Forbes Asia — December 2017

(^14) Indonesia
SPECIAL ADVERTISING SECTION
The Indonesian group has long been intertwined with the country’s fortunes,
and will continue to innovate to help ensure the nation’s long-term growth.
BAKRIE GROUP:
TRANSFORMING FOR THE DIGITAL AGE
The Bakrie Group was founded in 1942
by the late H. Achmad Bakrie, three years
before Indonesia declared independence,
and has since grown alongside the
country—through the ups and downs, ebbs
and tides—to become one of Indonesia’s
leading conglomerates.
Bakrie has played a key role in support-
ing the development of Indonesia into
a modern economy that is the largest in
Southeast Asia today. Starting as a mod-
est commodity trading company, the
group has expanded into multiple indus-
tries that touch almost every aspect of
Indonesian life.
In 2014, with the government focused on
infrastructure development, Bakrie worked
to synergize its assets to ensure it could
support this plan. For instance, it developed
coal-mining production to support the
country’s power plants and a gas pipeline to
support its gas-mining activities as well as
infrastructure products for the construction
of toll roads and bridges.
As two-thirds of Indonesia’s economy is
driven by domestic consumption, Bakrie
also focused on growing its media and
technology businesses as one of its key
pillars. The media and technology sectors
interact directly with consumer trends and
are an excellent platform for developing
future consumer-related businesses.
“Over the decades we have been pio-
neers in entering into businesses that are
relevant to Indonesia’s long-term growth,”
says Anindya Bakrie, the third generation to
lead Bakrie.
Leading the Way
Significantly, the businesses in these dif-
ferent verticals are run by professional
executives using globally recognized
management and governance practices.
Each vertical’s holding entity is publicly
listed and has its own independent board
of directors and set of shareholders.
Bakrie pioneered these governance mea-
sures in the 1980s at a time when many fam-
ily businesses in Indonesia were still run by
family members. It was the first major Indo-
nesian company to go public with the listing
of Bakrie & Brothers in 1989 on the Indone-
sian Stock Exchange.
Today, the group continues to innovate
in a fast-changing business landscape.
Specifically, it is using technology to
improve the efficiency of its operations
across the different verticals and to reach
out to new markets.
“By using technology, we can still move
quickly to adapt to changing business condi-
tions despite our size,” says Anindya Bakrie.
To this end, there are numerous exam-
ples of how Bakrie can rapidly expand its
businesses using technology and innova-
tion, such as using prefabricated building
techniques in construction, or offering
digital tools that allow buyers to design
their own homes for the property group.
It is also exploring solar technology to
build a solar power plant, and has adopted
yield-monitoring applications to measure
the effectiveness of yield production in
its agriculture business. The group is also
looking to leverage digital technology
to expand its presence in the media and
entertainment businesses.
Helping at Home
At the same time, Bakrie continues its
long tradition of giving back to Indone-
sian society through its many corporate
social responsibility and sustainability
programs. Through its philanthropic
foundations, the group has disbursed
more than US$120 million in just five
years. It also conducts various support
programs that focus on education, social
and environmental causes. These initia-
tives have benefited more than 500,000
people across the country. For instance,
hundreds of thousands of people in Indo-
nesia have received free access to medi-
cal facilities that support a rapid response
to natural disasters.
“In Bakrie, not only do we want to grow
over the long term but we also want to
grow together with our partners. That
is the reason we believe in solid long-
term alliances and partnership, including
with state-owned and small and medium
enterprises,” says Anindya Bakrie.
Looking ahead, the Bakrie group will
continue to evolve according to the needs
of the Indonesian and global economy,
delivering value to its shareholders and
stakeholders and contributing to the growth
of the Indonesian economy.
Anindya Bakrie, Chief Executive Officer of
PT Bakrie Global
Bakrie Tower http://www.bakrieglobal.com