IPMI Business Review - January 2019

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IPMI BUSINESS REVIEW January 2019

2 IPMI BUSINESS REVIEW
January 2019

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January 2019
Business Trends in 2019
Snapshots
Risa Bhinekawati: Three Legacies For Life
A Practical Approach of Service
Excellence in Higher Education
Faculty News
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24
36
30
41
12 Regulatory Sandbox for Blockchain Application
Blockchain A New Buzzing Term
8 The Hype of “Everything” 4.0
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a

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IN THE
MAGAZINE
IPMI BUSINESS REVIEW
Editor-in-Chief
Prof. Roy Sembel, Ph.D
Agus Loekman, M.Si
Managing Editors
Heru Prabowo
Dana Afriza, MBA
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Heru Prabowo
Tammy T. Geneberty
Yumna Sofyan
Contributing Editors
Sudarmawan Samidi
Dr. Leonnard Ong
Rifa Zahirsjah
Dr. Amelia Naim
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Fajri Ramdhani
Media Production
IDP Indonesia
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IDP Indonesia
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Ahmad Setia
Account Executive
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IPMI and Indonesia Mengajar: Bringing
Leadership to Indonesia’s Remote
Villages
39
ipmi
business
review BUSINESS TRENDS IN 2019
BLOCKCHAIN A NEW BUZZING TERM
THE HYPE OF EVERYTHING 4.0
2019 FUTURE TRENDS
January 2019
abc
abc

January 2019
A WELCOME
FROM THE CEO
JIMMY M. RIFAI GANI
IPMI EXECUTIVE DIRECTOR & CEO

7
G
Greetings from IPMI
International Business School!
We are very excited to
embrace the new year of 2019,
as we leave 2018 with so many
achievements received from
prestigious institutions.
IPMI is very proud to have
been placed again as the
highest rated private business
school in Indonesia, with a
three-palm category, by a
prestigious world business
school ranking institution
based in France, Eduniversal.
This is the six consecutive
times IPMI is awarded such
an achievement, in which this
time we were fortunate to be
handed this award during the
Eduniversal World Convention
2018 in Dubrovnik, Croatia.
We also take pride in having
been appointed as Chairman
of the Asian Chapter of
the Microeconomics of
Competitiveness (MOC)
International Affiliate Network
at the Institute of Strategy and
Competitiveness – Harvard
Business School in December
2017. IPMI successfully organized
the first MOC Asian Chapter
Conference on July 9-10, 2018,
at our campus, where papers
related to competitiveness
were presented and reviewed
by various scholars from the
US, UK, Thailand, Taiwan,
Philippines, Malaysia, Korea,
Cambodia, Kazakhstan and
others. The conference also
featured the Minister of Village,
Underdeveloped Regions, and
Transmigration of the Republic
of Indonesia, H.E. Eko Putro
Sandjojo, as the keynote speaker.
IPMI is also very proud to have
leap frogged in the national
ranking of the higher education
institution conducted by the
Ministry of Research, Technology,
and Higher Education of the
Republic of Indonesia. IPMI
International Business School’s
ranking has jumped from 1,240
in 2016 to 102 in 2018, from the
thousands of higher education
institutions in Indonesia. There
is certainly still a lot of room
to improve, and we intend to
continuously strive to do our
best.
We believe that these
achievements have been
the result of the relentless
efforts contributed by all IPMI
stakeholders. We hope that
that these achievements will
enhance IPMI’s capacity to
contribute more significantly
to society. The theme of this
edition of IPMI Business Review
is the current trends of the
business world. Through the
interesting articles, we believe
readers will be inspired and
be able to take some of the
concepts to not only increase
their hopes, but also to come up
with new ideas to implement for
their organizations.
Please enjoy this edition of the
IPMI Business Review, and have
a great year.
Thank you.

January 2019
BLOCKCHAIN
A New Buzzing Term
Blockchain – what is this actually? This article is a popular
review to introduce in simple way of the concept and what
will be the impacts in the future.
By Heru Prabowo

9
We are hearing the term of
Blockchain more frequently now.
A lot of media and experts are
mentioning about it and usually
connected to crypto currency
i.e. Bitcoin, Ethereum and
other crypto similar currencies.
But what are they actually?
To give you a glance of it, we know
that usually a Bank has record of
its customer’s financial data. In
this case, basically the bank is the
authorizedonetokeepit,whilethe
customersgivetheirtruststhatthe
Bank will keep the record of their
financial data correctly and always
being updated. If something goes
wrong, i.e. data corrupted, Bank
server malfunction, or someone
in the Bank does any crime, or
any other reasons, then actually
the customers do not have ability
to check, verify and validate their
own financial numbers before the
incidents. While in fact it is their
own wealth, something that they
earn and belong to them. They
just 100% rely on Bank capability
to do the agreed function.
Now, what if there is a big idea
to transfer the authority power
from the Bank to the customers
themselves? Means they are the
one who can check, verify and
validate the records collective way.
So, in simple words, Blockchain is a
collective way of some respective
users to keep digitally the ledger
(or simply record notes) of their
(crypto) financial records, using a
protocol that agreed by all parties,
it means distributed ledger. This
protocol is working automatically
to keep updating the distributed
ledgers based on previous ones,
means they are transparent to
everyone, so they can be checked,
verified and validated collectively.
Crypto financial records here
means: the ledgers keep the
records of their digital wealth,
using a specific digital currency, in
encrypted format. 2 most popular
ones are Bitcoin and Ethereum,
that can be used as payment
tools for those accept this, similar
like any real currency (IDR, USD,
EUR) in daily transaction activity.
By definition: A blockchain,
originally block chain, is a growing
list of records, called blocks, which
arelinkedusingcryptography.Each
block contains a cryptographic
hash of the previous block, a
timestamp, and transaction
data. Or by popular definition
it means: an automatic created
ledgers, contain the transaction
record data of respective crypto
currency, linked one to the other
using cryptography. It is resistant
to data modification as the ledgers
will be distributed to all parties
where everyone collectively will
verify and validating the ledgers
& data record. Means if someone
change the record but not
validated by everyone collectively,
his/her change won’t be counted
as valid, thus avoid any frauds.
It is invented by Satoshi Nakamoto,
a pseudonym who wrote the
Bitcoin whitepaper in 2008, to
serve as the public transaction
ledger of the cryptocurrency
bitcoin, after “Satoshi” watched
the mortgage bubbles exploded in
US that year, where he feels that it
is unfair that Bank can do almost
anything to customer’s money
without any approvals and they
are the ones who will burden the
costs. Hence the “decentralized
spirit”istohandovertheauthority
back to the customers themselves.
To quantify the wealth in this
context, bitcoin is created and
become the valid currency here
(then known as cryptocurrency)
and can be used as payment rail to
do any related payment.

January 2019
The good things about this system is:
• Everyone related can check, verify and validate any ledgers
• Ledgers are persistent for any modification as any modification will require approval from everyone
involved and easily can trace back to the previous ones. Therefor any error, deliberate or not, can be
traced & verified.
• No misconduct of personal data usage as nobody knows the data belongs to which user, except the
person him herself. The system will represent any user only as a crypto code, without any identity:
name, age, location, occupancy, wealth, etc. Therefore, misusage user data like in Cambridge Analytica
case, can be avoided.
The concept itself is currently still in infant stage, means it is under development by everyone involved.
Nobody, neither any government, big corporate, nor big capital individual/ firms can theoretically set
the course of this development, as it will be nurtured and agreed by all related parties. Therefore, the
blockchain format or status now day can be different from the application in 10 years from now. What
will be remained is the decentralization spirit that authority should lies in the users themselves and not
any one single, or some few parties.

11
Implementations in the future that already foreseen are:
• No bank required, as financial status of everyone is kept in the internet. For any financial transaction
just using i.e. a finger print to validate. The person him/herself who knows his/her financial status. This
will eliminate most of banking/ financial institution: Bank, Fintech, Lender, etc.
• Removing middle men: insurance agency, financial planner, as the system will advise intelligently of any
product and company that most suitable with customers specific needs.
• Self-provisioning, since there is no bank, no account activation required
As this will impact to various business sectors, many parties try to influence the development and where
it goes. For sure creates some pros & cons. However, this is already happening, and it is just a matter of
time that this will impact our everyday life. Therefore, we better prepare it, otherwise will be late and
someone else will take advantage.
0101o1
0101o1
0101o1
block chain
technology

January 2019
Blockchain is currently a concept that has received significant attention
in financial technology (FinTech). It combines several computer
technologies, including distributed data storage, point-to-point
transmission, consensus mechanisms, and encryption algorithms.
It has also been identified as a disruptive innovation of the Internet
era. However, as blockchain is a major breakthrough in data storage
and information transmission, it might fundamentally transform the
existing operating models of finance and economy, which might lead to
a new round of technological innovations and industrial transformation
within the FinTech industry.
“Regulatory Sandbox”
for Blockchain
Application
Sudarmawan Samidi,
Head of IPMI Research Center
Since 2015, a number of
major international financial
institutions have begun
to formulate plans for the
blockchain sector. Blockchains
are decentralized and permission
less, which can lead to major
disruptions in the financial
sector, especially in payment
clearing. Goldman Sachs, J.P.
Morgan, UBS, and other banking
giants have all established their
own blockchain laboratories,
working in close collaboration
with blockchain platforms, and
published a series of studies on
this topic. Goldman Sachs even
filed a patent for transaction
settlement based on blockchain
technology. Additionally, various
national stock exchanges,
such as the Nasdaq Stock
Market and the New York Stock
Exchange have also conducted
in-depth research on blockchain
technology.

13
Recently, the banking industry
in Indonesia is facing the impact
of economic transformation,
internet development, and
financial innovations. Hence, the
banking industry requires urgent
transformation and is seeking
new growth avenues. As such,
blockchains could revolutionize
Comparison of traditional banking businesses, Internet finance
businesses, and blockchain + banking businesses
the underlying technology of
the payment clearing and credit
information systems in banks, thus
upgrading and transforming them.
Blockchain can establish a credit
mechanism in a situation where
there is a lack of mutual trust
among parties, thereby resolving
the high costs caused by the non-
technical aspects of centralization.
The processes of financial services
are fraught with problems, such as
efficiency bottlenecks, transaction
lag, fraud, and operational risks.
It is believed that the majority of
these problems can be resolved
as a result of applying blockchain
technology.
Source: Guo and Liang, Financial Innovation (2016)
Traditional banking
businesses
Internet finance
businesses
Blockchain + Banking
businesses
Customer experience Uniform scenarios
Homogenous service
Poor customer experience
Rich scenarios
Personalized service
Good customer experience
Rich scenarios
Personalized service
Good customer experience
Efficiency Many intermediate links
Complex clearing process
Low efficiency
Many intermediate links
Complex clearing process
Low efficiency
Point-to-point transmission,
disintermediation
Distributed ledger,
transaction=clearing
High efficiency
Cost Large amount of manual
inspection
High costs
Small amount of manual
inspection
High costs
Completely automated
Disintermediation
Low costs
Safety Centralized data storage
Can be tampered
Easy to leak users’
personal information
Poor safety
Centralized data storage
Can be tampered
Easy to leak users’ personal
information
Poor safety
Distributed data storage
Cannot be tampered
Use of asymmetric encryption
Users’ personal information is
more secure
Good safety

January 2019
The development of blockchain in
Indonesia is still in its early stages
compared to the US, China, Japan
and South Korea. However, people
in Indonesia already have a deep
understanding of the blockchain
project and strong demand to
participate in this market. According
to the Director of ICT Infrastructure
at the Indonesian Creative Economy
Agency (Bekraf) Muhammad Neil
El Himam, Indonesia is actively
embracing the digital economy
and the sophisticated technology
represented by the blockchain is an
important source of digital economic
transformation. In addition, several
companies engaged in developing
and the function of the blockchain.
They formed the Indonesian
Blockchain Association (A-B-I) as a
forum for industry players who share
the same vision to innovate, advance
and shape Indonesia’s blockchain
technology ecosystem.
Oscar Darmawan as General
Chairperson of A-B-I stated that
blockchain technology has enormous
potential, and Indonesia has strong
talent. Therefore, A-B-I wants to
take this momentum to be able to
take maximum benefit for Indonesia.
Furthermore, Indonesian Chamber
of Commerce and Industry (KADIN),
Indonesian Blockchain Association,
Bekraf, and HARA also formalized the
Indonesia Blockchain Hub as a forum
to accommodate blockchain activists
to share and learn experiences and
to support the acceleration of the
growth of blockchain technology in
Indonesia.
As blockchain technology is still in
the development stage in Indonesia,
how should blockchains be
regulated?
Currently, there are 63 p2p lending
companieshaveregisteredinOJKwith
a total distribution of IDR 7.64 trillion
funding by June 2018. It has been
distributed to 1.09 million borrowers.
The Chair of the A-B-I Supervisory
Board, Yos Ginting, stated that the
enthusiasm of the A-B-I industry
players needs to be supported by
accommodative regulations and
that can maximize the benefits of
blockchain technology. For this
reason, he added that a balanced
approach is needed between aspects
of caution and aspects of achieving
potential economic benefits.
Therefore, the Indonesia government
need a cautious attitude toward this
technology.
The regulatory sandbox originates
from the UK, which intends to give a
more flexible space for innovations.
The sandbox delineates a restricted
scope with simplified market access
standards and procedures. Given that
consumers’ rights are safeguarded,
FinTech innovation enterprises or
businesses are permitted to rapidly
implement operations and are
allowed to expand within the testing
conditions of the regulatory sandbox.
On August, 2018, Financial Services
Authority (OJK) announces the
operation of digital financial
innovation center or it called “OJK
Infinity” as a place where discussion
with industries, regulators,
government, academics, and
innovation hub. The Head of financial
services authority (OJK), Wimboh
Santoso, stated that through OJK
Infinity, the fintech industry is
expected to be capable in bringing a
financial service which is innovative,
effective, efficient, and prioritize the
consumer protection. OJK Infinity
has three main functions. First,
providing regulatory sandbox facility
as a fintech incubator to balance
innovation with consumer protection.
Then, as an innovation hub, for digital
financial industry (IKD) development
as well as a whole IKD’s ecosystem
development.

15
In addition to the fintech center, OJK
also releases the latest rules on digital
financial innovation which will be the
legal base to cover all innovations
in the scope of the digital financial
sector. POJK (OJK’s regulations) was
made due to the need of a legal base
for innovation in the existing financial
sector, therefore, it can benefit
and protect public affair. Moreover,
the governments of Indonesia and
Singapore stepped up the next step in
thepartnershipforregulatingfinancial
technology services (fintech). The
Financial Services Authority (OJK) and
the Monetary Authority of Singapore
(MAS) have signed cooperation for
the development of the fintech
industry in both countries.
The Chairman of the OJK Board of
Commissioners, Wimboh Santoso,
explained this cooperation was a
follow-up to the previous meeting
between two authorities that
discussed efforts to increase
innovation and financial services in
their respective countries. OJK and
MAS formed a special work unit
to handle innovation and financial
services. Some of the points that have
become the focus of OJK and MAS
cooperation include the mechanism
of referral of fintech institutions
between the two countries, potential
projections of joint innovation,
collaboration of the fintech industry
and information exchange regarding
trends and developments in the
fintech market, and most recently
regarding regulatory sandbox
regulations and developments.
“This cooperation partnership is
expected to be able to create a
framework that can help fintech
companies from both countries to
be able to understand the rules and
opportunities in every jurisdiction
and can reduce “barriers of entry”
for fintech companies that want to
enter one of the markets.”
References:
Marsya Nabila, August 21, 2018. “OJK Launches “OJK Infinity”, Digital Financial Innovation Center”. www.dailysocial.id
Sakina Rakhma Diah Setiawan, October 12, 2018.”Indonesia Disebut Pasar Potensial Blockchain”. www.kompas.com
Ramadhan Triwijanarko, March 21, 2018. “Diwadahi Asosiasi, Ini Wajah Blockchain di Indonesia”. www.marketeers.
com
Prayogo Ryza, October 15, 2018. “Regulator Indonesia dan Singapura Kolaborasi Kembangkan Industri Fintech”. www.
dailysocial.id
Ye Guo, Chen Liang, December 09, 2016. “Blockchain application and outlook in the banking industry”. www.link.
springer.com

January 2019
Business Trends in 2019
“New Year, new me”
doesn’t always just
apply to individuals,
but also to businesses.
Businesses are always
looking at opportunities
for new and innovative
ideas to build
themselves. Businesses
are all ears for trends
that create buzz and
improve decision-
making in terms of
marketing technological
investments they will
use up their money for.
2019 is a year where
most business trends
will revolve around
the abundance of
new technology that
changes how business
is conducted today and
in the future. A large
theme in these trends
will be improving
service quality through
data collection and
analytics.
Moreover, accounting
for the needs and
preferences of the
customer affects all
sectors in a different
way, the common
denominator being
data. Data collection
and analytics are large
how businesses are
able to account for
customer preferences
and needs.

17
2018 was a good year for the retail
industry, with the industry reporting
growth every month. This is cited
by Jia Wertz of Forbes to be due to
advancements in digital channels. In
an ever-evolving market, retailers but
adapt to new shifts in demographics,
attitudes and consumer preferences.
• Faster Shipping in
E-Commerce
As e-commerce is becoming the most
popular means of shopping because
of its convenience. The sector
expanded by 11.84% in September
alone.
Most brands now have an online
shopping presence. With more and
more brands joining the e-commerce
market, a product can be easily
be substituted from one brand to
another. One major decision maker
for the customer is fast shipping.
A study by Marketing Charts found
that for free shipping, a customer
was willing to wait 5.5 days for their
product to arrive at their doorstep –
this is even shorter for paid shipping.
Now, a customer is willing to only wait
afulldaylessof4.5days.Fastshipping
is predicted to be how e-commerce
websites remain competitive.
• Shopping as an Experience
Previously, retail was mainly focused
on selling the product. Now, they
also have to sell their customer’s
an experience; they want a more
engaging and interesting experience
when shopping.
Sephora has taken the concept of a
“retail experience” into account. They
combine traditional retail marketing
elements with mobile applications
that are unrelated to the customer’s
purchase. Similarly, Samsung had
a pop-up shop that featured its
products but didn’t have any for sale.
Customers now want a more unique
experience and value it not more,
then just as much as the product they
are purchasing.
• Subscription “Boxes”
Not only do customers want a unique
experience when shopping, but they
also want their product to be tailor-
made them individually. The catch is,
they want this literally wrapped up
and on their doorstep.
These tailor-made subscription
services witnessed huge expansion
since 2010. Sales from 2010 were
$7 million and grew to $2.6 billion
by 2016. This trend is predicted to
gain momentum hand in hand with
giving their shoppers an innovative
experience.
Retail

January 2019
Technology
Within technology, we talk about
digital transformation specifically.
Digital transformation trends refer
to not only technological shifts
in businesses but also where
technology, business, and society join
together. Although these following
business trends will encompass new
technology, but also the customer
and culture at the heart. Daniel
Newman writing for Forbes gives us
some of his predictions for 2019.
• 5G everywhere
Indonesia is still in an LTE or 4G zone
with talks of trying out 5G and even
at a larger push, 6G. But, let’s talk
about 5G. Newman predicts that in
2019, we will start seeing 5G zones
worldwide.
Big tech companies such as
Qualcomm, Intel, Nokia, Ericcson,
Samsung, and Huawei are big players
in the push of trying to make 5G
available all over the world.
Mimosa Networks, an American
gigabit wireless hardware company,
is making an effort to roll out the
5G connection in urban and rural
locations and paving the way for
mobile providers to offer its services
to its customers.
• Chatbots improving
significantly
Chatbots are an artificial
intelligence program that engages in
conversations using chat text, usually
used for customer service purposes.
It’s predicted that chatbots will
improve in making their language
more natural language processing
and sentiment analytics
Natural language processing
advancements are predicted to
change services that can be provided
withouthumans–predictionsarethat
40% of large businesses will adopt
chatbots or artificial intelligence in
some form to provide more services.
Unfortunately, this may have negative
impacts on the workforce and lead to
a temporary increase of structural
unemployment.
• Connected Clouds
Cloud storage is when data is stored
on a remote server to be accessed on
the internet, or ‘cloud’. Companies
have been adopting the cloud as a
means to store their data. They’re
still figuring out whether they need
a private cloud, public cloud or data
center.
Newman thinks a business trend this
year is the use of a hybrid of these
clouds or a connected cloud will help
meet a company’s changing needs.
‘Multicloud’ is predicted to be the
new buzzword when it comes to the
topic of storing data on the cloud to
represent a seamless, secure and
streamlined cloud.
• Data Analytics, Machine
Learning, AI
Data is the whole basis of the
technological business trends, and
with the buzz of Industry 4.0, data
analytics, machine learning, and
artificial intelligence will enhance
the quality of businesses’ decision
making.
Improved processing power with
leading companies such as Microsoft,
SAP, SAS, and Salesforce is helping to
promote data being used to improve
datacollectionandbusinessanalytics.

19
An amazing question is how is the
ever-evolving world of technology
going to impact where businesses
are storing their cash. New
competition from FinTech and
non-financial firms and growing
customer expectations are huge
drivers for these banking trends.
Amith C, Amit Kumar and Avinash
Saxena of Capegemini give us some
insight on what banking trends to
expect in 2019.
• Accelerated adoption
of the Cloud
Along with the collection
with big data is the
question of where to
store it. More banks
are now going to adopt
the cloud for their data
storage. This allows
banks to allow flexible
workplace management
and manageable IT
infrastructure while cutting
costs.
Banking
This will lead to a larger
trust of cloud services with
constant upkeep needed. As
banks create more analytics
and artificial intelligence use
cases, data storage in the
cloud will be making these
cases more efficient.
• Voice Assistants
In the digital era, banks are
trying to explore different
ways to digitally interact
with their customers.
Voice assistants are being
adopted into homes through
products like the Amazon
Echo, Google Home and
Siri on Apple products.
Because of this, banks will
try to integrate into this
technology into customer
acquisition, retention,
marketing, and sales.
This will help banks be
able to target the rights
customers using their profile
data and cater to what
products they might need –
this goes back into getting
tailor-made products for the
customers. They imply that
banks must come up with a
comprehensive strategy on
the boundaries and concerns
there will be with voice
assistants.

January 2019
The Hype of
“Everything” 4.0
Industry 4.0 seems to be a buzzword
we hear in the business and
technology world -- it’s a concept that
doesn’t click in our heads when we
first hear it. So, what is it? According
to Deloitte, the simplest answer
is that it’s the promise of a new
industrial revolution.
We’ve all heard of the industrial
revolution and associate it with the
very first one, where agricultural
societies became more industrialized
and urban in the 18th
to early 19th
century. Industry 4.0 is the fourth
iteration of the industrial revolution
in our time. To better understand
industrial revolutions, let’s talk about
its history.
The first Industrial Revolution was
when machinery for production was
first invented with increasing the
use of steam power – the most well-
known invention coming out of it
being the cotton jenny for the textile
industry and the steam engine.
The second Industrial Revolution, or
the Technological Revolution, was in
the late 19th
century up until before
World War II. This was when pre-
existing industries were expanded
upon and mass production was
introduced to manufactures.
The third industrial revolution,
or the Digital Revolution, is when
manufacturing became digital.
Starting in the 1980s, it’s signified by
the beginning of computerization and
automation. This is when technology
such as robots and various machines
started to replace humans on
assembly lines.
As each new industrial revolution
builds on the last, Industry 4.0 builds
on the third industrial revolution.
Forbes says that building onto the
computerization that occurred in
Industry 3.0, computers will be able
to communicate with each other in
real-time and make decisions without
the aid of humans.
This means, in terms of
manufacturing, a huge outcome of
Industry 4.0 - artificial intelligence -
is predicted to be the smart factory.
This relies on collection of a data to
make smart machines smarter as new
data is added. As a result, the world’s
manufacturing process will become
more efficient and less wasteful.
“[Industry 4.0] represents the ways in
which smart, connected technology
would become embedded within
organizations, people, and assets,
and is marked by the emergence of
capabilitiessuchasrobotics,analytics,
artificial intelligence, and cognitive
technologies, nanotechnology,
quantum computing, wearables,
the Internet of Things, additive
manufacturing, and advanced
materials,” writes Mark Cotteleer and
Brenna Sniderman of Deloitte.
We live in a world today where technology is advancing at a rapid rate – for most,
it’s hard to keep up with. Noticeably to consumers, smartphone screens are getting
larger with the phone itself getting thinner. For businesses, supply chain logistics and
general practices have changed due to digitalization of business correspondences and
data. These advancements can be categorized into technology periods and Industry 4.0
is the period we are currently in.

21
Olivier Scalabre from Boston Consulting Group
gives the nine technology trends that are the
building blocks of Industry 4.0:
1. Big Data and Analytics
The collection and
comprehensive evaluation
of data from many
different sources (eg.
Production equipment
and systems as well as an
enterprise- and customer-
management systems)
will become standard to
support real-time decision
making
2. Autonomous Robots
Robots (that will be more
soft effective and have
more capabilities than
those used at present) will
interact with humans and
learn from them.
3. Simulation
Simulations will be used
more in plant operations
to take real-time data
and accurately imitate
the physical world in a
virtual model. This allows
operators to test and
adjust the machine in
this simulation before
installing it in the physical
world which decreases
machine set up time and
increasing its quality
4. Horizontal and Vertical
System Integration
In industry 4.0 businesses
will internally become
most cohesive as cross-
company data- integration
networks evolve and
enable truly automated
value chains
5. The Industrial Internet of
Things
More devices (including
unfinished products)
will be enriched with
embedded computing. This
will decentralize analytics
and enable real-time
responses

January 2019
6. Cybersecurity
Because of the increased
digitization of data, there
is a significant demand
for protection from
cybersecurity threats. This
means more reliable and
secure communications
within.
7. The Cloud
Data that is production-
related will be shared and
synchronized through
a cloud across sire and
companies. This results in
a quicker and more data-
driven service for production
systems
8. Additive Manufacturing
An example of additive
manufacturing is 3-D printing,
which helps prototype and
producing parts. These will be
used to produce small batches
of customized products
9. Augmented Reality
Augmented reality will help
workers receive real-time
information to improve
decision making and work
procedures. It will help in
services such as selecting parts
in a warehouse and sending
repair instructions over mobile
devices

23
Our beloved country of
Indonesia is planning to make
some moves in to include
ourselves in Industry 4.0.
President Joko Widodo wants
to prepare Indonesia in rapid
and wide transformations. He
hopes with their participation
in Industry 4.0, more jobs will
be created for the never-ending
supply of job seekers in the
country and to enter the top
ten largest global economies
by 2030. Widodo calls this new
innovation “Making Indonesia
4.0.”
According to Indonesia
Investments, the “Making
Indonesia 4.0” roadmap names
five key sectors as their priority.
These sectors are food and
drinks, automotive, textile,
electronics, and chemicals.
The Industry Ministry, which
constructed this roadmap,
believes that these sectors can
push Indonesia in the world
economy in terms of GDP and
make Indonesia a leading player
in these sectors on a global
scale.
Ardo Dwitanto, the head of
IPMI’s Investment Gallery, says
it’s realistic that Indonesia could
be one of the world’s top ten
economies. “Industry 4.0 is a hot
topic right now and President
Joko Widodo is very excited
about it,” says Dwitanto, “it is
realistic that Indonesia will enter
the top ten global economies
because the Indonesian market
is very large. We are the fourth
largest population in the world.
Dwitanto continues, “On the
other hand, we need to address
the infrastructure problem
and gap in workforce skills of
the population to execute the
‘Making Indonesia 4.0’ roadmap.
We at least have to improve the
education level and teach the
workforce the skills needed.
Also, since we are an archipelago
with many islands, we need to
improve infrastructure to have
good supply chains.”
Industry Minister, Airlangga
Hartono, predicts that with the
implementation of the “Making
Indonesia 4.0” roadmap--which
includes development and
integration of connectivity,
technology, information, and
communication--will lead to
quick results in the economy. If
it is successful, Indonesia’s real
economy will have a boost of 1
to 2 percent and GDP growth
rate will be 6 to 7 percent per
annum from 2018 to 2030.
Even with these numbers, we
can’t clearly see how Industry
4.0 will affect Indonesia and the
rest of the world - only time will
tell.

January 2019
31 January 2018
Power Talk “Prospek Ekonomi
Global dan Domestik:
Peluang dan Tantangan Bagi
Dunia Usaha”
with Dr. Aviliani, S.E., M.Si
(INDEF Economist)
31 January 2018
Public Lecture “Doing and
Undoing Gender”
By Dr. Diane Wright (Head of
International at Manchester
Metropolitan University
Business School)
2 March 2018
Bitcoin Talk “Membaca Arah
Nasib Bitcoin di Indonesia”
Featuring Oscar Darmawan
CEO of INDODAX (Indonesia
Digital Asset Exchange) and
Indonesian Finance Regulator
representatives.

25
13 March 2018
One Brick One Hope
Fundraising activity to rebuild
schools in Indonesia impacted
by natural disasters. Inspiring
Talk with Petra Nemcova, the
supermodel survivor of the 2004
tsunami in Thailand and founder
of Happy Hearts Fund.
24 April 2018
Power Talk Women Empowerment
“Women in Business”
Featuring: Puji Nur Handayani
(President Commissioner of PT
Gapura Angkasa, Commissioner of PT
GMF AeroAsia Tbk), Greta Bunawan
(Co-founder of PopBox Asia), and Lyra
Puspa (President & Master Coach of
Vanaya Coaching International)
28 March 2018
IPMI Australian Culture
Month
Featuring Mr. Allaster Cox,
Chargè d’Affaires, from
the Australian Embassy in
Indonesia.

January 2019
14 May 2018
Harvard Business School -
Field Global Immersion
Visitation from Harvard Business
School MBA students to IPMI
Campus.
31 May 2018
Public Lecture “Ecosystems and
Strategic Innovation Within
Industry 4.0”
By Prof. Dr. Paul Matthyssens,
Dean of Antwerp Management
School.
9-10 July 2018
Microeconomics of
Competitiveness Conference
MOC Conference “Comparative
Cluster Initiative in Asia”

27
30 July 2018
Power Talk “Branding and
Marketing Strategy in Today’s
World”
With Mary Ellen Muckerman,
Vice President (Brand Strategy
and Services) at Mozilla
17 October 2018
Discussion Series : Industry 4.0 –
Senior Executive MBA Melbourne
Business School
Visitation of Senior Executive
MBA Melbourne Business School
students to IPMI Campus.
23 October 2018
Guest Lecture “Strategic
Management” by H.E. Eko Putro
Sandjojo, BSEE., MBA (Minister of
Villages, Disadvantaged Regions
and Transmigration of Republic
Indonesia)
2-6 Desember 2018
Youth Global Forum, Paris, France
IPMI MBA Students (Nazneen Judge and Faruqi
Ismail) compete in 2018 Youth Global Forum and
won the Social Media award. IPMI International
Business School participated as Academic
partner in this forum and delivered scholarship
to the winner and our Faculty member, Ardo
Dwitanto, as one of the expert speaker.

January 2019
10 Desember 2018
Microeconomic of Competitiveness (MOC)
Faculty Workshop at Harvard Business School,
Boston, USA
IPMI International Business School represented
by Jimmy Gani, MPA (Executive Director &
CEO) attended MOC Faculty Workshop, hosted
by Institute for Strategy and Competitiveness
under Prof. Michael Porter. In this special
opportunity, Mr. Jimmy Gani, MPA transferred
of the leadership of the MOC – Asian Chapter to
Dr. Alvin Ang from Ateneo De Manila University,
Phillipines.
18 Desember 2018
Loka Karya Nasional APTISI
Wilayah III
Loka Karya Nasional Asosiasi
Perguruan Tinggi Swasta
Indonesia Wilayah III.
20 Desember 2018
BBA Class 2016 visit World Bank
Office
The BBA students met Samuel
Clark (Task Team Leader - Program
Inovasi Desa) and Lestari Boediono
(Senior Communications Officer).
July – November 2018
Lomba Simulasi Investasi Saham 2018
Series of event “Lomba Simulasi
Investasi Saham 2018.” Kicked off on
July 2018 until November 2018, the
participants are high school students
who compete to win scholarships and
cash prizes.

29

January 2019
A Practical Approach of
Service Excellence
in Higher Education
Dr. Leonnard Ong
As a response to high quality labour
and technological advancements, developing
countries such as Indonesia now encounter a free
education market. Because of the increase of
demand in quality and well-educated labour, higher
education providers need to keep up with demand.
This leads opportunities and challenges to institutions
in providing their education to students. These higher
education institutions in the country vary in quality and
uniqueness, which leads to fierce competition among
themselves. The scope of competition is even larger as
there is an excess supply of institutions
According to Hina Khan and Harry Matlay in
Education+ Training (2009), the service excellence is
an indicator that many universities use to accomplish
sustainable competitive advantage. The ability of
universities to fulfill their consumers’ desires exceeds
expectations will lead to satisfaction, positive image,
word of mouth and loyalty. The advantages of these
servicesareasanintegralpartofverydiverseeducational
services including employees and other stakeholders
who are directly responsible for providing services to
their students.
In an effort to meet consumer’s expectation,
practical approach of service excellence in higher
education is required that aims to motivate and to
construct a high commitment to the stakeholders.

31
to explain the concept of service
quality and its relationship with
customer satisfaction and loyalty
aswellastheleveloforganizational
profit based on the service-value
chain model;
to explain how service quality
is applied effectively to higher
education; to explain the six levels
of service quality, and to explain;
and
toidentifycustomertouchpointTo
solve these problems, the activity
ofthepracticalapproachofservice
excellence is required for
university lecturers and staff.
Figure 1. Relationship on the service-value chain model
Source: Heskett, Jones, Loveman, Sasser, & Schlesinger (1994)
This figure describes the
relationship between profits,
internal employee as well as
customer satisfaction and
loyalty, and productivities.
The relationships can
be explained as follows:
1. Profit and growth of the
organization are influenced by
consumer loyalty.
2. Loyalty is a result of customer
satisfaction. Satisfied
consumers are the result of
their perceived service quality
3. Consumer satisfaction is
influenced by the value of
services provided
4. The value of services provided
to consumers will depend on
the level of satisfaction, loyalty
and productivity of employees
who work for the institutions
5. Employee satisfaction is the
result of all forms of policies
and company supports for
their employees in providing
services.
The service quality was proposed
by James L. Heskett, Thomas
O. Jones and others in Harvard
Business Review (1994), based
on a service-value chain. This
service-value chain explains
the basic marketing principles
in the service sector, including
educational services. This model
specifically outlines a causal
relationship that indicates how
employee satisfaction and
internal management contribute
to service quality and customer
satisfaction and how they can
influence profit and growth of
the organization. The relationship
of this model is indicated in the
figure 1.
The objectives of this practical approach are:
Workplace design
Job design
Employee selection and development
Employee rewards and recognition
Tools for serving customers
Service concept:
results for customers
Service designed and delivered
to meet targeted customer’s needs
Retention
Repeat business
Referral

January 2019
About Dr. Leonnard Ong
As Practitioner and Academician
for almost 25 years, Leonnard
Ong is Board Advisor of IPMI
International Business School
(IPMI IBS) and a Lecturer for MBA
and BBA Program. His major area
of teaching includes Sales and
Marketing topics, Strategic Global
Entrepreneurship, Innovation and
Entrepreneurship. Currently, he is
Director of Business for Frontliner
Services since 2010, a leading
Management Consultant Firm in
Indonesia.
Dr. Ong’s current research are
primarily in the areas of Sales
Management, Services Interface,
eService/eSatisfaction/eLoyalty
Model, Consumer Behavior and
Life Style.
Dr. Ong has published over 14
articles in Marketing, Loyalty,
e Loyalty and has appeared
in International Journal of
Instruction, ERIES Journal,
Marketing Science Journal and
others.
REFERENCES
Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., & Schlesinger, L. A. (1994). Putting the service-profit
chain to work. Harvard business review, 72(2), 164-174.
Khan, H., & Matlay, H. (2009). Implementing service excellence in higher education. Education+ Training,
51(8/9), 769-780.
Melnic, E. L. (2016). Techniques for measuring customers’ satisfaction in Banks. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V, 9(1), 23.
E.L. Melnic in Economic Sciences
(2016) stated the six levels of service
quality have to identify, which are,
from lowest to the highest level:
criminal, basic, expected, desired,
surprising,andunbelievable.Inhigher
education, the minimum expectation
is at the expected level, which is to
provide services to consumers as
expected. Consumers who receive
expected service quality will usually
make a repeat purchase if there are
no better alternatives.
Customer touch points are presented
which tie into the service-value
chain model. These are the touching
points which shape consumers’
perceptions of service quality given
by universities, of which, institutions
need to choose which points are
important to the consumer. The three
ways to evaluate consumer touch
points are 1) through information,
2) through attractive value, and 3)
through transaction values. The
expected goal of identifying touch
points is to achieve the unbelievable
perception of service quality.
The service-value chain model
explains the relationship between
internal consumers, external
consumers and the ultimate goal
of the organization’s profit level. In
the case of universities, it is time for
institutions to pay special attention
to service quality both internally
and externally and to not only focus
on quantitative and administrative
indicators. Internal service quality
will guarantee external service quality
that will create student satisfaction
and loyalty. These states will ensure
universities have competitive
advantages in the long run.

33
Thank you for supporting
44th
Graduation Ceremony
Jakarta, 23 January 2019

January 2019

35
OUR CLIENTS IN 2018

January 2019
Risa Bhinekawati:
Three Legacies
For Life
If you think you’re
ambitious, have you
met Ibu Risa? Ibu
Risa Bhinekawati is
a lecturer here at
IPMI International
Business School.
In her words, she
teaches “anything that
relates to soft skills
and development.”
The list of classes she
teaches is seemingly
endless – she lectures
for classes such
as International
Human Resources,
Organisational
Behaviour, Corporate
Strategy, Sustainability
and Global Outlook.

37
While teaching here, she also
researches Social Entrepreneurship
and relates to corporate social
responsibility and human capital
development. She even wrote a
book about these topics, mainly
sourced from her PhD dissertation.
One of her books, titled Corporate
Social Responsibility and Sustainable
Development: Social Capital
and Corporate Development in
Developing Economies, her book was
published by Routledge Publishing
based out of the UK.
Aside from this textbook, Ibu Risa
has been published in multiple
academic journals. She has also
contributed to Neng Koala, a book of
stories by Indonesian women about
their experiences when living abroad
in Australia.
Let’s jump back a bit - Ibu Risa was
born in Pontianak but grew up in
Jakarta. She received her Bachelor’s
degree from University of Indonesia
in Economics while working as to
support herself. “While getting
my Bachelor’s degree I worked in
the morning and studied in the
afternoon.” Ibu Risa says.
Including this degree, she has four
degrees in total. These include a
Masters of Business Administration
from Australian National University,
a Masters of International Public
Policy in International Policy and a
PhD in Management from Australian
National University. As you can tell,
she’s definitely a world traveller.
Ibu Risa has always aspired to
become an academic “I’ve always
aspired to become a lecturer, but in
my career journey I did many other
things before I reached my goal,”
she says. Although she is finally in
her dream field of academia, she
took quite the journey to get here
through many jobs in the public and
private sector.
She started out working at the
American Embassy in Indonesia.
“Professionally, I started my career
in American Embassy as a consular
assistant and was a commercial
specialist at the embassy when I
finished my degree.”
She eventually started working as
a chairperson at the Indonesian
Telecommunications Society where
she helped lead the reformulation
of Indonesian telecommunications
law in 1997. “Now the Indonesian
telecommunications is flourishing,”
she says, “I’m happy to say I had a
little part in helping it do so.”

January 2019
In between studying her
postgraduate degrees abroad – all
paid for by scholarship, by the
way and she consistently at the
top of her class – she continued
to work at her professional career.
She was the Secretary General at
Indonesian Synthetic Fiber Makers
Association, to Ericsson Indonesia’s
first female board member as the
Vice President of Human Resources
& Organization. Here, she became
part of Ericsson Global’s knowledge
management team and frequently
travelled between Stockholm and
Jakarta.
Later, she became COO at
Partnership for Indonesian
Governance Reform under the
United Nations Development
Programme. She then decided to
move back into the private sector
and became the Head of Corporate
Affairs at Unilever Indonesia.
Following the completion of her
second postgraduate degree
in America, Ibu Risa became a
Chairperson and Executive Director
at Danamon Peduli Foundation
where she continued to make huge
contributions to society. “I started
the community development
programme in 2007, and in 2009
our community development
programme where we convert
market waste into high quality
compost won the BBC world
challenge as a runner up.”
Realising that she was approaching
the maximum age of a scholarship
she’d been eyeing, she applied
“to go back to [her] real passion
of academia.” She received the
scholarship to received her PhD
from ANU in Canberra. Upon
completing her PhD, she finally
got her dream job as a lecturer at
Podomoro University. Wanting a
change of location and a university
that offered beyond a Bachelor’s
degree, she was recommended to
teach at IPMI. And now, here she is
at our university!
Currently while teaching at IPMI,
she is also working on her passion
project. As founder and owner of
PT Bhineka Belitung Lestari, she
developed a social enterprise in
a Belitung reserve for indigenous
plant called the Ceylon hill
gooseberry, or karamunting. Ibu
Risa was inspired by the berry’s
boom in Vietnam and its versatility
to be produced into a plethora of
products.
Ibu Risa is proud that she was able
to get this project into motion as
she wants it to be a part of her
legacy. “The three things you leave
on earth when you die are your
children that pray for you,” she
begins, “then, your knowledge that
you share, which is why I wanted
to become an academic, and your
fortune that can be used by many
people.”
With a glimmer in her eye, she
finishes with, “My dream is that
the agroforestry that I contributed
to will be managed by the
communities surrounding the forest
so they can benefit from it and earn
their income.”

39
Bringing Leadership to Indonesia’s Remote Villages
It will be nearly twenty years since I have been
involved in Indonesia Mengajar (IM), a collective
effort in fulfilling Indonesia founding fathers’
promise in declaring nation independence through
spreading out quality education to all over the
country.
By Rifa Zahirsjah
IPMI Director of Admission and Student Affairs
IPMI AND
INDONESIA MENGAJAR :

January 2019
As an IPMI International Business School faculty
member who is also responsible for the Student
Affairs Department, I am proud to be part of this
movement which is in alignment with IPMI’s vision
to develop transformative leaders. What better way
to develop future leaders than by having Indonesia’s
best graduates deployed to various remote areas
of Indonesia to teach for one year in elementary
schools. After all, a leader is someone who creates
another leader.
Since it was founded in 2009, Indonesia
Mengajar has been recruiting and training
Indonesia’s best graduates to be deployed to various
remote areas of Indonesia to teach for one year in
elementary schools. Some of these young people,
if not many, are graduates from the best schools
in the country such as Universitas Gajah Mada
(Jogjakarta) and Universitas Indonesia (Jakarta), and
there are those which are graduates from reputed
overseas universities such as Nanyang Technological
University (Singapore).
The tightly selected
individuals who are chosen by
Indonesia Mengajar are called
Pengajar Muda (PM) or Young
Teacher. The number of applicants
to become a PM can reach 10,000
but only a maximum of 50 will be
selected. The maximum age to be
a PM is 26 years old.
For one year they will
live in a remote area where
the culture is a far cry from the
cultural practices of the PM
candidates who are mostly from
the big cities of Indonesia. PM
is not just expected to teach but
also to influence the local people
on the importance of education.
Many of these remote areas are
often not known to us or even
not identified in the map such as
Torosubang, a little village in the
coastal area of Botang Lomang
Island, South Halmahera, North
Maluku. As such, preparing and
training the PM candidates to be
ready for their role is no small
task. The training is intensive and
takes a period of two months.
The PM candidates are taught
pedagogical teaching methods
and leadership, hence, my role
was to share knowledge of
leadership skills and to have the
PM candidates ready to interact
with the local people. After
my session, the PM candidates
was to acquire a good sense of
self-awareness and the ability to
influence and coach others.
Even after many
years of being involved in the
development of Pengajar Muda,
I never cease to be amazed by
these 22 to 26 years old smart,
energetic, idealistic, and honest
people willing to leave the
comfort of their current lifestyle
and enter into a one year of very
(sometimes extreme) modest
living in a remote village. Sharing
my knowledge with these true
leaders raises my pride and
provides an optimistic feeling to
the fact that Indonesia’s future is
bright and in good hands.
The writer is a Lecturer
and Director of Admission
and Student Affairs at IPMI
International Business School.
She teaches Leadership,
Thought Leadership, Business
Communication, and Global
Outlook. She is also a volunteer
assessor and trainer for the
Indonesia Mengajar movement.
source : kompas.com

41
IPMI’s Faculty supporting
the 17 SDGs (Sustainable
Development Goals) of the
United Nation.
QUALITATIVE RESEARCH
METHOD WORKSHOP
March 2018.
09 May 2018
Sustainable Development Goals
(SDGs) are the Global Issues
addressed by Business Leaders
around the world. IPMI vision
is to become a leading world-
class business school producing
transformative leaders by the year
2020, hence IPMI is committed to
support the SDGs. Pioneered by
Amelia Naim Indrajaya (far left)
the Center for Sustainability Mindset
and Social Responsibility (CSMSR)
was established to support IPMI
International Business School’s
commitment toward SDGs. Faculties
of IPMI are committed to enhance
competitive advantage through
research collaboration supporting the
17 Sustainable Development Goals of
the United Nation. Currently IPMI is
working together with the Ministry
of Village, Disadvantage Regions and
Transmigration and other institutions
in realizing the collaboration of
the quadruple of ABCG Academics,
Business, Communities and
Government in improving the welfare
of the indigenous people.
The 17 sustainable
development goals
(SDGs) to transform our
world:
GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic
Growth
GOAL 9: Industry, Innovation and
Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and
Communities
GOAL 12: Responsible Consumption
and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong
Institutions
GOAL 17: Partnerships to achieve the
Goal
Facilitator:
Amalia E. Maulana, Ph.D., Brand
Consultant & Ethnographer
(IPMI alumni and Qualitative Research
Expert)
The 17 SDGs:
1. No Poverty, 2. Zero Hunger, 3. Good
Health and well-being, 4. Quality
Education,5.GenderEquality,6.Clean
Water and Sanitation, 7. Affodable
and Clean Energy, 8. Decent Work
and Economic Growth, 9. Industry,
Innovation and Infrastructure, 10.
Reduced Inequality, 11. Sustainable
Cities and Communities, 12.
Responsbile Consumption and
Production, 13. Climate Action, 14.
Life Below Water, 15. Life on Land, 16.
Peace and Justice Strong Institutions,
17. Partnership to achive the goals
Qualitative Research plays a significant
role in most studies. In order to refresh
and to enhance the research capability of
all researchers in general and IPMI faculty
members in particular, LPPM conducted
a Qualitative Research Method
Workshop. The workshop was attended
by researchers from various universities,
companies and IPMI faculty members.

January 2019
IPMI International Business School collaborated with Tarumanegara University, acting
as Co-Host organized The Seventh International Conference on E ntrepreneurship
and Business Management (ICEBM) entitled “The Role of Entrepreneurs in Promoting
Tourism and Hospitality Industry” on 8-9 November 2018, in Hotel Conrad, Bali

43

January 2019

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