Ways to accelerate Indonesia’s growth

Imagine Indonesia as a high-performing engine, ready to roar. Its young population is the fuel and its vast resources are the oil.

But to achieve an ambitious 8% gross domestic product (GDP) growth, it needs two essential components – a finely tuned operational system and a unique road map that no one else can replicate.

In simpler terms, this is about mastering the basics, while standing out in meaningful ways.

Let’s explore how companies, and countries, can fast-track growth through operational excellence and differentiation.

Think of operational effectiveness as making a car run smoother and faster, without changing the model.

It’s about polishing every part of your operation until they sparkle.

In Indonesia, this starts with aligning best practices across the board. Imagine you own a chain of warung (small eateries) across different regions in the country. Some outlets thrive while others lag. Why?

One warung might source fresh ingredients locally, while another cuts corners.

Standardising best practices from procurement to customer service could level up the entire chain.

Take Softex Indonesia during its turnaround years from 2004 to 2018.

What started as a US$15mil company became a thriving business, attractive enough to be acquired by Kimberly-Clark Corp for US$1.2bil in 2020.

It didn’t just copy-paste global standards. It localised them, ensuring consistency while respecting cultural nuances.

And it paid off. Businesses and government agencies alike should follow suit.

For example, streamlining processes for business licences or tax collection could make it easier for entrepreneurs to flourish. Speed and agility are everything in a fast-moving world.

Companies that cut through bureaucracy and act quickly will be miles ahead.

Lean thinking focuses on cutting waste, whether it’s unnecessary meetings, bloated supply chains or redundant approvals.

The result? Faster decisions, lower costs and happier customers.

Action-oriented leadership is crucial here. Leaders need to empower their teams to make decisions on the ground without waiting for approval from a dozen layers of management.

Results-driven cultures measure success through outcomes, not just effort or time spent.

A great example is Tokopedia’s rapid scale-up in the eCommerce space.

By focusing on efficiency and quick iterations, it stayed ahead of the competition. Governments can also benefit from this mindset.

Imagine local government offices that process permits in days instead of weeks, or tax filings that can be done in a few clicks. When speed and simplicity become the norm, businesses thrive and citizens benefit.

But operational effectiveness alone won’t win the race. To really take off, companies need to be unique, offering something so meaningful that customers can’t resist.

Consider Gojek. What started as a simple ride-hailing service evolved into a super app, because Gojek listened to its consumers. It identified the need for food delivery, digital payments and even massage services – and delivered.

The lesson? Pay close attention to what your consumers truly need.

It’s not about following trends. It’s about creating them. Companies should aim to anticipate, not just react.

Empathy-driven innovation allows businesses to solve real problems from the consumer’s perspective.

Indonesia’s diversity is a gold mine for differentiation.

Picture a coffee company that doesn’t just sell beans, but also tells the story of the farmers from Sulawesi or Sumatra, who grow them.

This kind of cultural relevance builds loyalty and emotional connections.

Tourism is another gem. Imagine promoting remote islands with eco-tourism experiences or showcasing traditional batik making.

More and more, consumers care about sustainability. They want to buy from companies that care for the planet.

For Indonesia’s palm oil producers, adopting sustainable farming practices could be the ticket to premium markets.

Imagine an entire industry known for green innovation rather than deforestation. That’s differentiation that matters.

Companies that embed sustainability in their DNA will not only win market share, but also attract investors and partners.

And the government can help by enforcing clear environmental standards and offering incentives for green innovation.

In today’s world, no one wins alone.

Companies should form strategic partnerships to co-create and innovate.

The government can foster these collaborations by setting up innovation hubs – places where businesses, universities and researchers can work together to solve big challenges.

Think Silicon Valley, but with an Indonesian twist.

Now here’s the magic formula. When you combine operational excellence with meaningful differentiation, you create a growth engine that’s hard to beat.

Consider Traveloka, a homegrown online travel agency.

It didn’t just expand its offerings and improve service quality. It also developed tailored digital solutions for customers, from travel insurance to payment plans.

By excelling in both operational effectiveness and differentiation, Traveloka has remained a market leader while expanding into new territories.

For businesses to thrive, they need an environment that supports their ambitions. The government has a crucial role to play, for matters such as ease of doing business and simplifying red tape.

Make it easier for entrepreneurs to start and scale businesses.

For infrastructure investments, build better roads, ports and digital networks to lower costs and improve connectivity.

For talent development, launch programmes that equip the workforce with skills for the digital age.

For innovation incentives, offer tax breaks and grants for research and development to encourage companies to think big. For sustainability standards, enforce green regulations and reward companies that prioritise the planet.

Achieving 8% economic growth isn’t just a dream. It’s a possibility.

But it requires a balanced focus on operational excellence and meaningful differentiation.

Companies must tighten their engines while carving out unique paths that no one else can follow.

With the right strategies and government support, Indonesia can accelerate into a future of high, sustainable growth – and inspire the world along the way. — The Jakarta Post/ANN

Rudolf Tjandra is chief executive and president director of a leading healthcare and nutrition company in Indonesia. The views expressed here are the writer’s own.

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