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Managing Business in the Middle of Crisis

February 20, 2009

World economic crisis has affected most of country all over the world including Indonesia. Local industry have to survive to keep the business running eventhought the business is not good as last year. Local telecommunication industry is slowing down in early of 2009 and most of the operator and contractor already got the effect.

This is the the process (step) why global economic crisis affecting telecommunication industry:

1. Most of telecom operator got the funding from foreign bank or financal institution, where they still got problem in their business (e.g. AIG, LEHMAN BRO etc.). And some others are using local financial institution (state owned bank) which the also not in the best cash flow at the moment.

2. All of the telecom operators get the revenue using local currency (IDR) which they getting weak to the USD.

3. Most of the telecom operator buy the equipments using USD and this is very clear that they has loss on their company profit (due to currency exchange)

4. Due to loosing their profit, most of eperator reducing the CAPEX and OPEX and suspend the project (running project). They cannot gambling with their money, right?

5. The contractors or suppliers of the operators got the impact on their project, product supply etc..

6. etc… etc…

Right… there are like snow ball effect

This is only the small part of telecom industry, if we look at more detail there are still a lot of issues

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