The Three Most Important Challenges Indonesian Managers Face Today

Indonesia is a rich country which have large biodiversity and human resources. A lot of big companies have been operated in this country. According to Forbes Global 2000 on 2009, six Indonesian companies listed into the world’s 2000 largest companies. They are PT Telkom, Bank Central Asia, Bank Rakyat Indonesia, Bank Mandiri, Bumi Resources, and Bank Nasional Indonesia. In their success, there must be a good manager who takes an important role in carrying out their functions in the company and it is not achieved without obstacles and challenges. Besides, Indonesia is an archipelago country which has many developing countries problems. Here is the three most important challenges Indonesian managers face today.

The first important challenge is responsibility towards the environment. A good manager should concern about this matter because Indonesia has a large natural resources without educated human resources who understand about the effects of over natural exploitation. Buyat Bay pollution case in North Sulawesi is a good example which can cover of this problem. Since 1996, Newmont Mining Corporation used this bay as the place of mining waste from gold mining activities. In 2004, local society in that area protested some unusual health problems and suspected Newmont violated mining waste levels rules with contaminating the area with hazardous materials. WALHI, non-governmental environmental activist, claimed that Newmont stockpiled 2,000 tons of tailings into the bay every day. Finally, in 2004, that mining activities closed while the environmental monitoring continued until the year 2008. Therefore, as a good manager, we should answer yes to this challenge. It means that we need to improve our environmental knowledge to run our business in Indonesia. Don’t let the business activities pollute our environment. It would be better if our business can help conservation of damaged natural resources, such as reforestation.
Besides responsibility towards the environment, another important challenge is responsibility towards society. A responsive manager should conquer this matter easily. The corporation cannot operate without society supports because they operate their business close with their home which can affected in their marketing strategies as well. Talking about responsibility towards society, we should to know about “Sego Njamoer Coorporation”. originated from his concern to the oyster mushroom growers difficulties near his home, Mr. Ega Higuitta, a young CEO in Surabaya was determine to start entrepreneur in the culinary field which is selling rice with oyster mushrooms (Sego Njamoer). He empowers society around his firm as his business fellows. From production of raw materials, which cover mushrooms, rice, flavor, product packaging until the waiters. They come from origin society who live around his house. Sixty percent as a permanent employees and one hundred percent as non-permanent employees. With this effort, Mr. Higuitta shows that he is very concerned about responsibility towards society by empowering them to contribute and raising his business. So, being a manager is not just concern about profit but a responsive manager also care about the society.
The last is responsibility towards employees. According to Central Bureau of Statistics, Number of poor people (the population with per capita expenditure per month is below poverty line) in September 2011, Indonesia reached 29.89 million (12.36 percent). The percentage of poor people between urban and rural areas has not changed much during this period. Poverty in urban areas in March 2011 and poor residents in rural areas in March 2011 at 15.72 percent. Based on Central Bureau of Statistics analysis, it could be happen because the increasing number of poverty in Indonesia goes along with the increasing number of new pensions. It means that more pensions make more poverty. However, almost all the Indonesian manager didn’t care about his ex-employees’ fate, especially about pension funds. They forget about their exoemployees’ prosperity after pension though they have contributed to the company. All of pension is no longer productive like when they were young and a lot of them just stay at home without work. As a result, They live uncertainly and  getting poor because of their pension fund cannot fulfill their daily needs. A great managers should take an action about this crucial matter. It is possible for Indonesia to decrese poverty if its manager care, consider and calculate well about pension funds for their ex-employees.
To sum up, Indonesia has more than five hundreds company from huge to small scale with various characteristics of its managers. To survive in this globalization era which more competitive than several years ago, a manager should focus and consider on the three most important challenges that they face today. It is possible for them to make their business more worth, generally make Indonesia better with heal its developing country’s problem.

Angelia Asri Ananda

Sampoerna School of Business

Management 2011

One Response to The Three Most Important Challenges Indonesian Managers Face Today

  1. marsaws says:

    In Indonesia, there is a phenomenon that most of people thought that Manager is a position that describing successful. It means that once you become a Manager, you have already get the “nicest” position. Tough it is not always true since as you describe above, manager also having so many challenges.. And my question, is this phenomenon also happen in another country?

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