Journalism graduate climbs corporate ladder
Zakki P. Hakim, The Jakarta Post, Jakarta
Graduating with a degree in journalism in the early 1970s, Noke Kiroyan climbed the corporate ladder, eventually to become the CEO of numerous multinational firms, including the Siemens, Salim and Rio Tinto groups.
Today, the 59-year-old from Manado, North Sulawesi, holds the position of nonexecutive chairman of Rio Tinto in Indonesia, president commissioner of PT Kelian Equatorial Mining, independent commissioner at PT Asuransi Cigna and the presidency of the Indonesia-Australia Business Council (IABC).
It certainly seems curious how someone with a social studies background could reach the top posts in firms that operate in the fields of medical engineering, electrical appliances, oleochemicals and mining.
"My pivotal point in life was when I studied (under Siemens sponsorship) in Germany, where I combined a social education background with knowledge of corporate finance. It eventually opened up a career route for me," 59-year-old Noke told The Jakarta Post.
He continued that being in top management was all about managing two things: the business and its human resources.
"We have to identify the key drivers of each business, which differ from one another, but in principal they are all alike. Whatever we sell, we must sell at a profit: We have to control costs, boost sales and improve productivity," he said.
Top managers had to learn about the principles of their businesses or products, he said, but did not have to master the details, as that would be the job of the engineers.
"We don't have to know how an electronic product can be useful in everyday life. What we need to know is how to run the business comprehensively for us to be able to sell the product at a profit," he said.
Noke holds a bachelor's degree in communications science majoring in journalism, from Padjadjaran University, Bandung.
Asked why he took journalism, he laughed and said that it was due to his own arrogance and that of his friends. They felt challenged as it was the toughest major at the time, he said.
"Only those who thought they were the best had the guts to take journalism. We thought that if we could master journalism, it would be easier to master other things," he said, laughing.
Initial introduction to IABC
After graduation in 1973, young Noke went to Jakarta and worked as a personal assistant for six months to the late Eddy Kowara, then president director of PT Teknik Umum and vice chairman of the Indonesian Chamber of Commerce and Industry.
He was briefly involved in the Indonesia-Australia Business Cooperation Council (the predecessor to the IABC), but he eventually left to become a management trainee at PT Siemens Indonesia in 1974.
After eight weeks working in Siemens, he received a scholarship from German cultural center Goethe Institute to study in Germany for two months. He had won the scholarship as he obtained the highest score in a test of German as a foreign language he took in 1972.
To his surprise, Siemens, instead, asked him to stay in Germany for another two-and-a-half years to study commerce and finance and accounting for industrial companies under the Industriekaufmann program offered as a post-high school apprenticeship with Siemens AG in Essen.
"I learnt all about international business there. We also practiced what we learned," he said, adding that Europe was the perfect place to practice it as trade other business activities was intense between countries in the region.
The program reached a peak by focusing on finance and accounting, where participants summarized their knowledge in all aspects of business -- production, logistics and marketing -- from the point of view of profit and loss, he said.
He went on that the apprenticeship was highly integrated with the country's educational system, where firms were obliged to accommodate such programs, with tax breaks given as an incentive.
To implement such a program in Indonesia, he said, would need the commitment of all stakeholders to modify the education system and integrate it with the private sector.
Afterwards, Noke returned to Jakarta to climb the corporate ladder, taking the top post in Siemens Indonesia and resigning as president director in 1991.
He spent the next six years at the Salim Group before he joined Rio Tinto in 1997, to take a top management position there.
Broadening horizons
In between, he took the time to read.
"There is so much we need to know; there is no time to waste, and one needs constantly to improve one's knowledge and keep oneself abreast of the latest developments," said the father of three grown-up children.
He also tries to work out on his treadmill at least three times a week for an hour each time.
"At my age this is not "free" or "spare" time, but essential in order to maintain a healthy body," he said.
Despite his vast experience in the business world, however, he does not see himself as an entrepreneur after retirement.
"At my age, to become an entrepreneur is not a risk I'd like to take. My path is not there -- I'm a professional executive. Starting a business is not easy; thus, I don't want to put all my life savings into a business and end up depending on charity," he said, with a smile.
He added that he had not grown bored of being an executive in various firms, as each business had forced him to learn new things.
One thing is for sure: He never stops learning. Apart from his bachelor's degree from Padjadjaran, he also holds a BA in liberal studies from the College of Arts and Sciences, Syracuse University, New York, and a postgraduate diploma in business administration from Heriot-Watt University, Edinburgh, UK.
He recently enrolled for the University of Indonesia's magister management in social development, as he was specifically interested in issues of corporate social responsibility (CSR) and community development.
CSR is interesting to him due to its controversial nature, as some companies are still reluctant to implement it, perceiving it to be a burden.
Nonetheless, it was very beneficial for companies to maintain a healthy reputation and obtain a "social license to operate" from the communities in which firms were located, he said.
However, he opposes partnerships in the form of "bribery" or the direct giving of cash, suggesting that it was better to promote capacity-building for the host community to acquire improved skills for a better life, long after the firms were gone.
"I think it's really relevant. Besides, from my practical experience and reading, I could gain an in-depth awareness on these issues. Maybe, when I retire I might become a lecturer," he said.
Might it be that the words of young, "arrogant" Noke were true after all -- that it might be easier to meet the challenges of life itself if you master journalism first?