By Made Dana Tangkas and Adi Rizal Nidar, The Indonesia Automotive Institute (IAI). The Indonesia Automotive Industry Automotive Industry in Indonesia Challenges of Automotive Industry Business Engineering in the Automotive Industry Opportunities for Business Engineering Graduates Concluding Remarks

1. The Opportunities for Business
Engineering Graduates in the
Automotive Industry in Indonesia
Made Dana Tangkas
Adi Rizal Nidar
The Indonesia Automotive Institute (IAI)
Presented at the Workshop of International Association of Business Engineering
Professionals (IABEP) on 27 March 2017 in SBM ITB Jakarta Campus

2. Overview
• The Indonesia Automotive Industry
• Automotive Industry in Indonesia
• Challenges of Automotive Industry
• Business Engineering in the Automotive Industry
• Opportunities for Business Engineering Graduates
• Concluding Remarks
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3. The Indonesia Automotive Industry
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4. The Indonesia Automotive Industry
• On May 20, 2016, the Indonesia Automotive Institute ( IAI ) has been established by Ministry of Industry,
the Republic of Indonesia. Mr. Made Dana M. Tangkas was appointed as The President of Indonesia
Automotive Institute.
• The Institute has several goals:
• To increase the competitiveness of Indonesia’s automotive industry as well as to be integrated into global supply chain.
• To become the leader (locomotive ) for the development of Indonesia’s automotive industry (people, technology and product,
capacity building).
• As key driver to ensure the roadmap of Indonesia’s motorization and automotive development era.
• The Institute has role as a think tank [thinker] and an independent organization to promote human resource
development, provide the support, feedback & suggestion to Government and Automotive industry
stakeholders, and coordination and cooperation among stakeholders (ABG-C: Academy, Business,
Government and Community ) for Indonesia’s automotive industry development.
• To develop a strong automotive industry in Indonesia, it needs contribution, supporting and collaboration
among all of automotive industry stakeholders.
• Welcome all of stakeholders to involve and participate for establishing more advanced, flexible and local
resources utilization of automotive industry in Indonesia.
Source: Institut Otomotif Indonesia at http://www.ioi.or.id/ 4

5. The Indonesia Automotive Industry
• VISION:
• To be a leading organization by building healthy automotive industry through pursuing sustainable four strategies
development of people, technology, product, and services for comfortably moving of people and goods.
• MISSION:
• Enhance Indonesia as a basis of automotive production and export to strengthen Indonesia's Automotive Industry in
domestic and global competitions.
• ROLES AND RESPONSIBILITY:
• To engage and to develop the Indonesia's Automotive Industry in core and platform products by strengthening
business function and to provide the support to Government and external stakeholders
• To strengthen the Indonesia's Automotive competitiveness through integration into Global Value Chain by
enhancing related upstream industries, deeper localization, and high value added & high technology products
• To enhance the Indonesia's Automotive Industry functions through capability development by strengthening R&D
and Technology
• To develop competence standards and provide certification in the field of automotive manufacturing
• To provide information and database of automotive industry in Indonesia
Source: Institut Otomotif Indonesia at http://www.ioi.or.id/ 5

6. Organization Chart
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7. Automotive Industry in Indonesia
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8. 8

9. Passenger Car Market Dominated by
Japanese Players
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10. Vehicle Production and Sales in Indonesia
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11. Passenger Car Market
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12. Japanese Manufacturers has established a
very strong presence in Indonesia
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13. Indonesia Automotive Master Plan
Government’s current focus is to develop production base for eco-friendly vehicles
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14. Challenges in the Automotive Industry
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15. Challenge #1:
Automotive
Value Chain
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16. Challenge #2:
Business Lines of
the Global Parts
and Logistics
Division
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17. Challenge #3:
Productivity
Games
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18. Challenge #4:
Innovation Games
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19. Business Engineering in the Automotive
Industry
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20. What it's like working in automotive industry
• The industry is fast-paced – a vehicle can progress from initial concept
to driving off the production line in around four years, helped in part
by extensive use of computer modelling and simulation.
• As vehicles are such complex systems, engineers work as part of large
teams.
• They typically also interact with suppliers and with colleagues in non-
engineering roles such as finance, purchasing or HR.
• In some cases they may have contact with dealership staff or
customers to run focus groups, or with third-party suppliers of
customer surveys.
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21. 21

22. The most favorite
Automotive
Companies of
Job Hunters
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23. The automotive industry seeks graduates in
Automotive Engineering is a field to design, develop, fabricate, and testing vehicles or vehicle components from the concept stage to production
stage.
Industrial Engineering is concerned with the development, improvement, and implementation of integrated systems of people, money,
knowledge, information, equipment, energy, materials, analysis and synthesis, as well as the mathematical, physical and social sciences together
with the principles and methods of engineering design to specify, predict, and evaluate the results to be obtained from such systems or processes.
Engineering Management combines the application of the practice of management to the practice of engineering.
Business Engineering?
Etc.
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24. What is Business Engineering?
• Business engineering combines knowledge in the fields of business
administration, Industrial Engineering, as well as information
technology and connects it to all aspects of transformation, from
means of presentation to process models to cultural and political
considerations.
• Source: Ulrike Baumöl, Reinhard Jung: Rekursive Transformation: Entwicklung der Business
Engineering-Landkarte. In: Walter Brenner, Thomas Hess (Hrsg.): Wirtschaftsinformatik in
Wissenschaft und Praxis – Festschrift für Hubert Österle. Business Engineering. Springer,
Berlin 2014.
• Business engineering ensures a holistic view of the design of new
business models, business processes and information systems, as well
as the implementation while using resources and processes involved
in the transformation.
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25. Business Engineering of St. Gallen
• The St. Gallen approach to Business Engineering comprises fundamentals
and methods for different kinds of transformation projects.
• It distinguishes between the design level strategies, organization and
information systems within the transformation process and, thus, reduces
the complexity of the transformation.
• Strategy: Capabilities (incl. brand) and resources, business segments (products,
services, customer segments), customer access, competitive position, ecosystem,
and revenue and cost structures.
• Organization: company organization structure and operational structure, focus on
business processes with accompanying process performances, procedures, tasks and
business objects
• Information system: System of applications and technical services, software and data
components as well as IT infrastructure components. According to the relevance of IT
in the respective organization, this level is further divided into the subcategories of
"alignment", "software and data" and "IT infrastructure“.
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26. Business Engineering of St. Gallen
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27. ARIS House of Business Engineering
Source: http://www.orms-today.org/orms-4-04/frbusiness.html
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28. Roles of Business Engineering
Understanding of core concepts: strategy,
business architecture, analytics, informatics,
operations and supply chain, lean systems
Use of software aided
engineering
Use of engineering design
lifecycle
Design and analyze business systems, supply chains,
distribution, sales and marketing, and more
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29. Business Engineering in Automotive Industry
Value Chain
Strategy
Purchasing
and
Procurement
Assembly Distribution
Product
Development
Marketing
and Sales
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30. Technical Career of Business Engineering?
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31. Opportunities for Business Engineering
Graduates
Career Path
Level Position What is required?
Entry level (dependent) Internee, volunteer, hands-
on-worker
Concept, hardworking
attitude
Junior engineer or
administrator (under
supervision)
Business administrator,
business engineer, system
engineer, pre-sales engineer
General experience, specific
knowledge (certificate),
ability to communicate to
client and supervisor
Senior engineer or
administrator (independent)
Senior administrator, senior
engineer, assistant manager,
consultant
Technical expertise in
multiple areas, end-to-end
support, transfer knowledge
to junior, handle difficult
clients
Management Project manager, product
manager, consultant,
account manager
Technical experience, good
communication skills,
project management
Top Management Chief Business Officer (CBO) Primary: technical,
secondary: business and
management, visionary and
creative
Skill Sets
• Toyota Production System
• Lean System and Continuous Improvement
• Analytical Thinking, Informatics, and Algorithm
• Business Development
• Product Development
• Sales and Marketing
• Performance Monitoring and Evaluation
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32. Concluding Remarks
• Automotive industry is a big and provides ample opportunities for
business engineering.
• Employer should be able to recognize and differentiate Business
Engineering compared to other engineering fields.
• In the automotive, business engineering graduates should be
equipped with core concepts of design, manufacturing, distribution,
and marketing of automobiles.
• Toyota Production Systems is a core concept that needs to
incorporate to business engineering graduates who want to seek
career path in Japanese corporations.
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33. Thank You
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