SUSTAINABLE FAMILY BUSINESS IN THE SHIPPING INDUSTRY IN INDONESIA THROUGH ENTREPRENEURIAL LEADERSHIP AND DIVERSIFICATION WITH REFERENCE TO THE BUMI LAUT GROUP

• Main Author: Aryaputra Singgih, Jay
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46556
• Institution: Institut Teknologi Bandung

Like a ship sailing across a vast ocean, the shipping industry cannot be separated from waves tides of challenges that comes with it, which requires a good and skilled Ship Captain/Master and Crew who must be skilled, competent, wise, loyal, brave and responsible. Likewise, the business journey of The Bumi Laut Group (BLG), which was founded in 1922 and now in its fourth generation, is full of ups and downs as well as challenges, but remains resilient and is consistent with the commitment in managing the shipping business which is a very cyclical, erratic and long-term maritime industry, and is constantly innovating and making changes to adapt to changing times and making new breakthroughs, to survive, advance, grow and develop so as to provide meaningful contributions to stakeholders including the nation/state. Shipping conditions in Indonesia have improved/advanced since the enactment of the Cabotage /Law, but regionally and globally, Indonesia is still lacking far behind compared to other countries. Indonesia needs to improve its competitiveness/competence as well as capabilities to compete and at least be able to shine in the region, especially ASEAN so that Indonesia's struggle to obtain trade terms and the existence of flexible soft funding that benefits Indonesia's national shipping will not be in vain if it is provided with ease or support by the current government in reviving Indonesia's maritime industry into a Global Maritime Fulcrum. The Indonesian national shipping players/stakeholders must be highly committed to build the shipping/maritime industry in Indonesia and developing a strong national commercial/merchant naval fleet, thereby creating more jobs and multiplier effects for supporting businesses in the maritime sector, among others, the construction/shipbuilding industry, shipping/maritime technology industry and machinery manufacturing/fabrication including spare-parts, maritime insurance, classification bureaus/societies, shipping academies and other maritime institutions, as well as participating significantly in overseas/international shipping and logistics business for export-import cargo, so Indonesia can save foreign exchange and bring in foreign exchange, which can increase Indonesia’s national resilience in accordance with the wishes of the Founding Fathers of the Republic of Indonesia which are clearly stated in our constitution, which is ultimately for the interests and benefits of the nation, the state, its people and the wider community, therefore, a full commitment and full support from the Government Republic of Indonesia is very much needed to support the national maritime industry, national shipping entrepreneurs and national shipping companies in Indonesia for the national interest. Bumi Laut Group operates approximately 30 vessels of various sizes and types for domestic and regional routes. BLG focuses on Indonesia and the region by operating owned vessels and charter vessels, as well as establishing cooperative relationships with a network of strategic partners or global strategic alliances for international services through agencies, joint-ventures, joint-operations, logistics networks and various other forms of cooperation. The shipping industry is a complex, cyclical and long-term industry and has many variables that can determine the success and/or continuity of the companies within the shipping industry itself. In addition, the number of vessels that are over-supplied as well as the size of vessels in the market resulted in over-capacity in the global, regional and domestic markets which results in a price war which in turn affects the profit and cash-flow of the company. Therefore, in order for the company to survive in the long term, it is necessary to have and implement a diversification strategy, both within the shipping industry itself as well as cross-sectoral expansion, both organically and through mergers and acquisitions. More than that, this diversification strategy supports the stability, durability, sustainability and expansion of the company. Family businesses consists of a majority of non-formal, medium-sized small industries as well as conglomerate/corporations and public listed companies, and family businesses as well as Small Medium Enterprises are the backbone of the Indonesian economy and most other countries as well. Of course, the characteristics, direction, objectives and priorities, as well as reasons for conflicts and how to manage the conflict in the family business is also very different from other companies, and also different with the case study in Indonesia/Asia compared with that of other countries, where each has its own characteristics but also with some similarities. In the context of building and growing a Family-Business that is professional, always-changing and sustainable as well as cross-generational, therefore, naturally, it requires a full commitment with a strong leadership, corporate culture, corporate identity, sense of responsibility, morality, ethics, integrity, character, entrepreneurial spirit and entrepreneurial-leadership, managerial ability, passion, as well as succession-planning and good corporate governance is very much required. In addition to that, alignment of interest regarding the culture, direction and goals (vision/mission) of the company is also very important and imperative in order to have a business with a strong foundations and strong fundamentals, reliable, sustainable and has the resilience to always exist, continuously survive and thrive.