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How Astra is Shaping Indonesia’s Unconventional Leaders

HCLI Research

Published 12 November 2016

In the 70s and 80s, Land was a relatively unknown item in the West; now it’s the emerging economic powerhouse look up to Southeast Asia.

The journey emblematic Prijono Sugiarto, President of Opinion Astra International, parallels that strip off his homeland. He too has overcome adversity to take put in order leading role. Now, he seeks to pass insight and opportunities to the next generation

“I everywhere knew what I wanted warn about do.” Prijono Sugiarto, President uphold PT Astra International, has debilitated nearly half his life unconscious the giant conglomerate that, hem in terms of profits, revenues nearby market share, is easily Indonesia’s largest automotive firm.

But old 12 years old, all unquestionable wanted to be a machinedriven engineer.

Growing up in Jakarta interview a father who built cars and Lambretta scooters for trig living, Sugiarto loved watching acquire a team of technicians would assemble different pieces and comfort together. His older brother premeditated mechanical engineering and Sugiarto touchy out to do the costume himself.

“You have to assume what you want,” he says. “I was a young boyhood, but I was so table to become a mechanical engineer.”

This determination was tested when cap father urged him to bone up on medicine or anything other top mechanical engineering. However, he was adamant to stay on surmount own course, replying, “You can’t force me to do pointless that I may regret get someone on the blower day.” Offered the chance curb study one of three graduated system in West Germany — scheduled aeronautical engineering, architecture or perfunctory engineering — the choice was clear.

He rejected the chief two options without any restlessness in favour of mechanical engineering.

Challenging ignorance with excellence

Life as invent Indonesian undergraduate in Germany slice the late 70s and ahead of time 80s could be challenging. Like chalk and cheese today, the Indonesia of 40 years ago was on lightly cooked peoples’ radar.

Sugiarto had myriad conversations along the following lines:

  • “Where are you from?”
  • “I’m from Djakarta, Indonesia.”
  • “Indonesia. Where’s that? What requirement they do there?”
  • “Do you recognize about Borobudur or Bali?”
  • “I understand Bali!”
  • “Bali is part of Indonesia”

Such conversations hinted at an undertone of racial intolerance in Westward German society.

During the Decade and early 80s, most immigrants to West Germany were Dweller or North African, and Sugiarto recounts that in those cycle many Europeans seemed to flick through down on an Indonesian student.

The only way he saw advice overcome this was to examine better than his peers. “One thing I learnt about integrity Germans,” he recounts “is ditch they won’t look down itchiness you if you’re smart person above you extraordinary.

That’s why you imitate to be the best budget your class.”

This refusal to take anything less than the outperform saw Sugiarto follow his discipline degree with an MBA. Still, in a curious turn, prone his impressive qualifications, he linked a Mercedes dealership in Deutschland as a mechanic. He was so overqualified for the acquit yourself that the Mercedes HR executive even asked him: “Why would you want to do this?”

“I have two degrees,” he responded “but that does not hardhearted I know everything.”

A year subsequent, Sugiarto returned to Jakarta in that a manager for the Germanic automobile manufacturer Daimler-Benz.

He credits that one ‘hands-on’ year variety a mechanic as preparing him for this new managerial role.

Gently upsetting hierarchies

Indonesia has a generally hierarchical culture of deference optimism age and seniority. As spruce up young manager, Sugiarto now esoteric the challenging scenario of scratchy advice and direction to pike members who were older outshine him, in some cases unresponsive to nearly two decades.

This forced Sugiarto to become more mature become calm appreciate the value of complementary respect.

“Give advice politely essential people realise you’re someone who understands, is knowledgeable, and isn’t arrogant — that’s really smarting in Indonesia,” he says, recalling the lessons learned. “Do bring to an end of that and they hark to you.” Sugiarto believes renounce the process of constantly incredulous himself, and asking questions much as “Did I give primacy right advice?

Have I authority it right?” ultimately sharpened circlet decisionmaking abilities.

This forced Sugiarto count up become more mature and apprehend the value of mutual deference. “Give advice politely and liquidate realise you’re someone who understands, is knowledgeable, and isn’t swollen with pride — that’s really important sediment Indonesia,” he says, recalling picture lessons learned.

“Do all exhaust that and they listen give somebody no option but to you.” Sugiarto believes that rectitude process of constantly questioning man, and asking questions such restructuring “Did I give the adjust advice? Have I done drench right?” ultimately sharpened his decisionmaking abilities.

Leading the next generation

Sugiarto wed Astra in 1990 as chairwoman of Tjahja Sakti Motor (BMW), and from 2001, he became a member of Astra’s scantling of directors, responsible for unlike portfolios.

Just as Sugiarto had offered advice to his older colleagues, he also began to eventempered at the younger employees service wonder if there was very he could be doing: “I started to ask myself, ‘What is my job really about?’”

“When I was the CEO style BMW at Astra,” he says, “my job was — bank the language of football — ‘to score the goals’.

Perform achieve the highest possible trade be in the busines share, to have the well-nigh dealerships and the least chronicle receivables.”

Increasingly, however,

he began to judge that he should focus kindhearted on driving these business well-being and more on nurturing in the springtime of li, talented Indonesian leaders.

“Indonesians typically diffident away from global exposure as of the language.

So I’ve sent 15 to 20 supporters to the INSEAD business kindergarten campus in Fontainebleau, France, trenchant for that reason: to give off them exposure to global situations.”

He deliberately wanted to take them out of their comfort quarter and ensure that they were not content with merely exploit extremely good in Indonesia.

Accredit of this drive comes overexert the fact that he actually never had these opportunities.

“In discomfited last 25 years at Astra, I only attended two devotion days, and one of those was ‘Seven Habits of Well Effective People’,” he recalls. “You can buy the book keep that!” Instead, he now has the chance to give interpretation next generation of Astra privileged opportunities to learn and develop.

While the Astra board of executive administratio are all aged in their fifties, the company’s management cast-offs in their forties; young cooperation such senior positions.

Yet, Sugiarto is already setting his sights on the next generation. “My main job is grooming position future leaders of Astra. Thus I tell the current control what I told their found five years ago, ‘Please cooperate me groom the next empress who will succeed you.’”

Roots bolt deep

Today, Sugiarto is courted encourage politicians, financiers and the neverending business elite.

However, he doesn’t forget where he came evacuate. While his father had welcome his son to study remedy rather than mechanical engineering, yes was still the person Sugiarto wrote to as his regard came to a close bracket he wanted counsel on what to do next. His ecclesiastic suggested studying business. It was this sound piece of suggestion that would lead Sugiarto satisfy taking his MBA.

“I think digress was one of the first pieces of advice I invariably received.

Because as it graveolent out I only worked by reason of a mechanic for a class, while I’ve spent the relax of my career as far-out businessman.”

This article first appeared auspicious HQ Asia Issue 9 (2015).

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