Telkom Indonesia Case Study

Here are five well-researched solutions on above challenges and issues, and they put in order of importance.

1. ABC Limited should find an appropriate partner to win-win. Because a compatible partner could provide complementary skill and resource, so that bring the joint venture successful (Griffin and Pustay, 2013). For example, Australia's Telstra and Telkom Indonesia sign a JV for Network Application and Services (NAS), which are both telecommunication and services companies. Telstra choose Telkom Indonesia, not only for its Asia strategy, but also use both company capabilities in Indonesian Information Communication Technology (ICT). Due to ICT in Indonesia rise a lot recent years, and Telkom Indonesia is a market leader in ICT. Thus, Telstra

ABC Limited should reach an agreement about ownership with Indonesian partner that is fairly and reasonably. Because ownership should not be controlled by one partner instead make clearly regulations about control shares. Determine each responsibility to make good performance (Kyriazoglou, 2012) According to my research, foreign ownership is limited at 65% in fixed telecommunication network sector. Please see Table 3 in Appendix, different sectors in communication industry foreign ownership changed. (Global Business Guide, 2013). It is no doubt that both sides want to maximize own profits. In fact, contribution of each partner is direct proportion to its stakes in a JV. It means company bring more profits return in the JV’ is supposed to hold more shares (Marinucci and Pagliar, 2008).While, ABC Limited have to consider a shares range during negotiation, it means what is the lowest shares can agree based on responsibility. Meanwhile, combine with Indonesia foreign ownership Limit in New Negative List. Hence, based on contribution to consult ownership distribution then can achieve a satisfying agreement with Indonesia

ABC Limited should correctly manage employees based on Indonesian culture (Wall, 2010). Because need to hire many Indonesia in JV company. Generally, there are three approaches to joint management, shared management agreement, assigned arrangements, and delegated management (Griffin and Pustay, 2013). Take which way should be decided by both sides. No matter choose which one, the following suggestion are helpful. First of all, solve communication barrier otherwise influence work process. It easier causes misunderstanding for foreign investors in Indonesia. For example, “yes” usually means agree in China, while it is pretty hard say NO for Indonesian. Because they do not like showing disagreement with others and making other unhappy. Hence, they like to answer yes, but it makes investors think Indonesia partners totally agree (Taylor, 2012). So ABC Limited should provide employees training for basic communication. Then pick up some Indonesian that can understand Chinese to announce daily work. Moreover, respect their religions, and arrange work based on their behavior. For instance, as far as possible allot same religion in a team in case conflict between different religions. Hence, respect Indonesian culture for manage them and unify training for performance