1he chang|ng face of Indones|an

nosp|ta||ty
MARKET
HUMAN CAPITAL
Assessment
lndonesla has made remarkable progress slnce Lhe 1998 economlc and pollucal crlsls.

lL ls Lhe largesL economy ln SouLheasL Asla, wlLh a vlbranL, plurallsuc democracy and
lmporLanL success ln reduclng poverLy.

lndonesla has weaLhered Lhe more recenL global nanclal crlsls relauvely unscaLhed and ls
en[oylng lncreaslng lnvesLor condence and Lhe beneLs of recenL movemenLs ln
commodlLy prlces.

As a member of Lhe C-20 and Lhe 2011 chalr of Assoclauon of SouLheasL Aslan nauons
(ASLAn), lndonesla has assumed an lncreaslngly lmporLanL role reglonally and globally.

Ma[or challenges remaln, however, ln susLalnlng growLh, sLrengLhenlng poverLy reducuon
and addresslng envlronmenLal susLalnablllLy.

Assessment
1o reach lLs poLenual, lndonesla needs Lo press forward wlLh reforms Lo rapldly bulld Lhe
capaclLy of lLs lnsuLuuons ln creaung employmenL opporLunlues and upgradlng skllls,
lmprovlng publlc servlces and lnfrasLrucLure, and reduclng Lhe legacy of corrupuon.

1oday, lndonesla ls a landscape of opporLunlLy, wlLh a populauon of 260 mllllon.

Lven Lhough more Lhan 33 mllllon lndoneslans currenLly llve below Lhe poverLy
llne and approxlmaLely half of all households remaln clusLered around Lhe
nauonal poverLy llne.
uesplLe Lhese condluons, lndonesla conunues Lo posL slgnlcanL economlc growLh.
INDCNLSIA CVLkVILW
As of Aprll 2013, Lhe counLry's economy ls expecLed Lo grow by 3.9
percenL ln 2013 and lncrease Lo abouL 6 percenL ln 2014.

Labor lorce: 133 mllllon (esL)
8y Cccupauon: Servlces: 49.6 (esL)


Asla aclc lnvesLmenL Lrends, pro[ecL !akarLa as Asla Lop desunauon
for lnfrasLrucLure


OPPORTUNITY INDONESIA
Lconomlc Analysls

- ln Lerms of macroeconomlc sLablllLy, lndonesla has managed Lo fulll many of lLs scal
LargeLs, lncludlng a slgnlcanL drop ln uebL-Lo-Cu rauo from 61 percenL ln 2003 Lo 27.3
percenL ln 2009.
- 1he budgeL declL by key economlsLs ls pro[ecLed Lo be as llule as 1.7 percenL of Cu ln
2016.
1he currenL medlum-Lerm developmenL plan coverlng 2009-2014 focuses on:
romoung
quallLy of
Puman
8esources
uevelopmenL
of sclence and
Lechnology
SLrengLhenlng
economlc
compeuuveness
TOURISM AND DEMAND DRIVERS
lndonesla ls Lhe largesL archlpelago ln Lhe world, sLreLchlng 3.110 km along Lhe equaLor from
easL Lo wesL and 1.888 km from norLh Lo souLh wlLh more Lhan 17,000 lslands ln LoLal.
lorelgn Lourlsm ls an lnLegral parL of Lhe lndoneslan economy. lor Lhe decade prlor Lo Lhe
crlsls of 1997 Lhe Lourlsm lndusLry experlenced sLrong growLh, wlLh large lncreases ln arrlvals
of forelgn LourlsLs, LourlsL spendlng and lnvesLmenL.

1wo Ma[or 8aung Agencles: llLch (uec 2011) and Moody's lnvesLor (!an 2012) upgraded
lndonesla raung lnLo lnvLS1MLn1 C8AuL.
OCCUPANCY % PAST TRENDS
WHAT DOES
THE FUTURE MARKET
HOLD?

JAKARTA / BALI- Opportunity or Challenge
ln splLe of a boomlng economy much prlvaLe-secLor properLy developmenL, !akarLa's and
8all's spaual plannlng and lnfrasLrucLure, as well as lLs servlce provlslon - LransporLauon,
green space, aordable houslng, clean waLer, healLhcare, and educauon - have noL kepL pace
wlLh demand.

ln some lnsLances, lllegal and undocumenLed land leaslng and landlord-LenanL conLracung ls
pracuced. 8oLh Lhese clues have a long hlsLory of Lhese lnformal seulemenLs.

SLrong and susLalned growLh ln populauon and economy have resulLed ln a vasL lncrease ln
Lhe urbanlzed area, and land use change.

1ramc congesuon ls a ma[or problem faclng boLh clues, wlLh only lncremenLal eorLs Lo
relleve congesuon Lhrough Lhe developmenL of publlc LransporLauon.

MosL promlnenLly, Lhe 1rans !akarLa 8us way and now Lhe upcomlng plans of an M81 clLy rall
besldes Lhe ongolng upgrade of 8all alrporL and planned upgrade of !akarLa alrporL soon.


Five Star
3-sLar hoLels ln C8u wlLh LoLal rooms of 6,962 |n -1 2013 ach|eved 6S.1 occupancy wlLh
room Larls averaglng kp971,106 per nlghL.
ln South Iakarta (excludlng C8u), Lhere were 624 rooms of 3-sLar hoLels LhaL were oered aL
kp 9S1,431 per n|ght and ach|eved 67 occupancy on average.

Meanwhlle, ln Centra| Iakarta (excludlng C8u), Lhe occupancy of 3-sLar hoLel rooms was
62.7 on average and Lhey were sold aL kp 6S9,S98 per n|ght.
Case study - JAKARTA
Four Star
lour-sLar hoLels also achleved posluve growLh.

1he occupancy of Lhe 1,S70 rooms of 4-star hoLels ln C8u !akarLa averaged 71.3 |n 2012,
whlle Lhelr Larls were kp S71,134 per n|ght on average.

!" $%& '())($*+ ,-.

South Iakarta (69S rooms, 71 occupancy, kp S70,202 per n|ght)
Centra| Iakarta (4,193 rooms, 63.7 occupancy, kp 433,403 per n|ght)
North Iakarta (888 rooms, 71.2 occupancy, kp 493,972 per n|ght), and
West Iakarta (1,926 rooms, 70.S occupancy, kp S01,667 per n|ght).
Case study - JAKARTA
Three Star
3-star hote|s recorded qu|te h|gh occupancy |n 2012.

ln South Iakarta, 3-sLar hoLels reached 1,370 rooms ln LoLal, and Lhelr occupancy averaged
71.3 whlle Lhelr room Larls averaged kp 398.311 per n|ght.
Centra| Iakarta had 2,634 rooms wlLh Lhelr Larls averaglng kp 302,731 whlle Lhelr occupancy
was 68.7 on average.
ln North Iakarta, Lhere were 334 rooms wlLh Lhelr occupancy reach|ng 7S.1 and Lhelr room
Larls averaged kp 348,812.
Meanwhlle, Last Iakarta had 138 rooms ln LoLal, whlch were prlced aL kp 289,216, wlLh Lhelr
occupancy averag|ng 68.
Case study - JAKARTA
New Hotels coming to Jakarta/ Bali
ln Lhe nexL 36 months, 4000 new rooms are pro[ecLed Lo come lnLo !akarLa and abouL 6000
new rooms |n 8a|| wlLhln Lhe upper upscale and budgeL caLegory of accommodauons.

1hls can creaLe a posslble over supply of producL for a shorL perlod of ume besldes a
lnLellecLual caplLal crunch ln Lhese key markeLs.





1here |s an |nux of hote|s com|ng |nto Iakarta and 8a|| as market sennment
over 2012 and 2013 has been pos|nve w|th a stab|e demand from domesnc as
we|| as tour|sts and grow|ng pos|nve |nvestment c||mate for Indones|a.

IDI |nvestment for hote|s has grown by over 200 percent
1he kea| Cpportun|ty
New Hotels-rest of Indonesia
lor Lhe upcomlng 3 years, near|y 17,000 new rooms are pro[ecLed Lo come lnLo Lhe resL of
lndonesla wlLhln Lhe upper upscale and budgeL caLegory of accommodauons

1hls supply of producL wlll sull noL be able Lo susLaln rlslng demand wlLhln domesuc markeL
for a shorL perlod of ume and wlll also cause an lnLellecLual caplLal crunch





1here |s a need for hote|s |n many secondary c|nes of Indones|a as market
sennment and domesnc trave| and bus|ness rema|ns strong.

43.0
30.0
33.0
60.0
63.0
70.0
Indones|a Growth keg|ons "ro[ecnons"
2014 2013 2016 2017 2018 2019 2013
FUTURE INDONESIA LOCATIONS- BUDGET AND STAR RATED HOTELS
Cther areas of cha||enges can be
! ua||ty vendors for deve|op|ng hote|s (ro[ect cos and deve|opers)
! Secondary c|ty |nfrastructure and |ts deve|opment pace
! Understand|ng the needs of domesnc trave||ers ( they are not tour|sts or are they )
! No deta||ed govt subs|dy 8eneht ackage
! 8ank|ng |oans - today at 13 rate of |nterest from 10 7 months pr|or
! 1he |nstab|||ty of the IDk ( |n the |ast month huge IDI has w|thdrawn)
! ua||ty I||ghts capac|ty and A|rports |nfrastructure
! 1ry book|ng a |ght to a c|ty ||ke 8a||kpapan v|a Garuda 24 pr|or to y|ng
! Last but not |east - CkI1ICAL - 1he human resource ta|ent poo|
The
HR Challenge..
resent Scenar|o
! 1ra|ned Sta - L|m|ted supp|y
! note| Schoo|s - L|m|ted supp|y
! New note|s Cpen|ng very h|gh
! Demand vs. Supp|y - skewed
1he presenL scenarlo exlsLs where Lhere are many more hoLels openlng wlLh noL enough Lralned
resources avallable.

1hls works ln sLa beneL as sLa have more opporLunlues and hence Lurnover sLarLs Lo be very
hlgh ln markeLs llke !akarLa , 8all , Surabaya eLc.
And yeL as people grow fasLer , do Lhey have Lhe requlslLe experlence Lo Lake Lhe role
1he Indones|an resource and h|s needs
SLa ls a mlxLure of CLn x, ? and baby boomers, so whaL does lndoneslan SLa wanL?

lace ls lmporLanL, respecL
Speed ln acuon of promlses made
1wo way communlcauon
8ecognluon needs
Mouvauonal needs
1ralnlng needs
uevelopmenL needs
Cne on one lnLeracuons and hand holdlng
Money and career paLh
eer assessmenL and evaluauon
laclllues (canLeen eLc.) and servlce charge
ManagemenL lnLeracuons and leadershlp
"1he sta retennon pyram|d"
uevelopmenL
8eneLs
"1wo way
Commun|canon"
Mouvauon
Areas of
fallure
1he ex|snng Go|d M|ne
PoLels presenLly have sLa aL 4 dlerenL levels
ermanenL sLa - lull beneLs
ConLracL sLa - Seml beneLs
ually worker - ually pay
1ralnees - LlmlLed pay

WlLh each of Lhese levels, sLa can be mouvaLed and reLenuon Lechnlques applled.

1hls sLa many a umes ls Laken for granLed and so chooses Lo leave.

SLudles have shown LhaL LhaL Lhe cosL of hlrlng a new sLa Lo replace an exlsung performlng
sLa are abouL 16 umes more expenslve , so where Lhe hoLel was spendlng uSu 1 wlLh
exlsung sLa .

Plrlng , Lralnlng & replaclng a new sLa ln hls place wlll cosL Lhe hoLel uSu 16 dollars.

Needs of ermanent sta
kecogn|non
New Cpportun|ty
Cross 1ra|n|ng
Career Deve|opment
Cne on Cne |nteracnon
LNGAGLMLN1
noL all sLa are looklng for promouons or more money and beneLs, many a ume sLa can be happy aL whaL
Lhey are dolng buL are looklng aL some recognluon and mouvauon, all Lhey need ls engagemenL from Lhelr
supervlsor / leader.
L.g. urlvers, uoorman, 8oom auendanLs , Managers, Lven Lx-com and CM's

PLA8 / LlS1Ln - SLa do care abouL your hoLel, Lake suggesuons and lf managemenL promlses are made,
ensure Lhey are kepL.
Needs of Contract Sta
ermanent ro|e
8enehts
kecogn|non
Cpportun|ty and
Cne on Cne |nteracnon

CCk1UNI1
1hls ls one of Lhe mosL common hlrlng sLyles ln hoLels and Lhe conLracL sLa ls normally hlred for a 1 year
conLracL and exLendable.

MosL of Lhese sLa are looklng for sLablllLy and Lhls way llmlLs Lhe hoLels rlsk and allows hoLels Lo screen and
elLher exLend or end conLracL aer one year.

1he opporLunlLy and rlsk here ls very hlgh:
Cpportun|ty - ldenufylng Lhe sLa wlLh poLenual and oerlng Lhem proper career developmenL and
paLhs for reLenuon.
k|sk - sLa ls always looklng for a beuer opporLunlLy for a sLable career and [ob and beneLs.
Needs of Da||y Worker
Serv|ce Charge
Contract or permanent ro|e
8enehts
Cpportun|ty

IINANCIAL
ShorL Lerm hlrlng used malnly ln areas llke l&8 servlce , Pousekeeplng eLc , Lhls ls also a rlsky proposluon as
Lhls klnd of sLa ls always looklng for an opporLunlLy where a hoLel wlll glve Lhem a conLracL role as Lhe salary
scale compleLely changes.

Many a umes hoLels nd legal shorL cuLs (cosL savlngs) and have seml Lralned sLa as dally workers worklng for
years wlLh Lhe hoLel, Lhls ls noL only rlsky from a legal sLandpolnL buL also may resulL ln medlocre performance
by sLa.

1hls sLa are always looklng for a proper sLable [ob.

1he opporLunlLy lles ln ldenufylng sLa LhaL has poLenual and oerlng Lhem conLracL roles lnlually and Lhen
movlng Lhem Lo permanenL wlLh career developmenL
Needs of 1ra|nee
Learn|ng
Iob
Lxper|ence
DLVLLCMLN1
ShorL Lerm hlrlng oen used as sLa for baslc servlces wlLhouL proper Lralnlng or monlLorlng .

1hls ls a greaL LalenL pool LhaL should be monlLored closely and LalenL ldenued LhaL can be developed Lo [oln
hoLel posL nlshlng school , ldeal way Lo monlLor Lhls resource ls a buddy sysLem wlLh exlsung Lralned sLa who
can also menLor and reporL on Lralnees progress.


Sta Deve|opment- 1he key to retennon
MosL hoLels have Lhese Loday
More llke a uck on Lhe box, buL do Lhey work ?
WhaL ls a good developmenL program?
MlndseL change from Lhe Lop and noL [usL P8.
1alenL uevelopmenL sLarLs aL [unlor mosL level (doorman, walLer)
SLarLs wlLh a 1ralnlng needs Analysls and ldenucauon of sLa.
lollowed up wlLh quarLerly performance evaluauon.
SeL a career developmenL plan from 6 monLhs Lo Lwo years.
MonlLored by P8 and ulvlslon Pead
Success and challenges monlLored , monLhly documenLed dlscusslon wlLh menLor on progress.
Success model shared.

L.C auached.

1he now of auracnng new sta
! 1a|ent Deve|opment rograms
! Management 1ra|nee rograms
! Schoo| tra|nees deve|opment programs
! note|s 8eneht ackage
! Management and |eadersh|p
! Look|ng at a|ternanve ta|ent poo|s
ABOUT LIVEBEAN
L|ve8ean nosp|ta||ty
Wlsma Ck8l, 39Lh lloor, !l. !end Sudlrman no 28,
!akarLa, 10210, lndonesla
L conLacL[llvebeanhosplLallLy.com W hup://www.llvebeanhosplLallLy.com
lounded ln 2007, Llve8ean ls a leadlng hosplLallLy consulung rm speclallzlng ln provldlng Lhe hosplLallLy and
Lourlsm lndusLry wlLh soluuons geared Lowards servlce excellence and growLh of shareholders proLablllLy.

WlLh over a 130 years of hosplLallLy managemenL experlence Lhe Leam aL Llve8ean oers hosplLallLy relaLed
concepLs, emclencles and performances, whllsL provldlng pracucal and slmpllsuc sLraLegles, soluuons and servlces
LhaL focus on 8evenue Cenerauon and roLablllLy for lLs cllenLs