A commitment to building good business with Indonesia<\/p>\n
Australian resources giant BHP has operated in Indonesia for
\nmore than 20 years, with all its key business groups represented
\nhere, from coal mining in Kalimantan to steel plants in Java, as
\nwell as oil and gas exploration in the Timor Sea.<\/p>\n
Until quite recently, BHP operated six distinct businesses,
\nemploying 3,512 people in five offices scattered around Jakarta,
\nother parts of Java, Kalimantan and Sumatra. It was a confusing
\nsituation which, in the company's own admission, caused
\nduplication and missed opportunities.<\/p>\n
That changed early in 1995. When the company was looking at
\nestablishing parallel organizations in offshore locations.
\nIndonesia -- with its variety of businesses and opportunities --
\nwas considered the logical place to start.<\/p>\n
Colin Smith, at that time Group General Manager of Finance,
\nSteel Group, was the first country manager appointed under the
\nscheme. Since then, the various BHP businesses have been grouped
\nin a single building in central Jakarta. The move has been a
\ncatalyst for an even closer involvement in Indonesia's
\ndevelopment.<\/p>\n
\"Helping BHP to grow is the primary objective of my being
\nhere,\" says Smith, now Corporate General Manager and President of
\nBHP Indonesia.<\/p>\n
\"You have to build relationships. You have to build a profile
\nthat is appropriate for Indonesia and BHP's Corporate profile,
\nattracts the best people to work for you and gives those people
\nthe necessary training and exposure to our culture.\"<\/p>\n
BHP, Australia's largest company, invests about US$3 billion a
\nyear around the world and employs 64,000 people in 50 countries
\nworking in five main areas of business: steel, petroleum, copper,
\nminerals and specialist service businesses in power generation,
\ntransport, engineering, information technology and insurance.<\/p>\n
All but one of those businesses -- insurance -- are
\nrepresented in Indonesia, where BHP and its partners (two of whom
\nare PT Bakrie and Bros. and PT Krakatau Steel) have invested more
\nthan $200 million in expanding existing business operations and
\ndeveloping new businesses since 1993, providing employment for
\nmore than 3,450 Indonesians.<\/p>\n
\"Despite this, as in many countries, our profile in Indonesia
\nis still minimal. We have to build on our global reputation if we
\nwant a long-term presence in places outside Australia, such as
\nIndonesia,\" Smith says.<\/p>\n
Ultimately, it's about relationships,\" he says. \"Relationships
\nbetween the company, the Indonesian Government, businesses and
\npeople. Too many western companies move into Asia and if they're
\nnot successful within 12 months, they pack up their bags and go.<\/p>\n
\"I've been told there's a type of Chinese bamboo that takes
\nfour years to break the surface and then grows to 25 meters in
\nsix months. I think business here is a lot like that.<\/p>\n
\"I think that BHP's long-term commitment to Indonesia is proof
\nof this. We now produce seven million tonnes of thermal coal per
\nannum from three mines in Kalimantan. We have two welded mesh and
\nrollforming plants in Pulogadung and Surabaya, with a third under
\nconstruction in Medan, Sumatra. And we have an organic and
\nmetallic coating steel plant in Cilegon, West Java. This, in
\naddition to our Information Technology, Transport, Petroleum and
\nPower interests, is, we hope, an example of the Chinese bamboo
\nabout to surface.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/a-commitment-to-building-good-business-with-indonesia-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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