Aggi Nauval
Hutama Karya Aspal Beton: Entrepreneur Mindset
The entrepreneur process includes all the functions, activities and actions that are the part
of perceiving opportunities and creating organizations to pursue them (William Bygrave &
Andrew
Zacharakis,”Entrepreneurship” 2010)
Opening Paragraph
Budi Prasetyo, CEO of HK Aston, is preparing big agenda that afternoon. He is busy
coordinating big projects of his new office HK Aston. As a subsidiary company of Hutama
Karya a State Own Enterprises in construction business, HK Aston have specific mission
to be a focus company in managing Asphalt and Steel business. One of the big projects on
the pipeline is Tanjung Benoa Toll Road in Bali.
First of all HK Aston is a newly startup company set up in 2009 with mission to
differentiate services and bring more value to the industry towards better services as a
group of businesses. Main purpose setting up subsidiary company with core business of
specific services is to gain focus in asphalt services which value added perceive values.
HK Aston business operation is still active during the process of spin off from division
under Operation Directorate to become full fledge company. Even though setting up a
good foundation of strong business need more than just a legal documentation and given
business,
moreover they must have a strong entrepreneurial spirits towards vision of the new
company.
In this case Budi will have to manage the three basic questions, “where are we now”,
“where do we want to be” and “How to get there”. Those 3 questions will manage the
expectation of action to be taken.
Budi saw HK Group trust him and the new company plenty of resources ready to be
maximize and also a fruitful connection to be explored. Similar with that on the risk side
Budi also facing big risk of big projects outside APBN (Anggaran Perencanaan Belanja
Negara / National Budget Expenditure Planning) and also organization shifting issues from
unit into full fledge company.Moreover Tanjung Benoa Toll
road is a big case that need collaboration between new company and existing one.
How he should prepare the spin-off & big project execution for the next step?
Aggi Nauval SE, MM prepared this case from field and published source. BBS cases are
developed solely as the basis for class discussions. Cases
are not intended to serve as endorsements, sources of primary data, or illustrations of
effective or ineffective management
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Industry Overview
According Central Beureau Statistic of Indonesia growth rate at that time (2011) is 6.5%
increase from 6.1% in 2010. Constuction sector contribute to Total GDP is IDR 660,967.5
Billion (2011) The market covers various infrastructures both under government funds and
state owned companies as well public private partnership financing schemes. Based on
information from Indonesian Contractor Association
(ICA) in 2011, contribution contraction sector to GDP is around 8 %.
Competition in the industry is a tight competition with main players in Constriction
dominated by State own enterprise follow by private sector. Adhi Karya, Wijaya Karya,
Pembangunan Perumahan and Hutama Karya is sample of State own enterprise while
Agung Podomoro, Ciputra, Total, Tata is another
example of private sector within Industry. As shown in table 1 is Indonesian main
economic indicators :
Oil Price 64,00 94,00 99,40 61,7 85 106,4
(USD/Barrel)
Source : Central bank of Indonesia, Finance Ministry of RI, www.oilprice.net
It is quite moderate growth level of construction business in an emerging countries like
Indonesia, main reason for this situation came from classic problem of weak infrastructure,
high unemployment and yet low skill workers for the industry that lead into high cost
economy.
Even though situation of construction industry is tough, there is big opportunity regarding
infrastructure development. Growth of construction industry is driven by the growth of
investment in the transport sector, especially infrastructure sector, as well as the
construction industry-related government programs in order to revitalize the mining and
energy sectors.
Construction industry has a strategic role play in national economic growth. The role
include of the contribution to GDP including size and magnitude of labor absorption. In
2011 construction sector contributed to GDP of 10.3 % meanwhile the labor can be
absorbed in the construction sector amounted to 5.8 million recorded in 2011.
Company Overview
Hutama Karya (PT.HK) is a one the biggest with asset size of IDR 3 Trilion (Annual
Report 2010) which
increase from IDR 2.4 Trilion in 2009 and PT.HK is include in five biggest construction
company owned by
the government.
PT.HK was nationalized from the Dutch company named ‘Hollandsche Beton
Maatschappij’ in 1961. They are responsible for building Gedung MPR/DPR(The Upper
House/House of Representatives)and the Hanoman Statue at Pancoran Jakarta. Moreover
PT.HK also creator of legendary bridge Semanggi in Jakarta, also PT.HK is the first
contractor who’s using Sosrobahu technology for construction of fly overs
Cawang-tanjung Priok back in 1980’s. Nowadays PT.HK also doing construction for Kuala
Namu, one of modern airport in Indonesia at the area of 80.000 square meter. In addition ,
PT.HK also build the Mojokerto toll road – Kertosono , Depok – Antasari , resume
development JORR to Tanjung Priok , arterial roads Balikpapan – Samarinda , Jeneponto
