With Indonesia recording a decline in GDP during Q3 2020 of 3.49%, the country has for the first time in over 2 decades, entered a technical recession. It’s a position shared with many other countries and reflecting the continuing slowdown in business activity and trade which the responses to the pandemic have induced. After stabilizing in July and August, Bank Indonesia’s latest consumer confidence index recorded a decline of 3.5 points to 83.4 with a negative sentiment being seen in 13 out of 18 cities surveyed following the latest round of PSSB social distancing restrictions implemented in Jakarta. On the positive side, the decline in retail sales has shallowed, inflation registered a small uptick but remains low at 1.44% in October and the PMI rose to 44.91% in Q3, up from 28.55% in Q2, still in negative territory but reflecting a significantly improved outlook in the manufacturing sector.

When the economic slow-down initiated by the COVID-19 induced shut-down was in its early stages, most optimistic scenarios hoped for a V-shaped recovery whilst a U- or W-shaped one were already becoming apparent in some markets and business sectors just a few months into the crisis. Whilst those countries which acted early and strongly, for example China and Vietnam, are today showing signs of a V-shaped recovery driven largely by domestic consumption, it is not the case everywhere and the lexicon of letters economists use to describe the global recovery is now more frequently using that usually silent letter in the English language, K. This reflects the disparity now apparent in recovery scenarios being faced between countries, industries and social classes with very differing time-frames and depth of impact being faced across different markets. Policy packages are going to need to become more specific in their application if we are going to help those sectors and workers in areas more deeply affected, catch-up again with those returning to stability and growth more quickly.

The economic impact of reduced demand is seen in the recently released statistics with inflation falling 0.1% month–month to an annual rate of 1.54% in July 2020, the producer price index falling 1.44% in the second quarter and second quarter GDP being reported at -5.32% on an annual basis. With the de- cline in exports holding up better than the reduction in imports, -9.9% versus -32.55%, Indonesia reported a healthy trade surplus in July 2020. The government continues to focus on strategic areas to reduce Indonesia’s reliance on imports and in addition to agricultural initiatives already in the pipeline pre-covid, the dependency on imported raw materials for drug manufacturing has been added as a critical risk area to be addressed as a result of the disruptions to the supply chains caused by the crisis.

Several countries have spent the past six months tackling the COVID-19 crisis seemingly with a hope that if one can hold one’s breath long enough, it will pass and life can go back to normal. The recent resurgence of the virus in countries that seemed to have gotten over the worse of it, coupled with the beginnings of a greater understanding of the severity of the medical conditions it can cause, indicates we are in for the long haul. Even if a vaccine can be developed quickly, it is still to be proven how effective it will be, how long a dose will last, and how fast it can reach sufficient people to create “herd immunity” on a global scale. All of these will have a great role in restoring the confidence needed to kick-start local consumer- driven and global trade-driven recoveries.

This month, we continue our articles on businesses adapting to the new economic dynamics whilst our cover features Hermanto Tanoko, a suc- cessful second-generation entrepreneur from Surabaya. After working in and helping develop his father’s Avian branded paint business, Hermanto branched out together with his wife into property and then bottled water. Their diversified business interests today also cover manufacturing, F&B, consumer goods, retail, and hospitality businesses, all managed under the holding company, PT Tancorp Abadi Nusantara.

With th most countries now moving, or shortly moving, from contain- ment policies to measured re-openings, the cost of the COVID-19
pandemic is still mounting socially and economically. Although 
China began its re-opening phase in April, marking the early part of that month as the peak of global economic inactivity, much of the rest of the world is only now in the early stages of re-opening, so the true depth of the pandemic’s impact is yet to emerge. As more data becomes available, ana- lysts from across the spectrum of governments, policy makers and scientists will all be able to step through the looking-glass to reflect more deeply on what needs to be done to mitigate the impacts of the current crisis, in both human and economic terms, and on what should be done to be better pre- pared for a future pandemic.

These challenging times make it important we share ideas and collaborate to find previously unforeseen opportunities. At Forbes Indonesia, COVID-19 has encouraged us to explore new channels to facilitate such collaboration, including preparing several webinar series' and opening up our digital channels for columnists and professionals to share their thoughts. Like the Asian Monetary Crisis which led to improvements in the Banking and Financial sector, we believe there is much to learn together and improve on after the pandemic ends.

Mari Elka Pangestu (63), former Minister of Trade and later Minister of Tourism and Creative Economy, has been appointed Managing Director in the World Bank as from March this year. She is the second Indonesian ever to hold the position since Sri Mulyani Indrawati, a fellow economist, left to take the position of Finance Minister. Befittingly, Mari graces the cover of this month’s issue.

The good news: The US has recognized Indonesia as a developed country, following the decision of the US Trade Representative Office (USTR) to revoke the special preferences for Indonesia and other developing countries in the World Trade Organization (WTO).
The bad news: The decision, issued last month, makes Indonesia no lon- ger eligible to receive Special Differential Treatment (SDT) from the WTO’s Agreement on Subsidies and Countervailing Measures. In plain terms, this allows the US to impose higher tariffs on Indonesia’s exports.

Forbes Indonesia took a big step last year by presenting our very own 30 Under 30 list. We have seen many of last year’s honorees gaining significant tractions in their achievement, further growing their business, extending their networks to facilitate more substantial impact, and, most importantly, inspiring more young generation across the country.
That being said, this year, we are proud to present Forbes Indonesia 30 Under 30 2020. From the submissions we received, we were able to see the enthusiasm of aspiring youths in Indonesia. They have proven themselves that age is not an issue when it comes to contributing to society, innovating, and making achievement.

In a narrow business and economic sense, 2019 was arguably the year of millennials and the digital economy. Both are two sides of the same proverbial coin, and they appear set to become – if not already – gamechangers in this country. In practical terms, they had defined the shape of business to come in ways that Indonesians have never experienced before.

There are five new names, among them Ferrari fan and construction tycoon Donald Sihombing, who founded and runs the company that built the Four Seasons hotel in Ja- karta, Totalindo Eka Persada, as well as Winarko Sulistyo, who sold a 45% stake in packaging paper producer, Fajar Surya Wisesa, to Thailand’s Siam Cement in May for $557 million. (He and his family still own 44%.)

INDONESIA’S DIGITAL ECONOMY is flourishing. In October, the Minister of Communication and Information Technology Rudiantara welcomed payment platform OVO as the country’s fifth unicorn. With the previous four being the ride-hailing app Go-Jek, online booking platform Trav- eloka and ecommerce platforms Tokopedia and Bukala- pak. He added that the next potential unicorn could come from the health and education sector.
Forbes Indonesia has been covering the journey of the country’s digital economy since its early days. In 2014, we released a special cover themed “The E-Gang” featuring entrepreneurs behind several local startups and venture capital companies. Since last year, we began extending the support by creating a special event, the Forbes Indonesia Digital Conference (FIDC), to bring the most prominent people in the digital industry and also the conventional family business and corporations to discuss the future of Indonesia’s digital economy.

Conventional wisdom dictates that if you gather five economists for a roundtable discussion, they are likely to come up with a list of of conclusions exceeding their number. This rather peculiar theory seems to hold up albeit on a smaller scale recently when Country Director of the World Bank Indonesia, Rodrigo A. Chaves, last month met with President Joko Widodo (Jokowi) to remind him of a possible global economic weakening.

The months leading to the new year promise to be exhilarating times for us. For one, the current president, Joko “Jokowi” Widodo, is ready to be sworn-in for the second time, in October, setting the stage for him to address the nation’s underperforming human capital in the next five years.
His first term (2014-2019) proved to be, by all measures, a resounding success in terms of rebuilding the nation’s much neglected infrastructure. His post-elections statements are fraught with a strong resolve to bring Indonesians on a par with at least neighbours Malaysians and Singaporeans, prompting much praise from the nation’s wide political and social spectrum.

The month of August marks the occasion for this magazine to celebrate high-performing companies that excel in their respective fields. For a publication that promotes entrepreneurship and advocates the free market system, it is only appropriate for the editors to hand out kudos to companies that in the past year stood out in the nation’s ever-widening business horizon.

Our underlying message in featuring these high achievers is the desire to instill encouragement in other companies to emulate their more successful peers. For the more successful they become, the better the prospects are for job creation which in turn will turn the economic wheel further and faster.
Thanks to the combined forces of sharp business acumen, sound management and, perhaps more importantly, good fortune, the companies featured in this issue have made it with flying colors.

Forbes Indonesia’s Local Champions highlights and celebrates the success of entrepreneurs and business leaders who have built successful business from the rural and regions. In this edition we feature a young entrepreneur from Yogyakarta who runs a fast growing beauty and skincare business, the next generation of tea business from Solo who is now trying to educate and tap the market on premium tea, Sidoarjo-based seed producer Bisi International who controls the biggest market share in hybrid maize seed and exporting horticultural seed, Bali local football team who recently went public, and a Cornell University graduate who prefers to start a coco sugar export oriented business from Purwokerto. These entrepreneurs and companies should be a source of inspiration, as not only they help create employment and local economy to thrive, but also manage to create successful business in a more challenging manner.

The luxury business is a niche segment, where brands offer high price in exchange for superior quality of products and services, from luxury cars, watches, to concierge assisted travel. The small number of people that can afford to be in this segment is continuously increased by the new creation of wealth, hence sustaining these businesses to grow and prosper. Here are some successful examples of luxury business players in Indonesia.

Forbes Indonesia prides itself for being a publication that promotes entrepreneurship and innovation. This month's issue takes readers to be the next level as we feature technopreneurship-loosely defined as the practice of technology prowess and entrepreneurial skills - as embodied by PT Haldin Pacific Semesta.

At 48 years of age, Arini Subianto is the richest woman in Indonesia. In December last year this magazine ranked her #44 among the top 50 richest Indonesians. She is reportedly worth $665 million thanks to her position as the CEO of PT Persada Capital Investama, a family-owned business empire with interests in coal, palm oil, rubber, and wood. Beyond her enormous wealth, Arini is arguably the typical embodiment of the modern In- donesian women today: well-educated, intelligent, and business-savvy.
Indeed, Indonesian women have come a long way since Raden Ajeng Kartini, an aristocratic Javanese woman, sparked the movement for gender equality in the early 1900s. Then President Soekarno solidified her stature as the first Indonesian feminist in the nation’s history by declaring her a national heroine and her birth date, April 21, as “Kartini Day”. Today, many more Kartinis in different realms are in place as well as in the making in ways that will shape the future of the country.

In 2015, three young Indonesian professionals with vast experience in the realm of finance got together and set up Alpha JWC Ventures, an investment company that focuses on technology-based start-ups. The rest, as it is I often said, is history. Well, not quite—four years on it continues to embark on its already illustrious journey and is set to become a formidable business force.
A venture capital company, Alpha JWC Ventures has been doing well and all signs show it promises to be doing even better in the future. No less noteworthy is the founders’ sense of glowing optimism as they extend the company’s reach beyond national borders to, in more recent times, Vietnam. And they have the numbers – and the right ecosystem—on which to base their upbeat sentiment.
With a population of 260 million people and as the region’s largest online retail market, Indonesia is in the crosshairs of private investors. It is estimated there will be over 139 million internet users by 2022 and that members of the middle- and upper-class over the next five years will rise from 63 to 128 million.

In a world marked by global economic downturn and political violence with no end in sight, our second issue of the year has opted for the high path and aptly celebrates optimism. And Perhaps nothing is more gratifying to us today than to see the young (and bold) share that sentiment. 
This is self-evident in the way 30 Indonesian youngsters-they are barely 30 years of age-featured in this issue expressed their faith in the future by achieving what others can perhaps only dream of.

Every year some time in November, the magazine’s editors would get together to choose Businessman of the Year. Several names would be tossed around, dissected and scrutinized based on their year-long record in terms of performance, inspiration, leadership and public
coverage. And, most of all, their aura in reflecting the spirit of a nation as it embarks on the long trek towards creating a great and prosperous society.

Unfortunately, as ardent followers of what has transpired in our nation in the past year, only a few meet the above mentioned standards and make the grade. In the aftermath of what was admittedly a shortexercise, the editors have unanimously chosen Erick Thohir as Forbes
Indonesia’s Businessman of the Year 2018.


About two decades since the late Chinese leader Deng Xiaoping is supposed to have said “to be rich is glorious”, China – as per “UBS/PwC Billionaires Insights” recently – has now 373 billionaires with a combined wealth of $1.12 trillion. Not surprisingly, as between 2016 and 2018 the country produced 50 unicorns. In fact, according to the same report, this year China produced an average of two billionaires every week.
It’s not clear if wealthy Indonesians as depicted in this issue indeed feel or see themselves as glorious. What is clear is that they have managed their companies well to the point of helping the national economy grow by around 5%. And it is also clear is that while rich Indonesians earn enormous amounts of money, they are also into ‘giving’.

It is perhaps a sign of the times that many almost invariably tend to mention digital economy and millennials in the same breath. The two seem to go hand-in-hand in defining the shape of the business world to come. In Indonesia, digital economy (DE) already makes up 8.5% of the country’s GDP of $1 trillion – up from 7.3% last year – which amounts to roughly $85 billion.

Not since the Non-Aligned Movement (NAM) summit in Jakarta, in 1992, which was attended by heads of state from over 120 members, has Indonesia organized a behemoth international gathering on the scale of this month’s IMF-World Bank Annual Meetings in Bali (Oct. 8-14).

Thanks to the likes of producers such as Manoj Punjabi, the nation’s film industry is today alive and kicking again. Some have even gone as far as saying it is undergoing a renaissance of sorts. While it is still a long way before Indonesia has its own Steven Spielberg or Martin Scorsese, things are looking up. Indonesian films have drawn international attention, with some winning awards in international festivals. 
Indeed, Manoj (45) could not have chosen a better time to venture into the movie business. Half of the country’s population today are young and vibrant, with enough cash money in their pockets to spend beyond merely fulfilling their basic needs. They are also equally creative as those who make movies and are ready to offer an appreciative nod to their peers.
 Like most film producers, Manoj broke into the movie business by making sinetrons (TV serials and soap operas). He then parlayed his vast experience into making motion pictures. The films he produced have garnered just about all awards (Panasonic Gobel Awards and SCTV Awards) available in the country’s entertainment realm.

If to be the best is not good enough, then being the best of the best should certainly more than suffice. And that is precisely what the 50 business entities featured in this issue are. They are a testimony not
only to their management’s sound business instincts, but also to good corporate governance.
The list is Forbes Indonesia’s version of the nation’s corporate creme de la creme. They have made fortunes, if you will, the old-fashioned way: they earned it. And we are proud to be associated with them.
The editorial team had put a number of prime companies through a proverbial prism from which 50 best of the best emerged. It is no mean feat; hours and hours were devoted to make sure they got it right as they have in the past.
One company stands out, namely PT Indonesia Paradise Property – it has made the list three years in a row – which is building star-rated hotels throughout the archipelago with unbridled gusto. The move falls in line with the government’s resolve to earn more foreign exchange from tourism (and the creative industry), and to wean itself off from traditional revenue sources such as commodities.

The story of luxury goods is about globalization, capitalization and culture, the CNN host Fareed Zakaria once concluded. In Indonesia, one might add, it is also about the country’s growing middle 
class. In 2017 the World Bank put its size at 52 million with a disposable income that has grown significantly in the past decade.
Today, no longer are luxury goods purchased here solely by the rich and super-rich; they are also eyed and bought by the not-so-rich. No respectable shopping mall in major cities in Indonesia is now devoid of luxury goods. Dior, Gucci, Hermes or Bally, you name it, they are all available here.
In a nutshell, the luxury goods industry produces and sells clothes, leather goods, shoes, silk scarves and neckties, watches, jewelry, perfume and cosmetics—all of which projects status and a pampered life.
Perhaps no one epitomizes the luxury business here better than the Surabaya-born Irwan Danny Mussry, president and chief executive at Time International, which distributes a number of luxury watches such as Rolex, Cartier and Chopard. Mussry and this month’s issue convey a clear message: luxury goods have arrived and are here to stay—and grow and thrive.

This month's cover subject is Tigor Siahaan, the president director of PT CIMB Niaga. He's a veteran banker, with more than two decades of experience, mostly at Citibank, one of the worlds's biggest global banks. He already had four years of experience running Citi’s operations in Indonesia before he stepped into the role at CIMB Niaga. It may seem like an easy transition at first glance, but there are several key differences between the two banks. For one, Citi operates in about 100 countries, while CIMB Niaga is a Malaysia-based regional bank. In Indonesia, Citi is a big brand but not necessarily a big bank, while CIMB Niaga is the country’s fifth largest by assets. Thus, a way to sum up the change was that Tigor swapped a big global brand for a more regional one, but with a bigger local presence. He was also tasked with a repair job—the weak Indonesian economy had contributed to a decline in the bank’s franchise. Tigor’s strong hand in restoring the bank came just as the economy also turned around, so he was able to position the bank to fully maximize the opportunity when it came. As the old saying goes, one key to success is to make your own luck. From a time in 2015 when many of the bank’s arrows on its quarterly reports were pointing down, these days Tigor can deliver reports where those same arrows are pointing up.

November 2020

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December 2019

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August 2019

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