1. MM UKM - Bandung 12 Dec 2014 “Business Environment” Session

4. BUILDING STANDARD AND ENHANCE NEW CULTURE

5. Brief Facilitator’s Resume Tony Silitonga has been working for more than twenty five (25) years in different countries, different industries, with different multinationals, such as: IBM, Atlantic Richfield Oil & Gas Company (Indonesia), Standard Chartered Bank (Philippines), Merrill Lynch (USA), China Development Corporation (Taiwan), Indonesian Bank Resructuring Agency (IBRA), and IICD (Indonesian Institute for Corporate Directorship). He is a member founder of Indonesian Finance Association (IFA), FORESPECT and TRS (Total Recovery Strategist). Graduated from Bandung Institute of Technology major in Petroleum Engineering, he has got his Master in Business Management (MBM) majoring in Finance and Strategic Management from Asian Institute of Management (AIM), Makati (Philippines), and MBA from Columbia Business School (CBS), New York (USA) Finance-Exchange scholars’ program. Recently, he is finalizing his Dissertation for Doctorate in Business Administration (DBA) from De LaSalle University – Manila (Philippines), major in Finance, Strategic Management, and Good Corporate Governance. He also serves as Director of Total Recovery Strategist (TRS), Chairman of The Board of Management of FORESPECT, BOD member of Indonesian Institute for Corporate Directorship (IICD, and BOD Member of SPA (Sentra Pemimpin Asia). TRS was founded by Professionals, SOE experts, Corporate Raiders, Entrepreneurs, and Top Ranking Navy who have experienced for more than 25 years within different multinationals, and local corporations, and SOE in different combat areas across the continents. Partners with investment bankers and capital market experts on corporate finance and capital structure analyses, TRS has the ability to combine the innovative, perceptive and holistic insights of a designer with the pragmatic and systemic skills of a planner to guide strategic direction in context of business needs, brand intent, design quality and customer values. TRS create a sustainable commercial advantage by applying innovative and quantitative ideas and systems at a sell side of financial institution. TRS envisions to work together with SOEs, Corporations and Government in their Strategic Planning, as well Strategic Execution on Strategic Restructuring, Strategic Change, Pre-IPO Strategic Design locally, regionally and Globally.

6. Selected Advisories:

7. Selected Hands-on Consultancies: STANDARD CHARTERED BANK, The Philippines MERRILL LYNCH, New York, USA STERLING TRANSTRADE, Manila, The Philippines DRUGSTORE, INC., Manila, The Philippines ELNUSA HOLDING CO., Jakarta, Indonesia GLOBAL FOREST, INC., Singapore VISEAN ONLINE PTY LTD, Richmond, VIC, Australia GRANSTAR MOTOR, Manila, The Philippines PT.INHUTANI I, II, III, IV and V Jakarta, Indonesia THE WORLDBANK - GICS Implementation based on PP 60/2008 at BPKP

8. Bagaimana Caranya Untuk Selamat bahkan SUKSES ???? Munculnya Negara- Negara P P ORTUGAL I I TALY G G REECE/YUNANI S S PAIN/SPANYOL B RAZIL R USIA I NDIA / I NDONESIA C HINA K OREA s ingapore

11. Lessons on LEADERSHIP

12. BIG PICTURE

16. Are You Ready in “WINNING The GLOBAL MOMENTUM” ?

17. The Recent Findings?

18. What Did They Say on Valuation?

26. CATEGORIES OF INTANGIBLE ASSET MARKETING-RELATED INTANGIBLE ASSETS: Trademarks, Trade Names, Service marks, Collective marks, Certification marks, Trade dress (unique color, shape, or package design), Newspaper mastheads, Internet domain names and Noncompetition agreements. CUSTOMER-RELATED INTANGIBLE ASSETS: Customer lists, Order or production backlog, Customer contracts and related customer relationships and Non-contractual customer relationships. ARTISTIC-RELATED INTANGIBLE ASSETS: Plays, Operas, Ballets,Books, Magazines, Newspapers, other literary works,Musical works such as compositions, Song lyrics, Advertising jingles, Pictures, photographs, Video and audiovisual material, including motion pictures, Music videos, and television Programs CONTRACT-BASED INTANGIBLE ASSETS: Licensing, Royalty, Standstill agreements, Advertising, construction, Management, Service or supply contracts, Lease agreements, Construction permits, Franchise agreements, Operating and broadcast rights, Use rights such as drilling, water, air, mineral, timber cutting, Servicing contracts such as mortgage servicing contracts and Employment contracts. TECHNOLOGY-BASED INTANGIBLE ASSETS: Patented technology, Computer software and mask works, unpatented technology, Databases, including title plants and Trade secrets, such as secret formulas, processes, recipes. Specifically intangible assets may be defined as:

27. NATURAL RESOURCES TECHNOLOGY LEGAL POLITICAL ECONOMIC SOCIAL NEW ENTRANTS SUBSTITUTE SUPPLIER RIVALRY BUYER

29. What is Corporate Governance ? of Corporate Governance Definitions What is Corporate Governance ? “Grandfather” of Corporate Governance Definitions Corporate governance is the system by which business corporations are directed and controlled. Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance. Attributed to: OECD Principles of Corporate Governance, 1999 (revised 2004) Good corporate governance is key to the integrity of corporations, financial institutions and markets, and central to the health of our economies and their stability.

30. What is Corporate Governance ? of Corporate Governance Definitions What is Corporate Governance ? “Grandfather” of Corporate Governance Definitions The OECD Principles are organised into SIX (6) broad categories: 1. E nsuring the basis for an effective corporate governance framework 2. R ights of shareholders and key ownership functions 3. E quitable treatment of shareholders 4. R ole of stakeholders 5. R esponsibilities of the board 6. D isclosure and transparency

31. GOOD CORPORATE GOVERNANCE = VALUES What is Corporate Governance ? of Corporate Governance Definitions What is Corporate Governance ? “Grandfather” of Corporate Governance Definitions

32. Key Implementation Success ?? What is Corporate Governance ? of Corporate Governance Definitions What is Corporate Governance ? “Grandfather” of Corporate Governance Definitions

33. The SOEs Guidelines presented in the document cover the following areas: 1. T he Equitable Treatment of Shareholders 2. S tate Acting as an Owner; 3. E nsuring an Effective Legal and Regulatory Framework for State- Owned Enterprises; 4. R elations with Stakeholders; 5. R esponsibilities of Boards of State- Owned Enterprises. 6. D isclosure and Transparency; 2005

34. What is Corporate Governance ? of Corporate Governance Definitions What is Corporate Governance ? “Grandfather” of Corporate Governance Definitions Priorities for Reforming Incentives in CRISIS in The Financial Markets : 1. S trengthen the regulatory framework 2. S trengthen capital adequacy rules 3. S trengthen understanding of how tax policies affect the soundness of financial markets 4. F ocus on integrity and transparency in financial markets 5. E nsure accountability to owners whose capital is at risk 6. C orporate structures for complex financial firms 7. S trengthening financial education programmes and consumer protection 2009

35. What is Corporate Governance ? of Corporate Governance Definitions What is Corporate Governance ? “Grandfather” of Corporate Governance Definitions OECD Guidelines for Multinational Enterprises - Recommendations for responsible business conduct in a global context 1. General Policies 2. Disclosure Policies 3. Taxation 4. Human Rights 5. Employment and Industrial Relations 6. Science and Technology 7. Environment 8. Combating Bribery, Bribe Solicitation and Extortion 9. Consumer Interests 10. Competition 2005

36. What is NACD Model for Excellence in Corporate Governance ?

37. NATURAL RESOURCES TECHNOLOGY LEGAL POLITICAL ECONOMIC SOCIAL NEW ENTRANTS SUBSTITUTE SUPPLIER RIVALRY BUYER GOVERNANCE, RISK, & COMPLIANCE GOVERNANCE, ETHICS, & OPERATION

38. OECD - www.oecd.org/dataoecd/32/18/31557724.pdf OECD - www.oecd.org/dataoecd/32/18/31557724.pdf BAPEPAM RI - Prinsip-prinsip Oecd 2004 Mengenai Corporate Governance - www.bapepam.go.id/pasar_modal/publikasi_pm/kajian_pm/studi-2006/Studi- Penerapan-OECD.pdf Corporate Governance Principles which was written by the ASX Corporate Governance Council (2003), based on the OECD (1999) corporate governance principles. www.griffith.edu.au/school/ gbs/afe/symposium/2008/B arnes.pdf Pedoman Umum Good Corporate Governance KNKG tahun 2006 ARA – Based on GRI Global Reporting Initiative (GRI) supported OECD Guidelines www.globalreporting.org/infor mation/news-and-press- center/Pages/GRI-Statement- Launch-of-the-OECD- Guidelines-for-Multinational- Enterprises.aspx

39. Ethics: a branch of philosophy dealing with “THE GOOD” Ethics: a branch of philosophy dealing with “THE GOOD” Morals: individual or culture- bound values that may or may not have foundation in ethics or philosophy Morals: individual or culture- bound values that may or may not have foundation in ethics or philosophy What is Ethics, Morals & Philosophy? South-Western College Publishing What is Ethics, Morals & Philosophy? “Handbook of Ethics” South-Western College Publishing

40. Ethics or Morals ?? What is Ethics, Morals & Philosophy? South-Western College Publishing What is Ethics, Morals & Philosophy? “Handbook of Ethics” South-Western College Publishing

41. Ethics or Morals ?? What is Ethics, Morals & Philosophy? South-Western College Publishing What is Ethics, Morals & Philosophy? “Handbook of Ethics” South-Western College Publishing

42. Some Contrasts Between Ethics and Morals Ethics require scrutiny and careful objective evaluation Ethics require scrutiny and careful objective evaluation Morals can be arbitrary, contradictory or inconsistent Morals can be arbitrary, contradictory or inconsistent Something can be ETHICAL AND MORAL OR Something can be ETHICAL AND MORAL OR Something can be ETHICAL AND IMMORAL OR Something can be ETHICAL AND IMMORAL OR Something can be MORAL AND UNETHICAL Something can be MORAL AND UNETHICAL What is Ethics, Morals & Philosophy? South-Western College Publishing What is Ethics, Morals & Philosophy? “Handbook of Ethics” South-Western College Publishing

43. Some Contrasts Between Ethics and Law Something can be ETHICAL AND LEGAL Something can be ETHICAL AND LEGAL Something can be ETHICAL AND ILLEGAL Something can be ETHICAL AND ILLEGAL Something can be UNETHICAL AND LEGAL Something can be UNETHICAL AND LEGAL Something can be UNETHICAL AND ILLEGAL Something can be UNETHICAL AND ILLEGAL What is Ethics, Morals & Philosophy? South-Western College Publishing What is Ethics, Morals & Philosophy? “Handbook of Ethics” South-Western College Publishing

44. ETHICAL ???? -- LEGAL ??? What is Ethics, Morals & Philosophy? South-Western College Publishing What is Ethics, Morals & Philosophy? “Handbook of Ethics” South-Western College Publishing

45. BIG PICTURE

46. Where is “Leadership” ? Are You a Leader ? CORPORATE GOVERNANCE FAILURES !!!!

48. What is “Governance” ? What is A Visionary Leader ? Are You a Visionary Leader ?

49. What is “Governance” ? What is A Visionary Leader ? Are You a Visionary Leader ?

50. What is “Governance” ? What is A Visionary Leader ? Are You a Visionary Leader ?

51. What is “Governance” What is A Visionary Leader ? Visionary leaders are the builders of a new dawn, working with imagination, insight, and boldness. They present a challenge that calls forth the best in people and brings them together around a shared sense of purpose. They work with the power of intentionality and alignment with a higher purpose. Their eyes are on the horizon, not just on the near at hand. They are social innovators and change agents, seeing the big picture and thinking strategically. Visionary leaders anticipate change and are proactive, rather than reactive to events. Their focus is on opportunities, not on problems. Are You a Visionary Leader ?

52. A Leaders’ Vision Of the Future Can Align Efforts and Help Groups Accomplish More Groups that lack vision Groups with vision Are You in a Group of Visionary Leaders ?

53.  Half of the Fortune 500 companies in 1987 are not Fortune 500 companies today. Many of these companies have FAILED AND CLOSED THEIR DOORS FOREVER. Reasons cited are numerous (“Failures of Vision”, “Identity Crisis”, “Anybody Out There”, “The Glue Sticks, and Sticks”, “Enemies Within”).  Escalating challenge of CEO survival (Within 2 years, 57% of the largest 367 companies in USA REMOVED their CEOs )  There are CHANGES in nature of the business, investment, and investors (3 most obvious ones: Constituent Demands are Greater, Expectations are Higher, Competition is Tougher) What are the Issues on Leadership & How to ENSURE Survival ? Why “Governance” When Discussing Business Ethics & Governance ?

54. Statistical TRUTHS about People Happy Employees Create Value People have creativity, knowledge, experience, and ideas that can create value that doesn't land on a traditional P&L. “Evolving Excellence- 2007” Why “Governance” When Discussing Business Ethics & Governance ?

55. Statistical TRUTHS about People Losses from fraud are likely to be grossly misleading because only a fraction of fraud is reported. Statistically: One out of every four persons will steal whenever they can (25%). Two out of four persons will steal when they think they can get away with it (50%). 75% In total, 75% of all persons are potential fraud perpetrators. Tan Chen Leong CFE IICD-Marcus Evans Forum for Directors 16-17 Jan. 2006 – Mulia Hotel, Jakarta Why “Governance” When Discussing Business Ethics & Governance ?

56. 21 st -Century Corporations Global Global The timeline for the globalization of companies:The timeline for the globalization of companies: Early days: a company that sold goods overseas Early days: a company that sold goods overseas Middle period: a company that manufactured and sold goods in other countries Middle period: a company that manufactured and sold goods in other countries 21st Century: a company that is able to call on talent and resources around the globe, just as it sells its goods and services around the globe 21st Century: a company that is able to call on talent and resources around the globe, just as it sells its goods and services around the globe Speed Speed Speed in the 21st century company is a business strategy built on a virtual network of suppliers, manufacturers, and delivery firms Speed in the 21st century company is a business strategy built on a virtual network of suppliers, manufacturers, and delivery firms Why “Governance” When Discussing Business Ethics & Governance ?

57. Key Features of the Competitive Business Environment G lobalization G lobalization E -Commerce E -Commerce C hanging demographics C hanging demographics I ncreasing cultural diversity I ncreasing cultural diversity T echnology T echnology Why “Visionary Leadership” When Discussing Business Ethics & Governance ?

58. Key Features of the Competitive Business Environment Why “Visionary Leadership” When Discussing Business Ethics & Governance ?

59. New Competitive Realities Decline of management hierarchies, with an increase of networks of specialists Decline of management hierarchies, with an increase of networks of specialists Emergence of smaller companies with fewer employees Emergence of smaller companies with fewer employees Increase of technicians to keep networks operating Increase of technicians to keep networks operating Decline of the importance of seniority in compensation Decline of the importance of seniority in compensation Overall worth based on performance plus the market value of a given position Overall worth based on performance plus the market value of a given position Why “Visionary Leadership” When Discussing Business Ethics & Governance ?

60. Why “Visionary Leadership” When Discussing Business Ethics & Governance ?

61. Why “Visionary Leadership” When Discussing Business Ethics & Governance ?

62. Integrated Enterprise Risk Management (IERM) MODEL Why “Visionary Leadership” When Discussing Business Ethics & Governance ?

63. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?

64. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ? Orang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat

65. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?

66. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ? Orang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat

67. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?

68. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ? Orang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat

69. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?

70. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ? Orang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat

71. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?

72. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ? Orang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat,Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat

73. WHAT do We need to Implement The Principles of “Visionary Leadership” on Business Ethics & Governance ?

74. WHAT do We need to Implement The Principles of “Visionary Leadership” on Change? Orang Yang Tepat, Budaya Yang Tepat, Isyu Yang Tepat, Informasi Yang Tepat, Proses Yang Tepat, & Tindak Lanjut Yang Tepat

75. Change !!!! To Make Different in Some Particular: ALTER To Make Radically Different: TRANSFORM To Give a Different Position, Course or Direction -- Webster’s Collegiate DictionaryHOW to Implement The Principles of “Visionary Leadership” in Building Standards and Enhance NEW CULTURE ?

76. HOW

77. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin Why CHANGE ?

78. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo Why CHANGE ?

79. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo Why CHANGE ?

80. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo Why CHANGE ?

81. Are you Refreshed On Business Environment whereas Human Resources are NOW as Competitive Advantage ?