Even as so many Indonesian enterprises were loading up on U.S.-dollar debt, Hawanto was keeping his borrowing down and instead going after private equity like Batavia. Today, Cengkareng has changed for good. The company is leaner than ever and focused on quality and customer satisfaction. Indonesia, on the other hand, has not changed so much. Many companies continue to struggle without the capital they need, often unable to attract lending from traumatized banks.
Conglomerates often seem incapable of adjusting to a competitive environment.
In the 1980s and 90s, the conventional wisdom was that the well-connected mega firms would build Indonesia's modern economy. Instead, savvy, hardworking entrepreneurs like Hawanto must now rebuild the shattered business sector - one tile at a time. All Rights Reserved. Terms under which this service is provided to you. Read our privacy guidelines .