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McKinsey: Construction Sector is Critical to Economic Growth

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IMG_1982_“There are three critical factors to leverage the productivity of construction sector in Indonesia. First, the availability of technology to enhance the performance , second, the opportunity available related to the growth of construction sector, and third, the action from entrepreneurs to take the opportunity,” said Dr. Soegeng Wibowo, a Partner of McKinsey & Company at the public lecture at Jakarta Campus, Monday (27/3/2017). As a partner in the renowned consulting firm,Soegeng oversees banks, basic materials, shipping and government institutions in Indonesia and across Asia.

During the lecture, Soegeng explained on how technology should be implemented in Indonesia’s construction, especially in digital era. “Digitization is an important driver of productivity. We believe that integrative trends will shape construction and capital projects over the next 5 years,” told Soegeng. Soegeng proposed the use of Building Information Modelling (BIM) to establish transparency in design and costing. This can be important for governance and accountability of the projects. Digitalization can also be utilized for digitized project collaboration and mobility, such as to increase site productivity, monitor the environment and equipment, and to predict maintenance schedule.

IMG_1973_Attended by the Founder and Chairman of School Advisory Council, Prof. Kuntoro Mangkusubroto, the lecture was going well with some enlightening questions from the participants. Starting with the light question about the challenges of Indonesia’s digital opportunity, to the question about how successful this one to implement. This public lecture is a perfect example how practical experience should be added to widen students’ perspective on some recent issues occurred in business and society.


Jusman Syafii Djamal: Technology is One of Main Drivers of Economic Growth

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IMG_2399__ “Technology is one of main drivers of economic growth because of its ability to generate innovation and to improve quality of human’s life. However, technology might create problems if the policy is not ready to adapt with the change of environment. The government needs to create policy that is able to anticipate and to predict the recent trend in technology,” said Jusman Syafii Djamal, President Commissioner of Garuda Indonesia and former Minister of Transportation at Jakarta Campus, today (5/4/2017).

As part of TK Low Series of Seminar, Jusman explained how our environment has changed radically in the past decades. The environment now is in the state of VUCA, stands for Volatile, Uncertain, Complex, and Ambiguous. Several phenomena confirm this complexity such as the drop of oil price, the increasing gap between the rich and the poor, and the rising number of urbanization.

Looking at those phenomena, Jusman gave his warning. If the government fails to create appropriate policy, then new problems will occur. Jusman explained the new problems in the geography of inequality. In the geography of inequality, as the number of consuming class is increasing, rapid urbanization is going to happen. It is predicted the urbanization rate will reach 67 percent by 2025 as cities become the center of growth. People will live in the periphery of the city, while the jobs are available in the core city. The government needs to provide jobs, housings, and basic facilities for the people to live properly.

IMG_2370_ In the end of the session, Jusman also mentioned about the role of universities, he suggested that top university like ITB must focus on doing research in new area that has never been explored before. For example, as we now are moving to the era of information and nano-technology, research on these areas need to be intensified. In that way, we can gain our competitiveness.

The talk today attracts the civitas of SBM ITB to attend the session. Some questions were raised in relation to how technology shapes the economic policy. The questions range from the future of electric car to what should be prioritized by the government to increase economic growth.

KPK Commissioner: 70% of Our Law is Prone to Manipulation

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IMG_2233 Laode Syarif, Commissioner of Corruption Eradication Commission (KPK), gave a guest lecture session on environmental ethics at Global Leadership Executive MBA (GLEMBA) program at Jakarta campus (2/4/2017). He told that the damage of environment in Indonesia has been so massive because of the lack of law enforcement. “I have been a law practitioner for years, so I can say that 70 percent of our law is flawed and prone to manipulation,” he said.

Many companies were given right to manage the forest, but what they care is only profit. “Instead of cutting down the trees, these companies just burned down the entire forest to clear the land for palm oil plantation,” he added. The reason for the forest burned is simple, because it is the cheapest way to get cleared land. No wonder every year during the dry season our neighbor countries such as Malaysia and Singapore are complaining due to the haze caused by the burning forest. “The problem will be worsen because most of the burned areas are peatland, we can pour water on the burning area, however the fire still exists underground,” Laode explained.

Law enforcement needs to be reinforced to prosecute those people who violate the law. KPK so far has brought some government officials, businessmen, and politicians to the jail for their misconducts. Still, it doesn’t bring deterrent effect for the violators. “We need to work harder to ensure the law has been enforced properly,” he added.

IMG_2239Laode Syarif was selected as the Commissioner of KPK in 2015. This former law lecturer and lawyer got bachelor of law from University of Hasanuddin, LL.M from the Queensland University of Technology, and Ph.D in International Environment from University of Sydney.

G-FEST: Discover Actionable Insight

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2017-05-04-PHOTO-00000034_Held at Lotte Shopping Avenue 28-30 April 2017, the Ganesha Entrepreneur Festival (G-FEST) was the new event aimed to provide the entrepreneur community with a platform for promoting and launching their business idea either as small or scalable businesses to the public. Supported by Blackberry Messenger, the 3-day festival was opened by Founder Prof Kuntoro Mangkusubroto and Marketing Guru Dr Hermawan Kartajaya. The G-FEST was also participated by Afie Kalla as the Chairman of HIPMI DKI Jakarta.

Highlighting about disruptive innovation, Kuntoro encouraged young entrepreneurs to think outside the box and create something different rather than to follow the trends. Meanwhile Hermawan stated about the close relationship between marketing and entrepreneurship. He added, “Being entrepreneurs, you expert at least in three areas. Those are to see the opportunity, dare to be a risk-taker with calculation, and to collaborate with others.”

What’s on G-FEST? “We have 3 main activities. One is bazaar where students can showcase their product and services. Secondly, E-Hackhaton. It is a digital business contest to win millions of rupiah and it is open for public. And the third one is Entrepreneurship Discussion Meet-up (EDM). Within the concept of talk-show and panel discussions, EDM invites experts from start-up and small businesses to elaborate the stages of starting a business from ideation phase, marketing, operational, and finance,” said the Head of G-FEST Committee, Denny Aswinata.

Successfully attracted hundreds of participants from students, entrepreneurs, investors, local brand enthusiasts, and many more; the G-FEST was also participated by Afie Kalla as the Chairman of HIPMI DKI Jakarta, digital startup founders, small business CEOs, and the media.

Related News:
Kaum Milennial Entrepreneur Wajib Kunjungi GFest x BBM Ini
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Video News:
MBA ITB Jakarta Gelar Ganesha Entrepreneur Festival 2017

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A Swedish Knight First Class Bestowed upon School Advisor

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Fawzy SiddikHis Majesty King Carl XVI Gustaf of Sweden bestowed honorary degree on A. Fawzy Siddik, a member of SBM ITB’s Advisory Council and Guest Lecturer in Jakarta (23/5/2017). Fawzy Siddik received Knight First Class of the Order of the Polar Star in recognition of his contribution in developing information and technology. As reported, the monarchs were invited by President Joko Widodo. They wished to strengthen the relationship between the two countries.

The order of the Polar Star referred as the Order of the Northern Star wasmedal until 1975 intended as a reward for Swedish Royal Family and foreign for civic merits, for devotion to duty, for science, literary, learned and useful works for new and
beneficial institutions.

As reported by the Jakarta Post, the Swedish monarchs were visiting Indonesia on Monday until Wednesday at the invitation of President Joko Widodo. The monarch discussed on bilateral agreements with the President. On the same occasion, the President has honored King Carl XVI Gustaf of Sweden with the “Bintang Adipurna Medal”, the country’s highest award to a foreign statesman for the King’s contribution to strengthen ties between the two countries. To accolade the same honor, the President received the Royal Order of the Seraphim from the King.

A. Fawzy Siddik has been a donor and advisor for SBM ITB since school’s establishment. Frequently invited as a Guest Lecture for Business Leadership and Business Economics courses, he currently serves as Commissioner of PT Ericsson Indonesia and Independent Commissioner of PT Mitrabara Adiperdana Tbk.

Indonesia is on Track to Stay Competitive in Global Economy

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IMG_3640_Gita Wirjawan, former Trade Minister delivered a talk about the Microeconomics of Competitiveness in Indonesia as part of TK Low Series of Seminar at Jakarta campus (14/6/2017). He started the discussion by looking back to the history of this planet. The human population reached the first billion in 1800, the second billion in the early 1900s, and now our planet is inhabited by 7.5 billion people. Every incremental billion took shorter time, the world is going global.

In this global stage, where exactly is the position of Indonesia? Gita presented some data that doesn’t look promising for us. In terms of productivity, Singapore is 6 times more productive than Indonesia, while Malaysia has twice productivity than Indonesia. Our R&D spending is only $8/person/year, while Singapore is $1,609/person/year. Competitiveness and productivity are positively related to R&D spending, and while our spending on R&D is still so small then our competitiveness is also in question.

Spending on R&D is also close associated with the number of scientists in a country. While China has 37 scientists in a million of people, Indonesia only owns 3.7 scientists in a million of people. Indonesia is also still lacking behind in terms of healthcare facilities (number of hospital beds) and medical professionals (doctors) compared to its ASEAN peers. Only having 0.9 hospital beds and 0.2 doctors per 1,000 population, Indonesia needs to catch up providing healthcare system to its citizens.

However, even though having some bleak data in supporting the country’s competitiveness, Gita still shared his optimism. “I can say that we are still able to be one of the top five economic powerhouses in 2030, but we need to be more productive.” He offered his advice, “we need to build a social system that values meritocracy, pragmatism, and honesty. These three factors are the keys that have made Singapore an advanced nation as it is today.”

Another solution offered by Gita to increase our competitiveness level is by reforming our tax system. “Among 120 million of working population, only 36 million of them who are registered taxpayers. From those numbers, only 16 million who pay their tax. Imagine if we can increase the number of tax payers and enlarge our tax base, we can use this tax income for R&D spending and infrastructure,” he added.

Closing his lecture, Gita concluded, “Indonesia will certainly innovate, and in the end, it is the most adaptive country that will sustain in the future.”

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Urban Area is the Future

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AIMG_3781_ Country Head of Deloitte Infrastructure and Capital Projects, Bernardus Djonoputro deliver a talk about Local Leaders and the Rise of Urban Economy as part of TK Low Series of Seminar at Jakarta Campus (3/7/2017). During his talk, Bernardus highlight the future of global economy will be determined by how mayors and local leaders manage the urban areas, as most people will live there in the next few decades. This talk is an example of how SBM ITB as one of the guards knowledge in Indonesia, keep moving in responding to future challenges.

The challenge of local leaders in the future is on how to provide a more vibrant, open access, and livable cities so that urban people can live conveniently in the cities. The urbanization rate keeps increasing. As the case of Indonesia, more than 60 million of people now are moving to cities, more than 70 million of middle class, 22 metropolitan areas (inhabited by 2-3 million of people), and 100 cities. “We might say that these numbers are extravagant, but China has gone through this about 20 years ago and now we can witness its massive economic size. Cities and metropolitan areas are going to be the drivers of future economy,” said Bernardus.

More challenges are waiting in the expansion rate of urbanization; access to clean water, public housing provision, and infrastructure are one of them. Local leaders will need to think on how to provide those basic public goods, and how to finance them. Bernardus stressed the importance of Public Private Partnership in financing all the infrastructure projects and provision of public goods. “Since the government does not have enough money, local leaders need to have “Business not Usual” spirit in finding other alternatives of funding.” said Him.

Attended by students, alumni, industry partners, and School Governing Council members, this seminar is an example of how SBM ITB as one of the guards knowledge in Indonesia, keep moving in responding to future challenges.

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Openness is Important for Great Leaders

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IMG_3941_ Director (emeritus) of McKinsey Indonesia, Dr. Raoul Oberman, believes that leaders need to open up themselves in order to reveal their leadership potentials. Dr. Oberman noted this during his leadership and people development talk in the TK Low Series of Seminar at Jakarta Campus (10/7/2017). The primary reason for the importance of openness for leaders is because leaders should accept their weaknesses, and in that way, keep improving their capacity.

Dr. Oberman took unique approach to deliver his material. He began by asking participants to meditate and contemplate about their past leadership journey. This contemplation includes remembering the best leadership moment and why it was special for participants. Participants were also asked about the difficult moment in their leadership experience and their strategy to overcome the difficulties. This contemplation approach aims to let participants to listen to their inner voice.

Another important take from the lecture is that successful leadership needs to have three elements: alignment, execution, and renewal. “Alignment is a process to adjust our leadership with the strategic direction of the organization. Execution is to establish the cohesiveness within the team, and ensure the interaction within the team. Renewal is to maintain the productive energy in the team,” explained Dr. Oberman

At the end of the lecture, Dr. Oberman discussed the core muscles of leadership, which are the ability to deal with stress and the ability to build trust. These muscles are important to turn negative energy to positive energy. As a prominent leadership coach himself, Dr. Oberman has successfully transferred his positive energy to the participants during the lecture.

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Public Policy Forum: Responding to Current Global Issues

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IMG_3972_Prominent policy makers gathered at Jakarta Campus during SBM ITB Public Policy Forum to talk about the current pressing policy challenges (11/7/2017). Moderated by Deputy Director Jakarta Campus, Yudo Anggoro, the forum discussed various policies; economic policy to alleviate poverty, climate change and sustainable development, policy reform in urban development, and policy delivery. Taking the theme of “Responding to Current Global Issues,” this forum is a collaboration between SBM ITB and School of Public Policy, University of Maryland.

IMG_3983_The forum was opened by SBM ITB’s School Advisory Council, Heru Prasetyo, who highlighted the importance of policy research and study at SBM ITB to assist government and policy makers to make better and sound policies. In the first session, Lukita Dinarsyah Tuwo, Secretary of Coordinating Minister for Economic Affairs, spoke about government efforts to eradicate poverty in Indonesia. Those efforts include the development of infrastructure to reduce logistics cost, the issuance of license to land owners, and offering free visa to 169 countries to boost the numbers of tourists to visit Indonesia. The next speaker, Gita Wirjawan, brought economic policy to alleviate poverty to the new level. The former Minister of Trade suggested that basically there are four policies to increase people’s welfare: creating jobs, providing social security, opening access to capital, and opening access to basic needs. Gita also shared his confidence that now as a Trillion Dollar economy, Indonesia is on track to become the fifth larger global powerhouses by 2030.

IMG_4039_The next policy to be discussed was climate change and sustainable development. Heru Prasetyo as a former Chairman of Indonesia’s REDD+, shared his experience on how to convince the Norwegian Government and other international agencies to put their fundings for Indonesia to reduce its CO2 emission. As a result, in 2010 the Indonesian and Norwegian governments both signed a Letter of Intent (LoI) to contribute $ 1 Billion to be paid based on verified emission reduction. The next session, Wicaksono Sarosa, former Executive Director of Partnership for Governance Reform (Kemitraan) provided some facts that the rate of urbanization keeps increasing and some challenges are waiting for us in the future related to this trend. Pollution, clean water, sanitation, and waste treatment are some of the challenges. However, urbanization also offers some opportunities as it positively correlates with the GDP growth. Dr. Sarosa warned policy makers that even though urban areas are developing, balancing focus to rural areas is necessary to create social wealth.

Summarizing the discussion, Neneng Goenadi, Country Managing Director of Accenture Indonesia, shared a survey conducted by UN Global Compact and Accenture to more than 1,000 global CEOs about the future global challenges. The survey concluded that the understanding of Sustainable Development Goals are crucial for both business leaders and policy makers to navigate policies to create sustainability in the future. Closing the forum, Bob Orr as the Dean of School of Public Policy, University of Maryland, concluded that multi-stakeholders collaboration is important to respond to current global issues.

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Energy Projects Need to Consider the Public Acceptance

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IMG_4407_edt Professor Peta Ashworth, the Chair of Sustainable Energy Futures at the University of Queensland, Australia, delivered a public lecture about “Achieving Social License to Operate for Energy Projects” at Jakarta Campus (17/7/2017). This lecture is a part of her series of lectures she gave while visiting SBM ITB Jakarta, mainly for teaching at SBM ITB Energy MBA (ENEMBA) Program. In the lecture, Prof. Ashworth stressed the importance of trust and public acceptance to run energy projects.

Prof. Ashworth started her lecture by presenting energy trilemma index to measure countries on their ability to provide sustainable energy through three dimensions: energy security, energy equity and environmental sustainability. These three dimensions need to be balanced to ensure the successfulness of energy projects. Energy security deals with energy supply, reliability of energy infrastructure, and ability to meet current and future energy demand. Energy equity provides accessibility and affordability of energy supply across the population Environmental sustainability is related to supply and demand-side energy efficiency and development of renewable and low-carbon energy.

Across the world, billions of people remain without access to basic energy. Considering the critical need of energy to drive prosperity, it is clear that a range of new energy projects will be required. Whether they are low emission fossil fuels, nuclear plants or renewable energy projects, each technology is not without contention.Today new energy projects are being promoted through a range of government policies, private investment or even through a mix of public and private partnerships. Whichever the route, this suggests that many energy project developers should be able to gain a social licence to operate (SLO).

Social license to operate itself is basically approval from local community and other stakeholders for a project run by business. The acceptance of social license depends on the matchness between stakeholders’ expectation and the business’ behavior in running the energy project. Here, public trust is based on organizational competence and perceived organizational integrity.

Attended by students, faculties, alumni, and industry practitioners, the lecture also discussed some cases in getting social license to operate for several energy projects in Indonesia. The lecture concluded that all stakeholders need to find common ground as well as to seek mutual understanding to gain social acceptance in every energy project.

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In Managing the Global Business, Ethics and Dilemma are Intertwined

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IMG_7077_edit Dr. Koert Vonkeman, Managing Director of Shell Upstream Indonesia, gave a guest lecture session on Leadership, Ethics, and Managing Diversity at Jakarta Campus (14/11/2017). During the lecture session, Dr. Vonkeman shared his experience in leading a global oil and corporation in his career, especially in managing the operation of Shell Upstream in Indonesia in the past 6 years. Specifically, he shared stories of the ethical dilemma situation that sometimes were faced by Shell as a global brand.

As a global brand, Shell really take care of its image carefully. As a result, everything is said by Shell executives in public would be perceived as an official statement by the corporation. This is why every Shell executive in some certain levels needs to join an intensive public speaking training to prepare the executives in handling media and giving official statement. Dr. Vonkeman shared his experience in China on a conference when he gave a final statement in a speech that, “in the end, the price of gasoline in China needs to follow the market price.” While it seems like a common statement, it then became a headline in most major media in Asia on the following day. As a result, the CEO of Shell himself directly confronted Dr. Vonkeman about the statement he was giving. It was fortunate to him that the CEO had the same opinion on the issue so that he was not going into further trouble.

An interesting case was presented in the session. The case was about the Brent Spar, an oil storage loading buoy operated by Shell in the Brent oilfield in Scotland. In 1991, Shell decided to dispose the gigantic buoy by pulling it to Atlantic and then shrinking it to the deep ocean as it was no longer in use. Shell calculated that this method was the safest option. However, Greenpeace organized a global campaign to oppose this plan, and as it instantly got public attention. As a result, the sales of Shell gasoline in some European country (notably in Germany) was declining. Facing this dilemmatic situation, Shell finally decided to dispose the mega structure on-shore in Norway. Even though this was much more expensive, but Shell considered that public reaction needed to be taken seriously.

IMG_7093_edit Dr. Vonkeman also shared Shell’s effort to provide equality in the workplace. They started to promote women participation in some key positions in the organization. The goal is to put more equal gender representation in the board of directors in the future as they only have one female director now. Shell believed that more equal opportunity will improve the quality of decision making it can make. This lecture at SBM ITB can be considered as Dr. Vonkeman’s farewell lecture as he will move back to the Netherlands starting in December. SBM ITB really appreciate the contribution of Dr. Vonkeman to the school during his tenure as
the managing director in Indonesia, and we wish him the best in his new position.

CEO of Garuda Indonesia: Indonesia’s Hospitality is Our Competitive Advantage

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IMG_8670_editPahala Mansury, CEO of Garuda Indonesia, gave a talk about Garuda Indonesia’s success story during TK Low Series of Seminar at Jakarta Campus (13/2/2018). Opened by the Deputy Director of Jakarta Campus, Yudo Anggoro, the seminar discussed the recipe of Garuda Indonesia that just maintained its status as the 5-Star Airline from Skytrax for the three consecutive years. He mentioned that there are only 10 Five Star Airliners from approximately 200 airlines globally.

Alongside Garuda, those 5-Star Airlines are Singapore Airline, Cathay Pasific, Eva Air, Qatar Airways, Etihad, Asiana, All Nippon Airlines (ANA), Hainan Airlines and Lufthansa. “The key for maintaining this success is to keep listening to our customers while offering superior service with Indonesia’s distinctive hospitality,” said Pahala. Indonesia is renowned as its hospitality, and Garuda Indonesia as the national carrier has used it as their competitive advantage in the tight competition of airline business in the world. Not only Garuda, its subsidiary, Citilink, also received the highest 4-star rating for Low Cost Carrier (LCC) certificate also from Skytrax. Citlink is the first LCC airline in Asia that has successfully obtained this certificate. Besides Citilink, there are only two other LCC airlines that has successfully achieved this rating, Norwegian Airline and EasyJet.

This success for Garuda Indonesia group is another milestone to keep increasing its superior service to the customers worldwide. In 2017 alone, Garuda Indonesia group have managed to carry 31.4 Million of passengers worldwide, and this number is expected to increase to 45 Million in 2020. Other key targets for Garuda in 2020 is to reach $3.5 Billion valuation, to obtain 92 percent of On-Time Performance, and to maintain its 5-Star Airline status.

This seminar has attracted the attention of students, alumni, industry partners, and SBM ITB?s School Advisory Council members who attended the session. This also an example of SBM ITB?s effort to have close engagement with the industry partners as well as to keep updated with the recent development from the fast-paced business environment in Indonesia.

Data Science is Important to Make Better Decision in Transportation

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image1 SBM ITB in collaboration with MRT Jakarta, held a workshop “Data Science to Support Behavioral Modeling in Transportation” (24/9/2018). Attended by academicians, data scientists, and transportation industries, the workshop discuss about the increased importance of data to understand people behavior in using mass transportation. It also marked the first collaboration between SBM ITB and MRT Jakarta in disseminating knowledge and information in the area of transportation, especially related to the target of the first run of MRT Jakarta trains in March 2019.

Opened by the CEO of MRT Jakarta, Dr. William Sabandar, and started by the Keynote Speech from the Founder of the school, Prof. Kuntoro Mangkusubroto the session run well. Prof. Kuntoro shared an interesting story when he studied his Master at Stanford University back in the 1970s. During that time, he conducted a feasibility study of a new train route between San Francisco and San Jose. The research team then performed a thorough study using manual methods and calculation that used many papers. “Nowadays, these manual methods are no longer used as we utilize big data. That is data science, and it will lead us to make a better decision,” he said.

Director of Operations and Maintenance of MRT Jakarta, Dr. Agung Wicaksono as one of the speakers, shared the findings of ridership survey performed by MRT Jakarta. The study involved more than 10,000 respondents to reveal the Jakartans’ willingness to pay for the future MRT ticket, and the people’s willingness to shift to using the train to commute. “It was found that more than 65 percent of respondents are willing to move to MRT for commuting. It is estimated that the MRT would load 130.000 passengers a day with an approximate trip distance of 10 km/trip,” said Agung.

Continue to the next speaker Dr. Yos Sunitiyoso from SBM ITB and Ir. Alvinsyah, M.Sc from the University of Indonesia provided insights about the importance of behavior modeling in transportation. Transportation modeling is useful to identify patterns of transportation preferences from users, in that way decision and policy can be designed to provide better use of transportation, especially public transportation usage.

The workshop also invited two Indonesians who currently work for Grab in its headquarter in Singapore, Jourdan Hussein as the Regional Manager of New Products and Hendra Wirawan as Senior Data Scientist. They shared the current practice of data in making better transportation service in one of the largest online transportation providers in South East Asia. The interesting thing in this session is the fact that Grab has the vision to promote active urban mobility to its customers. “By currently operating in most major countries in South East Asia and in 137 cities in Indonesia, data is essential for Grab to serve both its customers and drivers. For instance, Grab utilizes data to make better location prediction so that customers will be matched with the nearest drivers when they make a booking.”

The last speaker in the workshop is Rizal Khaefi from UN Pulse Lab, a UN Agency whose main goal is to utilize data science to alleviate problems in transportation, urban, economic development, and other areas. Currently, UN Pulse Lab has 3 laboratories global wide, in New York, Jakarta, and Kampala. Rizal shared the research activity from UN Pulse Lab to identify the Origin-Destination transportation pattern of people in Jakarta Metropolitan area. Having done this research, UN Pulse Lab can provide suggestion to the government on how to make better transportation development.

This collaborate workshop between SBM ITB and MRT Jakarta is an example of how data science as an emerging discipline can be developed collaboratively by academician, industry, government, and society. In the future, further collaboration is expected to find solutions in current pressing issues in our society.
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Alumni Best Paper on International Conference SCBTII 2018

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IMG-20181115-WA0096 (1)MBA alumni Achmad Yahya Sjarifuddin and lecturer Yos Sunitiyoso, awarded as the Best Paper on the 9th International Conference on Sustainable Collaboration In Business, Technology, Information and Innovation (SCBTII) on 15 November 2018. The title of the paper is The Analysis of Industrial Future-Shaping on Information and Communication Technology for Indonesia with Transformative Scenario Planning Approaches.

This year, the conference focused on theme Fostering Inclusive Development and Sustainability in Industrial Revolution 4.0 through Digital Business Ecosystem where the topic of discussions included empowering disruptive innovation and data technology to foster inclusive development and sustainability.

The conference invited feature speakers from outside and inside the country. Erik Meijer, CEO of Telkom Telstra, Indonesia, came as a Keynote speaker. While for the panel discussion session the conference invited Prof. Barbara Igel (Asian Institute of Technology, Thailand), Associate Prof. Sulfikar Amir (Nanyang Technological University, Singapore), Dodie Tricahyono (Dean of Faculty of Economics and Business, Telkom University), and Andry Alamsyah (Big Data Scientist & Director of Digital Business Ecosystem Research Center Telkom University, Indonesia).

The 9th SCBTII 2018 is a forum that provides an opportunity for all stakeholders to discuss and convey ideas those are relevant to the current Industrial Revolution 4.0 era. This is an effort to achieve a synergy in the form of a solid digital ecosystem towards inclusive and sustainable development in accordance with the Penta Helix concept which includes five important components, namely government, private sector, social organizations, education, and citizens.

Tom Lembong: “We need to create more entrepreneurs to develop our economy”

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Capture==SBM ITB presented an inspiring talk-show on “Surviving the Age of Complexity” inviting prominent startup leaders in Jakarta (5/12/2018). Opened by Tom Lembong of BKPM on Indonesia’s business outlook of 2019, he said “Our economy is still showing good performance from the low inflation rate, strong GDP, and incoming investment, but we cannot be complacent. We need to spur more innovation and create more entrepreneurs so that the economy can be developed further.”

Moderated by students of MBA program, the event continued to discuss the strategy to survive in startup business. In deep, this session emphasized more on to how to get the fund since the business to grow. As panelist speakers, the event invited Edward Tirtanata of Kopi Kenangan recently won “Seed Funding” US$8 Juta from Alpha JWC investor, Samiaj P. Adisasmito of Jojonomic, and Andhika Mauludi of Akusara Production.

Another attractive subject discussed went to technology. Will the tech rule the world? Startup leaders such as Arsyah F. Rasyid of Kokatto, Vikra Ijas of Kitabisa.com, and Endra Marsudi of Frame a Trip shared their stories. The speakers agreed to not be reluctant of advanced technology since it would still be controlled by human. “So, for us as a human, it is important to have heartware (perangkat hati) to use technology for a great cause,” said Arsyah.

The event then came to an end. “The Power of Branding” was on stage with marketing lecturer Dr Jacky Mussry, Almira Shinantya from DMIdeology marketing consulting firm, and Laila Munaf of Sana Studio who successfully built brand awareness of her SANA studio as the pioneer for Zumba dance in Indonesia. “You need to find your core DNA and how to leverage it as an asset. You can get inspired by others but do not copy them. That’s the essence of personal branding,” told Dr. Mussry.

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Towards the Integration of Public Transport in Jakarta

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Presentation1 SBM ITB worked together with MRT Jakarta and Trans Jakarta held workshop on “Intermodal Transportation: Public Transport Integration in Jakarta” yesterday (5/12/2018). Opened by Founder Prof Kuntoro Mangkusubroto, the workshop invited the Acting Head of Jakarta Transportation Agency, Sigit Wijatmoko; the former President of MTR Academy Hongkong, Morris Cheung; the CEO of Rapid Bus Malaysia, Muhammad Yazurin Sallij; and the Head of Jakarta Smart City, Setiaji.

Moderated by Deputy Director Dr Yudo Anggoro, the workshop began with the best practice of Rail-Bus Integration in Hongkong and Malaysia, how Jakarta could learn from these two countries. The issue then went to how to compete with online transportation. “In Malaysia, we are still in discussion for agreement with transportation online provider such as Grab and Uber. And it can only be implemented in KL,” said Muhammad Yazurin.

The workshop now moved to go deeper in discussing the challenge. Transportation experts Prof Danang Parikesit and Alvinsyah MSc gave their view. “Solving the transportation dilemma requires more than just infrastructure. It is rather ideological and political,” told Alvinsyah on his presentation.

The session ended with the case of Jakarta Smart City (JSC) delivered by the Head of Smart City Management Unit, Setiaji. He focused on the big data analytic using data mobile subscribers. As he continued, the aim was to help JSC and MRTJ to understand the aggregate actual mobility size & pattern. Additionally, as setiaji underlined, it was useful to test the mobile big data viability for transportation planning purposes.

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EY Indonesia: M&A activity is still in favor by 84% acquirers

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“Diversity in mergers and acquisitions is expected to continue, with trends from 2019 continuing to drive deal activity into next year,” wrote EY Capital Confidence Barometer Survey (2019) as delivered by Partner Transaction Advisory Services EY Indonesia, Sahala Situmorang at Jakarta campus (7/11/2019). SBM ITB in collaboration with Ernst & Young (EY) Indonesia held a Masterclass to discuss about Merger and Acquisition (M&A) practices increasingly common in today’s business practices.

“84 percent respondents plan to do next acquisition within 1 year where 76 percent of them are looking at less than 500M deal size. Adding to that, 68 percent respondents seek growth or increased scale as the primary driver for acquisition,” told Sahala.

Most common deal rationale to do M&A, he said, went to providing greater growth opportunities and earning higher margins in foreign markets than in competitive home market. “Why do Korean banks come to Indonesia? Because the margin in Indonesia is higher than in Korea. In Korea is approximately 1.25 percent while Indonesia is up to 6 percent,” said the expert.

As Sahala continued, “Journey to transaction closing is a long and winding road. The 5 key attributes of successful serial acquirers go to linking the strategy with deal execution, do not overpay for the deal, empower leaders and key support resources to make appropriate integration strategy, focus on synergies, always appreciate cultural differences and communicate effectively.”

Meanwhile the other EY Indonesia leader, Iwan Margono revealed that many corporations had neglected post M&A activity although it was crucial to monitor the integration process. “We call it, Integration Management Office (IMO). The office is important to ensure the program stays on track, to manage work streams dependencies, to measure synergy value realization, to ensure positive operational outcome in the first 100 days, to coordinate all change management and communication practices as well as to ensure accurate decision making performed by the leadership team,” closed Partner Indonesia Lead of Strategy & Operation Practice EY Indonesia.

LAPAK.KU Team Won in Telkom University National Business Plan Competition 2019

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School of Business Administration Bandung Institute of Technology as one of the best universities in Indonesia continue in making achievements. LAPAK.KU Team consisting  of  Cheryl  Marlitta  CCE59,  Daniel  Andersen  CCE59,  Annisa  Salma CCE59 won favorite place in National Business Plan Competition held by BEM Business Administration of Telkom University, Bandung on Friday, October 6. Furthermore, the team presented their business ideas entitled “LAPAK.KU” in front of other finalists from UGM, UB, Telkom and etc. Cheryl and her team said their ideas were relevant to property industry.

“LAPAK.KU  is  a  technology-based  online  property  platform  that  targets  SME businesses  that  provide  place  rental  services  for  businesses.  Includes  school canteens, universities, offices, food courts, bazaars, even to the street vendor.

LAPAK.KU  provides  a  complete  place  of  business  information  with  facilities, prices, and decoration of the place of business along with photos of the design adjusted to actual conditions. Thus, LAPAK.KU is encountering the difficulties in finding information about renting a place of business, or difficulties in finding an accurate  price  information  regarding  a  suitable  business  places  without  the intervention of intermediaries” she said.

The presentation started with registration and the Finalists group presentation. And at the end of the event, they announce the winner of 2019 business plan competition. Cheryl and the team did not expect to win the competition because their preparation  is  too  short.  Moreover,  there  was  a  competitor  won  the  best representative of tertiary institutions.

“We only have one week to prepare everything before the D-day presentation,” Daniel said. The most exciting experience according to Cheryl and the team was the vibes of the competition. They will not stop to continue in achieving more achievement for the university.

Written by Cheryl  Marlitta

MBA ITB Guest Lecture: CEO Talk about Business Leadership

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Written by Cynthia Subroto, YP MBA Batch 58

SBM ITB is lucky by having the opportunity to bring former minister as a guest lecturer in MBA ITB, Mr. Arief Yahya who is former Minister of Tourism and former CEO of Telkom Indonesia, on Monday, 11 November 2019. Also, not only him, there are Mr. Priyantono Rudito who is former Human Capital Director of Telkomsel and Mr. Honesti Basyir who is CEO of Biofarma. They actually had worked together in Telkom when Mr. Arief became the CEO, Mr. Honesti was the CFO, and Mr. Priyantono was the Director of Human Capital Management.

They would share about business leadership according to their experience in Telkom. Such a sharing of experiences from great leaders will not be found in the textbooks. The explanation would be represented by Mr. Arief Yahya. Mr. Arief said, “Exceptional results can be achieved by unusual ways” or in Bahasa Indonesia “Hasil yang luar biasa dapat diraih dengan cara yang tidak biasa”. He explained his unusual ways through Great Spirit Grand Strategy: The Unusual Way to Win. Every company must have three strategies that are corporate philosophy: always be the best, leadership architecture: lead by heart and manage by head, and great spirit, solid, speed, smart.

As explained by Mr. Arief, it is very important to invest in human resources. “Many companies’ leaders would cut investment in human resources because they considered it as a cost and would give benefit only for a long term, while actually it was all wrong. Investment in human resources could also give benefit for short term and it was not a cost,” told Mr. Arief. He added that great leaders are the ones who can create their successors. When he became the CEO of Telkom, the company invested huge amount of money in human resources which made Telkom’s valuation doubled in just two years. It was the highest valuation that Telkom could achieve. The company also received many awards such as Best BUMN on Marketing BMA 2013, Best Managed Company, Best CEO and CFO on Finance Asia Best Companies Award 2013.

There are three strategy formulations which are corporate strategy, business division strategy, and functional strategy. “As an MBA student, you must know which strategy level is being discussed when discussing strategy in a corporation,” said Mr. Arief. He also advised that to be a great leaders, we must have strong concept, use best practices and frameworks, allocate money for winning resources, allocate time to achieve the goals, and make quick wins to gain others’ trust by finding the easiest, most visible, and highest likelihood goals to be achieved. “Vision without action is only fantasy, and action without vision is only sensation,” said Mr. Arief as the closing of the lecture.

Melbourne University’s Professor: “Energy transition to renewables is inevitable”

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Written by Dr Yudo Anggoro

Opened by Deputy Director for Jakarta campus Dr. Yudo Anggoro, Dr. Sebastian Thomas of University of Melbourne began his lecture by explaining the energy challenge in recent days. He explained that our dependence on fossil fuels as the primary energy sources was actually because of the fundamental superiorities that they had over their alternatives, including their abundance, their relative ease of extraction and processing, and their energy density.

“As a result, fossil fuels have been major drivers of industrialization and urbanization, and therefore a major determinant of how we live and our standard of living,” as told by Dr. Thomas at the ENEMBA class in Jakarta (3/11/2019).

Speaking of energy sustainability, Dr. Thomas explained the three spheres of sustainability which were environment, social, and economic. These three aspects were needed to be balanced in order to achieve what so-called as sustainability vision. In reality, he said, this balancing act was difficult to maintain.

“Economic is dealing with profit, cost-saving, and economic growth principles. Social discusses issues such as standard of living, education, and equal opportunity. Environmental aspect puts concern on pollution prevention, environmental management, and natural resource use. Our behavior has a tendency to focus on one certain aspect, especially the economic one, while neglecting other factors of sustainability,” he added.

Closing his lecture, Dr. Thomas concluded that “Energy transition using more renewables and less fossil fuels is inevitable. Some initiatives of using renewables have been successfully used in other countries, and Indonesia could follow the green initiative as well. The use of wind and solar PV is just an example how to start this energy transition in Indonesia,” said Dr. Thomas.

The Energy MBA in Management (ENEMBA) is a degree program specifically designed for practitioners, policy makers, and scholars in energy sector in Indonesia. Started in 2015, the program has attracted interests from students who work at energy companies such as Pertamina, PGN, and Aneka Tambang, and those who work at government institutions such as Ministry of Energy and Mineral Resources.

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