Lucrative logistic warehousing business

The Jakarta Post
August 19, 2007

The logistics service industry is indeed a relatively recent line of business. However, its development is quite significant as evident in the great number of companies engaged in this line of business, either locally or internationally. The potential US$1 billion in the express and logistics service business is a lucrative figure. This figure represents annual spending covering transportation, warehousing and warehousing management services as well as efficiency in the flow of products.
The springing up of logistics service companies is inseparable from the increase in customers' or companies' need for this type of service. If you wish to dispatch only documents, you can just rely on an express service. However, when vast volumes need dispatching it requires vast infrastructure.

The pattern of thought is simple. For example, a manufacturing company obviously produces goods of some sort and therefore requires components. At the same time, the company must continue to market its goods. Nevertheless, all documents and parts must be sent punctually without any tolerance for even the slightest mistake. It is quite complicated, indeed. The most suitable solution would be to provide warehousing facilities to expedite dispatches.

However, this would require a large investment. A plot of land would need to be purchased to build a warehouse. Then the warehouse would need to be built and equipped with office equipment, and personnel employed to run it. In short, a lot of money would need to be spent and a management system put in place.

In view of all this, there is a promising business opportunity for companies providing express and logistics services. Today, the overall business of logistics services constitutes promising business opportunities. Therefore, these companies have built warehouses or teamed up with other parties to accommodate consignments of a larger volume. They have applied a warehousing management system integrated with certain facilities and guarantees. Even the customers they do business with come from international-class companies or distributors.

They play quite a big role. These companies provide a relatively comprehensive warehousing management solution. Usually these services are provided by means of operating a logistic service network with logistics centers located at strategic airports.

The domination of express and logistics services are found in almost every country with potential, including Indonesia. Indeed, the potential of the logistics market in Indonesia is quite big. As a result, Indonesia is eyed by world-class logistics players. At present there are five global logistics players with networks in Indonesia: DHL, CEVA, FedEx, Evergreen and UPS. As for local logistics companies, the records of the Indonesian Association of Express Dispatch Service Companies (Asperindo) show that the number of these companies continues to increase and today total 800 companies. The sales volume of the players in this business grows above 10 percent annually on average.

One prominent express and logistics player here is DHL. To ensure that it remains the market leader in the logistics market in Indonesia, DHL has introduced a number of superior services, including integrated warehousing management.

This demands quite complex infrastructure. The characterization of the warehouse and the warehousing management system, for example, is comprehensive. The application known as Warehouse Management System (WMS) is implemented to manage various warehousing operations in the context of controlling supplies, work efficiencies and the level of order services to be met.

As a result, DHL has teamed up with various global WMS vendors to give its customers the most fitting WMS to handle the complex management of supplies. Warehousing services that DHL offers include Inbound Logistics, distribution and post market services by means of increasing supplies, reducing operational costs and increasing the time cycle.

DHL provides facilities in regard to storage and this is fully integrated with a broader supply chain that maintains the level of service. The WMS records all stages of consignment starting from receipt, handling and storage of products and order in the warehouse. The WMS also accurately records the location of supplies stored in the warehouse. The WMS arranges all critical processes in the warehouse and constitutes vital support for the concept of transportation and distribution. This covers planning, time arrangement, storage, transportation capacity, communication with customs officers, etc.

The competition in the express and logistics business is quite fierce. Just look at PT CEVA Logistik Indonesia operations. CEVA manages over 1.3 million square feet of multi-user warehousing and manages over 150 trucks delivering over 900,000 tons of goods each year within the domestic market. CEVA has developed its shared-user facility distribution center to provide efficient logistics services.

According to data at Soekarno-Hatta Airport, 402 companies belong to the Indonesian Forwarders Association (Gafeksi) and 80 percent of the movement of goods is handled by freight forwarders. In the face of this trend, RPX (Republic Express), representing U.S. company Federal Express (FedEx), does not want to lag behind. The essence is that a service business of this type can at least be a master in its own home.

The performance of RPX is reflected in the operation of over 100 outlets located in major cities. RPX has expanded its warehousing network to dozens of cities in Indonesia by establishing cooperation with PT Bhanda Ghara Reksa (BGR), a state-owned enterprise providing domestic warehousing. Through this collaboration, the RPX Group can use the 400 warehouses owned by BGR Jakarta, Semarang, Surakarta, Surabaya, Bandung, Denpasar, Padang, Medan, Palembang, Makassar, Palu, Pekanbaru and Ambon, among others.

To illustrate its seriousness in this business, BGR has a warehousing area of hundreds thousands of square meters. This warehousing facility is closely linked with the series of supply and chain service program run by RPX, which accommodates customers for products ranging from electronics to automotive, as well as other large companies. (Iwan Suci Jatmiko)

Hospitals learn how to attract patients

The Jakarta Post
July 19, 2007

Operators of most upscale hospitals have their own ways to lure patients amid increasing public demand for quality services.

For instance, several hospitals offer services found at star-rated hotels. The layout provides comfort and the medical facilities are complete; in addition, the services offered are customer-oriented. This means that besides medical treatment, services are also part of a hospital's strength.

Pondok Indah Hospital is one of the hospitals offering star-rated services and comfort, and the public response has been encouraging. Rapid progress in information technology has also spurred public demand for improved health services, which has kept Pondok Indah Hospital on its toes to meet public demand in every aspect.

This lead to the hospital gaining hospital accreditation for 16 types of services from KARS and an ISO 9001: 2000 on quality management in 2005.

Meanwhile, Bintaro International Hospital in Bintaro Jaya, Tangerang, is uniquely designed like a three-story mall. Sunlight highlights the fountain in the spacious atrium of this hospital, the decor of which gives an impression of nature, spaciousness and brightness, all aimed at providing psychological comfort to patients so that their recovery is quicker.

Bintaro International Hospital is part of Ramsay Health Care Australia. This hospital opened on Oct. 12, 1998 with the operation of a clinic of specialists with 20 consulting rooms. The hospital started accepting in-patients on Nov. 2, 1998.

MH Thamrin International-Salemba Hospital was built as a hotel-styled hospital and offers comfortable in-patient facilities, such as air conditioning, hot water in the bathrooms, color TV with local and international channels.

MH Thamrin International-Salemba Hospital claims its operating theaters are among the most complete in Jakarta. It has five operating theaters (one special sterile room for endoscopy) and one room for post-surgery recovery. Each room has medical equipment and oxygen system in keeping with international standards to guarantee an optimum safety level.

One of the major hospital to be opened in the not-so-distant future is Siloam Hospitals Semanggi. Planned as a full service secondary hospital with a focus on cancer detection, prevention and treatment called Mochtar Riady Comprehensive Cancer Centre (MRCCC), construction of this hospital will be completed in early 2009. MRCCC will include breakthrough technologies and equipment and the most up-to-date facilities in Indonesia supported by internationally trained oncology specialists.

Siloam Hospitals Semanggi is expected to be the first hospital in Indonesia to use an integrated computerized system and the digital information system linked with pathological imaging, pharmacy and information system services of the hospital. The hospital, to be called "Building of Hope" will be a specialized hospital with 29 floors and 210 beds. It is located close to Aston Hotel and Plaza Semanggi in downtown Jakarta.

Siloam Hospitals Semanggi will also apply for accreditation to the US-based Joint Commission International (JCI) when operational.

In Indonesia, the construction of international-standard hospitals has sparked controversy. Many have a negative opinion of such hospitals though many also support them. Indeed, there is no official standard for international hospitals. Instead, there is only a stipulation made on the basis of research, and even this differs from country to country. Every country has its own accreditation system.

Progress and globalization have led to the expectation that all hospitals are standardized. International-standard hospitals have sprung up because of competition. "They want to show that their hospitals are of the same level as those overseas," Dr. Herman of Rumah Sakit Pondok Indah said.

A question worth posing is whether a local hospital is worthy of the title "international hospital". In response, Dr. Herman said, "In my opinion, there is no such thing as international labeling. If we wish to use the label of 'international', we must have set standards, right? So, one of these standards is the ISO. This means that those with ISO 9001:2000 certification are already in the international standard category. However, if a hospital claims to be an international hospital but has yet to meet the criteria set by the ISO, it may not be of international standard but simply call itself international," he noted. (Iwan Suci Jatmiko)

Benny Tjoeng: Optimizing '3 Cs' to achieve balance in life

The Jakarta Post
Wednesday, July 04, 2007

Although he is a top executive of a big company, modesty and persistence are very much apparent. Benny Tjong wears a simple a shirt and talks openly about his hard life.

"Even when I was in university, I still helped out at my parents' business," said Benny, president director of Astra Sedaya Finance (Astra Companies, ACC) reminiscing.

Benny, who is better known as BTJ, is the child of shoe vendors. He was born on Aug. 15, 1958 in Tanjung Karang, Lampung, and is used to hard work. For example, he use to work at his parents' shoe shop after school.

Benny was taught to work hard and to follow his father's principle of Che Ai to ensure that he had a rich life. Che Ai means "self love", but not in the sense of being selfish; rather it means accepting yourself as you are. "If you can accept yourself as you are, it is easier to love and accept other people. This love, therefore, inspires us with enthusiasm and prompts us to work hard to achieve our goal in life," the soft spoken man said.

Benny, who loves Padang food, moved to Jakarta in 1979 and took up accounting at Jayabaya Accounting Academy. Then he joined the extension class at the School of Economics of the University of Indonesia. After completing his studies there, he joined the office of Public Accountant Prasetyo Utomo & Co (now Arthur Andersen Consulting) as an auditor.

In 1989, he lost all his belongings in a fire that razed his house to the ground. "All I had left were the clothes I was wearing. And so the next day I went to work in the same clothes," he said. One of his clients learned of his misfortune and compassionately offered Benny financial help, but he rejected it. "According to the auditors' code of conduct, an auditor must not receive any funds from a client under any circumstances," he said.

Benny's strong sense of professionalism attracted the attention of Frans Y. Santosa, who was then finance director of PT United Tractors Tbk (UT), a company that was also one of Benny's clients. Frans told Benny to contact him if he wanted to move to a new company. After some time, Benny, who felt he had spent enough time working at a public accountant's company, contacted Frans. "From the very beginning, I planned to spend no more than five years working at a public accountant's office. Finally, I contacted Pak Frans. Negotiations took only 15 minutes and then I joined his company," he said. Benny has been working for companies under the Astra Group since 1990.

At first, Benny's job at United Tractors was always related to accounting, having joined United Tractors as its accounting manager. Three years later, he was transferred to Astra International Tbk (AI) as the accounting division chief.

His career continued to rise. Later Benny became control director of PT Astra Graphia, where he stayed only for a year. Then Benny was transferred to PT Astra Agro Lestari Tbk (AAL) as its finance director. In 2000, he was promoted to the position of AAL's vice president director. In this position, he had to deal with things beyond his educational background. His responsibilities also varied and encompassed marketing and human resources.

However, it was this responsibility that made him grow as an individual and led him along the path of an executive. His skills became more comprehensive and took him higher up the career ladder. "At first, we must be a specialist, but the higher we climb the career ladder, we should be a generalist," he stressed.

After leaving AAL, he went on to assume a higher position. In May 2006, Benny was named the chairman of PT Astra Sedaya Finance, better known as Astra Credit Companies (ACC), an automobile leasing company.

It is Benny's philosophy to have a strong will to learn things and to finish what is at hand. That's why he is often dubbed a trouble shooter. Benny's presence at ACC is indeed expected to bring about change for the better and he has gladly accepted the challenge.

Benny is indeed capable of adapting with his working environment. Still, does working in an accounting office, an agro-industrial firm and a leasing company have any common traits? "When you are at the top level, I don't think anything of significance is common. Perhaps because in this position you deal more with policies, not with technical matters," he said.

Achieving the position of president director would indeed give most people a deep sense of satisfaction. In the case of Benny, he is happy to see the people around him grow and develop. He said the biggest difficulty in achieving a maximum result was effective communication. "This may be communication with subordinates or with colleagues. The most important thing is that as a leader you must have a clear vision about where to take this company. If you have a very clear vision, but you cannot communicate it, the result won't be good," he said.

Benny believes in the 3 Cs, that is, Character, Competency and Calling. These three elements, he said, are necessary to reach equilibrium in life. "So we must be able to harmoniously combine the three Cs. If you have only character and competency, you will be someone without a goal. Meanwhile, if you have just character and calling, you will turn into a dreamer. And the most dangerous of all is if you have only competency and calling as you will then become someone who will justify any means to reach an end," he said.

Benny said that at first he had not introduced drastic changes at ACC. He got the impression that the company lacked mutual understanding, an indication that communication was not optimal. Therefore, the first thing he did was take steps to ensure that communication ran smoothly.

Benny's idea of communication covered all levels, such as shareholders, dealers -- particularly Astra Sales Operations -- the internal side of ACC itself and the board of directors, and communication between superiors and subordinates in Jakarta and the branch offices.

The 2007 leadership meeting of ACC has agreed on the target that ACC has to reach in 2007, which includes financial growth of Rp 8.5 trillion, up by 30 percent over what was achieved in 2006.

To reach this target, there are several things to do. First, achieve "operational excellence", which covers improvement in a business process and decentralization so that the process of extending loans will be speedier and better in quality. Second, improve attitudes and competency of ACC personnel through training and assignment. Third, improve the integrated IT system. Fourth, ensure a between growth and risks.

Fifth, actively undertake "ACC Market Expansion" with a focus on improving the competency of ACC personnel in managing the secondhand car and commercial cars (pickup) businesses. Sixth, intensify cooperation with direct or indirect dealers of Astra-made automobiles as well as automobiles not made by Astra. (Iwan Suci Jatmiko)

Helmy Yahya: Blending business and entertainment sector

The Jakarta Post
March 01, 2007

This celebrity-cum-businessman has had a varied career. One of his most prominent professions is producer of television programs, particularly quizzes, and, lately, reality shows.

However, his involvement in business has also earned him a lot of respect, as evident in the fact that he was once named a finalist for Entrepreneur of the Year. The event was organized by Ernst & Young, a leading accounting firm.

"I was not the winner but was in the 15 best and this was an outstanding achievement. I thought my company was the smallest of the 15 companies named finalists," said Helmy in his office in Tanah Abang, Central Jakarta.

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

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

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

Helmy comes from a family with a great love for entertainment. His father, Haji Muhammad Yahya Matusin, was fond of singing while Helmy and his four siblings also liked singing. Helmy became acquainted with the entertainment world when he was a young boy, though back then it was just a hobby. Later, Helmy and his elder brother, Tantowi Yahya, became profession entertainers.

Unlike Tantowi, who is famous as an MC, Helmy tends to be an entrepreneur although his business is inseparable from entertainment.

Indeed, as a civil servant with accounting expertise he had no an ambition to be an entrepreneur in the entertainment sector. His entrepreneurship came to the surface during his university days, when he took part in a number of extracurricular activities, like playing in a band, joining a theatrical group and organizing music events. That's how he got into the entertainment world.

"Thanks to these activities, I met many artists and musicians and they eventually asked me to join their management teams. It was my contact with the art world that finally got me into the entertainment world," Helmy said.

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

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

Luckily, there are many people who care about him when he is down. This has led him to believe that when someone goes through an ordeal, he will be "promoted to a higher class". Life has its ups and downs, its ebb and tide. The most important thing is that he can bear all that happens to him.

"If you wish to be a creative person, hesitate to try your best," said Helmy, who is considered to be blessed with a million ideas. He also always tries to be open-minded or open to all input.

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

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

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

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

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

Peter F. Gontha: Shifting from business to jazz music

The Jakarta Post
February 22, 2007

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Peter's professional journey has indeed not been easy. He confirmed his position outside Indonesia before returning home.

"Not many people are as lucky as I am," he said, adding that it was just a matter of luck.

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

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

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

Peter believes in the philosophy of being sensitive to his environment in building a career. Listening to other people, working hard and never dismissing as trivia any input from other people are his principles.

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

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

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