Tag Archives: Indonesia

Saving the Orangutan: Ecotourism in Borneo

A short video I made to expose the great work being done by social enterprise Wow Borneo, who are helping to save the endangered orangutan and preserving local culture and tradition through ecotourism in Central Kalimantan. For more information, visit their website.

The Bare Necessities: Gunung Leuser National Park

Trekking Gunung Leuser National Park in North Sumatra in search of endangered orangutans in another world.

Ever since Leonardo DiCaprio hit local and international news headlines with his short but sweet visit to North Sumatra’s Gunung Leuser National Park, I couldn’t stop thinking about the place. It wasn’t only the 41-year-old actor-cum-environmentalist who drew me to visiting this area, but the message he conveyed through his Instagram channel: that this was a special place that needed to be protected.

The lowland forests of the Leuser ecosystem are still home to ancient elephant migratory paths followed by some of the last wild herds of Sumatran elephants, numbering less than 1,000. “But the expansion of Palm Oil plantations is fragmenting the #forest and cutting off key elephant migratory corridors,” DiCaprio said on his Instagram page, which is making it “more difficult for elephant families to find adequate sources of food and water.” DiCaprio’s self-named foundation supports the protection and conservation of the Leuser ecosystem.

Gunung Leuser National Park covers an area of 7,927 km2 in Sumatra, and sits right on the border of North Sumatra and the Shariah-governed Aceh province. Along with Bukit Barisan Selatan and Kerinci Seblat national parks, Gunung Leuser forms a World Heritage Site known as the Tropical Rainforest Heritage of Sumatra. This is the only place in the world where the orangutan, elephant, rhinoceros and tiger still coincide. Today, the Leuser ecosystem exists at a shaky crossroads, however ecotourism is playing an important role in assisting in the conservation of this glorious stretch of pristine rainforest that is under siege from palm oil plantations and other development projects.

Although you’re highly unlikely to encounter a tiger or rhinoceros in these forests unless you hike for many days deep into its depths, you will almost always have the chance to see orangutans on a two-day hike. These gorgeous creatures can sometimes even be seen right from the balcony of your accommodation in Bukit Lawang.

Bukit Lawang is the gateway village to Gunung Leuser National Park and the Bohorok River is the only thing that separates mankind from the wilderness
Bukit Lawang is the gateway village to Gunung Leuser National Park, and the Bohorok River is the only thing that separates mankind from the wilderness

Bukit Lawang

The gateway to the national park can best be described as a hyper tourist village. Bukit Lawang sits on the edge of Bahorok River, and has a cemented path large enough for two motorbikes that runs through its entirety. The river is the only thing that separates mankind from the wilderness.

In 2003, a terrible flash flood swept away almost the entirety of the village – which back then was made up of only a few cottages. Thirteen years later, Bukit Lawang has developed into a happening tourist hub filled with orangutan enthusiasts and those in search of a more simple and chilled existence.

The drive is approximately 4 hours from Medan international airport. Upon arrival, you’ll be greeted in English with “Welcome to the jungle, brother!” and the rushing sounds of the river will start to relax those tired-from-travelling minds. The village is filled with riverside cafes, Bob Marley bars, and ‘eco’ accommodation.

Lodging in Bukit Lawang is simple sans air-conditioning or hot water. Electricity isn’t stable, but this adds to the charm. People come here to experience wildlife and trek into the jungle, not to lounge around in five-star luxury.

Jungle fever

Most accommodations can organize a range of trekking options for you. On our two-day, one-night hike into the national park, we spotted our first orangutan in the trees above us only an hour into the hike. Semi-wild and used to people, you can get really close to these endangered animals, who have been given names by the locals.

An orangutan in Gunung Leuser National Park
An orangutan in Gunung Leuser National Park

The hike itself is quite strenuous, as the region is hilly – which is actually the saving grace for why it has not been exploited by oil palm plantations. It’s extremely humid and hot, therefore not suitable for elderly hikers or people without a moderate level of fitness. Although the hike is a bit tough, you can stop and rest whenever the need arises.

We trekked 6.5 kilometres through the dense jungle, stopping for a light snack of fruits and a lunch of nasi goreng. One thing I noticed is that the trail is extremely clean, with no litter to be found. The guides have been taught from the beginning that rubbish means no guests, which in turn means no money, so even cigarette butts are brought back to Bukit Lawang, a refreshing change from other hikes in Indonesia.

Glamping

We arrived at our riverside camp at 4.30 pm; with accommodation made of bamboo and tarpaulin. Our guide, Ipong (we like to call him Mowgli as he was so in tune with the forest) made a fire while we delighted in a refreshing bathe in the crystal clear waters of the river, with virgin rainforest towering above us on either side.

A campsite in Gunung Leuser National Park
A campsite in Gunung Leuser National Park

A team of cooks prepared a delicious dinner and we dined on the ground under the stars. It’s rare that we have the chance to experience pitch-black darkness – a welcome change from the incessant lights of the city. You will be provided with a yoga mat to sleep on, and although sleeping bags are provided, an extra set and a blow-up pillow wouldn’t hurt to act as a buffer from the hard ground beneath you.

Waking up to the sights and sounds of the rainforest – and hundreds of macaques frolicking and being their cheeky selves – was nothing short of spectacular. After breakfast, we walked upriver to bathe in a stunning little waterfall that has enough pressure to rip your swimming gear off.

Tired legs from the tough hike of the previous day were relieved when we were able to ‘tube’ back to the village on giant inflatable tyres, tied together to form a raft. Ipong made each one of us a leaf crown, donned tribal face paint made out of mud, and we were off downstream. Tubing gives you a completely different perspective of the forest, actually allowing you to see it rather than be right in the thick of it.

Of all the trips I’ve done in Indonesia, this one takes the cake. It was truly special and an experience I plan to repeat again, next time visiting the elephant sanctuary at Tangkahan and possibly doing a longer seven-day trek into the jungle to rediscover my inner Mowgli. I urge other outdoor lovers to visit this other-worldly place before it’s too late.

Fast facts: Gunung Leuser National Park

Getting there: Daily flights available with local airlines to Medan’s Kualanamu International airport. Flights also available from neighbouring Singapore or Malaysia. Ask your accommodation to arrange airport transfer (approximately Rp.600,000 one way) to Bukit Lawang, which takes around 3.5-4 hours.

Where to stay: Eco Travel Cottages or Riverside Guesthouse offer cheap and clean accommodation with fans. Riverside has a viewing deck with stunning views of Bukit Lawang and the forest. Eco Travel Cottages is situated right on the river.

What to bring: Sun block, mosquito repellent, headlamp, hiking shoes/trainers, long pants and long-sleeve top for the evenings, shorts and a light top for hiking, backpack, cash (the nearest ATM is half an hour away), camera.

What to do: Hiking, photography, orangutan watching, tubing, elephant excursion in Tangkahan, dancing to the live band on Saturday nights, relaxing.

Suitable for: Adventure junkies, animal enthusiasts, reggae fans.

The Gibbon Whisperer: Meet Chanee Kalaweit

Chanee Kalaweit is a former French national, who in 2012 gained his Indonesian citizenship. Since the tender age of 12, Chanee has dedicated his life to the gibbon, apes living in Asia’s tropical and subtropical rainforests, including in Sumatra, Borneo and Java. Chanee rose to fame when he created a video that went viral, addressing the president of the haze crisis of Sumatra and Kalimantan. We caught up with him in Palangkaraya to find out the full story of his NGO Kalaweit; the biggest gibbon protection programme in the world.

When did you first come to Indonesia?

I left for Indonesia at the age of 18 in May 1998. The first thing I did was go to Borneo for three months to survey and see how bad the deforestation situation was. After three months I realized that a project like mine was needed and the first gibbon programme was born in September 1999.

Why gibbons?

As a kid in France I always loved primates, and the first time I met a gibbon in a zoo, it looked into my eyes so sadly. It was alone and I wanted to help and understand what was wrong. I learned that gibbons are monogamists, which makes it difficult for zoos to carry out successful mating programmes.

I asked the director of the zoo if I could come for free every Wednesday when I wasn’t at school. I did this for five years, from the age of 12. Eventually I started helping other zoos in France with their gibbon programmes.

How did you raise funds to come and set up your charity Kalaweit in Indonesia?

When I was 16 I published a book on gibbon behaviours. Journalists were interested because I was a 16-year-old who wasn’t outside playing soccer with friends. Actress Muriel Robin called me and said, “You want to go to Asia to help gibbons, I want to help you.” She funded me, and to this day she still watches the development of the organization and we are good friends.

Channee with a rescued slow lorisTell us about the work your charity does in protecting the gibbon and other animals in threat.

Kalaweit covers all of Sumatra, Borneo and Mentawai. We have two sanctuaries and a reserve.

We help by:

1) Giving a second chance to animals detained as pets or who are victims of deforestation by rehabilitating and returning them to the wild. 285 gibbons are under our care right now. 2) Securing forestland for conservation – I buy land where biodiversity is very high to make micro-reserves. In Sumatra we have 281 hectares, and in Borneo we have 20 hectares, which we hope will reach 100 hectares by the end of the year. 3) Involving locals in our fight through our radio station and TV programmes.

We also aid the government in protecting reserves. I am a paramotor pilot and I fly over every location once a month – I also do this to illustrate deforestation.

How much does the forestland you buy for conservation purposes cost?

In Sumatra it costs around Rp.15 million per hectare and in Borneo around Rp.25 million per hectare.

Do any palm oil concession owners get involved with conservation?

You see big companies who own thousands of hectares of forestland trying to do good to protect their image. Some companies will actually keep 10 percent of their concession as a sanctuary for animals.

In Sumatra I released siamang gibbons into a 2,000-hectare reserve owned by a private guy in a palm oil concession. It will be very difficult for him to change his mind now, as I’ve released animals into his forest which we accompanied with a big publicity campaign.

Chanee made a video addressed to the president of Indonesia about the haze crisis of 2015
Chanee made a video addressed to the president of Indonesia about the haze crisis of 2015

The video you shot during the haze crisis went viral and really helped to raise awareness about this serious issue. Can you tell us what inspired you to make this video?

When you fight this industry you have to protect yourself by making yourself well-known. I was very upset as a father to see my kids very sick and people dying because of smoke and palm oil.

I never imagined the video would go viral. When I uploaded it, the next morning there were 35,000 views. The Minister of Forestry asked me to come to Jakarta, but it just felt like they didn’t want me to cause any more ‘problems’. I really feel like nothing will change. This year, if we have a dry season, the same thing will happen.

What is the biggest challenge you face?

The lack of law enforcement in Indonesia. There are also still many high profile people in Indonesia who work for the government yet still keep protected animals in their homes – because they can and they don’t care. When law enforcement doesn’t work, you can’t expect much.

You state that the forests of Indonesia will disappear by 2030. Do you see any progression from the government towards stopping this?

It’s the biggest frustration because you feel just like a witness. After logging takes place, forests still remain, although in bad shape. My goal was to secure forestland after logging to protect the animals left behind, but since 2000 every single piece of land is being converted to palm oil plantations.

The government thinks that companies who own concessions for palm oil don’t operate outside of their boundaries, but in fact there is a lot of land being used for palm oil plantations outside of these concessions, which are under private ownership, and are destroying forest, even on peat land. There is a moratorium, but this only applies to companies and not individuals.

Chanee with a proboscis monkeyWith all the frustrations and difficulties you face, are you still optimistic that you can make a difference?

Every hectare of land and every animal saved is a victory.

I learned that the goal is less important than the process. If I know that the end of the world will be next week, I will still save gibbons because it’s what I do. I don’t want to be pessimistic because I will lose the energy to keep fighting. We just have to act.

Are you seeing a positive response from the listeners of your radio station Kalaweit Radio in Palangkaraya?

Our station started in 2003 and targets young people by airing good music and funny shows. Every hour we air messages about gibbons and the forest. 70 percent of the rescued animals we see are actually from our listeners. At schools, kids will tell their friends off for owning pet gibbons and in the end they hand them over to us for rehabilitation.

Tell us about your TV show Kalaweit Wildlife Rescue.

The second season on Metro TV starts in March. The cameras follow my team saving animals all over Sumatra, Borneo and Mentawai. It’s the first TV show on conservation shot in Indonesia. Having millions of people watching is the best way to help. On primetime French television I’m also in the middle of shooting a documentary series where we travel the world trying to save different endangered animals.

How can readers help?

The first thing is to say no to palm oil.

We have a lot of forest to save, but we need the money to buy the land. We require €550,000 a year to survive, which does not include money to buy forestland. We are 100 percent funded by donations.

Thank you, Chanee. Visit www.kalaweit.org for more information on how you can help this noble cause.

Photos courtesy of Kalaweit Foundation.

Take the Road Less Travelled: Cubadak Paradiso Village

Discovering the overland and underwater treats on a little island resort off the coast of West Sumatra.

Why do we travel? Is it in pursuit of ticking off as many places on your world map as possible? Or maybe the journey of self-discovery is what keeps you hopping on and off of planes, trains and automobiles, traversing the unknown. Living in Indonesia comes with its pros and cons (as with any country), but one of its many plus points is that there are so many exotic places to explore, and although the journey may not always be easy, the end result is worth it. I discovered this lately with a trip to Cubadak Island located just off the coast of West Sumatra.

The history of Sumatra is rich and complex. Archaeological evidence suggests that Sumatra was the gateway for migrating tribes from mainland Southeast Asia, with hunter-gatherers living along the Strait of Melaka some 13,000 years ago. This popular trading route on the east coast opened the archipelago up to China, India, and the world, thus exposing it to the popular ideas of the time, such as Islam.

Throughout the colonial era, Sumatra saw almost every foreign power stake a claim in its abundant resources: the Dutch set up camp in the west Sumatran port of Padang; the British ruled in Bengkulu; American traders monopolized pepper exports from Aceh; and the Chinese exploited tin reserves on the islands of Bangka and Belitung.

Rich in cultural heritage, this region is home to around 4 million Minangkabau people, one of the last populations to have a matrilineal culture, which directly contrasts the island’s dominant religion of Islam. This region’s natural beauty is also a marvel, with rolling green countryside, endless winding rivers, and mini waterfalls dotting the roadsides.

Cubadak Island

Getting there

Getting to Cubadak Island involves flying firstly to Padang Minangkabau International airport, a 1-hour and 20-minute flight from Jakarta. The flight is the easiest part of this journey, however, as we discovered on the 3.5-hour car ride that proceeded, passing over windy hillside roads through forests to reach the island, located only about 20km south of the city of Padang. Usually this drive would only take 3 hours, or even 2.5 if you’re lucky, which we weren’t – as we experienced several delays on two bridge constructions, and a mammoth traffic jam in Padang town. Once reaching the harbour of Corocok Tarusan, we were whisked onto a speedboat for a 10-minute ride, finally arriving at this little resort where time seems to have stood still.

Cubadak Island is unique because it boasts both clear blue waters on one side, and a lush green forest perfect for hikers and bird-spotters on the other.

The beach here is also very beautiful, with white sand stretching for around 1km – perfect for lounging around and reading a good book. But don’t expect beachside butlers or five-star luxury, as this island has its own, more relaxed way of doing things.

Bungalows at Cubadak are rustic-chic
Bungalows at Cubadak are rustic-chic

Opened 23 years ago by Nanni Casalegno, an Italian man who sadly passed away in 2014, the ‘village’ has been operated by the very friendly Dominique and her husband, Marco (both French) for the last 10 years. The island still has that ‘90s vibe, with its wooden-panelled accommodation reminiscent of the ones you may find along the west or south coasts of Java. I doubt much has changed since it first opened all those years ago. In my humble opinion, the resort could do with a lick of paint and a bit more TLC.

With a total of 12 bungalows on the island, including a family unit that can be rented as one, or split into two, guests can choose to stay on-land or indulge in an over-water bungalow, suited for honeymooners. The wooden bungalows are what I would call rustic-chic, situated right on the beach, and come complete with en-suite bathroom, downstairs living area and a double bed on the mezzanine. Other amenities include a mini-bar, stocked with large Bintangs and soft drinks, hot water and the added bonus of drinkable tap water, which comes straight from a natural spring on the island. There are no air conditioners here, so if you are prone to feeling the heat, be sure to set the ceiling fan to high at night. The rooms are perfectly situated to soak up the sound of cicadas and bird song from the forest behind – or, if it rains, your pillow might soak up rainwater!

The dive shop at Cubadak Paradiso Village
The dive shop at Cubadak Paradiso Village

Taking the plunge

The island is very well suited for divers looking to explore a lesser-known region, and the local government are actually planning on marketing this area as the next Raja Ampat. Although I don’t think it is quite on par with what Raja Ampat, the world’s diving Mecca, has to offer, it certainly is not want of trying. With several dive sites at hand, including a house reef, several pinnacles and even a wreck, there are plenty of things to see underwater – although visibility was only around 5-7 metres during our visit.

When not diving, we spent daylight hours frolicking in the clear water, lounging around on sun beds whilst enjoying the sounds of rolling thunder coming from the distant, ominous clouds. Although Cubadak is not exactly isolated – there is a village visible over the water in the distance – you still feel like you’re 100 miles from anywhere.

In the evenings, guests converged and sought shelter from monsoon rains at the bar, located over the water. Here you can enjoy a tea or alcoholic beverage (wines are even stocked at fair prices), whilst enjoying a jam on one of Marco’s several guitars. Wi-Fi is available, too. The boom box selection is questionable though, ranging from glam rock to, well, more rock. I would have liked to have heard more relaxing tunes being played here to fit in with the ambience of the place.

All meals on the island are taken together, so if you don’t like socializing, this may not be your scene. Breakfast is served from 7.30-11am, lunch at 1.30pm, and dinner not until 8pm. The food is quite delicious, and the busy bees in the kitchen can whip up gluten-free and vegetarian meals as well. Fresh fish is caught and shared every day, as we witnessed when the island’s fisherman brought in a freshly caught red snapper to feed hungry guests – and the local dog.

If you enjoy hiking, behind the resort is a large hill, enveloped in forest. There is a path that takes you to the top in about 45 minutes – a spectacular place for taking photos. This path is perfect for spotting birds, including the colourful kingfisher.

If you’re a nature lover and enjoy the thrill of the chase, you should put Cubadak Paradiso Village on your travel list. It took us a whopping eight hours to return to Jakarta, due to road disturbances and flight delays, so I would suggest staying a minimum of three nights to truly unwind and take in what this island has to offer.

Fast Facts: Cubadak Paradiso Village, West Sumatra

Getting there: A 1.20-minute flight on local carriers Garuda Indonesia, Citilink or Lion Air followed by a 3-hour drive (organized by Cubadak Paradiso Village), and a short, 10-minute speedboat ride.

Things to do: Diving, snorkelling, going for forest walks, or just plain relaxing.

What to bring: Sunblock, a good book, dive and snorkelling gear, travel sickness pills if you’re prone to feeling nauseous driving on windy roads.

Website: www.cubadak-paradisovillage.com

McKinsey & Company in Indonesia: Unleashing the Potential of the Archipelago’s Economy

Paris-born Guillaume de Gantes started his journey with McKinsey & Company 15 years ago in Paris. He mainly worked in New York, where he was elected as a partner of the firm. This Harvard Business School alumnus moved to McKinsey’s office in Indonesia two years ago and he talks to us about the opportunities and challenges in ASEAN’s largest economy.

Guillaume, tell us how you’ve found working in this region so far.

I love Southeast Asia as a region because there’s so much happening here. For me, the professional aspect of coming to Indonesia was really about being in the heart of what is going on in ASEAN. I was very keen to be in such an exciting country.

Can you give us some background information on McKinsey’s growth in Indonesia and Southeast Asia?

We are present in most countries in Southeast Asia: Indonesia, Thailand, Malaysia, Singapore, the Philippines, and most recently, Vietnam. We work with government institutions and enterprises in all major sectors, to translate the region’s rich opportunities into transformative economic and social impact. We also help leading multinationals build and grow successful businesses in Southeast Asia.

We have been present in Indonesia since 1988, and the office was McKinsey’s first in Southeast Asia. We help many of Indonesia’s leading enterprises drive growth, transform operational and organisational performance, shape new business models, build leadership capabilities, and accelerate economic development.

McKinsey is known as the world’s leading global management consulting firm. In which industries do you consult and in what capacity?

Our mission has always been to help clients make distinctive, lasting, and substantial improvements in their performance. Globally, we serve clients across all industries and sectors with capabilities to support execution and make change happen.

In Southeast Asia in particular, we serve clients in all major sectors including oil and gas, mining, financial services, telecom and media, consumer industries, travel and logistics, and the public sector. I personally serve our clients in the financial services, telecommunications and healthcare sectors.

Your recent work in Indonesia has included building one of the major banks here. How were you involved in redesigning the distribution process of this bank?

Given my background, I am personally passionate about working with banks and the financial services industry, which is hugely impacted by digitization. We have done a great deal of work in digital – building digital banks and digitizing current processes. There is a growing recognition that banks will have to change the way they work dramatically or entire businesses will be taken over by ‘Fintech’, nimble financial technology firms. You see this in the US; you have small firms that have already taken over parts of the banking value chain. Every single part of a bank in the US is ‘under attack’ by small firms. So, there is a scenario where banks could disappear. As Bill Gates said, banking is necessary, but banks are not. Banks will have to evolve or lose a lot of what they do today.

There are 118 commercial banks in Indonesia and the interesting question is: out of those banks, how many are ready for competition in the digital age?

Your latest report, Winning in Indonesia’s Consumer Good’s Market, discovered that 7 of the 16 companies you surveyed were winners in at least one of the performance areas. Only one company won in all of them – what traits must a consumer goods company possess in order to succeed in Indonesia?

We did extensive customer research in a number of categories and one of the things we looked at is how consumers make decisions. Indonesian consumers tend to be very family and group-oriented when it comes to making decisions, as opposed to Chinese consumers, who are fairly individual. Indonesians like to ask family and friends if they have tried the product, putting a lot of value in their opinion. They also like products that can be shared.

People here rely on their social network quite a bit, especially through social media, much more than other countries we’ve looked at. There is also a very brand-loyal culture here and shoppers take fewer risks – people typically know what they are going to buy ahead of time. Based on our study, these two things do not change with level of affluence.

Indonesians also really value local brands. In our survey, we noticed a lot of Indonesian people think KitKat is a local brand, when it isn’t. Brands that can understand all of the above and market themselves well locally, as well as integrate into social media will be able to do well here.

Can you please debunk some of the common recent myths of Indonesia’s economy?

The first myth is that Indonesia’s growth is Jakarta-led. If we look back a few years, the economy was already driven outside of Jakarta, and even outside of Java, in Sumatra, Sulawesi, Kalimantan. In fact, 90 percent of the fastest growing cities are outside of Java.

Another myth is that Indonesia is an export or raw material-driven growth, when increasingly, it is a consumption driven growth. The population of Indonesia’s urban consuming class is growing by the equivalent of one Singapore every year and will grow to 86 million by 2020.

The most interesting myth, however, is that Indonesia is an unstable economy. We have found that among OECD and BRIC countries, the standard deviation of growth in Indonesia in the first 10 years of the century actually makes Indonesia the most stable economy.

Let’s discuss growth. You believe by 2030, Indonesia could be a global top 10 economy, surpassing the UK, France and possibly Germany. How could this be achieved and what hurdles do we face?

Yes, it could be. Indonesia has strong intrinsics – the growing consumer market, becoming an international food hub, and being a lean resource provider and user.

However, there are also relevant challenges. Our research shows that Indonesia needs to increase productivity by 25 percent to maintain historic growth rates. One major sector that will benefit from this is farming, agriculture and fisheries. A simple example – in Japan, people freeze fish so if the price of fish depreciates, they don’t have to sell their fish right away. Here, the infrastructure to freeze fish is not in place.

There is a big need to improve infrastructure. To grow, the country will need to spend about US$2.7 trillion in infrastructure in the next 15 or so years.

Indonesia also needs to have greater financial inclusion – getting people to be able to save. We have 250 million people in the country but only 70 million bank accounts. Getting more people to save, access credit and use banking systems will be important towards achieving this growth and unlocking its potential.

Do you think the world’s eyes are on this region at the moment?

Yes, very much so. Southeast Asia is one of the fastest growing markets in the world. If it were a single country, it would be the seventh largest in the world, with a combined GDP of US$2.4 trillion. It is projected to rank as the fourth-largest by 2050. I am reminded of the opportunities in these economies by the sheer number of companies that have reached out to us to help unlock the potential – it’s amazing. For many companies, they see Indonesia as the next big frontier.

When these companies reach out to you for investment opportunities, which sectors do you suggest they invest in?

It’s very hard to name a sector in Indonesia which does not offer investing opportunities. We have found that there is US$1.8 trillion in opportunities for businesses who invest in Indonesia’s four priority sectors: consumers, agriculture, resources and talent. We believe this potential is going to be further unleashed and accelerated by the power of digital, whether through mobile and internet banking, e-commerce, education, manufacturing, government service delivery and more.

Thank you, Guillaume.

Becak Terus: Rickshawing from Aceh to Jakarta for a Good Cause

Back in 2013, I interviewed a man brave – and some might even say crazy – enough to run from Bali to Jakarta on a mission to raise money and awareness for children’s cancer charity, Mary’s Cancer Kiddies. This year, Thompson plans to ride, and sometimes pull, a becak from Banda Aceh in north-west Sumatra all the way to Indonesia’s capital city of Jakarta.

If you haven’t met Scott Thompson, I can only describe him as a humble and altruistic Scottsman with a fire inside him to help others. I met to discuss his upcoming physical and mental challenge, which plans to commence at the end of the month: a rickshaw ride that will take him from Banda Aceh to North Sumatra, through Riau, Jambi, South Sumatra, Lampung, and finally across the Sunda Straits to Java and into Jakarta via Banten.

Scott Thompson's rickshaw ride will take him from Banda Aceh all the way to Jakarta.
Scott Thompson’s rickshaw ride will take him from Banda Aceh all the way to Jakarta.

The journey is estimated to take approximately 18 days and hopes to be in the Guinness Book of World Records with the longest rickshaw ride ever taken. The previous record was set by fellow UK citizen, Tim Moss, who completed a 1,000-mile (1,609.34km) ride across the length and breadth of Great Britain.

Thompson’s Banda Aceh- to Jakarta-ride of 2,600km – which is the distance from London to Rome – will not be a smooth one, by any stretch of the imagination. Between the Riau border and Palembang is what Thompson calls “the valley of a thousand hills”, which speaks for itself, really. To conquer the many large hills he’s soon to face, Thompson has built a special harness, which he will use to pull his 80kg becak. According to his calculations, the elevation climb will be equivalent to starting at sea level, climbing to the top of Mount Everest, returning back to the sun-lounger on the beach, and then repeating the summit climb three more times.

Thompson’s becak is certainly out of the ordinary – it’s been souped-up to ensure stability and longevity. With a Sram groupset and a specially-designed frame in place, including disc brakes set in parallel and a Volkswagen steering damper, this becak has been carefully prepared for the long journey it’s about to take. Other additions include water holder, music station, GPS, sandwich box, and, representing Indonesia, the vehicle has been painted red and white and flies the nation’s flag.

After Thompson’s triumphant run from Bali to Jakarta in 2012, rumours circulated about a shift in his internal organs. “It’s not true,” Thompson says, reassuring that he’s in tip-top shape. “In order to make it in time on this trip, I’ll probably be riding 12 hours a day,” he explains. “The most dangerous thing to avoid is dehydration.”

Thompson will be followed the whole stretch of the way by a support car, which may double-up as a bed if there are no losmen in certain areas where he will stop for rest. This will also help to deter any trouble-makers in the area from getting in the way, which has been a concern in this area.

The recent forest fires and haze enveloping Sumatra is also a worry for Thompson and his team, not to mention his loving wife, Laura. Thompson’s mentality is to just tackle it day by day and see what happens. “If the mind is strong, the body will follow,” he says, determined to ride until the end.

IMG_0575So, what drives a man to take on such physically exerting and dangerous challenges? In Thompson’s case, it’s helping others, as well as inspiring athletes to come up with ways of raising money for worthy causes. “Hopefully I can inspire younger athletes to do whatever they can to help build a bridge and reach out,” he says.

With a multitude of sponsors behind him, Thompson has already raised Rp.3 billion which will go to children’s charities Yayasan Cinta Anak Bangsa (YCAB), Mary’s Cancer Kiddies (MCK) and Puspita Foundation, and residential, vocational training programme for adult men and women with mobility disabilities, Wisma Cheshire.

There is probably no man better prepared to take on the job. With his rigorous training schedule, planning and determination, it looks as though Thompson will be riding his rickshaw into BSD City three weeks after he embarks from Aceh, and he will have helped many Indonesian people in need at the same time. Becak terus!

Fans can keep up-to-date with Thompson’s journey at www.becakterus.com , where his GPS will track his exact whereabouts on the map. If you would like to help him raise more money than his previous run from Bali to Jakarta for charities, please visit: kitabisa.com/becakterus

McKinsey & Company in Indonesia: Unleashing the Potential of the Archipelago’s Economy

Paris-born Guillaume de Gantes started his journey with McKinsey & Company 15 years ago in Paris. He mainly worked in New York, where he was elected as a partner of the firm. This Harvard Business School alumnus moved to McKinsey’s office in Indonesia two years ago and he talks to us about the opportunities and challenges in ASEAN’s largest economy.

Guillaume, tell us how you’ve found working in this region so far.

I love Southeast Asia as a region because there’s so much happening here. For me, the professional aspect of coming to Indonesia was really about being in the heart of what is going on in ASEAN. I was very keen to be in such an exciting country.

Can you give us some background information on McKinsey’s growth in Indonesia and Southeast Asia?

We are present in most countries in Southeast Asia: Indonesia, Thailand, Malaysia, Singapore, the Philippines, and most recently, Vietnam. We work with government institutions and enterprises in all major sectors, to translate the region’s rich opportunities into transformative economic and social impact. We also help leading multinationals build and grow successful businesses in Southeast Asia.

We have been present in Indonesia since 1988, and the office was McKinsey’s first in Southeast Asia. We help many of Indonesia’s leading enterprises drive growth, transform operational and organisational performance, shape new business models, build leadership capabilities, and accelerate economic development.

McKinsey is known as the world’s leading global management consulting firm. In which industries do you consult and in what capacity?

Our mission has always been to help clients make distinctive, lasting, and substantial improvements in their performance. Globally, we serve clients across all industries and sectors with capabilities to support execution and make change happen.

In Southeast Asia in particular, we serve clients in all major sectors including oil and gas, mining, financial services, telecom and media, consumer industries, travel and logistics, and the public sector. I personally serve our clients in the financial services, telecommunications and healthcare sectors.

Your recent work in Indonesia has included building one of the major banks here. How were you involved in redesigning the distribution process of this bank?

Given my background, I am personally passionate about working with banks and the financial services industry, which is hugely impacted by digitization. We have done a great deal of work in digital – building digital banks and digitizing current processes. There is a growing recognition that banks will have to change the way they work dramatically or entire businesses will be taken over by ‘Fintech’, nimble financial technology firms. You see this in the US; you have small firms that have already taken over parts of the banking value chain. Every single part of a bank in the US is ‘under attack’ by small firms. So, there is a scenario where banks could disappear. As Bill Gates said, banking is necessary, but banks are not. Banks will have to evolve or lose a lot of what they do today.

There are 118 commercial banks in Indonesia and the interesting question is: out of those banks, how many are ready for competition in the digital age?

Your latest report, Winning in Indonesia’s Consumer Good’s Market, discovered that 7 of the 16 companies you surveyed were winners in at least one of the performance areas. Only one company won in all of them – what traits must a consumer goods company possess in order to succeed in Indonesia?

We did extensive customer research in a number of categories and one of the things we looked at is how consumers make decisions. Indonesian consumers tend to be very family and group-oriented when it comes to making decisions, as opposed to Chinese consumers, who are fairly individual. Indonesians like to ask family and friends if they have tried the product, putting a lot of value in their opinion. They also like products that can be shared.

People here rely on their social network quite a bit, especially through social media, much more than other countries we’ve looked at. There is also a very brand-loyal culture here and shoppers take fewer risks – people typically know what they are going to buy ahead of time. Based on our study, these two things do not change with level of affluence.

Indonesians also really value local brands. In our survey, we noticed a lot of Indonesian people think KitKat is a local brand, when it isn’t. Brands that can understand all of the above and market themselves well locally, as well as integrate into social media will be able to do well here.

Can you please debunk some of the common recent myths of Indonesia’s economy?

The first myth is that Indonesia’s growth is Jakarta-led. If we look back a few years, the economy was already driven outside of Jakarta, and even outside of Java, in Sumatra, Sulawesi, Kalimantan. In fact, 90 percent of the fastest growing cities are outside of Java.

Another myth is that Indonesia is an export or raw material-driven growth, when increasingly, it is a consumption driven growth. The population of Indonesia’s urban consuming class is growing by the equivalent of one Singapore every year and will grow to 86 million by 2020.

The most interesting myth, however, is that Indonesia is an unstable economy. We have found that among OECD and BRIC countries, the standard deviation of growth in Indonesia in the first 10 years of the century actually makes Indonesia the most stable economy.

Let’s discuss growth. You believe by 2030, Indonesia could be a global top 10 economy, surpassing the UK, France and possibly Germany. How could this be achieved and what hurdles do we face?

Yes, it could be. Indonesia has strong intrinsics – the growing consumer market, becoming an international food hub, and being a lean resource provider and user.

However, there are also relevant challenges. Our research shows that Indonesia needs to increase productivity by 25 percent to maintain historic growth rates. One major sector that will benefit from this is farming, agriculture and fisheries. A simple example – in Japan, people freeze fish so if the price of fish depreciates, they don’t have to sell their fish right away. Here, the infrastructure to freeze fish is not in place.

There is a big need to improve infrastructure. To grow, the country will need to spend about US$2.7 trillion in infrastructure in the next 15 or so years.

Indonesia also needs to have greater financial inclusion – getting people to be able to save. We have 250 million people in the country but only 70 million bank accounts. Getting more people to save, access credit and use banking systems will be important towards achieving this growth and unlocking its potential.

Do you think the world’s eyes are on this region at the moment?

Yes, very much so. Southeast Asia is one of the fastest growing markets in the world. If it were a single country, it would be the seventh largest in the world, with a combined GDP of US$2.4 trillion. It is projected to rank as the fourth-largest by 2050. I am reminded of the opportunities in these economies by the sheer number of companies that have reached out to us to help unlock the potential – it’s amazing. For many companies, they see Indonesia as the next big frontier.

When these companies reach out to you for investment opportunities, which sectors do you suggest they invest in?

It’s very hard to name a sector in Indonesia which does not offer investing opportunities. We have found that there is US$1.8 trillion in opportunities for businesses who invest in Indonesia’s four priority sectors: consumers, agriculture, resources and talent. We believe this potential is going to be further unleashed and accelerated by the power of digital, whether through mobile and internet banking, e-commerce, education, manufacturing, government service delivery and more.

Thank you, Guillaume.

Karishma Vaswani of BBC News

Meet Karishma Vaswani, a well-known face in journalism. Karishma has been the BBC News Indonesia Correspondent since 2009, and was recently promoted to Indonesia Editor of BBC News. An intelligent and strong woman, Karishma is also a mother of two. I meet her to discuss her experiences as a journalist and her views on unbiased reporting.  

Karishma, where are you originally from and what brought you to Indonesia in 2009?

I moved here from India in 2009 with the BBC, but I lived here before as a child and my parents have been in Indonesia for a long time. Before moving here in 2009 I was working in Mumbai as the India Business Report Presenter. I went to primary school and high school in Jakarta, and I read English and American Literature at Warwick University in the UK. I have a Singaporean passport.

Karishma reporting on flooding in Jakarta

How do you juggle being the Indonesia Editor of BBC News and being a mother of two?

Well, family really helps. My mum and dad live here in Indonesia, so when I’m at work, they help me out a lot. My husband runs his own business in digital marketing, so he’s between Singapore and Jakarta. It was quite a struggle initially to think how I was going to look after the kids and work. The other day I was dropping my daughter at school and she said to me, “Mum, today I’m the boss. I’m going to ask the questions.” And I said, “OK great!” That’s exactly what I want her to be doing. I was the first girl in my family to go and get a job and it’s really encouraging that my daughter feels it’s possible to do all this. Juggling work and family is not always perfect, but it’s possible.

You’ve interviewed the Vice President of Indonesia, Jusuf Kalla, the founding father of Singapore, Lee Kwan Yew, the Indian Finance Minister, P. Chidambaram, Indonesia’s Trade Minister Gita Wirjawan, and the head of Indonesia’s investment board, Chatib Basri, along with many others. Which interview would you say was most memorable to you and why?

In Indonesia, I would have to say it wasn’t one person in particular; it was a group of people. Right before I went on maternity leave last year, the BBC ran a series of stories on asylum seekers. It was that group of asylum seekers that left a big impression on me. There was one chap in particular, who had spent about 30 days in a detention centre in Jakarta and was desperate to get to Australia but his boat was shipwrecked. Australia doesn’t want to take these guys and they don’t want to go back to their home country, Afghanistan, where they will be prosecuted. He was such a nice person who had left his home to try and find protection for his family.

He texted me a couple of weeks after the story went out and told me he was still in the detention centre and had no idea when he’d be getting out. I texted him when I returned from maternity leave and he never responded, so I’m kind of hoping he’s out and has found asylum, but there’s no way of telling. I think it’s those kinds of people who stay in your memory.

It’s a reflection of the fact that at the BBC is not about the high profile, ultra important politicians; we make it a point to go and speak to real people. So you’ll find in all of our stories that it’s the people on the ground that we really want to tell stories about. And that’s why it’s so important to recognize that we have the largest number of journalists of any news network in the world. We have people in the most inconceivable places, bringing invaluable perspective.

Have you interviewed Prabowo and Joko Widodo, the presidential candidates?

We interviewed Jokowi, but Prabowo wasn’t available, so we got his campaign spokesman Sandi Uno instead. Both sides were confident that they would emerge victorious. It’s a tight race, but what struck me throughout this election season is how politically engaged Indonesians are. No matter what happens, hopefully the real winner in all of this is Indonesian democracy. People should expect and demand more of their leaders.

Have you ever been in a dangerous situation here while doing your job?

In 2009, I was on the scene for the JW Marriott bombing. By the time I got to the scene, the bomb had already exploded. It was in the morning and I was at the gym when I got the call, so I went straight out. There were people everywhere, and I had just come away from reporting on the siege in Bombay, so I kept transferring my previous experience over, thinking, “Are there going to be armed gunmen?”

Karishma reporting on the 2014 presidential elections

What does the BBC do to protect its journalists?

We have a hostile environment course, which we all have to undergo, with constant refreshers. Nothing can prepare you for a dangerous situation, but we try and equip our journalists with tips for how to cross a checkpoint, how to identify whether the sound of a bomb is one that’s very far away or if you should dive to the ground. Or at a dodgy checkpoint, do you sense that the guys are just going to ask you for cigarettes or are they going to abduct you? There’s a lot of roll play, which can be quite scary. A colleague of ours, Alan Johnston was kidnapped and he was on one of our courses. After he was released, as a result of a lot of lobbying, he talked about what kept him going and it was the things he had learned; Stockholm syndrome, how to talk to people who kidnapped you, etc. First aid is also the most important aspect of this course.

What do you believe the future has in store for Indonesia?

Indonesia has seen remarkable growth over the last decade, but it has to remain on a stable path, with stable governance and a stable environment.

Do you see Indonesia as home?

Yes, definitely. I have no plans to leave. My parents live here and it’s really nice for them to have their grandkids around. And it’s exciting for a reporter – there’s so much going on here!  

Tell us about the BBC’s impartial ethics, which must be followed by its journalists.

Everyone accepts that journalists have personal biases; that’s a fact of life. But the responsibility of the journalist, and certainly the expectation of the BBC, is that if that personal bias leaks in, you are not doing your job. If you were on my team and you came to me and said, “I have an issue covering this story because I feel so strongly about this,” then I would say, “I think you need to excuse yourself from this story because you can’t get beyond your personal limitations.” And that’s fine. Sometimes people feel really strongly about things and they need to be honest with themselves. That’s part of journalism as well; honesty and integrity. To have a personal bias, that bias cannot affect itself into your work. If you feel that unbiased reporting doesn’t really exist here, then I would ask you to consume more BBC material.

First published in Indonesia Expat, July 2014

Roger van Tongeren, General Manager of Marketing, Starbucks Indonesia

Roger-van-Tongeren

Roger van Tongeren has an impressive resume, having worked at Royal FrieslandCampina and PT Frisian Flag, before embarking on his journey at Starbucks. With 184 stores in 13 cities across the archipelago, Starbucks Indonesia is still expanding and it would seem Roger is the man for the job. I meet him to find out his full story.

Please tell us a bit about your background. Where are you originally from and how long have you been living and working in Indonesia?

I am originally from Holland, born and raised there and have three siblings (three sisters). Two of them live in Holland and the other lives in America, so we are all a bit spread out over the globe. I left Holland about 10 years ago, with my first stint in Indonesia for about four years, after which I moved for the same company to Vietnam. About three years ago I returned to Indonesia. So now for seven to eight years I have lived in Indonesia. I did my MBA at the University of Groningen in The Netherlands, which seems now a long time ago.

What brought you to Jakarta in the first place?

Driven by career ambitions, I was employed by Royal FrieslandCampina, now the biggest dairy cooperatives in Europe. As part of a Management Potential Program, they offered me a position in Indonesia at PT Frisian Flag. The company’s belief is that as a future senior manager, you need to be taken out of your comfort zone, meaning you have to prove yourself working in a different environment with other people and cultures that you are not familiar with, since it will develop your managerial skills, as you need to be adaptable to a certain extent, whilst still remaining effective as a manager.

How did you land the position of General Manager of Marketing & Communications at Starbucks Indonesia, which you’ve held for the last two years, and what does this position require of you?

The opportunity presented itself quite ‘out of the blue’. I was immediately interested, as I had been, and still am a huge admirer of the Starbucks brand. Funnily enough, before joining Starbucks, I already read Onward, a book written by its founder Howard Schultz and both my wife and I were collectors of the Starbucks City mugs. Any time we or our friends/family were travelling, we tried to get a different Starbucks City mug. I consider Starbucks a genuine iconic brand, where probably many marketers would like to be involved somehow.

The role at Starbucks Coffee Indonesia is a very diverse one, ranging from food, PR, Digital/Social Media, CRM/Loyalty, Advertising and Promotions, all the way up to CSR (Corporate Social Responsibility). In order to make all the plans happen, part of my role is to work together with my team to try and get the best out of each of them. That mission is accomplished, if all can ‘claim’ their own successes for their respective area of responsibility. Other than that, what I like is to bring in ‘game changers’, meaning doing fundamental things for the business/organization that, in a positive way, will change the way we do business on a long-term basis. Our Starbucks Card/Loyalty Program is one of the examples.

Roger and some of his team at Starbucks Indonesia

Starbucks originated in Seattle, Washington, in 1971 and has grown to become a worldwide institution. Could you please share the company’s history here in Indonesia?

Starbucks Coffee Indonesia opened its first store 12 years ago in Plaza Indonesia. To be precise it was 17th of May 2002. Starbucks Coffee Indonesia is operated under PT. Sari Coffee Indonesia, which is part of MAP, one of the biggest premium lifestyle retailers in Indonesia.

I love that Starbucks offers soy milk to its customers. Tell us about your customer service values and what the customer means to you.

Our famous line is ‘one person, one cup and one neighbourhood at a time’. What it means to the customer is that we would like to ‘connect’ with our customers, through a genuine welcoming smile from our baristas, up to remembering your name and your favourite beverage until preparing your beverage however you like it. Many loyal customers have their ‘own’ preferred beverage, either an extra pump of syrup, an extra espresso shot, or basically anyway you like it, you can have it. Personalise!

With expansion comes responsibility. How does Starbucks Indonesia remain sustainable? Do you recycle all the paper cups used? What CSR initiatives are you involved in?

One of the things I admired already before joining Starbucks is not only their focus on the people side, but also their care and concern for both the environment and communities in which the Starbucks stores operate. As for the environmental part, we successfully reduced the number of paper cups used, by encouraging our customers to use a tumbler. To promote that, every 22nd of the month, everybody who visits one of our stores with their tumbler, get his/her favourite beverage for half the price. People love it.

Then there’s a genuine belief about giving back to the community. As part of that commitment, all Starbucks store partners are involved in diverse community activities, which can vary from very simple things like cleaning the beach at Bali, to bigger initiatives like Planet Water. For each purchased bottle of Starbucks water, part of the proceeds will be donated to the Planet Water Foundation. In that way, we can build and install water tanks for areas that normally don’t have access to clean and hygienic water and our Starbucks partners are actually involved in the installation of the water tanks.

Are you a coffee drinker yourself?

Absolutely, I have at least three cups a day. I crave it, and it already starts at breakfast. I am more into the espresso-based beverages. The beverage I order the most is a short Americano, with only half the water, since I like strong coffee. I also enjoy a single or double espresso.

Are there any new drinks coming to the Starbucks menu?

We just launched a new ice-blended beverage called Tiramisu Frappuccino. And basically seven times per year we introduce new beverages, not only for the coffee lovers, but also for the ones who are more into cold/sweet blended beverages as well.

You’re married to a celebrity. How do you manage ‘being in the spotlight’?

Well, it’s not hard at all. It doesn’t happen that often, but it is sometimes funny to see some surprised faces of people recognizing her, when we are in public. If people want to have a picture, I probably only wind up being the one taking the picture!

And my final question, how do you live a balanced lifestyle in Jakarta?  Do you have a favourite weekend escape from busy city life?

My family is my balance in life. I always look forward to coming home to be with my family. My little boy Tristan, who’s growing up very fast, always manages to put a big smile on my face. Although a handful, I wouldn’t want to miss a second of seeing him growing up together with my wife.

I know it’s such a standard answer, but I never get bored of Bali. We both love Bali, so whenever there’s a chance to go there, we’ll go there. It’s heaven on Earth!

Thank you, Roger. To get in touch with Roger directly, please email: rtvantongeren@gmail.com

First published in Indonesia Expat, August 2014

Born to Ride: PT GOJEK Indonesia

Michaelangelo Moran by Michael Timothy
Michaelangelo Moran by Michael Timothy

GO-JEK, the army of green-helmeted motorbike taxis that has taken over the streets of Jakarta, Surabaya, Bandung and Bali, provides fast transportation and delivery services via mobile application. Their core values of speed, innovation and social impact have led to the company’s huge success. We meet Co-Founder and Brand Manager Michaelangelo Moran to find out more about this social enterprise that everyone is raving about. 

Let’s start with the fact that GO-JEK is a social enterprise and not a business – can you please explain this to us in more detail?

One of GO-JEK’s goals as a business is to improve the livelihood of our drivers by earning more income. As GO-JEK is essentially making that happen, there is a big social impact from the business, which has transformed GO-JEK into a social enterprise.

GO-JEK was established in 2010, however it is this year that Jakartans have really become aware of your brand. What contributed towards this giant leap? 

Firstly, when we started the app six months ago, there was nothing like it in the market, which meant no competition. Secondly, the app works, and seeing as Indonesia’s smartphone penetration is far better than it was five years ago, the app is a major contribution to the success of GO-JEK today. It is user friendly; you can book a GO-JEK much faster than having a call centre; you can use GO-JEK credit to pay, making it cashless; you can see whom your driver is, track your driver and SMS or call him during your order.

When we launched the GO-JEK app, we had a system whereby people were given a referral code to give Rp.50,000 to others to try GO-JEK for free for the first time. This system blew up on social media and people were spreading their codes like wildfire. Once they tried it, they were hooked.

With now over 10,000 drivers, GO-JEK drivers are visible everywhere in Jakarta. With this, people become curious to try out the service.

Michaelangelo Moran and some of his drivers. Photo by Michael Timothy
Michaelangelo Moran and some of his drivers. Photo by Michael Timothy

As the founder, can you share with us the story that led to the birth of GO-JEK?

It started four years ago with our CEO Nadiem Makarim and me. Nadiem was studying in Harvard Business School and I was studying in the Academy of Art University. He hates traffic and therefore uses ojeks all the time and started building relationships with his drivers, asking them to do things like delivering items and doing his shopping. He took one of his drivers out for coffee and asked him how the ojek system works and found out that they are territorial; if they pick up a passenger from Sudirman to Kemang, they cannot pick up another passenger from Kemang – they have to go back to their pangkalan (base) in Sudirman. Secondly, there is a big queueing system; if they return to their pangkalan in Sudirman and there are 20 drivers there, they cannot pick up a passenger until all 20 drivers have picked up a customer. It’s an inefficient system.

We interviewed many drivers and asked what they’d think if we made a system whereby we give them customers and split the commission. They asked us if they could pick up passengers on their own, which we explained would mean no split of commission. GO-JEK was born.

We started recruiting drivers and building the GO-JEK system with the idea of three services – transport, courier and shopping. Fast-forward four years, from 200 drivers we are now 15,000 and have a mobile app that is number one on the Google Play and iOS stores in Indonesia.

Can you tell us how your fees to the customer are calculated?

For the usual pricing, we start with Rp.25,000 for the first 5km and it goes up on average Rp.4,000 per km after. However, right now we have a promo for Rp.10,000 for all services up to 25km (not including shopping and food costs).

One thing that makes GO-JEK really special is your pick-up and delivery service of food and beverages, GO-FOOD, with a delivery charge of Rp.10,000 at over 20,000 restaurants. What do you aim to achieve in the F&B industry by way of providing this service?

With the biggest organised motorcycle fleet in Indonesia, we want to create the fastest and most efficient F&B delivery service. To make it easier for our customers, we wanted to have a portal for menus for all kinds of restaurants from roadside warung to fine-dining restaurants, all deliverable in the GO-JEK fashion – fast and easy. We want to become the leader in this space, providing easy access to food delivery for office workers and residences, with a social impact by improving revenue streams for all restaurants in Indonesia. GO-FOOD is now present in Jakarta, Bali and Bandung and will soon be expanding nationwide.

How many GO-JEK drivers do you have on board now and can you share with us the benefits they receive when joining?

We have about 15,000 drivers onboard right now nationwide. Some of the benefits include accident coverage, medical clinic for drivers and opt-in affordable health insurance for their entire families.

We also do driver safety training with Rifat Driver Lab, training about 300 drivers per week, ranging from classroom learning, basic, intermediate, advanced and pro with a focus on how to create a culture of safety in driving, and eco-driving. All drivers are offered this, and we pay for one full day’s training. Drivers that have been through this training receive safety accreditation. We have also other programmes aiming to improve the livelihood of drivers and their activities while operating in GO-JEK.

There have been stories in the media recently of some of your drivers being threatened by non-affiliated ojek drivers. Can you tell us how you have been tackling this problem and protect your drivers?

To protect our drivers, we now have a third-party security taskforce that provides fast emergency response in situations that involve threats and intimidation. Our supervisors are also out in the field reaching out to and mediating with problem areas – this has proven to be a highly successful initiative to help ojek drivers see us as a means to achieving higher productivity and boost recruitment.

What do your drivers earn on average, and can you tell us about your bonus scheme?

Our drivers on average earn upwards of Rp.4 million a month, but a large percentage of them earn more than 6 million. For highly productive drivers that are able to achieve 10 trips in a day, we incentivise them with a bonus of Rp.50,000.

This year we have also witnessed the birth of your competitor, GrabBike, with branding that is quite similar to yours. How do you feel about your competitors?

Being the first mover, there was no doubt that competition would follow. After all, imitation is a form of flattery. There are quite a few local competitors: Taxi Jek, GO GO Jek, Antar Barang, and many others that have not entered the mobile app space, which we do not fear. GrabBike seems to be the one gaining presence in Jakarta. We feel that GO-JEK – given our national presence and vertical integration – is ahead of the competition. Given our wide fan base, we need to continue to provide superior service to beat well-funded competitors like GrabBike.

With the traffic in Jakarta only getting worse, what do you see as the long-term solution? What role will GO-JEK play in this?

Perhaps an incentive to use public transportation along with subsidised GO-JEK rides might be the way to go. Alternatively, fees could be introduced for major roads like Sudirman and Rasuna Said, like they do in Singapore. The infrastructure being built in Jakarta is already worsening traffic in areas like Wolter Monginsidi, Tendean, Pakubuwono and many others, not to mention the MRT building around Sudirman. GO-JEK’s role would be to provide a feeder system to these station points. Jakarta residents need to have access to the stations in order to use public transport and GO-JEK is the solution to that problem.

To get in touch with Michaelangelo Moran, please e-mail: m.moran@go-jek.com

First published in Indonesia Expat August 2015