Crazy Idea of Co-CEO Indika Coal
February 01, 2011
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Thought that was what often clung King Mohammad Arsjad Rasjid Mangkuningrat (40), Co-Chief Executive Officer (Co-CEO) of PT Indika Energy Tbk, which in five years (late 2005-2010) was able to develop the coal energy industry assets doubled , from 150 million U.S. dollars to be worth 2.5 billion U.S. dollars (approximately Rp 22.5 trillion).
Men born in Jakarta, March 16, 1970, it sparked a crazy idea to bring Indika Energy is not solely the coal mining industry, but also industries that have the power of added value from upstream to downstream.
Here are excerpts of an interview with Arsjad Kompas in Jakarta on Thursday (01/20/2011).
How can HR be used to build industrial strength Indika?
This is my biggest challenge. After acquiring a number of companies to support the activities of our mining industry, the challenges I have to go through is to strive to maintain HR and unify young and old groups to want to commit to build this industry.
Coaching leadership is key. The young must be given the confidence to lead. Thats what I do with a sort of outbound activities in which young group placed as a leader. The elder one, it should become members.
Therefore, I make the idea crazy at the management level by doing a transformation management. Not that we were bad company, lost, and not performing, but interpreted in a continuous improvement. That is, we launched the commitment to not complacent, self satisfied, but both focus on building the industry.
What does the award of The Best Indonesian Executive 2010 from Asiamoney and several other awards? (Indika Energy also won the Best Medium-Cap Corporate of the Year 2010 from Asiamoney and Asia Best Managed Companies 2011 from Euromoney)?
It is a symbol that is not provided only for me as a person, but also great appreciation for the overall management. Interestingly, the determination as the best CEO is determined through voting of the respondents were analysts, bankers, investors, and so forth.
This award is a symbol of confidence in the management Indika Energy. Indeed I was selected as the best CEO, but internally, I say this as a tribute to the management team work that brought major changes.
What strategies do you do?
In the past many people have questioned, even dubious, these three pillars of corporate strategy. The three pillars that are the natural resources, services, and infrastructure.
I just wanted to bring the company has a coherent and clear strategy for Indonesia or Asia. Gratitude, gratitude, a strategy that I developed into a pioneer for other industries.
What is the focus of the implementation of its strategy to value these companies jumped dramatically?
All the increase in asset value was created through the acquisition begins. We believe the integration value. The core of this industry is mining. Can not all start from zero, by setting up subsidiaries.
Therefore, the acquisition is an option so that all that was seen as the cost could well have an income.
We have focused on natural resources as the main drivers of the company, which is then supported by service charges (services) and infrastructure.
How initially to power the integrated?
First it was strengthening its foundations. There are two foundations of our, namely human resources (human capital) and funding sources (financial capital). The power will be financed through bond release, then an IPO (initial public offering / IPO) so that strong capital.
As for management, we can take from HR with the acquisition of service companies who have basic skills in the areas of mining, such as Tripatra with expertise engineering and project management of mining. Then acquired Petrosea with expertise in the field of mining. Thus, the ability of basic services have been owned. The power infrastructure is obtained by acquiring a logistics company Mitrabahtera Segara Sejati.
How is the implementation of post-acquisition?
Gampangannya, coal mining industry, entering into the ship, and sent both to the needs of domestic and overseas market. The entire force was used to reduce the cost of capital.
Can not we just depend on fluctuations in commodity prices for coal. Can we see the crazy price fluctuations. The term, when commodity prices are falling, an industry that has the higher the production cost will fall first.
Thus, most murahlah costs that need to be breached so that these industries remain competitive. We attempt to control production costs because it has the power of these pillars.
Who are your competitors?
In the production of income, our new third place after Bumi Resources and Adaro. The strength of this crazy idea lately makes us dare to expand integration with the industry playing on power plants that use coal-yield 4500 calories.
Foray into power generation industry is solely to increase revenue?
No. We see the opportunity, there are new markets and new products, with the power of the natural resources they own. At first, the coal content of 4500 calories did not sell. Now with a super energy engineering, coal can be utilized.
However, further more, we utilize coal-yield 4500 calories is to be used in the country to contribute to meet the need of national power. Its a long process to build a new nationalism.
In the end, we also must not only triumphed on home turf. Coal utilization projects at international level must be seized. Of course, should strengthen the foundation of our industry first!
(Kompas.com)
