closed earlier than usual! So small were the earnings that day that they was not enough to pay for a seafood dish at another restaurant,” he reminisced.

His story is part of the ups and downs that he went through in the early days of his kebab business. “In the early days, employee turnover was very high. Some of our franchisees did not comply with the agreement signed and started their own system so that we eventually canceled our contract with them,” he said.

However, owing to perseverance and consultation with Tung Desem and Purdi E. Chandra, a franchise expert and owner of the Primagama educational institution, as well as thanks to discussions with friends at the Entrepreneur University and on the Tangan Di Atas mailing list, Hendy went on to open six more outlets in the first year.

Today, Kebab Turki Baba Rafi can be found on almost every major island in Indonesia, with some 110 outlets and 250 employees. But he has yet to open an outlet in Jakarta, usually the yardstick for every businessman. “Jakarta is my last target. I’ll be opening an outlet in Jakarta in March,” he said, arguing that it is not easy to conquer Jakarta.

Nevertheless, Hendy said that over 30 investors had expressed interest in being franchisees of Kebab Turki in Jakarta. Will Hendy be satisfied after opening an outlet in Jakarta? “I also aim to open an outlet in Malaysia and Thailand this year,” he said confidently.

Does that sound a little too ambitious? Perhaps do not. Hendy has been named one of Asia’s successful businessmen under 25 years of age by Business Week. Following an interview with a television station in an Asian country, many expressed interest in a franchise in his kebab business. “I have even received e-mail from people living in countries I have never heard of, such as Malta,” he said candidly.

However, Hendy said that, “Indonesia is too vast an area for a business opportunity to be left untapped.” He cited the successful franchise businesses of Indomaret and Alfamart, which have thousands of outlets all over the country. “If they can do it, I’m sure I can too,” he said, full of confidence.

Some quarters question whether Hendy is too young to expand his business or whether it is too soon for him to expand. “I don’t think so, because all I have achieved so far was planned, it didn’t just happen,” said Hendy, who did not finish university.

On the other hand, he does not think of himself as highly successful and does not want others to see him as such. “If someone thinks they are successful, they won’t develop further. I’ll consider myself really successful when other people are inspired to be as successful as me.”

On his future plans, Hendy said he would like to retire young by delegating responsibility to a trusted team. What would he do? “Travel the world and look for other business opportunities,” he said, adding that as a businessman he would never stop looking for fresh business opportunities, tapping them and achieving success.

His secret to success, he said, is ATM, an acronym for Amati, Tiru, Modifikasi (observe, imitate, modify). The way he developed his kebab business follows this concept — he started his kebab business after observing kebab sales in Qatar. Hendy then imitated the dish and modified it to suit Indonesian tastes.

Therefore, Hendy will never stop looking for business opportunities. In fact he has already started another business, a drive-thru/take away coffee outlet called Coffee Tofi. Today, there are 10 Coffee Tofi outlets in Surabaya. “This is coffee of the same caliber as Starbucks at an affordable price,” he said. Perhaps such success is what happens when someone starts off at a young age. (Arif T. Syam)

The Jakarta Post, March 21, 2007

Benny Wennas: Key to Success is Willingness to Change

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Benny Wennas: Key to Success is Willingness to Change

One night about 30 years ago, in a corner of a house in West Jakarta, a university student sat on his bed trying very hard to study for an exam the next day. As there was a blackout, he was studying under poor light. Under his bed, water from a nearby overflowing river had reached ankle-deep.

Unable to overcome his sleepiness, he closed his eyes. But only for a very short time. Mosquitoes disrupted his sleep. As a result, he could neither sleep nor study. You can guess the outcome. He failed the next day’s Corporate Calculation exam.

This young man, Benny Wennas, is now the leader of a very successful company with a sales volume of trillions of rupiah. This company is WOM Finance (PT Wahana Ottomitra Multiartha). “I well remember this episode in my life,” he said, reminiscing.

This story tells us why Benny understands full well the plight of victims in Jakarta’s recent floods. It was this flooding that made him postpone an interview with The Jakarta Post. “My mind is focused on the flood victims. How can we help them and how can we send aid, etc.,” Benny said.

His words are those of an idealist, but that is Benny, a professional who started at the lowest rung of the ladder. Today, nearly everybody, particularly motorcyclists, are familiar with his company, WOM Finance.

WOM Finance is a financing company for motorcycles, the pioneer of leasing companies for motorized vehicles in Indonesia. Benny, in fact, is idealistic about motorcycle loans. “A motorcycle is not a wasteful consumer item; it is a necessity, especially today,” he argued. “I fulfill the basic dream of people,” he said.

That’s why he insists that his business is nothing like a credit card company. A father of three, he said that a bank lending money through a credit card company cannot monitor the person borrowing the money. In our case, he said, someone borrows money for a particular item, “They cannot have other items! The biggest loan possible is about Rp 20 million,” he said.

During the interview with Benny, a native of Singkawang, West Kalimantan, his idealism became more and more apparent, particularly when he referred to his employees as friends. “A president director is not a god! I don’t like to be bossy,” he said. By building close relations with his employees, Benny can avoid the emergence of unspoken issues in his office.

Unspoken issues, Benny said, can cause the collapse of a company. Unmentionable topics also threaten a company. That’s why, Benny, an MBA holder from Hull University in Britain, always tries to be open with his employees.

“Through this openness, we must be ready to accept the so-called brutal facts,” Benny said, quoting the concept introduced by Jim Collins, a writer of management books. “Despite our dislikes, these brutal facts will allow us to learn what must be done to prevent things from becoming worse,” he said.

However, Benny said the most important thing in running a business was a change in attitude. “There is no successful person who hasn’t made changes,” he said. That’s why he fully agrees with Rhenald Khasali, author of ReCode DNA.

“The essence of this book is that someone’s success is determined more by their way of thinking, including the willingness to change,” said Benny, an avid reader married to Lily Kumalasari.

Benny also tries to encourage his employees to read. That’s why he distributes books among them that he thinks they’ll find beneficial. Benny has a few tricks up his sleeve with which to develop his employees. In terms of salary, for example, he applies the underpaid concept. “This does not mean that I pay them low salaries. They continue to be assessed in accordance with their capacity and capability,” he said.

What he refers to as the underpaid concept is that it is better for someone to be paid less than they expect. Let’s say someone thinks he deserves Rp 10 million a month. In this case it would be better to pay him less, for example between Rp 5 million and Rp 8 million, according to Benny.

Therefore, he continued, this person may still have “room” for maneuvering when he leaves the company due to being poached by another firm or because the company goes bankrupt. “It would be different if he received more than Rp 10 million. For him to move to another place because the company went bankrupt, for example, would be difficult as he already has ‘overpaid value’,” he said.

It would be even more difficult, said Benny, who was born in 1955, if this person and his family had a high lifestyle. Therefore, by way of advice, he said it was best to be underpaid and live frugally!

Benny said employees should divide a career into two: a time to learn and a time to earn. “During the time to learn, don’t think too much about your salary. The most important thing is to improve your added value through experience,” he said. When your added value is high, he added, then you can start thinking about earnings.

All this, he said, can be put together in his company’s values as AFFECTION, which stands for Appreciation, Family Feeling, Enthusiasm, Creativity, Trustworthiness and Determination. Added to these values are his corporate culture of Learning, Sharing and Coaching. This solid corporate concept and culture has seen WOM Finance under Benny enjoy rapid development.

Established in 1982 under the name of PT Jakarta Tokyo Leasing, this company was acquired in 1997 from PT Fuji Semeru Leasing. It later focused on leasing for motorcycles, particularly Hondas. In 2000, the name of this company officially became WOM Finance.

A year later, WOM made its first bond issued worth Rp 300 billion. In 2005, it staged a second bond issue worth Rp 500 billion. A year earlier, in 2004, WOM became a publicly listed company. In the same year, WOM formed an alliance with BII, which confirmed WOM’s position as a top leasing company.

Last year, WOM made its third bond issued worth Rp 825 billion. All that WOM has done in this respect has attracted the interest of foreign institutions to team up with it. At present, three foreign institutions from different countries are collaborating with WOM in terms of financing worth millions of US dollars.

WOM’s achievement has also attracted the attention of the mass media in Indonesia, which has named WOM, with 100 branch offices all over Indonesia, the best multi-finance company for several consecutive years. Benny himself has been named “2006 Financial Figure” by Investor magazine.

Who would ever guess that a company as large as WOM Finance is led by someone who failed the Corporate Calculation exam in his university days? Is it fate? Maybe yes. But it is not fate as generally defined. Benny defines fate as “the end of every effort that you make!” (Arif T. Syam)

The Jakarta Post, March 7, 2007

Helmy Yahya: Blending Business and Entertainment Sector

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Helmy Yahya: Blending Business and Entertainment Sector

This celebrity-cum-businessman has had a varied career. One of his most prominent professions is producer of television programs, particularly quizzes, and, lately, reality shows. However, his involvement in business has also earned him a lot of respect, as evident in the fact that he was once named a finalist for Entrepreneur of the Year. The event was organized by Ernst & Young, a leading accounting firm. “I was not the winner but was in the 15 best and this was an outstanding achievement. I thought my company was the smallest of the 15 companies named finalists,” said Helmy in his office in Tanah Abang, Central Jakarta.

His achievement is attributable to his perseverance in life. A graduate of the State Institute of Accounting (STAN) Jakarta and University of Miami, Florida, U.S., he is astute at seizing opportunities. He spent 10 years assisting and, therefore, learning from Ani Sumadi, the televisionProgram Queen”.

For Helmy, Ani Sumadi was his “teacher” in entertainment and also in how to become a true entrepreneur.learned from her how to manage the production of a program and at the same time how to manage a company,” said Helmy, who was born in Palembang, South Sumatra, on March 6, 1963.

Helmy, who is typically a hard worker, began his career from the lowest position. For example, he compiled quizzes. In 1999, he parted company with Ani Sumadi and set up his own production house with friends. Their first production was Kuis Joshua (Joshua Quiz). Later he established his own company, PT Triwarsana.

Helmy comes from a family with a great love for entertainment. His father, Haji Muhammad Yahya Matusin, was fond of singing while Helmy and his four siblings also liked singing. Helmy became acquainted with the entertainment world when he was a young boy, though back then it was just a hobby. Later, Helmy and his elder brother, Tantowi Yahya, became profession entertainers. Unlike Tantowi, who is famous as an MC, Helmy tends to be an entrepreneur although his business is inseparable from entertainment.

Indeed, as a civil servant with accounting expertise he had no an ambition to be an entrepreneur in the entertainment sector. His entrepreneurship came to the surface during his university days, when he took part in a number of extracurricular activities, like playing in a band, joining a theatrical group and organizing music events. That’s how he got into the entertainment world. “Thanks to these activities, I met many artists and musicians and they eventually asked me to join their management teams. It was my contact with the art world that finally got me into the entertainment world,” Helmy said.

For Helmy, time management is his greatest challenge: how to prepare himself and learn to say “no” to anything that it is impossible for him to do. He has indeed received a flood of offers, but he is unable to accept many due to time constraints. However, it is here that the temptation lies, he said.

Few people can imagine the ups and downs that Helmy has gone through in his career. He is the most disappointed when he is cheated. He has also had to endure slander and gossip. But when he is down, he will try his best to get up again don’t consider someone’s success from how many times he falls but from how many times he can get up again after falling,” he noted.

Luckily, there are many people who care about him when he is down. This has led him to believe that when someone goes through an ordeal, he will be “promoted to a higher class”. Life has its ups and downs, its ebb and tide. The most important thing is that he can bear all that happens to him. “If you wish to be a creative person, hesitate to try your best,” said Helmy, who is considered to be blessed with a million ideas. He also always tries to be open-minded or open to all input.

“Either directly conveyed to me or from reading, it helps me predict future trends and what people will like,” he said.

Helmy said that some entertainers can obtain material gain easily. But being an entrepreneur is different and more challenging as he must think about a number of things, for instance, investment and profit.

Helmy, who was initial interested in marketing, said his accounting background helps him a lot in managing his company. He does not find any difficulty finding a connection between entertainment and entrepreneurship.

Despite his success in the entertainment world, it seems Helmy is yet to feel fully satisfied. It is this that prompted him to set up a consulting firm with management expert Rhenald Kasali. The company is named Here, an acronym of their names, and its business covers consulting, public relations, marketing, entrepreneurship and communications.

Today, Here is inactive due to the tight schedule of its founders.true I set up a company with Rhenald Kasali, but the company has stopped its activities for now. However, privately, I still provide consultancy to those who need said the father of three. (Iwan Suci Jatmiko)  

The Jakarta Post, March 01, 2007  

Shifting from Business to Jazz Music

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Shifting from Business to Jazz Music


Relaxed, modest and friendly is the impression one gets of this gentleman who was born in Semarang, Central Java on May 4, 1948. His name is Peter F. Gontha.

Peter was often in the media spotlight when he was a top executive in the Bimantara Group (1983-1998). Earlier he had worked for Shell (Holland; 1970-1975), Citibank (assistant vice president for Jakarta, Athens, Kuala Lumpur, New York, 1975-1979) and American Express Bank (vice president and operational chief for Japan, Hong Kong, Korea, Taiwan, the Philippines, Malaysia, Singapore and Indonesia; 1979-1983.

Bimantara, owned by the family of former president Soeharto, was reportedly so impressed by this man that it offered him a job. Peter accepted the offer and joined Bimantara in 1983.

“The late Alex Frans took me back to Indonesia. He was the father-in-law of Adrie Subono. I worked at Citibank, then in Amex in New York. Later I was stationed in Hong Kong. While I was working in Hong Kong, I was approached to join Bambang Tri’s (chairman of Bimantara) company,” Peter said.

Bimantara Group was ready to pay him a big salary. And the offer of high financial reward was enough for Peter to regard the seriousness of Bambang Tri and his associates in hiring him.

One may triumph in one’s own home but lose in the international arena. Peter is different, though. Foreign companies like him when they see his performance. What is his secret? Honesty, Peter said, is the most effective way to approach foreigners.

These days, with retirement age is approaching, Peter starts to combine business and art as part of his journey in life. The Java Jazz Festival (JJF), which may be considered a barometer for the revival of jazz in Indonesia and which reverberates the world over, is one of Peter’s projects.

“I like jazz because I grew up with it and live in a jazz environment. My father was one of the pioneers of jazz in Indonesia. He set up the first big band in Indonesia. Jack Lesmana, Bubby Chen, Maryono and many other great jazz musicians joined this big band,” Peter said.

Indeed, Peter has everything, especially in terms of material wealth. Then again, some people may think that JJF is just an expression of his idealism, which means that this giant project is not a profit-seeking undertaking.

“I have always adhered to the saying ‘Don’t ask what the country can do for you, but what you can do for the country’. I feel I am doing something for the country by organizing this festival. We introduce Indonesia to the international arena,” he noted.

It is only natural that Peter believes in this principle. He is enamored by presidents, particularly J.F. Kennedy, Sukarno and Soeharto. “They were great men,” he said.

Indeed, many people once thought of Peter as being inseparable from Soeharto. This is understandable because at one time Peter was considered one of Soeharto’s cronies. “Pak Harto is actually a great man. I love him dearly. He had a forward-looking vision. I was influenced by Pak Harto, with all his pluses and minuses. But I also love Pak Karno (Soekarno). I also love Pak Habibie, and Gus Dur. Whoever is the president of Indonesia must be very intelligent,” he said.

However, politics put him in great difficulty, and it is this situation that he abhors. Indeed, Soeharto’s cronies were greatly stigmatized at the advent of the reform era.

“I am a crony or someone from the New Order era. However, I forgot to steal. At that time, I saw a lot of people steal using a great variety of tricks,” he said. However, he was never tempted to do the same. Did he regret it? “Yes, I regretted not stealing … But Thank God I can now appear in public or in the press and hold my head high,” he said, laughing freely.

Peter’s professional journey has indeed not been easy. He confirmed his position outside Indonesia before returning home. “Not many people are as lucky as I am,” he said, adding that it was just a matter of luck.

One day his mother gave him a one-way ticket to Holland. With just a courage and confidence on his ability, Peter flew to Holland and managed to make it on his own. “I used to be very obstinate but as I had to survive abroad, I had to be serious,” he said.

Finally, he applied for a job with Dutch Shell, which he landed after going through a selection process and testing.

At first, Peter joined Shell only as an ordinary staffer earning 400 guilders (then equivalent to Rp 300,000) a month and worked there for five years. In 1975, he returned home to Indonesia at the invitation of Alex Frans. Back in Indonesia, Peter joined Citibank and initially earned Rp 75,000 a month. Of course, this salary was much lower than what he earned in Holland. However, he felt he had better opportunities in Indonesia. Four years later, Peter joined Amex Bank. Thanks to his great skill, after some time at this bank Peter was named Amex Bank chief for Asia supervising the bank in 14 countries. He was then going on 32 years old.

“Nobody can be smart alone. Take, for example, the Japanese. If they did things individually, they would be in difficulty. Together, they became smart people,” he said, adding that the Japanese philosophy respects cooperation highly and this covers all aspects of life.

He said the biggest difficulty in managing a company is the human resources. “Many aspects are involved, for example, they get sick, want a pay rise, ask for a holiday, strike, protest, steal the company’s secrets, denigrate the company and many other things,” he said.

However, he also has a way to overcome such problems. “Just find out who is loyal and who is not. Keep those who are loyal and bid the others goodbye.” (Iwan Suci Jatmiko)

The Jakarta Post – February 22, 2007

Irwan Hidayat: Keeps Sido Muncul ‘Dancing’

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Irwan Hidayat: Keeps Sido Muncul ‘Dancing’

The wrinkles on his face are becoming more apparent, and he is not quite as agile as he was a few years back. Indeed, this year he will turn 59. Still, he maintains his sharp business acumen and strong business drive. He is in every way as highly motivated as the generation below him. This gentleman is none other than Irwan Hidayat, president director of PT Sido Muncul, Indonesia’s largest producer of jamu (traditional herbal medicine) and herbal drugs.

In late 2006, Irwan proudly announced that the sales volume of Sido Muncul had almost doubled from last year’s sales figures. It was quite an outstanding achievement for an industry squeezed between the pharmaceutical industry and imported drugs, particularly those from China.

Under Irwan’s leadership, Sido Muncul has continued to experience highly significant development. As the third generation entrusted to take the helm of this family business, Irwan has to do more than just continue the traditions already established in the company. He is dealing with a much different situation and condition; likewise, customers’ demands are different. These circumstances have spurred him to look for breakthroughs so that jamu will be equal in prestige to pharmaceutical drugs, or can at least be an alternative panacea with tested validity and scientific properties. 

“Compared with the pharmaceutical industry, the jamu industry has a small market. However, a number of pharmaceutical companies also produce jamu. This condition has put us increasingly in a bind,” Irwan said.

Aware of this reality, Irwan said Sido Muncul had to make a breakthrough to survive and continue to grow. In 1997, when many industrial companies found it hard to survive in the face of the monetary crisis sweeping through Indonesia, Sido Muncul, instead, announced the construction of a factory with certification from a pharmaceutical company, and a laboratory standardized as a pharmaceutical laboratory.

Irwan did not stop here but continued to promote the quality of his products by obtaining various certifications required by the Health Ministry. In 2000, the Health Ministry issued Sido Muncul a certificate on Good Medicine Production Practices (CPOB). With this certificate in its possession, Sido Muncul is a step ahead of other jamu producers, most of whom only possess Good Traditional Medicine Production Practices (CPOTB). “We apply the same standards as the pharmaceutical industry,” Irwan said.

In addition, Sido Muncul is also progressive in improving the quality of its products. The company has endeavored hard to raise the image of jamu. Sido Muncul may be said to be two or three steps ahead of other jamu producers in introducing better products. A series of scientific tests are always conducted before a product is put on the market. “We have conducted all these scientific tests to gain consumers’ trust. Jamu is usually perceived as being traditionally passed down from one generation to another. Well, we complement the existing tradition with scientific tests,” he said.

One of the constraints hampering the development of the jamu industry is the low level of public trust in its products, Irwan said. Jamu is usually perceived as being unhygienic and having a lot of adverse impacts. Irwan expressed hope that the efforts that he has made will result in public trust in the jamu industry in general and Sido Muncul in particular.

However, Irwan long ago introduced various changes that brought significant improvement in the performance of Sido Muncul. In 1993, he learned a very valuable lesson. Many people said Sido Muncul products were bitter and not nice to drink, which was why people were reluctant to drink jamu. This reality made Irwan think hard about how to make jamu taste better. Finally, Sido Muncul changed the formulas of most of its products so that it could produce better tasting jamu. “Our innovation has enjoyed a very good response from consumers,” Irwan said.

Sido Muncul was encouraged by the results and strived to introduce more innovations in its products. Besides producing jamu, Sido Muncul now also makes pharmaceutical and food products, particularly candy. Their two most recently launched products, Kuku Bima Energi, which is an energy drink, and Sido Muncul Vitamin C 100 mg, are enjoying a very good market response. “This is the fruit of efforts made over a long period. Today the public has greater trust in Sido Muncul,” he noted.

Irwan believes that Kuku Bima Energi has a great chance of becoming the second biggest player in the energy drink business. “At present we are in third position and only slightly behind the product in second position,” he said, adding that the sales volume of Kuku Bima Energi is over 40 million packets a year.

Likewise, although it has been launched only very recently, Sido Muncul Vitamin C 1000 mg is enjoying a very significant sales growth. “We are sure this product has bright prospects,” he said.

In addition, in connection with the effort to build public trust in the jamu industry, the employees of the jamu company should have full trust in the company. “It is good public relations when the employees say that their company is good. If the employees have this belief, consumers can be influenced,” he said.

The present success of Sido Muncul, he said, is inseparable from the role of all its employees, who form the big family of Sido Muncul. Irwan always tries to pass down the corporate values in the company’s vision and mission to all its employees, numbering over 2,000 people. Irwan said they did not get special training on the company’s vision and mission. Like his grandmother before him, Irwan always tries to set a good example for his employees about the values developed in this company.

Although Sido Muncul has enjoyed one success after another, Irwan is still sober-minded. He said that a business had to be run with a conscience. He is very much aware of the social responsibility that Sido Muncul carries. That’s why the company has taken the initiative to sponsor the conferment of the annual Sido Muncul Award on an individual who endeavors to help the unfortunate, or to an individual concerned with and sensitive to social problems.

In addition, Sido Muncul continues to practice a tradition started as far back as 1991: a free post-fasting Lebaran homecoming program for jamu vendors. Jamu vendors, he said, constitute one of the spearheads of Sido Muncul so the company rewards them for all that they have done for it.

Talking about the future, Irwan said he had an ambition to make Sido Muncul a more developed company. All these years, he said, Sido Muncul has relied more on its profits in business development. That’s why this development is slow, he added. In addition, the risk is very big. That’s why Irwan has been considering making Sido Muncul a public company to obtain additional capital for expansion. “But everything is highly dependent on the condition of the macro economy. If the condition improves, we plan to conduct an IPO.” Irwan said. (T. Hidayat)  

The Jakarta Post, January 24, 2007

Asep S. Subanda: Successfully Managing Rural Resources

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Asep S. Subanda: Successfully Managing Rural Resources

There is nothing special about the appearance of this young man with the slightly dark complexion. But don’t underestimate him. Asep Sulaiman Sabanda, who is of medium build, was one of the nominees for Ernst & Young Social Entrepreneurship of The Year (Ernst & Young SEOY).  

Asep, a young entrepreneur born on Jan 16, 1977 in a village in Subang, West Java, was the most modest of all nominees attending the award giving ceremony at a hotel in Jakarta. However, he is now ascending the ladder of prosperity.

He established his company, PT Santika Duta Nusantara, in his village and now hundreds of poultry breeders are ascending the ladder of success with him. “They are not my employees,” said Asep, adding that they are business partners. He said that he had adopted the germplasm working system in his business, which resembles the network marketing strategy.

This strategy, Asep said, is mutually beneficial to his company and his business partners. PT Santika Duta Nusantara is the “germ” (nucleus), while the chicken breeders are the “plasms” (cells). Under this system each poultry breeder raises chickens in their homes.

As the nucleus, PT Santika supplies chicken feed, medicine for the chickens and guidance to ensure maximum breeding results. “My employees visit each poultry breeder twice a week to take records of breeding development and provide guidance,” Asep said.

On the other hand, the breeders, as the cells, must raise their chickens efficiently and effectively to reach a set target. In addition, the nucleus must also purchase the chickens bred by the cells at a price agreed upon earlier in a contract to be later sold at various places. “If the price of chickens in the market drops, for example because of an avian flu case, the nucleus must pay according to the price agreed upon in the contract. On the other hand, if the price of chicken rises, the price paid by the nucleus remains as in the contract,” Asep said.

The nucleus entrepreneur, Asep said, must be very smart in handling price fluctuations. This business system may fail, he went on, if price fluctuations cannot be predicted or wisely handled. Some companies that failed in implementing this business strategy cheated their breeders, therefore giving rise to the impression that this business strategy exploits breeders.

Thanks to Asep’s business acumen, his company is managing some 450 poultry breeders producing about 2.2 million chickens for every breeding cycle (about eight weeks). His customers also develop 150 other poultry breeders.

When he first implemented this business strategy in 2001, he managed only 20 breeders producing some 60,000 chickens per breeding cycle. He has now stopped increasing the number of poultry breeders because he has reached the maximum management level. “The quantity can no longer be augmented. I’m now developing this breeding business ‘vertically’. The uplink business is the animal feed business,” he said.

In this way, said the father of three, a company can continue to develop. “Don’t stop at one line of business,” he stressed.

Besides his ability to cope with price fluctuations, Asep’s key to success is transparent communication with his breeders. “If we buy second-rate chicken feed, for example, we must be honest with the breeders and give them a plausible explanation,” he said.

On the other hand, the breeders must also be honest with him about their chickens. In this way, mutual trust will grow between his company and the breeders and then there will be no room for suspicion.

Asep also attributes his success in developing this business to the fact that he was a breeder himself between 1998 and 2001. “That’s why I have a strong empathy with the breeders and understand their needs,” he said.

Thanks to his success, Asep currently manages three poultry breeding locations: an area in Subang and in Bandung (both in West Java) and in Malang, East Java. Asep plans to apply this germplasm business concept in another business line he is developing. “I’m convinced that this business model can be applied in any business sector and that this is an ideal system for Indonesia,” he said.

Asep is in the midst of developing a corn cultivation business in East Java, also employing the germplasm business concept. “Some day I will apply this system in the mining sector,” said Asep, who is currently engaged in a mining project in Kalimantan with a turnover of billions of rupiah.

In addition, he has started another business in the trading and service sector. A diesel-oil company from Malaysia will partner with him in marketing diesel oil in Indonesia.

Still, Asep is convinced that his core business is poultry breeding. “I began with poultry breeding and this made me the success I am today,” he noted.

However, there is one thing that he wants to prove with his present success. “I want to destroy the myth that success must be built from the city,” he said confidently.

“My head office for poultry breeding matters is located in a village, not in the city. I began my business from a village and, thank God, my business has begun to enter the ASEAN market.”

In this way, he added, we can cut migration to large cities. “There is a lot of unproductive land in rural areas so many villagers are jobless. That’s why we need institutions or companies to manage, motivate and coordinate these villagers to become productive so that they won’t migrate to the cities.”

“I’m not simply earning money but wish to empower rural people,” he said about his purpose in developing his business.

He said in this case he modeled himself on Prophet Muhammad. “Besides successfully spreading Islam, he also successfully developed business by empowering his followers,” said Asep, who graduated from Gontor Islamic boarding school in East Java. He said he also had an obsession to develop entrepreneurship training for rural people.

Perhaps because he reveres Prophet Muhammad, Asep uses fair play in every business move. “Once I tried to take a business opportunity unfairly, but thank goodness, I failed,” he said, reminiscing.

Asep also believes that one must be honest in doing business. If indeed there is something that you don’t think other people should know, just be diplomatic. “If you happen to sustain losses and someone asks you about it, just say ‘well, that’s normal’. Or, at least, just keep quiet and smile. It’s simple, right?” he said.

His business experience has taught him that there are three things that enables one to score their success: willingness, ability and opportunity. “Willingness comes from within oneself,” he said.

Ability, he went on, is a collective unit as it is a combination of personal ability and the ability to find and gather people capable of taking on a job accurately and correctly. As for opportunity, he added, it comes from God the Almighty. “Even though you have the greatest willingness and ability, if you are still unsuccessful it means that in God’s eyes you are yet to be capable of success!”

It has come as no surprise that the panelists of Ernst & Young SEOY, which was held for the first time in Indonesia with the support of Scwab Foundation for Social Entrepreneurship, chose Asep as one of the finalists. (Arif T. Syam)

The Jakarta Post, January 18, 2007

Challenges in Technology – and Capital – Intensive Industries

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Challenges in Technology – and Capital – Intensive Industries

TOWARD the end of 2006, Indonesia’s fast-growing cellular telecommunications sector introduced third generation (3G) technology. The new technology, which enables video calls, was launched by three operators, including PT Excelcomindo Pratama Tbk.

“The 3G service is a new experience for users of XL telecommunications services, for business as well as recreational and educational purposes,” said XL president director Hasnul Suhaimi.

For the company, which commemorated its 10th anniversary in 2006, it was a gift to users in general and its clients in particular. Hasnul said the launch of the new service demonstrated XL’s commitment to give the best service to its clients as the first provider of 3G services, with the widest scope and options of services, as well as the speediest data access supported by 3.5 G technology, the HSDPA (High Speed Downlink Packet Access).

XL is not the only operator to offer 3G services, but what makes it different from the others is that it offers special facilities. Users do not have to re-register. They are also provided with the facility to access the contents of a single media, the XL 3D web portal. In all, XL cooperates with 25 content providers, music labels and TV stations, both local and international. As if to illustrate its optimism about the bright future of this new telecommunication technology, XL has invested US$50-100 million in 3G services.

With such a substantial investment, XL has indeed taken a bold step. There is a reason behind this move — Hasnul has an ambition to make the company he directs the most reliable provider of information and communications technology in Indonesia, both for individual and business users.

“XL will remain committed to the four strategic pillars it has laid,” explained the man who was born in Bukittinggi, West Sumatra, on April 23, 1957 and elected the new XL president director during its annual general meeting at the Ritz-Carlton Hotel in Jakarta on Sept. 1, 2006.

The four XL strategic pillars Hasnul referred to include expansion of coverage, capacities and development of products; expansion of the corporate market; use of new technologies; and optimization of XL synergy with the Telekom Malaysia Group.

XL, which began operations in Indonesia on Oct. 8, 1996, is no longer a national company, since in 2005 it became a subsidiary of Telekom Malaysia, one of the biggest telecommunications companies in Asia. The Malaysian company is now a major share holder of XL, controlling 59.7 percent of the company.

Today XL business includes Consumer Solutions, a provider of dual-band cellular networking of prepaid Jempol and Bebas cards and post-paid Xplor cards, and Business Solutions, a provider of leased-lined corporate solution services, broad band and IP (Internet Protocol).

However, the task is by no means light for Hasnul to bring XL forward as the selected provider of information and communications technology services in Indonesia given that XL is still below the two other operators in terms of income.

But it is lucky that this graduate of the Electrical Engineering Department of the Bandung Institute of Technology and holder of an MBA from the University of Hawaii in Manoa, the U.S., is not a new face in the cellular telecommunications business. His career in telecommunication technology includes more than 23 years with Indosat, with his last position being president director of the company before he quit and moved to XL as its number one executive.

Hasnul humbly said he did not know exactly why he was chosen to be president director of XL, but he felt that he had given all his energy and resources to Indosat. “Meanwhile, there are still many things that can be explored and worked out at XL,” the father of two said.

When asked to compare the two giant companies, Hasnul said that both were good firms that could be called world-class companies. “It is the cultures that make them different. The leadership style at Indosat is more toward consensus, whereas decisions are made quicker at XL. Each style has its own weaknesses and advantages, but both are fun,” said the former director of development of the Indonesia Marketing Association (IMA).

It was the same fun that he felt when he plunged into and penetrated the 3G services. But since 3G technology is still in its infancy, XL — along with the other telecommunication technology providers, of course — has to constantly educate the public about it. For example, a series of promotional programs have been held at shopping centers and on campuses in several cities. In addition, XL has installed XL3G stands at nine XL centers which serve to electronically provide varied information about 3G and XL3G and even free XL3G services.

The work is not at all easy, just as it was not in advanced countries (Japan, U.S. and European countries) when they were marketing 3G services. Today, some 120,000 XL users use 3G, a success considering the amount of time set for the campaigns. But there is still a long way to go when compared against the nine million (cellular phone) XL users.

But Hasnul believes that it is just a matter of time before 3G proves to be popular, just as in the early days of cellular phones, which are now very common. Nationwide, the number of cellular phones in 2005 was registered at 47 million, or some 20 percent of Indonesia’s total population. And estimates by ABN Amro, IDC, Pyramid Research, Business Monitoring International Ltd., IMF and internal analyses indicate that the figure will increase to 63 million in 2006, 77 million in 2007, 89 million in 2008 and 122 million in 2011.

With wider use, growth is declining in percentage, 46 percent in 2005 and only 34 percent in 2006. And next, from 2007 to 2011, growth is estimated at 22 percent, 19 percent, 13 percent, 9 percent and 8 percent respectively. “We don’t have lofty ambitions. We only target growth above the average industries,” said Hasnul.

His expectations are not without basis because XL is not lagging behind in technological terms. Also in terms of capital and investment, which are crucial for such a capital-intensive company, XL is strong as it is a subsidiary of Telekom Malaysia Berhard (TM), a group of prominent regional information and communications companies, which has recorded operational returns of more than 13 billion Malaysian ringgit. Today, with investments and operations in 12 countries in Asia and worldwide, TM is focusing on sustainable growth in local and international markets.

For the past two years, XL has seen encouraging growth. During the first half of 2006, XL showed fast growth, recording gross income of Rp 1.7 trillion, an increase of more than 50 percent from the first half of 2005’s Rp 703 billion. Meanwhile, the net gain of XL for the first half of this year was Rp 358 billion, an astounding growth compared to the first half of 2005, when XL recorded a loss of Rp 53 billion. XL also booked 41 percent growth of pre-interest, depreciation and income, from Rp 854 billion in 2005 to Rp 1.2 trillion in 2006.

XL’s main challenge, Hasnul said, is the ever-keener competition among operators, old and new alike. In addition, the needs of the people for telecommunications solutions and services have become more varied and dynamic.

Apart from that, fast developments in telecommunications technologies is also a challenge for XL to always learn and implement any new technology in providing the best telecommunications solutions. “I believe XL will meet this challenge because we have a very reliable team, strong synergy with the Telekom Malaysia Group and adequate technological capability,” said Hasnul, who was awarded the prestigious Satyalencana Wira Karya Medal (2003) and Satyalencana Pembangunan Medal (2004) by the government. (Burhan Abe)

The Jakarta Post, January 10, 2007

Herman Moeliana: Gaining Success through Thinking Simple

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Herman Moeliana: Gaining Success through Thinking Simple

“I learned about it from friends and newspapers,” said Herman Moeliana, CEO of United Chemicals, in response to the news of his nomination as a finalist for the Ernst & Young Entrepreneur 2006 award some time ago. Herman said he could not believe it. “I was being compared with prominent entrepreneurs. Who was I?” he said in a strong West Javanese accent.

Indeed, some of the 12 finalists were familiar figures in Indonesia’s business world, including Helmy Yahya (CEO of Triwarsana – a production house that produces many top rating television programs), Hary Tanoesoedibjo (CEO of RCT Ithe oldest and leading private television station) and Subiakto Priosoedarsono (CEO of Hotlinean advertising company known for its eccentric ideas).

That measured reaction reflects the character of the gentleman who was born in Bandung on Oct. 19, 1944. Herman always keeps a low profile. In fact, the company he founded with four employees in a small room in 1983, PT United Chemicals Inter Aneka (UCIA), has grown into a big company with more than 600 employees and now occupies space in multi-story buildings in Central Jakarta and Tangerang, Banten.

Nevertheless, all of this has not prompted Herman to lead a lavish life.is the use of buying many luxury cars? One luxury car is enough. They all feel the same,” he argued.

“If you drove a luxury car to a busy, congested area like Glodok (Jakarta’s downtown), you’d worry. I’d rather buy another car of medium price. That way, the gap between the rich and the poor is less pronounced,” he said.

Probably the humble character of this father of two and grandfather of one is rooted in the fact that he built his business from scratch. After graduating from the Chemical Engineering Department of the Bandung Institute of Technology in 1971, Herman began working at a British company in Jakarta.

Over the next several years he changed jobs a few times. But one thing is clear: he remains committed to working in the chemical industry because it is compatible with the subjects he learned at the institute.

Entrepreneurship remained a goal ever since he started his first job, and finally in 1976, together with some friends, he started buying shares (albeit in small numbers) in a company named PT Linsea Inc. Over time, Linsea developed and gained success. But Herman and his friends felt that they had deviated from their initial mission with Linsea. Finally, after they failed to reach a deal, Herman and like-minded colleagues quit Linsea and set up their own company, PT United Chemicals Inter Aneka (UCIA) in 1983.

And fate favored Herman. Many of his long-term customers and suppliers remained loyal to him. Old friends were also supportive even though Herman and his colleagues were flying a new flag. This made it easier for UCIA to get started, so much so that UCIA was practically at the “harvesting” phase of business.

That is not to say that Herman did not have to work hard. On the contrary, he had to go everywhere by motorcycle, including to factories located in the suburbs, since there were only a few employees. “That is why I have coarse palms because I did not wear gloves,” he recalled.

His perseverance and hard work were not in vain. Many of his customers were satisfied and gradually their numbers increased. The key to success, he said, is to provide personalized service. This service, he added, is crucial because the goods he sells are raw materials that anybody can sell.makes us different is the way we approach our customers,” said the man who likes playing golf. “If customers are happy with the way we serve them, they will not turn to other sellers, even if they sell at lower prices than us.”

With his humbleness, it is little wonder that customers eventually became loyal clients. During a transaction, a customer buys not just goods, but also the personality of the seller. Here Her-man succeeds in his personality.

Moreover, the goods and products he sells are not finished products, therefore, the personal touch is important. If their goods are finished products, the role of promotional campaigns and other marketing tools will determine the commercial success or failure of the products.

In fact Herman does sell finished products as well. One such product is an anti-leak material called Aquaproof. “Selling a finished product is more difficult,” Herman admitted.

He often learns from his staff how to sell finished products.not embarrassed to learn from my subordinates. After all, they have developed special skills for that,” he said, giving an explanation of why he has staff to market Aquaproof.

From such an experience Herman underlined that in marketing finished products, the marketing force is the most crucial element. “A good marketer is one who can sell goods of average quality. On the contrary, a good quality product will not sell if the marketing forces are not skillful,” he explained. But he immediately added that he would not justify just any means to sell a product.

According to Herman, ethics and credibility must be maintained in marketing products. The result? Not long after UCIA was founded, Herman in 1985 set up two other companies, PT Inter Aneka Lestari Kimia (IALK) which produces Aquaproof, and PT Adi Cakra Utama Mulia (ACUM) which distributes it. Aquaproof got a 1994 version of an ISO 9001 certificate in 2000 and a 2000 version in 2004. Aquaproof also became a generic name for similar new products since it was the first product of its kind on the market.

All these successes, Herman argued, are attributed to the hard work and perseverance of himself and his friends and their ability to identify opportunities. However, Herman also admitted that customer loyalty also played a part in the successes he has achieved.

And although Herman did not earn the top award in the Ernst & Young Entrepreneur of the Year 2006, he feels grateful that he was nominated as one of the 12 finalists.

For Herman, who will continue to work for as long as his body and mind allows, that is not the mission in building his business. His mission, Herman said, is simple. “I only want the companies I set up to be useful to me, my family and my employees for a very long time. That’s all!”

(Arif T. Syam)  

The Jakarta Post, January 03, 2007  

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