IPMI Business Review Vol. 5

IPMI Business Review

Smart Financial Less Cash Society: A Closer Look

ApRIL 2018

MAP MALL A Sophisticated Mobile Indoor Mapping Application IPMI BUSINESS REVIEW 1

2 IPMI BUSINESS REVIEW

IPMI BUSINESS REVIEW 3

8

Investment Management Amidst Disruptive Technology

18 | Financial Apps for Millennials 22 | MapMall, Mapping Application 29 | STC Rotterdam and PT ETSI Visit IPMI Campus 43 | Business Ideas for Millenials

4 IPMI BUSINESS REVIEW

14

Less Cash Society: A Closer Look

36

Optimizing Asset Through Sharing Economy

46 | Creating Competitive Advantages for Local Products 49 | Crowdsourcing System 52 | Co-Working Space: An Alternative

for Startup Companies

54 | Lesson Learned From First Travel

Editors Dana Afriza Rega Indra Adhiprana Teguh Poeradisastra Wicky Prameshwari Contributing Editor Alvi Syachrin Nency Ismail Ronny Indria Widodo Vicky Sanda Wiwied Widyasmara Adi Ardo Ryan Dwitanto Media Production SWA

Art Designer spot

Contributing Designer SWA

Editorial Office: IPMI International Business School Jl Rawajati Timur I /1 Kalibata, Jakarta Selatan12750,Indonesia P :62.21 797.8888, 62.21 797.0419 F : 62.21 797.0509 E : Magazine@ipmi.ac.id www.ipmi.ac.id

IPMI BUSINESS REVIEW 5

A Welcome from ceo Jimmy M. Rifai Gani, IPMI Executive Director & CEO

6 IPMI BUSINESS REVIEW

For four consecutive years, IPMI

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October 16-18, 2017, in IPMI

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IPMI BUSINESS REVIEW 7

Investment Management amidst Disruptive TechnologY Today, we are living in the era when globalization and technology are powerful disruptive forces that shape our world.

The global society, governments and industries are struggling to adapt to these rapid changes. The challenge of this era for investors, is that they need to be aware of technological shifts when making an investment strategy. If you are new investors, there are some things you need to pay attention to in order to face the challenge.

8 IPMI BUSINESS REVIEW

In their 20thCEO Survey Report on February 2017, PwC’s Global Asset & Wealth Management Leader Barry Benjamin said he was concerned about the participants’ responses are around digital and cyber security. “This industry is not thinking as agilely around technology and disruption as it should,” Benjamin concluded.

KPMG Global Head of Asset Management, Tom Brown, also said the same thing. He said digital technologies will likely be the key to enable growth, improve performance, reduce costs and better

disruptive technologies in Indonesia is mostly felt by the banking sector. A lot of nonbanking institutions today offer the same financial services through their latest development of financial technologies. “In and Joseph Bower, both Harvard

terms of payment, for instance,

Business School professors.

there are a lot of payment

Nowadays, technological

applications that we can use to do

developments are changing

that,” he explained.

the way modern humans live.

Such changes also bring critical

Other example is the peer-to-

investment implications.

peer technology, a digital sharing

According to Head of IPMI manage risks. However, most

Investment Gallery Ardo

companies are not respond

Dwitanto, disruptive technology

quickly to these changes. “Our

is a phenomenon within the

research suggests that few have

global business world, where

managed to translate this more

the instability is caused by

strategic view of digital into real

rapid development of digital

and sustainable competitive

technology. “The phenomenon is

advantage,” said Brown.

hugely impacting business sectors that are not using internet and

system for resource and service that connects different users.

“In short, this application gives an opportunity for investors and companies or individuals to meet and conduct their financial transaction directly through digital world without being intermediated by the banks,” Dwitanto concluded.

Yet, what is a disruptive

digital technology as their added

Rathbones’ Chief Investment

technology? The term “disruptive

values,” he said.

Officer Julian Chillingworth in

technology” was first used in 1995 by Clayton M. Christensen

According to Dwitanto, the

his 2017 article noted there are

IPMI BUSINESS REVIEW 9

four key points about disruptive

are affecting not just the

technologies. First, they tend to

production process, but also the

be developed by outsiders and

products themselves. “It is rare

entrepreneurs rather than market

that a technology is inherently

leaders. As a result, disruptive

disruptive, disruption usually

technologies have higher risks

occurs when a low-margin

and take longer time to develop.

technology (or combination of

But when they start entering

technologies) is applied to a new

the market, they achieve faster

market at a lower price,” said

penetration which finally impact

Chillingworth.

the market tremendously.

Identifying opportunities Disruptive technologies can indeed be disrupting. A huge number of investors have regretted that day when they decided to listen to persuasive market analysts on this or that fascinating new technologies.

They may be right about the technology, but failed to predict

Fourth, there can be multiple

market response or identify tough

Second, big companies know their

disruptive technologies within

competitors.

market so well and they choose

one industry or business s ector,

to maintain their customers

some of which are competing.

by developing their existing

However, despite the seemingly

technology. On the other side,

chaotic nature of these

they often fail to capitalizing

disruptions, Chillingworth said

disruptive technology, because

that some developments are

the technology usually lack

actually predictable, especially

refinement or have performance

when the technological progress

problems at their initial stage.

is contingent on a previous

Third, disruptive technologies

10 IPMI BUSINESS REVIEW

development.

“Many of these companies were start-ups and years from making profits; in some cases, they didn’t yet have any revenues,” said Chillingworth. He mentioned global cases that gave investors some huge lessons, such as the dotcom fall in 2000, as well as the fall of Yahoo! share from $118.75 in January 2000 to $8.11 in

September 2001. “Subsequently,

to buy up smaller companies

“Investors should carefully read

Google has gone on to usurp

to augment their offering, thus

market situation and not be easily

Yahoo! and more or less drive

neutralize the threats from rival

influenced by empty marketing

it out of business. Meanwhile,

technologies,” he argued.

jargons or false news. On the

Amazon coming to market in May 1997 and it survived both the boom and bust and has since revolutionized retailing globally,” said him.

Another alternative is to invest in companies that will benefit from falling costs as they are using technologies to minimize their operational costs. Retailers, insurance or engineering

So what to invest?

Is it better to invest to smaller companies such as startups, or to trust the more secure, bigger companies? Chillingworth suggest that current tech giants could be the answer. “This may

companies may be the ones gained profits from disruptive

other hand, industrial sectors should be more responsive and quickly adapt to the current trends in order to maintain the interest of their shareholders,” said him.

How to survive?

technologies. Whichever

On the other side, when an

approach investors take,

entrepreneur is struggling to

Chillingworth suggest that active

transform their business during

investing is better suited to this

this disruption era, journey to get

challenge.

transformed, here are 10 tips from

seem surprising, given their

Meanwhile, Dwitanto warns

exponential growth to date. But

investors to be aware of false

companies such as Google and

and hoax news that easily

Amazon are using huge cash flow

being spread using the same

from their current businesses

technology and social media.

F3 Technology Partner.

1.

Understand the impact Define what digital means for your business; analyze your

IPMI BUSINESS REVIEW 11

own technical capabilities,

3.

the risks involved, and how

to adopt a dynamic cloud strategy that can benefit from

that can be centrally managed

a coordinated use of all cloud

and controlled via automation,

people out of their comfort

options.

allowing IT managers to use

zones. To become truly digital,

storage more strategically.

it’s important to break silos

12 IPMI BUSINESS REVIEW

A great approach would be

enables a synchronized data

happen without shaking

for successful.

needs of your organization.

Software-defined storage

Transformation cannot

company culture that allows

or hybrid — serves the unique

next-generation capabilities.

Encourage change

teams in order to prepare a

cloud option — public, private,

component that can enable

business and revenues.

between cross-functional

You need to figure out which

the most important IT

bring about changes in your

and encourage collaboration

their customers and markets.

Storage technology is

digital transformation can

2.

Advance your data center

4.

Adopt cloud Today, businesses are increasingly adopting cloud to meet the evolving demands of

5.

Being Customer-Centric Today’s digital consumers are well-informed, expect more, and never think twice about shifting their loyalty. Only the most innovative companies

– the ones who

References:

utilize technology

1.

to predict future

Partner. August 2017. “10 Ways

trends, develop

to Successfully

personalized

Transform Your

products,

Business in the Era of Digital

and create

Disruption“.

memorable

2.

experiences for

“Realizing digital:

– will emerge as

Delivering wealth

It is essential for entrepreneurs to analyze

winners in the years to come.

management in the

the competitive advantages that are

digital era”.

specifically applicable to their marketplace

Smart data usage

3.

in order to ensure sustainable success.

Cooper. February

It can be a low-cost business model, the

continuously evolving to

supply chain, a unique technology, or the

findings in the

support both disruption

brand itself.

Asset and Wealth

Focus on solutions

industry”.

limit your data-based technology to sales and marketing, as it can be useful in defining strategies related to employee recruitment, retention, customer service, and other areas as well.

Develop an Effective Governance Model A well-defined corporate governance model, in today’s digital era, is extremely vital for business success.

Corporate governance helps unlock the organizational value, which positions the brand perfectly in a highly competitive environment.

8.

PriceWaterhouse

Technology platforms are

2017. “20th CEO Survey: Key

Management

and transformation. Don’t

7.

KPMG International Cooperative. 2017.

their customers

6.

F3 Technology

9.

In order to beat the competition, business

4.

Rathbones Investment

should focus more on providing solutions

Report. April

that address the key issues associated

2017. “How soon

with the product. This helps in creating a bonding, an engagement with the customers that translates into long-term

is now? The investment impact of disruptive technologies”.

loyalty.

10. Track progress using Metrics and KPIs KPIs and business metrics are extremely crucial to track business performance and success. Metrics are used to monitor business performance, while KPIs can help businesses set specific goals, build strategies, and evaluate progress through a historical record of performance and success.

Define your competitive advantage

IPMI BUSINESS REVIEW 13

$ $

Less Cash Society: A Closer Look

$

APPROVED

$

$

Technology, a powerful force behind globalization, is affecting the modern lives today. They are particularly significant in financial sector. Individuals, businesses and governments are becoming more and more reliant on digital technology for financial transactions. Credit and debit cards, electronic payments, online and mobile banking services, financial applications such as PayPal, cryptocurrencies, and localized non-cash offerings are common occurrences in our everyday lives.

This raise a question: will technology eventually transform the world into a less cash society?

14 IPMI BUSINESS REVIEW

tax-compliant, and regulatorycompliant transactions would hardly miss the big notes, at least according to extensive evidence that central banks and other researchers have accumulated.”

Rogoff admitted that using less cash would hardly end crime and tax evasion; but he believes that it would discourage the Kenneth Rogoff, Professor of Economics and

underground economy to

Public Policy at Harvard University, argued that the

use cash. Eventually, they

use of cash – particularly for medium and large-

will have to take a bigger risk

size transactions – has been declining in the legal

of being caught. “Moreover,

economy in contrast with the growth of debit cards,

cash payments by employers

electronic payments, and mobile transfers. In his

to undocumented workers

article issued in September 2016, “Cash facilitates

are a principal driver of illegal

crime because it is anonymous”, he also argued that

immigration. Scaling back

a less cash society would be a fairer and safer place,

the use of cash is a far more

as cash would facilitates crime

humane way to limit

because it is anonymous and

immigration than building

big bills are so easy to carry and

barbed-wire fences,” said

conceal.

him.

In another article of his, “A lesscash society, not a cashless one”, Rogoff also explained that a less cash society is not a cashless society. A less society, according to him, occurs when we phase out large denomination notes without eliminating cash entirely.

He thinks that large notes are not essential for retail transactions.

“The overwhelming demand comes from criminals and tax evaders in the underground economy,” wrote him.

“Ordinary people engaged in legal,

IPMI BUSINESS REVIEW 15

But is there any country with a

chips using encrypted messages.

Saudi Arabia, Peru and Egypt,

less cash society? Apparently

Even Somali has their own fintech

only 1 percent of transactions

there are many. In Sweden, cash

platform, the ZAAD, in which they

are cashless. Even some highly

alternatives were started in

managed to revolutionize their

advanced countries, such as

the 1960s when banks initiated

financial transaction through

Japan, are still highly reliant on

digital transfers to pay wages.

mobile payments, with over 30

cash,” wrote him in his June 2017

Retailers are permitted by law to

transactions a month on average.

article, “Why a Cash-less Future is

refuse cash, and many business in Sweden have discouraged the use of cash. Moreover, nearly half of

However, according to Bhaskar Chakravorti from The

becoming a Closer Reality Every Day”.

Conversation, the data shows

Chakravorti also argued that cash

that as of 2013, approximately

will remain resilience in the future

85 percent of the world’s

for two reasons. First, cash gives

transactions still involved

a sense of privacy protection as

In Canada, the MintChip project

cash. “While Singapore, the

people have “a visceral sense of

was launched in 2012 by the Royal

Netherlands, France, Sweden and

security when they have cash

Canadian Mint to enable money

Switzerland are among the least

with them”. And second, he said

transfer through computerized

cash-reliant countries, in Malaysia,

many people still consider cash

the people in Sweden are actively using Swish, the money app in Sweden.

16 IPMI BUSINESS REVIEW

References: 1.

Bhaskar. June

proposed three principles:

27, 2017. “Why

1.

Future is

a Cash-less

The government should allow

becoming a

its citizens to continue using

Closer Reality Every Day”. The

cash for reasonable-size

Conversation

purchases while undermining

on https://

the business models of those engaged in large, repeated

as more convenient and versatile.

2.

September 6,

Less cash policy should be

need a ‘less-

decade or two, in order for the

and fraud.”

people to adapt to it and to avoid unexpected problems related to systemic failures.

3.

Rogoff,

wholesale level.

is always concerns about hacking

in India, when the government

2.

Kenneth S.

adjusted slowly, such as a

Those arguments were evident

futurism.com.

anonymous transactions on a

“With digital transactions, there

tried to encourage less-cash

Chakravorti,

from cash to less cash? Rogoff

Any financial transformation

2016. “Why we cash society”.

Project Syndicate.

3.

Rogoff, Kenneth S. October 19, 2016. “A less-cash society, not a

transactions in their effort to

should also be sensitive with

cashless one”.

battle corruption and illegal

the needs of low-income

Bloomberg on

activities. They took a big

households, especially those

step in November 2017 with

that are unbanked.

denomination of the 500 and 1,000 rupee banknotes while issued the new ones, resulted in the long lines of people tried to exchange their denominated notes in banks. “Despite the surge in mobile payments after demonetization, cash in India remains resilient. In March, five months after demonetization, cash withdrawals were actually 0.6 percent higher than a year earlier,” reported Chakravorti.

https://www. bloomberg. com.

Indeed, technologies are changing rapidly. Even though cash remains preferable in many countries and a less cash society does not mean a cashless society, it is important for the global world to remain alert and flexible in order to face future challenges caused by disruptive technologies, particularly in financial transactions. Who knows, maybe someday in the near future, such disruptive technologies eventually

So how to steer a country to

will force us to become a truly

safely transform their transaction

cashless society.

IPMI BUSINESS REVIEW 17

No generation welcome disruptive technologies as responsive as the Millennials. In terms of financial services, it is widely known that the Gen Y people are less interested in conventional banking and much prefer the more technologically savvy alternatives. With the globalization of smartphones and various modern apps, these digital natives are looking for new approaches to manage their finance. Here are some financial apps that would best suit to meet the needs of the Millennials.

Financial Apps for Millennials The Millennial Generation, or the

previous generations. Investopedia

technology innovations, as they

Millennials, are commonly refers

considers Millennials as “digital

change the way people use banking

to people who were born between

natives�, as they are the first to be

services while providing non-

the early 1980s and 2000s. They

born into a digital world where

banking alternatives for financial

are also known as Generation Y.

technology is part of their everyday

transactions.

According to Goldman Sachs, this is

lives.

the largest generation the history ever recorded that will reshape the future economy, as they grown up in a time of rapid change which gave them a set of priorities and expectations sharply different from

18 IPMI BUSINESS REVIEW

According to Artashes Vardanian

In the past decade, digital

from www.medium.com, there

technologies are either disrupting

will be dramatic change in the

or improving the finance world.

average consumer profile for

Banking sector is the one affected

financial services. “The pressure of

the most by disruptive financial

customer centricity has become

a main priority and it will help to meet the needs of

there in the digital world. Here we summarize some of

digital native clientele; especially if taking into account

the most used fintech apps popular among Millennials.

the Millennials, as they are the generation who are more adaptive to digital products and going to own

Mint.com

aggregated net worth of 24$ trillion in 2020 according

According to Wikipedia, Mint.com is a free, web-

to Deloitte,” he explained.

based personal financial management service which

Millennials will be prevalent as the most valuable customers for banking sector in the coming years.

Thus conventional banks must adapt and respond quickly to meet their needs and their preference for digital technologies. “The first thing to consider is that they are super oriented on mobile first solutions,” wrote Vardanian in his March 2017 article. “On average, a Millennial taps on smartphone screen 300–400

allows users to track bank, credit card, investment, loan balances and transactions through a single user interface, as well as create budgets and set financial goals. The app lets user track and review their spending trends over long period of time, categorizes spending transactions, and even set reminders and alerts when user approach their budget limit. In 2016, Mint.com claimed to have over 20 million users.

times per day and 85–90% of Millennials check their smartphones each 10–15 minutes even when they are walking.”

Most fintech startups have recognized these habits earlier than conventional banks and other traditional financial institutions. As the result, startup companies are providing better innovative financial services than their conventional competitors. Millennials quickly responded to these technologically savvy approaches, which in turn boost the global growth of fintech solutions.

Digit

However, fintech startups have launched numerous

Digit is a micro savings app, specifically designed to help

interesting offers, and Millennials might get

users to save their money. Once connected to user’s

overwhelmed with the range of choices provided out

bank account, Digit analyzes their income and spending,

IPMI BUSINESS REVIEW 19

determines how much they can save money based on their spending patterns.

Monefy With Monefy app, user can see their spending distribution and get detailed information from the transactions list, manage categories, choose the report period, select the currency, use budget mode, as well

References: 1.

Vardanian, Artashes. March 27, 2017. “Six

2.

Hadi Pratama, Aditya. August 14, 2017.

3.

Goldman Sachs. “Millennials Infographic”.

reasons why millennials adopt consumer

“Kumpulan Startup Fintech di Indonesia”.

Retrieved from http://www.

end fintech solutions”. Medium on www.

Tech in Asia on id.techinasia.com.

goldmansachs.com/our-thinking/pages/

medium.com.

20 IPMI BUSINESS REVIEW

millennials

as backup and export data. Moreover, user can safely synchronize data between devices using their Dropbox account. They can create or change records, add new categories, or delete old ones and automatically sync to the other devices.

Jurnal Jurnal is Indonesian accounting software provider for small and medium scale businesses. User can make automatic invoice as well as managing their asset, inventory, and warehouse. On February 2016, Jurnal received A Series funding from East Ventures, Fenox VC and angel investor Budi Setiadharma.

Jojonomic From financial statement services for individuals, Jojonomic is now focusing on Software as a Service (SaaS) platform to ease their client’s reimbursement process. They also provide face recognition features for employees. On September 2016, the startup received A Series funding of USD1.5 million from Maloekoe Ventures.

IPMI BUSINESS REVIEW 21

MapMall A Sophisticated Mobile Indoor Mapping Application

n big cities, mall has been considered one of the most preferred places to spend time at. Mall facilities are designed to meet the needs and tastes of urban dwellers. Malls are usually packed with department store, shops, restaurants, cafes, cinemas, and even children playgrounds. In short, mall is a place where visitors are given various choices of activities they can do, from leisure to business, grocery shopping to window shopping, as well as spending time with friends and family.

pexels.com

Not surprisingly, malls in Jakarta have approximately one

22 IPMI BUSINESS REVIEW

million visitors per month. Jakarta itself has at least 173 malls with thousands of outlets, which gives Jakarta the title of “City of Malls�.

From around 173 malls, the Top 5 and most favorites among them are: 1. Kelapa Gading Mall Area : 147,000 m2

2. Grand Indonesia Mall Area : 130,000 m2 Outlet : >480 units Visitor : 1.8 million per month 3. Kota Kasablanka Mall Area : 195,000 m2 Outlet : >225 units Visitor : 2 million per month 4. Gandaria City Mall Area : 93,854 m2 Outlet : >500 units Visitor : 1.8 million per month 5. Central Park Mall Area : 125,626 m2 Outlet : >355 units Visitor : 2.9 million per month Indeed, almost every mall in Jakarta is huge. With hundreds of outlets inside each, it actually makes mall looks like a super huge maze yet a delightful and addictive one. Once visitors get inside, they are in a whole different dimension. Visitors will move from one outlet to another, from the first floor to the next, until somewhere along the line

onyxbeacon.com

Outlet : >490 units Visitor : 2.5 million per month

they have no idea on where they are, or often, they just do not know how to get to a particular outlet, the exit, and even the toilet. They get lost in a mall!

In Indonesia, there have been several cases of people being lost in a mall. According to simpletravelbug.wordpress. com, in 2015, a visitor of Paris Van Java Mall in Bandung was lost after trying to find an outlet named Mini Lactasari Farma. He needed three times of going around the mall until he finally found the outlet, which turned out to be located in the rooftop.

Meanwhile in 2016, a unique incident occurred in Panakukang Mall, Makassar, where 30 people were lost due to an over-crowded situation in the mall.

Getting lost inside a mall is not just experienced by mall visitors in Indonesia. In Norwich, United Kingdom, In 2015 a man called James Boyett could not find his car parked at the Castle Mall parking lot. James forgot the exact spot where he parked his car and it took him two weeks to find it. Unfortunately for James, he had to pay a huge sum of parking fee for his two-week parking.

Those cases have encouraged people to find the best way to get around the mall without getting lost. On many malls, floor arrangement remains ineffective, as often times the floor plans are difficult to read and understand.

The information center does not seem to help much either. It just does not make sense if the visitor has to search where the

IPMI BUSINESS REVIEW 23

information center is just to know the location of an outlet.

In 2015, students from IPMI International Business School found a real solution for this problem. Armed with global and visionary mindset, they introduced a mobile application for indoor mapping called MapMall. It is a mobile app that utilizes electromagnetic technology to precisely guide visitors to find their indoor destination. MapMall provides information related to the outlets and tenants of a mall including its exact location and special events.

Mobile App Excellence Globally, Indonesia is one of the largest and fastest growing mobile markets, and is ranked

24 IPMI BUSINESS REVIEW

3rd for mobile web penetration.

Based on the data collected by wearesocial.com in 2016, 85% of Indonesians are mobile device users while 43% of them are smartphone users.

The number of mobile device users in Indonesia is evidently in line with the growth of internet users. In 2016, internetlivestats. com has released the data showing that 20% out of 250 million people, or equal to 53.236.719 people, in Indonesia have access to internet. It has been steadily increased by 1% every year since 2014.

However, mobile device and internet are two elements that seem to have an infinite ability when they are put together.

Equipped with the latest and the most sophisticated hardware and software, mobile device has taken over many functions of computer and laptop. Any kind of work that once could only be done in front of the computer desktop, can now be done in mobile device, anywhere and anytime.

Smartphone has successfully facilitated people in undergoing a dynamic and practical culture that will lead the society to master the massive development of information and communication technology.

Mobile application is also frequently claimed as the main factor behind the massive development of smartphones.

Most people decide to use mobile device since that

means they can utilize as much applications provided as possible.

It is actually not a surprising matter considering there are countless mobile apps consist of innumerable categories offering tons of benefits that can be utilized by everyone in every moment of their life. For instance, to have fun, people can download game-categorized apps. Then, to perform a healthy lifestyle or to execute the right way of exercise, people can download apps from health and fitness category.

Meanwhile, to keep up to date with the latest news around the world, there is news and magazine apps category ready to be downloaded. Even the dating scene through online mobile apps are becoming more and more popular in today’s era.

In general, there are 10 most popular mobile apps category in Indonesia based on the research by codepolitan.com in 2016. Maps and navigation app itself is in the 8th position out of the 10 most popular apps. Other apps are games, education and reference, business and productivity tools, news, media, communications and social networking, entertainment, music and videos, and utilities. For more details, see Figure 1 below.

These days, the diverse category of mobile apps has successfully reached the interest of the whole segment of society. Even the older generations, who previously were not familiar at all with mobile device technology,

are now using smartphones with all of its various apps. Not to mention the large-scale invasion of Chinese smartphones which enable people to own a sophisticated smartphone for only Rp800,000. As the result, a research conducted by GfK Research Institute in 2013 showed that mobile device users in Indonesia spent at least 60 minutes each day interacting with mobile apps. The research also showed that mobile device users in Indonesia are downloading new applications every month.

MapMall as a Powerful Solution In big cities like Jakarta, mall has become the primary location for many activities. People go to mall to shop, lunch, have meeting, play with the kids, and many other activities. Indeed, mall is identical with a huge building standing on a large area and contains hundreds of outlets. These outlets are there with the main purpose to accommodate the needs and the tastes of people. But on the other hand, that many outlets can actually cause confusion for the visitors. Sometimes, it is

extremely hard for the visitors to find a particular outlet, not because the outlet is located somewhere in a secluded corner, but because they do not know which direction they should go in order to find the outlet.

Here, MapMall presence can be considered as a concrete solution in digital era to overcome the problem. Unlike other regular navigation apps, MapMall offers a special indoor mapping service utilizing electromagnetic technology. This technology is claimed to be far more accurate than Global Positioning System (GPS) technology utilized by Google in Google Map indoor mapping features. Its accuracy is less than 3 meters, allows MapMall to provide precise guidance for visitors to find their indoor destination. Moreover, if the building consists of several floors, MapMall will automatically identify which floor the visitors are while the Google Map users must manually switch the floor level to find their location.

Another indoor mapping service

IPMI BUSINESS REVIEW 25

provided by this innovative mobile app is the availability of information related to events and e-voucher of an outlet. One of the most remarkable facilities offered by MapMall is an attractive location-based notification.

When visitors passing through the outlets that is currently carrying out a special event such as Lebaran, Christmas, or Independence Day, a notification will be automatically appeared on visitors’ mobile device screen

by MapMall, so as when visitors passing through the outlets that is handing e-vouchers out.

The notification will appear attractively by showing outlets pictures and other related information.

In this case, MapMall does not only help visitors to find special event or voucher in a mall, but also help the outlets in promoting their products with lower advertisement budget. This means that MapMall allows mall outlets to advertise and promote their products using a very low budget yet they still able to reach a wide range of customers. In other words, both mall visitors and outlets are benefited by MapMall application.

In addition to those services, MapMall has prepared itself to be a “fun-to-use indoor mapping mobile app.” Some features that

26 IPMI BUSINESS REVIEW

are being designed are vouchers for augmented reality, games, and shopping race. The features are also projected to give competitive advantages for MapMall future development. Furthermore, several innovations have been set up to develop MapMall as the most sophisticated indoor mapping application. Those innovations are: 1. Parking Location Indicator It has been an open secret that one of the most common problems faced by mall visitors is that they often accidentally forget the spot where their cars are parked. So, MapMall parking location indicator will greatly assist mall visitors finding their parked cars.

2. Emergency Notification This feature is functioned to broadcast emergency info when visitors lost their children in the mall. The broadcast will be received by all MapMall users inside the mall in the form of photographs and specific info about the children.

3. Crowd Notification With crowd notification, MapMall will be able to identify the crowded areas in the mall, including areas with long queue such as restaurants, big sale outlets, or toilets. Once the crowded areas have been

identified, MapMall will send notification to visitors as a consideration whether they will keep going to the crowded area or take a turn somewhere else.

4. Promo and Event News Blast It is a feature that enables MapMall users to receive notification related to promo and event in mall outlets when they are outside of the mall, or even when they are far away from any mall.

MapMall and Kalibata Plaza Kalibata Plaza has been appointed as the pilot project of MapMall application. It is considered as a perfect place to launch MapMall to public, since Kalibata Plaza is a 4-storey building with more than two main entrances. Its building design is not a straight square box with several long alleys that enables visitors to enjoy the outlets and tenants in an artistic overview.

Located nearby Taman Makam Pahlawan and Duren Kalibata Train Station, Kalibata Plaza is the one and only shopping center at the border of East and South Jakarta. It is a family shopping mall with variety of retail shops and entertainment centers with good reputation brands such as Matahari Department Store, McDonald’s, KFC, JCo, Breadtalk, Pizza Hut, Cinema XXI, and some nice outdoor hang out terraces.

Moreover, Kalibata Plaza is surrounded by middle class residential areas that give it an advantage to attract a broad segment of customers. Kalibata Plaza management stated that their visitors profiles are as follow; • Gender (%): Female (60%) and male (40%) •

Age: 12-45 years old

•

Category: Family, young family, teenagers, and professionals

•

Weekdays visitors: +/- 12.500 visitors

•

Weekend visitors: +/- 14.500 visitors

•

Monthly visitors: +/- 405.500 visitors

Kalibata Plaza management has also carried out an observation related to the vehicle traffic in the parking lot. The results are as shown by Figure 2 below.

No of Traffic Per annum Per month

2013 4,690,117 390,843

Figure 2. Vehicle Traffic at Kalibata Plaza Parking Lot Kalibata Plaza management sees MapMall as a significant potential improvement to the mall brand image. It will assist Kalibata Plaza in upgrading the mall status from C-B to a higher grade and make it

a more sophisticated mall.

As the pilot project, MapMall and Kalibata Plaza have arranged some strategic actions for partnership.

in which 20% of them have been joining MapMall since the very first time it was launched.

The first action taken was signing

Following the partnership agreements with outlets and tenants, MapMall installed an Indoor Broadcast Unit (IBU) on the area near the partnered outlets and tenants. IBU itself will be functioned to facilitate outlets and tenant in promoting their products by selling discount voucher. Finally, MapMall was Grand Launched in January 2017.

2014 5,004,455 417,038

2015 4,587,794 382,316

a 2-years exclusive contract on November 2016. At the same time, the second action was carrying out a gathering for tenants, which also served as MapMall soft launching where tenants and outlets within the Kalibata Plaza were invited. Today, Kalibata Plaza has 114 outlets and tenants

IPMI BUSINESS REVIEW 27

snapshot

SEPTEMBER 23 2017

Workshop “Financial Engineering” at IPMI Campus

Dean Prof. Roy Sembel presented a welcome speech at “Financial Engineering/Innovation & GCG” workshop on September 23, 2017.

The event was organized by IPMI, Indonesian Institute for Commissioners and Directors (Lembaga Komisaris dan Direksi Indonesia/LKDI), and Institute of Certified Management Accountant (ICMA).

MAY 17 2017

The Sustainable Family Business Seminar

The Case Center of IPMI International Business School

Speakers at this event included Executive Board of LKDI Stefanus Ginting and Head of CMA Jakarta Ikin Solihin.

IPMI faculty member Agus Loekman led the workshop.

and Yayasan Fitrah Bisnis Keluarga Nusantara (FBN) held a Business Seminar entitled “The Sustainable Family Business: Lessons-learned from the Next Generation of Indonesia Family Business Leaders” at IPMI Campus on May 17, 2017.

The speakers of this event, Bani M Mulia, Director of PT Samudera Indonesia, Noni Purnomo, President Director of Blue Bird Group Holding, Yohana Astrida Gumelar, President Director of PT Nugra Karsera, and Agus Finardi, a Family Business Expert from IPMI.

AUGUST 16 2017

UCTS Dean Visit IPMI Campus

Assoc. Prof. Dr. Mohd. Zainal Munshid Bin Harun, Dean of School of Business and Management from University College of Technology Sarawak, Malaysia, visit IPMI on August 16, 2017. IPMI and UCTS talked about collaboration and shared on various research activities.

28 IPMI BUSINESS REVIEW

snapshot

AUGUST 28 2017

SMEs Workshop

by Agus Finardi

IPMI organized a workshop for small and medium-sized enterprises (SMEs) on August 28, 2017. IPMI faculty member Agus Finardi, MBA shared his knowledge about challenges and opportunities for Indonesia SMEs, continuous product management to attract costumer, optimizing the online experience and e-supply chain, and digital industry.

SEPTEMBER 29 2017

SMEs Workshop feat.

Bari Arijono and Teguh Anantawikrama

IPMI International Business School organized a workshop entitled ‘‘Digital Lending Platforms for Small and Medium-sized Enterprises (SMEs)’’ on September 29,2017.

The workshop was led by Bari Arijono, Indonesian Association of Digital Entrepreneurs (ADEI) chairman, and Teguh Anantawikrama, Indonesian Chamber of Commerce and Industry (Kadin Indonesia) chairman permanent comittee on SMEs financial access.

SEPTEMBER 25 2017

STC Rotterdam and PT ETSI Visit IPMI Campus

STC International Maritime & Logistic Experts,Rotterdam,Netherlands delegation headed by Charmain Board of Directors Frits Gronsveld and PT ETSI Hutama Maritim led by Director Lisda Y. Satria made a courtesy visit to IPMI on September 25, 2017.

IPMI, STC, and ETSI discussed about the establishment of MBA Maritime Supply Chain Management and cooperation in the field of consultancy, education and training for shipping, port, transport and logistics chain.

IPMI BUSINESS REVIEW 29

snapshot

MAY 29 2017

MoU signed between IPMI and Guangdong University

IPMI International Business School and Guangdong University of Finance, China, strengthen educational collaboration in areas of mutual interest with a Memorandum of Understanding (MoU).

The MOU was signed by President Director & CEO IPMI Jimmy Gani and President of Guangdong University of Finance Yong Heming at IPMI Campus on Monday, May 29, 2017.

JULY 6 2017

Power Talk featuring Darryl Hadaway

More than 100 participants gathered at IPMI Campus on Thursday, July 6, 2017. IPMI held Power Talk featuring Darryl Hadaway, Director Markets of Ernst & Young Indonesia. Hadaway was speaking about Chinese’s silk way’s role in today’s global business as a logistics focused distribution way.

MAY 14 2017

Malakasari Waste Bank Project

IPMI EMBA Students and BBA Students collaborate in realizing a sustainable development project at the Malakasari Waste Bank, on May 14, 2017. IPMI students initiated various improvement projects including infrastructure development, administrative reform using technology, and promote the project through social marketing.

30 IPMI BUSINESS REVIEW

snapshot

JUNE 3 2017

Lions Club Stamp Launched by Minister Rudiantara

Lions Club International releases postage stamp to mark 100th birthday, June 3, 2017. This commemorative postage stamps launched by Communications and Information Minister Rudiantara at IPMI Campus.

SEPTEMBER 25 2017

IPMI Investment Gallery Workshop Feat.

CeweQuat Founder

CeweQuat founder Bunga Mega and Head of IPMI Investment Gallery Ardo Dwitanto encouraged more young investors to invest in stock market. “We must shift our financial orientation from a savings-oriented society to an investment-oriented,” Bunga said during IPMI InvestMAY 5 2017

Luncheon & Dialogue with Prof. Enrique M. Soriano About Family Business

ment Gallery workshop at IPMI Campus on September 25, 2017.

IPMI International Business School faculty members and alumni along with public guests who’s running a family business had a wonderful luncheon and dialogue with Prof. Enrique M. Soriano on May 5, 2017. Prof. Soriano is an ASEAN Family Business Coach from Philippine, Book Author and Executive Director of ASEAN-based Consulting group, and Wong + Bernstein Advisory.

Before luncheon session, Prof. Soriano shared about family business matters such as how to establish a family business that will sustain, managing conflict, succession, running the business, and building trust between family members.

IPMI BUSINESS REVIEW 31

snapshot

JUNE 20 2017

IPMI Launch First Edition of IJBS

IPMI Research Center launched the first edition of the IPMI International Journal of Business Studies (IJBS) on Tuesday, June 20, 2017.

SEPTEMBER 18 2017

Student Affairs Colaboration with Ministry of Foreign Affairs

Al Busyra Basnur, Director of Public Diplomacy, Ministry of Foreign Affairs, Republic of Indonesia, visit IPMI on September 18, 2017, to explore the possibilities of collaborating in student affairs.

MAY 24 2017

Financial Literacy Workshop for Librarians

IPMI organized a workshop for librarians, May 24, 2017.

The workshop was to introduce and equip the library professionals with financial literacy and management.

Speaker at this event was IPMI Dean Prof Roy Sembel shared his knowledge about financial management, and IPMI faculty Ardo Ryan Dwitanto shared about financial literacy.

MAY 17 2017

IPMI Seminar on an Intellectual Property Rights for SMEs

IPMI organized an Intellectual Property Rights for Small and Medium-Sized Enterprises (SMEs) Seminar on Wednesday, May 17, 2017. Our faculty member Zain Adnan delivered a lecture actual cases of Indonesia SMEs that are successfully operating their businesses by making effective use of their intellectual property rights.

32 IPMI BUSINESS REVIEW

snapshot

september 27 2017

Financial Management for IWAPI

IPMI faculty member Wiwiek M Daryanto shared her experience and expertise about financial management for Indonesian Business Women’s Association (IWAPI), September 27, 2017.

september 7 2017

Action Learning Project for PGN

IPMI Executive Education conducted Action Learning Project (ALP) for PT Perusahaan Gas Negara (PGN), September 7, 2017. This program was led by Hasnul Suhaimi, IPMI faculty.

ALP is a group work, consist of 4-5 members. The group propose an executable project and prepare a project which possibly will turn out with a highest impact that offers significant improvement and growth to company.

MAY 23 2017

IPMI and MBS ink MoU for Professional Development Program

IPMI International Business School has inked a memorandum of understanding (MoU) with Melbourne Business School - Executive Education (MBS) to cooperate and share of information and activity relating to the development and provision of executive and proffessional development programs and initiatives.

The MoU was signed by IPMI Executive Director & CEO Jimmy Gani and MBS General Manager Asia Pasific Greg Campbell at IPMI campus, May 23, 2017. The signing ceremony witnessed by IPMI Executive Education Director Bambang Gunawan and MBS Regional Manager Asia Jeffery Soong.

IPMI BUSINESS REVIEW 33

snapshot

September 11 2017

HC Director Maybank Indonesia at Senior Managers Development Program (SMDP)

Human Capital Director Maybank Indonesia Irvandi Ferizal shared his experience at Senior Managers Development Program (SMDP) for PT Bank Maybank Indonesia TBK, September 11, 2017. “What we need is people agility.

The capability of the people to respond more quickly and effectively to changing costumer’s expectation, workplace disruptions, and busness requirements.”

may 16 2017

Dean Sembel Welcomes B-Braun Leadership Development Program Participants

IPMI Dean Prof Roy Sembel welcome B-Braun Leadership Development Program participants, May 16, 2017.

Participants are led to identify the issues that make for leadership effectivenes, and to give helicopter view perspective in managing and leading the business.

august 28 2017

IPMI Executive Development Program for Leaders of PGN

In collaboration with Melbourne Business School (MBS), IPMI Executive Education conducted Executive Development Program (EDP) for PT Perusahaan Gas Negara, Tbk (PGN), August 28, 2017.

Speakers are François Bogacz, Senior Consultant at Melbourne Business School (MBS), and Dr. Frances Penafort, Professional Certified Coach from International Coach Federation, USA, led the EDP.

34 IPMI BUSINESS REVIEW

snapshot

october 6 2017

Capital Market Seminar and Stock Investment Simulation Competition 2017

IPMI’s Capital Market Seminar was

they will have a better and longer

date the need by organizing the

back on October, 6th 2017 by tar-

preparation an it will be easier for

half-day seminar that was contin-

geting high school students as the

them to face any financial burden,”

ued by stock investment simulation

participants. Ardo Dwitanto, Head

as Ardo explained during the event.

competition. Overall, the event was

of IPMI Investment Gallery as well as

success with 39 high school teams

the chairman of the event, said that

It was reasonable explanation by

from Jakarta, Bekasi, Bogor, Band-

this second seminar was intended to

Aldo because the number of domes-

ung, and Cirebon joined as the par-

invite the young generations to be

tic investors in the stock exchanges

ticipants. Hopefully, a similar event

investment literate.

is still below 1% of total Indonesia

will be held regularly next years.

population.Besides that, the mil“We teach them to be investment

lenial generation is the informa-

literate, that their future needs

tion-hungry generation yet the

won’t be necessarily fulfilled by

school curriculum does not have the

conventional savings. So if their in-

capability to satisfy the hunger.

vestment has been prepared earlier,

for that reason, IPMI than accomo-

IPMI BUSINESS REVIEW 35

Millennials’ preference for digital technology has expanded the sharing economy idea in ways baby boomer generation has never done before. “They’re taking a more asset-light stance toward consumption, putting off buying a home in favor of renting, forgoing a car payment and taking Uber, or skipping a hotel in favor of booking a room via Airbnb,” reported Ann Hynek from BlackRock. “This trend really exemplifies the higher volumes/ lower prices model we see from places like Amazon, driving more efficient consumption that’s not necessarily reflected in traditional economic metrics.”

Optimizing Asset through Sharing Economy

In this sharing economy era, our economic system is shaped around sharing of resources.

This is particularly evident with the emergence of Airbnb, Uber and even Cloud. “For Millennials, the world they live in has always been a connected one, a natural condition that has driven the

Sharing is not a new concept. But when the concept penetrates the global world, boosted by digital technology and spread by the Millennials, it can make a huge impact that will change our way of life forever. From sharing access to giving free apps, from renting places to renting fashion items, global journalists shared their findings on Millennials attitude on sharing economy, how it has changed the global economy landscape, and what can we learn from it to secure and optimize our assets.

expectation to be able to access music, photos, documents, movies, etc. from any device at any time,” wrote Daniel Arthursson from Entrepreneur. com. “In fact, 57 percent of adults agree that access is the new ownership, according to Pricewaterhouse Coopers (PwC).”

The movement started from

36 IPMI BUSINESS REVIEW

olds in 2013, as reported by

References:

Goldman Sachs.”

1.

Arthursson, Daniel. June 9, 2016. “How

“Numerous surveys from the likes

Millennials

of Verdict, Hammerson, Goldman

Are Defining

Sachs and PwC all indicate that

the Sharing

purchasing and owning a house

Economy”.

Entrepreneur

are no longer realistic aspirations for the majority of Millennials

Media, Inc. 2.

in the UK and the US,” wrote

Vivian. January

Vivian Hendriksz from Fashion

4, 2017. “2017:

United. “Data from Goldman

The Rise of Millennials and

Sachs indicates the peak home the global economic recession era which Millennials witnessed when they grew up. During this time, prices were sky rocketed, including for housing, cars, education, and travel costs. “Many graduated from college during the recession, only to face a difficult job market and were often forced to move back home in order to make ends meet,” said Arthursson.

“Adding to this is the financial responsibilities from mounting student loans – calculated at an average of $20,926 for 25-year-

Hendriksz,

the Sharing

buying years has increased from

Economy”. www.

25 years old to 45 years as an increasing number

fashionunited.

of Millennials still live at home with their parents.

Close to a quarter of Millennials surveyed by

uk.

3.

Hynek, Ann.

Verdict (23.8 percent) say they are not concerned

March 1,

with home of their own and would be content to

2016. “How Millennials

rent for the rest of their lives.”

Are Driving the Sharing Economy”.

Indonesia has been seeing the rise of the sharing

BlackRock.

economy activities since 2010. In 2013, for instance, the local platform for online motorcycle taxi, Gojek, provides the first online booking for

4.

Liem, Cassandra.

January 5,

transportation service, which then followed by

2016. “The Rise

Uber and Grab. In addition to online transport,

of the Sharing

today Gojek also provides other services such

Economy in Indonesia”.

World Economic Forum.

IPMI BUSINESS REVIEW 37

as food and package delivery, grocery shopping, massage and beauty therapist, cleaning service, and many more.

“The sharing economy is changing consumption patterns all over the world, as it offers a number of advantages: lower prices, stronger communities, a greater number of players in the market, and greater access to services that were once regarded as a luxury,” said former research intern Cassandra Liem from Brugel.org.

the edge in terms of reservation

Another challenge is the payment

method, because they also have

method. Local platforms mainly

call centers for non-internet

use cash as their main payment

users.”

method, while global platform

“87% of Indonesians are likely to

Two clear barriers remain as a

use products or services from

challenge for sharing economy

others in a share community,

in Indonesia. First, most – if

compared to 66% of the global

not all – sharing economy

population, according to a survey

companies are relying on

conducted by Nielsen in 2014.”

smartphone apps. However, the

According to Liem, Indonesian hotel owners and taxi drivers have been hit hard by this new sharing platforms. Yet, the increased competition from the sharing economy has had positive results for the local community. “The two major taxi companies in Indonesia, Express and BlueBird, have created their own mobile applications which allow users to order a taxi, see the estimated fare and track the driver’s real time position,” explained her.

“Arguably, this gives regular taxis

38 IPMI BUSINESS REVIEW

2013 survey revealed that only 23% of Indonesian people own smartphone. This percentage is smaller than some other developing Asian countries.

“Nevertheless, due to its large population, it is estimated that Indonesia will have 92 million smart phone users by 2019, 47% of mobile phone users,” said Liem. “So even though at the moment access to online sharing economies remains a barrier for businesses, smartphone use is growing rapidly.”

such as Uber and Airbnb use credit card as their main method. Here lies the important difference between domestic and global players, with domestic players being more adaptive to the local demands. “Credit card use in Indonesia in 2011 is comparatively low, at 5%; while cash (51%) and debit card (29%) remain the most favorable payment methods,” Liem explained. “Consumers across Southeast Asia still prefer to use cash, which means that US-based companies wanting to increase their market share in Indonesia and Southeast Asia will have to consider implementing cash as payment option in order to tap the wider market.”

snapshot

IPMI BUSINESS REVIEW 39

snapshot

2nd IPMI Charity Golf Tournament Thank you to IPMI alumni and sponsors for supporting the 2nd IPMI Charity Golf Tournament at Bogor Raya Club, Jawa Barat, on Thursday, April 27, 2017. The weather was great and the day filled with fun!

This tournament would absolutely not have been possible without your support. We look forward to seeing you again!

40 IPMI BUSINESS REVIEW

passion for excellent 41

IPMI BUSINESS REVIEW 41

snapshot

43rd IPMI Graduation Ceremony 2017 IPMI International Business School graduated approximately 109 students from its bachelor’s, master’s, and executive education programs on Wednesday, December 13, 2017. Family and friends gathered inside a Puri Dani Auditorium and celebrated the accomplishments of this year’s graduates. Elia Massa Manik, stateowned oil and gas company PT Pertamina (Persero) President Director, addresses graduates at IPMI’s 43rd Commencement. Meanwhile, Indonesia Export Financing Institution Executive Director, Sinthya Roesly accepts the 2017 Bustanil Arifin Thought Leadership Award.

42 IPMI BUSINESS REVIEW

Business Ideas for Millennials Millennials were born in a time where information is instantly available. Not only they are more educated and well informed, they are also skilled in technology, confident, adaptable, multitasker and more open to new things. How should they use these competitive advantages? What type of business Millennials are good at?

IPMI BUSINESS REVIEW 43

“Millennials seek challenges, yet

As they work best by utilizing

and natural products. “People

work life balance is of utmost

technology and have a different

have started reading labels and

importance to them,” said VP

outlook than the baby boomers

they’re extremely cautious about

of Strategy and Operations of

generation, their behavior and

what they’re putting on their own

OrthoEvidence Inc., Jay Gilbert.

attitude are changing the global

skin, that’s why consumers are

“They have the need for social

business world today. Using their

increasingly interested in brands

interaction, immediate results in

unique competitive advantage

that use only natural ingredients,”

their work, and desire for speedy

in technology, here are three

said journalist Alex Williams.

advancement.”

ideas for Millennials to start their

On the other side, Steve Nicastro from NerdWallet said millennials are facing financial barriers when trying to start a business, including higher student loan debt and lower starting wages.

“These challenges are making it difficult for young people to become entrepreneurs.”

44 IPMI BUSINESS REVIEW

business.

Organic Products

Online Trading Millennials are the generator of social media and online

The well-informed Millennials are

business has open tremendous

fully aware of the chemical use in

opportunities for them to do

cosmetics and health products.

business anywhere anytime.

Many have started the revolution

“There’s no need to store all the

for healthier and more sustainable

items you want to sell, as drop

alternatives through ecofriendly

shippers will do all that. What

References: 1.

Gilbert, Jay. September 2011.

“The Millennials: A new generation of employees, a new set of engagement policies”. Ivey Business Journal.

2.

Nicastro, Steve.

June 5, 2017. “3 Smart business ideas for Millennials in 2017”. USA Today Online.

3.

Williams, Alex.

June 24, 2017. “5 Business Ideas For The Entrepreneurial Minded Millennial”. www. optimisticmillennial. com.

4.

Arthursson, Daniel.

June 9, 2016.

“How Millennials

you have to do is build a cool

CloudMe.com, Daniel Arthursson.

Are Defining the

website, promote your products

“That is why sharing economy

Sharing Economy”.

across social media, and be very

such as Uber and AirBnB are

persistent. Attracting customers

becoming more popular among

will be more effective if you offer

this generation. Millennials will

them free shipping or similar

continue to shape the sharing

incentives,” Williams said.

economy for years to come as

Sharing Economy

Entrepreneur Media, Inc.

we move in the direction of decentralization.”

Grew up in the era where housing price and education cost are rising sharply, Millennials are more cautious about spending money.

This habit brought new mindset in consumerism. “Sharing and being frugal are now perceived as cool and clever as ownership is not a necessity anymore,” said CEO of

IPMI BUSINESS REVIEW 45

Creating Competitive Advantages for Local Products In every market around the world, competition is necessary to maintain consumer interest, stabilize price and improve product quality. When dealing with the same raw materials, it is up to producer’s creativity and innovation to process these materials into something unique, interesting, and marketable to create their own competitive advantage. In Indonesia, where local citizens are the biggest market, how should one business best compete with other local players as well as international enterprises?

Entrepreneurship is a rising

from 1.67% in 2015. “The figure

theme in Indonesian business

exceeded the minimum ratio of

world. The government

2% relative to the population that

encourage entrepreneurship

a country ideally achieved,” he

among young generation to tackle

proudly added.

unemployment issues. As quoted from the Jakarta Post’s article on March 2017, Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga said the national entrepreneurship rate reached 3.1% in 2016, an improvement

46 IPMI BUSINESS REVIEW

Masyitha Baziad noted that the number of local entrepreneurs has increased significantly. “Data from the Central Statistics Agency (BPS) shows that there were 26.7 million entrepreneurs in 2016 compared to 22.7 million in 2006, mainly thanks to the flourishing

indeed an important issue, giving

becoming decentralized, such

Indonesia will be the host for 2018

as the emergence of online

World Bank IMF annual meetings

transportation. “In terms of local

where Human Capital Project will

business, new innovation will

be discussed as one of the main

continue to emerge.”

discussion. The topic is closely related to entrepreneurship and economic development in alignment with Sustainable Development Goals (SDGs).

Market opportunity is wide open for agile entrepreneurs. “Business development will continue forward as long as they work harder and smarter to expand

“Remember, whatever your sector

their market,” Dwitanto said.

is, you need to be digitally savvy

“Agile entrepreneurs nowadays

in this day and age,”

have huge opportunity to expand

Munaf explained.

their regional business and tap

“We need to support

into international market.”

entrepreneurs that are in the scaleup level, so they will have what they need to grow.

As the role of business is changing, sustainability becomes a growing trend for future businesses.

Aside from funding, digital sector

A combination of factors –

they mainly need

in the past

evolving relationships between

more mentorship,

five years,”

developed and emerging

access to various

economies, global institutions

networks, as well

and nation states and public

as technology

and private sectors – has led to

skillsets.”

a greater understanding of the

wrote Baziad in her March 2017 article.

Ardo Dwitanto, Head of IPMI Investment Gallery

New innovation,

connection and interdependency between business and society.

Entrepreneurship is also seen

sustainability, and digital

as the new growth catalyst for

technology

Indonesia. As reported by Baziad,

Sustainability is now being

Ardo Dwitanto, Head of IPMI

Head of Indonesian Creative

considered as a competitive

Investment Gallery, said there

Economy Agency (Bekraf)

advantage to win the competition

will be continuous emergence

Triawan Munaf said building

in the market. Thus, entrepreneur

of local products in the future.

entrepreneurship quality is

has to do more than earning profit

“Fresh ideas will always come up

part of the government focus

if they want their business to

along with new trends for food,

right now, because high quality

grow in the future. A sustainable

handicrafts, and many more,”

entrepreneurs can improve

business must be able to meet

said Dwitanto. He also sees a

the country’s resiliency. This is

some of the basic needs of the

trend of centralized business

IPMI BUSINESS REVIEW 47

Marty Zwilling, Founder and CEO of

References:

Startup Professionals, defines a visionary

•

March 16, 2017.

sense out of the wealth of ideas, and weave

“Boosting high-impact

together a plan for business implementation

Indonesia”. www.

vision usually start by communicating an

digitalnewsasia.com.

integrating individual innovative ideas into

surrounding community without compromising opportunities for future generations to meet their needs.

Technology will become a crucial

entrepreneurship in

that will make a difference. “People with inspirational picture of the future, and then

Marty Zwilling, Founder and CEO of Startup Professionals

Baziad, Masyitha.

entrepreneur as someone who can make

•

The Jakarta Post.

March 22, 2017.

this fabric, and show how to get there,”

“Ministry targets

wrote Zwilling. “The best ones can make the

entrepreneurship

impossible look easy, so everyone, including

rate to hit 4% this year”. www.

investors, line up to commit.”

Technology utilization

thejakartapost.com.

•

Zwilling, Marty. May 25, 2011. “Great

Dwitanto said entrepreneurs should make the

entrepreneurs have

best out of modern technology, such as using

vision, not just ideas”.

social media for marketing activities.

Huffington Post Online.

factor to maintain a sustainable business. It will also drive more

Creative innovation

innovations in many areas, from

From creative package to catchy tagline,

production to marketing. “Digital

innovation can provide a breath of fresh air

30, 2014. “7 Steps

technology is widely used,

for business. “This is important to keep your

to defining your

including in managing resources,”

customers interested in your products,”

niche market”. www.

said Dwitanto. “In agriculture,

Dwitanto added.

for instance, farmers can directly sell their products to buyers.

Niche target market

Also, people have been using

The narrower you define your target market,

social media to directly sell their

the better. This process is known as creating

product to consumers. This means

a niche and is key to success for even the

digital technology is playing an

biggest companies. Many entrepreneurs

important role in the creation

make mistake by claiming they can do many

of new innovation in modern

things and be good at all of them. “Smaller

economic activities.”

is bigger in business, and smaller is not all over the map; it’s highly focused,” said Lynda

Dwitanto share his tips for young

Falkenstein, author of Nichecraft: Using Your

entrepreneurs who want to build

Specialness to Focus Your Business, Corner

their business with local themes:

Your Market and Make Customers Seek You

Strong vision

48 IPMI BUSINESS REVIEW

Out.

•

Entrepreneur Media Staff. December

entrepreneur.com.

Crowdsourcing System

Since ancient time, Indonesians are familiar with the word ‘gotong royong’ and ‘musyawarah’, where collective individuals work together in a project, or voice their opinion on various social issues to find the best solution for the community. In the modern world, the sharing economy turned the same old concept into what we call today as ‘crowdsourcing’.

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virtually any domain,” said Simperl, “from using gamification to drive employees’ motivation, challenges and prizes rewarding ideas for product development and innovation, as well as to paid microtasks as a new form to complete routine content work, such as simple text translation, data entry, or updates of database records.”

Online crowdsourcing Globalized through digital

country on earth, every age and

technology, crowdsourcing is

gender, multiple languages, who

through the internet,

becoming the hype approach to

are all thinking about solving

smartphones, and wireless

solving various problems within

one problem. They often look

sensors. “Organizations

commercial enterprises, social

at the problem as a fun contest,

interested in crowdsourcing could

organizations, governments and

and creative thinking can win

easily reach out to a global pool

communities. From peer reviews

a prize in the end. That is what

of resources, skills, and creativity,

to open competition, from paid

crowdsourcing platforms do.”

readily available at almost any

bidding to voluntary participation, many forms have emerged to collect as many information as possible, or just to find the best innovative ideas.

At the LIBER’s 43th Annual Conference 2014 in Riga, Latvia, associate professor at the University of Southampton Elena Simperl proposed that the

“There are now about 3.5 billion

efficiency in mobilizing people

people on the planet who are

under a short period of time

connected via the internet and

is what makes crowdsourcing

various social media platforms,”

useful in many ways.

said attorney Jack Posey, managing shareholder of The Posey Law Firm. “Think of a focus group of people from every

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“Less than a decade after the introduction of the term in 2006, we see crowdsourcing applied to

is made possible

time of the day at the click of a button,” said Simperl. “For instance, when Google launched a project asking for ideas on how to make the world a better place, it took them around three years and 3,000 employees to review the 150,000 submissions and identify 16 projects they eventually pursued.”

The success of crowdfunding depends on each group’s resources, such as time, budget,

and geographical barriers.

age, location, gender, and accent. This

References:

Simperl introduced two scenarios

information will help Mozilla avoid bias in

•

for crowdfunding: microtask

creating its voice recognition systems and

May 1, 2015. “Five

and macrotask. “Microtask is

ensure that the technology can handle

crowdfunding

used when the task is highly

accents — something Google and Apple still

parallelizable and can be divided

struggle with,” told him.

into smaller pieces down to a

Freischlad, Nadine.

sites in Indonesia”.

Techinasia.com.

•

Posey, Jack.

October 21, 2017.

‘micro’ level, which takes only

Journalist Jewel Topsfield from The

seconds to minutes to complete.

Sidney Morning Herald reported that in

Macrotasks, in turn, is typically

2014, DigitalGlobe partnered with Global

Legal Considerations

the case for creative tasks or

Forest Watch at the World Resources

for Crowdsourcing”.

other complex tasks whose

Institute in Washington, DC, and asked the

Lawyers.com.

resolution requires a great share

public to help map fires across Indonesia.

of contextual information or

“Susan Minnemeyer, who manages World

August 18, 2015.

dependencies to intermediary

Resources Institute’s partnership, said

“How to Use

results,” she explained.

almost 20,000 people participated in the

Crowdsourcing

Mozilla, a nonprofit enterprise who created the Firefox browser, is using crowdsourcing to conduct an experiment in a bid to search for other alternative to data monopolies. “Mozilla asking their users to pool information in order to power open-sourced AI initiatives,” reported James Vincent from The Verge. “The company’s first project is called Common Voice, where they ask volunteers to donate vocal samples to build an open-source voice recognition system like the ones powering Siri and Alexa.”

Vincent said that currently, anyone can go to the Common Voice website and contribute to its sample sentences by reading some texts. “They can also supply biographical information like

“Outsourcing Innovation and Ideas:

•

Simperl, Elena.

Effectively:

2014 campaign, with 263,668 burn scars

Guidelines and

tagged between June and November,” she

Examples”. LIBER

added.

Quarterly, 25(1),

Another example of a successful

pp.18–39.

crowdsourcing in Indonesia is the

•

Topsfield, Jewel.

social crowdfunding site, Kitabisa.com.

October 17, 2015.

Launched in 2013, the site is focusing on

“Crowdsourcing

crowdfunding for various social causes. It

‘nodders’ help spot illegal fires

verifies each project before being published

in Indonesia”. The

to the public and requires the initiator to

Sydney Morning

send financial and ongoing status reports

Herald.

regularly.

•

Vincent, James. July 27, 2017. “Mozilla

According to Nadine Freischlad from

is crowdsourcing

Techinasia.com, Kitabisa’s monetization

voice recognition to

strategy is to take a five percent cut from

make AI work for the

successfully funded projects. “The site

people”. The Verge.

now presents Momentum Pergerakan SaveMaster as its largest success story, which collected a total of IDR 137 million (US$10,600) to help save a school building which was supposed to be torn down,” said her.

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Co-working Space: An Alternative for Startup Companies

Harvard Business Review researchers – Bacevice, Garret, and Spreitzer – conducted interviews in 2015 on co-working space founders and managers, as well as surveyed hundreds of workers who are using co-working spaces around the U.S. They concluded there are three main reasons why startup companies and freelancers are geared into the concept:

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First, being recognized by others for their work not only infuses a sense of pride, but also makes them realize how interesting and important their job is. “Working amidst people doing different kinds of work can make one’s own work identity stronger.

Our respondents were given the opportunity to frequently describe what they do, which can make what they do seem more interesting and distinctive,” reported them. This,

eventually, increase their work passion and productivity.

Second, having a 24/7 accessible place gives them more power to control their own work-life balance. “People can decide whether to put in a long day when they have a deadline or want to show progress, or can decide to take a long break in the middle of the day to go to the gym. They can choose whether they want to work in a quiet

Figure 3: Kedasi Source: www.whatsnewjakarta. com

space so they can focus, or in a more collaborative space with shared tables where interaction is encouraged.”

And third, the shared working space gives people a sense of belonging, makes them feel that they are part of a community. “Connections with others are a big reason why people pay to work in a communal space, as opposed to working from home for free or renting a nondescript office. Each co-working space has its own vibe, and the managers of each space go to great lengths to cultivate a unique experience that meets the needs of their respective members.”

According to real estate firm Cushman & Wakefield and association CoreNet Global, as quoted from CNBC

journalist Uptin Saiidi, the demand for co-working spaces in Asia is expected to grow 10 to 15 percent annually.

Saiidi attributed three growth drivers behind the coworking sector’s fast expansion: continued growth of startup culture, a more flexible globalized workforce being fueled by technology, and of course, the Millennials.

“Millennials are embracing and demanding facets of the sharing and experience economy,” he added.

Jakarta is following other cities in Asia in providing co-working spaces for freelancers, startup companies, institutions, organizations, and even major companies. EV Hive, for instance, was launched in June 2015. The place offers an affordable, convenient, and professional co-working place with a one price solution for all working necessities: meeting rooms, fiberoptic internet, printing services and free flow gourmet coffee.

Within a 250 square meters space, EV Hive offers two types of spaces: private space and shared space.

Private space is made for startup companies with a capacity of ten persons, while the shared space has wider area including indoor and

outdoor segments. In 2017, EV Hive is already operating in four locations: The Breeze in BSD City Tangerang, D.Lab in Menteng, The Maja in Kebayoran Baru, and JSC Hive in Karet Kuningan.

The latest co-working space in Jakarta, GoWork, is located in UOB Plaza. Officially launched on March 2017, GoWork proud itself as the only co-working space located in Grade A office building. The place offers adjustable working packages, from daily to annual rent. It currently has 18 private spaces of various sizes, from small room of 1-3 persons to larger room up to 10 persons.

Another co-working space, Kedasi, is located in Slipi, West Jakarta, an area where a number of local start-ups are based, earning it the nickname “Slipicon Valley”. The place is only 15 minutes away from Sudirman, Senayan, Kuningan, and Gatot Subroto.

Its area consists of 1 main dedicated space with 18 hot desks, 1 smaller dedicated space kecil with 8 hot desks, 2 private offices for those who want better privacy, 1 meeting room, and 1 game room.

Even Indonesian biggest telecommunication provider, Telkom, also build co-working spaces in Jakarta, Bandung, and Jogja. It aims to boost the growth of technologybased startup companies and developers while help bridging them with their market segments.

In Jakarta, Jakarta Digital Valley was launched in November 2014 with a capacity of 50 persons.

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Lessons Learned from First Travel Case The number of victims from the First Travel’s alleged scam continued to increase as those people gradually submit their reports to the police’s Criminal Investigation Department (Bareskrim) office. Couples who became suspects for the crime were charged for alleged fraud and embezzlement of tens of thousands of pilgrims while their company, First Travel, is unable to return the pilgrims’ money. The case teach us important lessons to learn.

As reported by The Jakarta Post on August 22, 2017, thirty-one savings account passbooks were also seized by the investigators and they have asked the Financial Transaction Reports and Analysis Centre (PPATK) to investigate the flow of funds from the accounts.

“We also seized more than 14,000 pilgrims’ passports,” said the Head of Bareskrim, Brig. Gen. Herry Rudolf Nahak.

According to the news reported by On March 2017, the Ministry of

For the next four months, mediations

Barus and Putra from Industry.co.id, PT

Religious Affairs was alerted about

were held with related parties without

First Anugerah Karya Wisata – officially

the delayed departure of more than

any clear solution. Then on August 3,

known as First Travel – offers lower

600 pilgrims from East Java. Pilgrims

2017, the Ministry of Religious Affairs

price ‘Umrah packages through its

have stayed in hotel in Jakarta for four

decided to revoke First Travel’s license.

agents. From the police investigation,

days without clear information on

The police then seized their assets

it was found that the perpetrators

when they will depart to Mecca, Saudi

and named First Travel bosses, Andika

have recruited 1,000 agents who

Arabia, for ‘Umrah (minor Hajj – Islamic

Surachman and Anniesa Desvitasari

are actively looking for prospective

pilgrimage). The alert brought up First

Hasibuan, as suspects for alleged

pilgrims. More than 70,000 candidate

Travel as their travel agency.

money laundry case.

pilgrims have paid the ‘Umrah fee, but

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only half of them dispatched. Police estimated the losses of

References:

more than Rp550 billion, in which the company has not able

Khoiriyah, Ruisa.

August 21, 2017. “5 Pelajaran Finansial Penting dari Kasus First Travel”.

HaloMoney.co.id.

to return the funds.

Certified financial planner, Ruisa Khoiriyah, said there are

Editorial Team. August 10, 2017. “Kronologi Tumbangnya First Travel”. Kumparan. com.

five financial lessons from the terrible case: 1.

If the price is too cheap to be true, it probably is

First Travel fraud people through a very low price ‘Umrah News Desk. August 22, 2017. “Police seize First Travel owners’ assets”.

The Jakarta Post.

package. Their promotional package cost Rp14 million, significantly lower than the minimum standard of ‘Umrah cost of Rp22 million set by the Ministry of Religious Affairs.

In addition, the agency required their victims to pay in advance of at least a year period. This is in contrast with other agencies who are able to process the trip in two weeks.

unnecessary personal assets. Financial management is the key to financial welfare. Having a great income should open up opportunities to a more

A cheaper price is a great bargain, indeed. But when the

sustainable welfare, such as through

price is too low, this is when you need to raise the red flag.

new business investments.

It is not something to be interested in, but to be questioned instead. Or better, be avoided.

2.

Instant wealth tends to disappear in an instant

4.

Barus, H. and Putra, AB. August 15, 2017.

“First Travel Case Suspects Calls for Suspension of Detention”. Industry. co.id.

Don’t mix leisure with financial investment

In any investment, look at the total

Andika Surachman used to share his past story when

return from income and capital

he worked as a shop keeper and was very poor. Anniesa

growth after tax. Do not mix

Hasibuan added with another story where they are too poor

your personal cost with financial

to buy food, so they always have instant noodle as their

investment nor deduct your leisure

meal. After they build the First Travel in 2011, their lifestyle

cost from yield, as yields are half

changed drastically. Too drastic, actually.

what interest costs are. Manage your lifestyle separately from your

They build a luxurious home in Sentul, Bogor. They travelled

business, unless your leisure is your

around the world, again, luxuriously. In addition, Hasibuan

business.

started a career as a high class designer and showcase her creation through fashion shows around the world. She also

5.

Some businesses unethically

liked to showcase their lifestyle, where she post pictures of

pursue temporary profits

themselves wearing fancy designer items. When the media

without considering the long-

published their case, the public found out that the couple

term impact of their actions.

still have debts to their business partners and travel agents.

When police seized their bank accounts, there’s only Rp3 million left in those accounts.

3.

Uncontrolled finance lead to overspending

They pose a threat to their employees, customers, business partners, communities and even their own wealth. Unethical business endangers the sustainability of any company,

Financial Transaction Reporting and Analysis (PPATK)

jeopardizes their customers, and

revealed that the pilgrims’ funds at First Travel were not

negatively affecting the whole

only used for pilgrimage business, but also to purchase

business environment.

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