Menurut laporan e-Conomy SEA 2021 Indonesia yang disusun oleh Google, Temasek Holdings and Bain & Co, ekonomi internet Indonesia selama 3 tahun terakhir mengalami peningkatan sebesar 32% dari 40 miliar USD di tahun 2019 menjadi 70 miliar USD di tahun 2021. GMV ekonomi internet Indonesia di tahun 2025 pun diprediksi akan tetap tumbuh sebesar 20% menjadi 146 miliar USD.
Sensus Penduduk yang diselenggarakan oleh Badan Pusat Statistik Indonesia pada tahun 2020 menyatakan bahwa jumlah penduduk Indonesia per tahun 2020 adalah sejumlah 270,20 juta jiwa. Jumlah penduduk Indonesia mengalami pertumbuhan sebesar 1,15% dari jumlah penduduk hasil SUPAS di tahun 2015, yakni sejumlah 255,18 juta jiwa. Pengguna internet di Indonesia juga di 5 tahun terakhir mengalami peningkatan yang signifikan.
Era digitalisasi global ditandai dengan meningkatnya digitalisasi di segala bidang, wilayah dan sector. Kehadiran pandemic Covid-19 telah mempercepat proses transformasi digital di seluruh penjuru dunia dalam waktu yang singkat.
To change an organization from within, it helps to understand four basic circulatory systems, analogous to the channels of communication in a living body.
Bank failures, health insurance rate hikes, and the troubles of auto manufacturers provide recent examples of the vulnerability of big, fast-changing systems and the ways in which large organizations can careen out of control. No matter how disparate the causes of failure, there is always a common thread: somewhere, somehow, management has let its attention slip. As executives and politicians struggle with regulation and reform, now is an opportune time to reflect on the leading ideas that have shaped what we know about the management of social systems, particularly corporations, and how to stabilize and improve them.
We bring in-depth functional expertise, whether in strategy development, risk management, organization & performance improvements, or information technology to resolve our client’s challenges
Indonesia is rich in energy and mineral resources. Indonesia become the biggest coal and seventh largest gas exporter in 2020. Indonesia exported 405 million tonnes of coal and 507.430 billion BTU of liquefied natural gas. In addition to conventional energy sources, Indonesia has abundant potential for renewable energy, such as solar, hydropower, tidal and geothermal. In 2020, Indonesia utilized around 1.456.283 thousand barrels of oil equivalent for energy consumption (MBOE). However, renewable energies accounted for just 11,2% of national energy mix, falling short of the RUEN target 13,41%. Despite abundant renewable energy potential, the utilization for energy demands remain quite low. In 2020 Indonesia only utilized around 0,07%-8,89% of each renewable energy resources. However, Indonesia has shown the commitment to increase the usage of clean energies in the future. For the past 5 years the share of renewable energy in energy consumption has increased, from 4,97% in 2015 to 11,20% in 2020. The government is expecting Indonesia to derive 23% of primary energy needs from renewable resources in 2025.
In addition to its energy resources, Indonesia is also well-known for its mineral riches. According to the US Geological Survey, Indonesia possesses the world's greatest nickel reserves, sixth largest bauxite reserves, seventh largest copper reserves, and fifth largest gold reserves. Indonesia has 21 million metric tons of nickel reserves and 800,000 metric tons of tin reserves, accounting for approximately 22 % and 16 percent of the global nickel and tin reserves. However, most of the mineral resources exported from Indonesia are still raw materials. After banning nickel ores export in 2020, the government is planning to ban other raw mineral materials exports starting from bauxite, copper, gold, and tin. This policy is expected to bring more added value to Indonesia and also attracts more investments in this country.
Arghajata has multiple experiences in assisting players in the energy and mining industries in Indonesia. We provided services such as feasibility studies, corporate restructuring and transformation, corporate strategic plan development, business process review, organization review and financial advisory.
OJK oversees Indonesia financial services with total assets around 21.373 trillion Rupiah, consists of banking, non-banking financial institutions, and capital markets. The banking sector continues to dominates the financial services industry. Financial services have a strategic role, especially through its financial intermediary role and funding provision to accelerate economic growth for the past decades. Financial services industry is the pillar of the national economy, therefore activities related to this industry must be supervised by the Financial Services Authority (OJK).
According to the analysis by the Ministry of Finance, the problems occurred within the Indonesia financial services industry are poor financial inclusion level and shallow financial deepening. Based on OJK Financial Literacy and Inclusion National Survey 2019, Indonesia financial inclusion reached 76,19% but the financial literacy index only reached 38,03% nationally. In 2021, 51% of Indonesia's population still has no access to banking or other financial services, 9th lowest in the world. The dependency of Indonesia to banking sector for economic activities funding provision is still high and this condition affects government policies in achieving growth targets. Not to mention opportunities and risks in financial services sector caused by expansion of internet access, mobile phone penetration and also the Covid-19 pandemic. Customers expect simpler and more instant digital services. Their preferences have shifted from face-to-face branch visits to online interactions, cashless payments, and more customer data to be captured and secured. Financial services and authorities must quickly adapt their tools, capabilities, and strategies to respond to these digital behavior changes.
Arghajata has experiences in supporting the growth of financial services sector in Indonesia. We provided services such as corporate strategic planning, organization restructuring, business and financial restructuring to companies in this industry, both banking and non-banking.
Manufacturing industry contributes around one-fifth of Indonesia total PDB, one of the biggest sectors, but the contribution keeps decreasing despite the incremental of the total PDB during the past 10 years. Utilization rate of Indonesia's total industry and manufacturing industry also never reaches 80% for the past decade. The average Prompt Manufacturing Index of Indonesia in the 5 years is around 49, even only food, beverages, and tobacco subsector that surpassed 50 among 8 sub sectors of manufacturing industry. It indicates that the performance of manufacturing industry of Indonesia is relatively contracting during the periods. According to Global Competitiveness Index Survey held by World Economic Forum in 2019, Indonesia has a huge market size, and its macroeconomic condition is relatively stable. However, there are some aspects that Indonesia is still lacking, especially innovation capacity and technology adoption aspect. It’s time to revitalize the manufacturing industry by implementing the concept of Industry 4.0. The Government released an integrated roadmap “Making Indonesia 4.0” to guide the manufacturing industry to become a competitive player in global market. Technology innovations in manufacturing sectors, such as artificial intelligence (AI), internet of things (IoT), wearables, advanced robots, and 3D printing, allow companies to increase productivity, efficiency, quality, and growth.
Arghajata is experienced in supporting manufacturing companies, including but not limited to: corporate strategic planning, organizational restructuring, operational optimization, and feasibility study.
Well-developed connectivity is an important factor to improve the economy of the whole country. Indonesia, with more 17.000 islands separated by seas, has bigger challenges related to the connectivity between islands, whether it’s hard or soft infrastructure. Infrastructure becomes one of the main factors for investment attractiveness and it’s always becoming a weakness for our country. Based on Global Competitiveness Index in 2019 by World Economic Forum, Indonesia’s competitiveness was ranked 50th out of 141 countries. WEF assessed multiple indicators of various countries, including the quality of infrastructures. Looking at the infrastructure criteria assessment on 2012-2019, the infrastructure quality of Indonesia has increased slightly year by year, but still never achieved 5 (1 indicates underdeveloped or impossible to access, 7 indicates extensive and efficient by international standards or easy to access). Similar to the IMD World Competitiveness Ranking 2021 result, based on assessment of 4 competitive landscapes, Indonesia ranked lower in infrastructure aspect. Indonesia ranked 36th out of 64 nations in terms of basic infrastructure, 49th in terms of technical infrastructure, 50th in terms of scientific infrastructure, 60th in terms of health environment, and 58th in terms of education. For the past 5 years, Indonesia already allocated an average of 15,6% from total government spending for infrastructure development. After prioritizing the spent for Covid-19 countermeasures in 2020, the government increased the infrastructure spent to Rp 417,4 trillion in 2021. The government aimed 208 strategic projects and 10 programs in 2021, with estimated funds around 5.698,5 trillion IDR. According to the Committee for Acceleration of Priority Infrastructure Delivery, the provision of infrastructure projects in Indonesia is lumbering due to multiple problems, such as project planning & preparation, funding allocation, land acquisition, fiscal problems, and also guarantees provided by the Government which can reduce the investment attractiveness of Indonesia.
Arghajata has proven to be a valuable partner for the players in this industry. We supported the development of holding companies, corporate strategic planning, organizational alignment, and operational optimization of these companies.
Economy of a country is dependent to the movement of goods and people. Indonesia, the world's fourth most populated country with a total population of more than 270 million people and the world's biggest island country, holds tremendous potential and challenges in the logistics and transportation industry. Moreover, digitalization has altered customer behaviour in terms of goods and people movement in the past decades. They expect faster, cheaper, and less face-to-face services. Many offline stores have closed because customers increasingly prefer to purchase online or through e-commerce platforms. Not only retails, but conventional transportation providers are also disrupted with the existence of ride-hailing business model. During the pandemic, transportation and warehouse industry was hit hardest among all sectors. The PDB of this sector dropped by 15,05% in 2020 by but recovered again by 3,24% in 2021.
Indonesia has a huge potential logistics and transportation market, but there’s still a lot to improve in both industries. Indonesia logistics performance in 2018 reached score 3,15 out of 5, ranked 46th. Out of the 6 indicators, Indonesia performed lowest at clearance process efficiency and quality of trade and transportation infrastructure. Moreover, according to the Minister of Finance in 2019, Indonesia’s logistics cost reached to 23,5% of the GDP, higher compared to other countries such as Singapore (8%), United States (8%), European Union (9%), Japan (9%), South Korea (9%), India (13%), Malaysia (13%) and China (15%). For transportation, Indonesia’s is still heavily relied on land transportation. The number of vehicles in Indonesia grew year by year around 5,5-6,5% during pre-pandemic. Looking at the infrastructure, the growth of the road length in Indonesia cannot accommodate the growing vehicles. In 2016, the length of total road in Indonesia only grew 1,7% from the previous year, even in 2017 until 2020 the growths were less than 1%. The awareness of transportation safety in Indonesia is also still low. Out of 60 accidents investigated by KNKT in 2021, 19 cases were marine transportation incidents. Railroad transportation now is still only available on Java and some areas of Sumatera, and the government is still developing new railways on Kalimantan and Sulawesi. Looking at the number of passengers in the past 5 years, around 80% of total rail passenger were live in Jabodetabek area, while Sumatera rail passengers only contributed around 1,7%.
Arghajata has an exceptional knowledge in this sector. We supported corporate strategic planning, organizational restructuring, supply chain optimization of various companies in this industry. We are also experienced in executing multiple Project Management Office (PMOs) for companies in the transportation industry.