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Published by: Sydney Southeast Asia Centre

Country / Region: Indonesia

Indonesia Business coalition analysis

25 January 2017

This report provides an overview of the Indonesia Business Coalition for Women, and explores its key characteristics, challenges and opportunities.

The report maps the corporate governance network of the Indonesia Business Coalition for Women’s Empowerment, and explores how the interconnected nature of this network presents opportunities for creating a ripple effect for change across the country’s largest companies and industries. In particular, the report considers how the members of the coalition could utilise their corporate governance networks to influence the wider Indonesian business community and drive change on issues of women’s economic empowerment beyond coalition members.

Highlights

The Indonesia Business Coalition for Women’s Empowerment (IBCWE) is composed of eight organisations representing a range of industries:

  • Accenture (professional services)
  • PT Adis Dimension Footwear (manufacturing)
  • PT Bank Tabungan Pensiunan Nasional (financial services)
  • PT Gajah Tunggal (manufacturing)
  • PT Mitra Adiperkasa (retail)
  • PT Pan Brothers (manufacturing)
  • Sintesa Group (major diversified conglomerate with interests in real estate, energy, industrial products and consumer goods)
  • PT Unilever (consumer goods)

On the whole, the members represent some of the largest industries driving the country’s economy. However, only Unilever and Bank Tabungan Pensiunan Nasional are among the largest listed companies in the country (ranked according to 2015 market capitalisation). Unilever is the largest consumer goods company in Indonesia, and ranked third in terms of market capitalisation. Bank Tabungan Pensiunan Nasional is the 14th largest financial services company, and ranked 62nd in terms of market capitalisation.

While the coalition members are situated in some of the largest industries in the country, there are some very large industries that are not represented, namely mining and energy and equipment, engineering and construction. However, the membership of Unilever in the coalition presents significant opportunities, given that the company has an influential position in the largest subcluster in Indonesia’s corporate governance network. Members of Unilever’s board of commissioners are highly connected individuals, being members of up to three other boards. These board interlocks effectively extend the coalition’s reach to eight other companies in six other industries:

The membership of Accenture in the coalition also presents some opportunities in this respect. While the company is not among the country’s largest, the nature of its business exposes it to a wide range of clients across several industries. This represents a significant avenue for communicating change initiatives and extending the current and future sphere of influence of the initiatives of the Indonesia Business Coalition for Women’s Empowerment.

Contents

  • Characteristics
  • Challenges and Opportunities

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