Think regional, act local!<\/p>\n
Hermawan Kartajaya, Jakarta<\/p>\n
The Southeast Asia region has grown so fast that it has become
\none commercial market and also one market for investment.
\nTo support this at the governmental level, the member countries
\nof ASEAN have adopted the vision of creating an ASEAN Community
\nby 2020 based on three main pillars: the ASEAN Security Community
\n(ASC), ASEAN Economic Community (AEC), and ASEAN Socio-Cultural
\nCommunity (ASCC). The mission is to create \"Peace and Prosperity
\nfor ASEAN People.\" The vision of ASEAN as one community is one
\nthat has profound implications for the business world.<\/p>\n
Moreover, the ASEAN Economic Community aims to eventually turn
\nthe South East Asian region as a regional production base and one
\nsingle market. The more that ASEAN unites, the more serious will
\nbe the business challenges to the local players in each country.
\nThis regionalization of ASEAN also harbors huge marketing
\nopportunities.<\/p>\n
We have been striving to fly Indonesia's red and white flag in
\nthe region through MarkPlus&Co. After 15 years in existence in
\nIndonesia, MarkPlus&Co is now also present in Singapore and Kuala
\nLumpur, Malaysia, and we are trying to reposition ourself as a
\nregional company. In September this year, we sent one of our
\nIndonesian consultants to Ho Chi Minh City, Vietnam, and have
\nopened a representative branch office in that city.<\/p>\n
The goal is to show our neighbors that we are not only a
\ncountry that exports commodities, finished products and manpower,
\nbut also solutions.<\/p>\n
It's not only small companies like MarkPlus&Co that have an
\ninterest in the ASEAN market. We can see how big companies from
\nneighboring countries have also increased their interest in the
\nregion.<\/p>\n
The automotive industry can best illustrate this. Malaysian
\nautomaker Proton opened its first manufacturing plant in
\nIndonesia in June, 2005. The plant assembles 8,000 cars per year,
\nwhich are then sold on the Southeast Asian market.<\/p>\n
Many Malaysian companies are now investing in Indonesia.
\nMeanwhile, Singaporean firms are also investing widely here.<\/p>\n
Take Temasek of Singapore, for instance. This group has
\npurchased stakes in a wide range of Indonesian firms, including
\nIndosat, Telkomsel, Bank Danamon, BII, and Astra International.<\/p>\n
In the meantime, Malaysian companies have also started to
\ninvest in many Indonesian companies. Indonesia is like the
\n\"second home\" for Malaysian investors, who are increasingly
\nputting their money in variety of sectors, including
\ntelecommunication, banking, oil and gas, pharmaceutical,
\nelectronic components and plantations.<\/p>\n
Maxis Communication -- a cellular operator from Malaysia --
\ncompleted the acquisition of 15 percent of the shares of Lippo
\nTelecom last April. Maxis is even rumored to be interested in
\nbecoming the majority shareholder in this cellular company.
\nMeanwhile, Telkom Malaysia Bhd has also spread its wings to
\nIndonesia by teaming up with cellular operator Excelcomindo.<\/p>\n
Commerce Asset-Holding Bhd (CAHB), a conglomerate from
\nMalaysia, now owns Bank Niaga and plans to become more aggressive
\nin investing in Indonesia.<\/p>\n
Even more interesting is the company behind Proton, Malaysian
\nTelekom and Commerce-Asset Holding. It is none other than
\nKhazanah National Bhd, which controls more than 40 percent of the
\nshares of Proton & Telekom Malaysia, as well as 25 percent of the
\nshares of Commerce-Asset.<\/p>\n
Unlike Temasek of Singapore, whose name is already well-known
\namong businessmen here, Khazanah, which is the \"Malaysian
\nTemasek\" is quite low-profile.<\/p>\n
However, that doesn't mean that Khazanah is inactive. It has
\nproven its aggressiveness in penetrating the Indonesian market.<\/p>\n
It is worth repeating here what has been said by Malaysian
\nPrime Minister Abdullah Ahmad Badawi not so long ago. Badawi, who
\nis also the chairman of the board of directors of the Khazanah
\ngroup, said that his government was in the midst of trying to
\nconvert Khazanah, as the investment management department of the
\nMalaysian government, into one of the biggest and most dynamic
\ninvestor groups in Asia.<\/p>\n
Investment by Khazanah in Indonesia is more than mere
\ninvestment for gain. It seems that they want to prove that they
\nare not only an economic animal that invests for profit only.
\nMore than that, they want to prove that they are here to
\ncontribute to sustainable development.<\/p>\n
Therefore, their operations in Indonesia are not so different
\nfrom what they do in Malaysia. In other words, they are
\ninterested in environmental conservation and corporate social
\nresponsibility.<\/p>\n
Companies with a regional focus, such as Khazanah, already at
\nunderstand local anxieties and desires in the countries where
\nthey operate. The fact that possess an understanding of local
\nculture sensitivities is one of the reasons why they are
\nrespected by local people.<\/p>\n
So, the slogan \"Think global, act local\" is not well suited to
\nthose companies that want to enter the regional market. Nowadays,
\nfor companies wanting to go regional, the key is to \"Think
\nregional, act local.\"<\/p>\n
This means that they need to have a comprehensive
\nunderstanding of the characteristics of regional markets like
\nASEAN. Regional perspective here means that these companies not
\nonly need to have regional marketing strategies but also an
\nunderstanding of each local market. Without these things, it will
\nbe impossible for them to successfully compete in the regional
\nplaying field. Therefore once again, the point is to \"think
\nregional, but act local!\"<\/p>\n
The writer is Asian Marketing Guru (CIM-UK, December 2003),
\nthe Most Powerful People in Business 2004\/Marketing (SWA
\nmagazine-Indonesia, December 2004) and founder and president of
\nMarkPlus&Co. On the net: www.hermawankartajaya.com<\/p>\n
2<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/think-regional-act-local-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }