Day 7: "Deal or No Deal"

There's so many interesting things about Semarang, and it's a waste not to add their cuisine to the list. It was really true when they said some of the best food are to be found in the nooks and crannies. Humble looking stores that serve you Nasi Padang that can compete with the best in Singapore. Enak, they'd say.

Today's morning started with a tidbit (more like a giant breakfast) to ponder upon by Cik Farid. One of the challenges of being an entrepreneur is actually being very clear about what you have to do for your company to grow. He asked me a very simple question - "If I gave you or any young entrepreneur Micromart, do you think you can run it here in Semarang". The answer to that was simple - no. Why was the harder follow up question to that. So frankly I told him "I don't know enough about business, much less Semarang, to be running a business of such a scale. Everybody makes mistakes, but make too many and you may not be able to jump back from it". So I elaborated further - if the Financial Controller or Accountant were to just show me the numbers I'll probably just gloss it over and sign off without knowing what the numbers mean (easy way out eh). He then enlightened me on one lesson on how to be successful in what you do. Sadly enough it was no magic formula, but such is life. It was a very simple thing. Experience.

It took Cik Farid his failures and subsequent perseverance to be where he is today. That is essentially experience. There is no shortcut about this. You need experience (and he also likes to add, Hunger too) to be able to run a tight operation. Without it, you are much more likely to holes in your operation, and over time those holes will only get larger and larger. Experience lets you see problem when its there - be it in the numbers or even staff. Experience shows that you know what you are doing, and in turn allow your staff to have faith in you. Experience is a long road - but it is what defined Cik Farid. Experience gives you knowledge no textbook can.

This was followed by a very simple task to study Sun Tzu's Art of War. I have heard of the fabled sun Tzu's art of war - but never found compelling reason to go about reading it. Admittedly I was missing out quite a bit. In what I managed to read through the day - I found it very interesting that Sun Tzu believes that wars should be won before it even happen, and this is done with information. Treasure information, and never rest on your laurels - because someone else will get ahead. It seems business was not so much "doing what feels right" rather than "knowing what exactly to do". From what I have seen with Micromart, this has certainly been a very key part of his operation. Cik Farid does not make decisions "just to try". His decisions from my observations are based on keen awareness of everything that is happening in his surroundings, from competitors, operation and even staff mentality.

I ended off my day with a meeting late in the evening together with Cik Farid, Cik Topan(Micromart's Corporate Growth Group Division Head) and three other potential investors into Micromart. It was my first time witnessing "negotiations". Well, it certainly was not the cutthroat, high tension, cunning smiles environment I expected. I probably watched too many movies. What I did take away from it from the get go was really how Cik Farid carried himself and applied his value of being very transparent with his investors. "MM's aim put simply, is to open as many tokos as possible". There was give and take, and both sides can align themselves to each other's interest.

However, what was most interesting from this exchange was really in the fact that the investors value was really beyond the capital that they are capable of investing. In the course of their discussion, they raised the possibility of bringing their friends or contacts in the fold who might be interested in Micromart. Mr Farid was very interested in this possibility and was very encouraging. I realized this discussion just took it up to the next level. You might not be in it just to win over the investor, but also the people they know as well who may also contribute greatly to MM in a different way. I'm quite certain he was aware of this, and was very proactive in facilitating the possibility. So this was "networking" which I often hear people talk about. Nobody ever teaches you to "network", however I am starting to believe that if anything - this is one skill that you must have. Opportunities may not come to you on a silver platter. You need to be hungry for it. However, knowing who to know might increase the odds of that platter coming your way.

It was certainly a long day - yet there's still more to learn, more to know. I haven't even scraped the surface of this new world down here in Semarang, after a week here in Semarang. This... potential is exciting. It's hard to describe the feeling, but it really is one of a kind

Day 8: "Desa".

Today was a very, cultural experience I must say. Reporting to office in the morning and driving out 1hr+ away I found myself in a rural area with the team tasked with setting up a new Micromart toko in the area.

We fixed up the shelves, watched the glass panels get fixed, the whole Ikea experience. We then set up the stock and cleaned up the store. In a single day we turned an empty room into a convenience store literally ready for business. Like usual Micromart operation - I saw how they had pride in their work. The heat was insane and the room was small, however they were still meticulous with their work and ensured that the display was done up very professionally. Occassionally they would even suggest where some items could be better placed to our supervisor - which was the first time I noticed suggestions made. This must be Cik Farid's company motto of "open communication". There was no following orders for the sake of it, they also thought about the work they would do. By the end of the day there was a little group of children just sitting outside the store and curiously peering in. There was a look of wonder in their eyes, Micromart being set up right where they live must have excited them quite a bit. It was the same wonder I got when a McDonalds was going to open up. I couldn't wait for the time when the cardboard panels would be removed and I could feast on some deep fried goodness.

When I first stepped in I wondered why Micromart chose this place out of the many places in Indonesia they could choose from as competing with the already present kedai runcits would certainly be difficult. However, I realized that it doesn't really matter. It showed that Cik Farid meant it when he says he wants to open Micromarts all over Indonesia - for the people.

I imagine it must have been an interesting experience for my teammates as well, who told me more about Indonesia and how this job also allows them to see parts of Indonesia they may see otherwise. Learning really can come from anywhere. Did you know that despite the language being "Bahasa Indonesia", there are actually differences in the dialects that are used across the states. It may not seem very surprising, as Singapore has similar dialects in society - however it goes to show how Semarang was really a very small part of the diversity to be found in Indonesia.

Day 9: 一週間 (1 week)

Today's morning started with a meeting Cik Farid had with certain members of his staff. Like usual, he still kept his meeting agendas very clear and was concise in going about doing it. He had an objective he wanted to provide his new staff, and wanted her to liaise with certain staff from other departments. What was interesting was actually in how concise his meeting was - to the point where it was almost open-ended. I believe that in letting them understand that they will be working together as a team and telling them of his objectives, he offers them freedom in deciding how they will work together to accomplish that task. I believe this kind of leadership shows the kind of trust he has in his staff and does not micro-manage them. However, I imagine he's not the sort to not keep track or monitor it either - what with follow up and follow through being one of the five values of Micromart

.In the later part of the day I followed the team tasked with readying the new MM for its big day tomorrow. It's quite enjoyable being with them, and despite the language barrier they have been very open to sharing with me more new perspectives on their culture. They also did not complain when they had to spend a little bit of overtime to make sure the job gets done.

Over the past week, just by being able to observe and interact with the staff of MM I daresay it has expanded my world view quite a bit. It certainly is a different kind of experience compared to say, a holiday or a school research trip. Cik Farid has also been greatly attentive in focusing my observations into several aspects of MM and also himself that he would feel would aid in my development. This includes fundamental understandings of the basics of business such as managing cash flow and having a strong team with specific strengths. He has also enlightened me with regards to various of his work principles that have to do with leadership. What was interesting that aspects such as having the responsibility to make tough decisions and going on the ground to understand the realities of the situation are not only things that would make improve leadership in an organization, but also help you to grow as a person. He asks for my honest opinion, and addresses misconceptions if any. Frankly speaking I had several:

"I thought business is all about profit margin" 

"Why don't you throw out the stuff that doesn't sell" 

"Why not offer the lowest price possible for a business meeting"

And with each misconception he has addressed it and provided a perspective of a businessman. He made me see things from the eyes of both the workers at the took and from his own eyes at the top. Oftentimes we find that our perspectives are too laced with our own experiences that may not have the bigger picture or may not consider who we may affect. However, by seeing things from every angle - coupled with the several lessons Cik Farid has imparted from his own experiences and beliefs - it has certainly changed the way I would approach a situation ahead.

That being said, I believe for my upcoming weeks I should pay greater focus into starting to draw the links and apply what has been taught so far. Before that, tomorrow I shall attend the grand opening of the toko which we painstakingly braved the heat for to set up kiki emoticon

Day 10: "TOKO ROWONSARI - KINI HADIR"

Amusingly, my day started with Cik Farid realizing I am still unable to tell which road from which even after heading to Rowonsari and back twice over the past two days. "Ah! I remember that Padi Field!" was the best I could help.

It was a lively opening day - certainly made slogging over the past two days worth it. There was a small sense of satisfaction as you see customers walking in and out, wanting to explore the new store. Even excited children walking in clutching a few notes in their hand was a sight that was very heartening.

As I continued helping out at the store and observing them - I realized one thing that differentiated Micromart from other convenience stores. Elsewhere, the setup and opening may not even be realized by members of the community. There was no connection. However, with Micromart - the set up team would often interact with the residents of the area as they bought food or explored new areas, and residents in turn would also interact with MM staff as they passed by or when the store opened.

Somehow, it felt as if MM was integrating into the community - being part of it - whether they realized it or not. From the toko team to kasirs - their interactions with the residents formed a positive first contact with the residents, and this made the opening of the MM a more lively experience. This may be Indonesian culture, this may be clever marketing - but in my point of view, in places like kampungs especially, this creates a very human aspect around MM. Understandably there were some small setbacks, such as the fridge arriving during the opening rather than before, and Mie Sedap Goreng quickly being sold out, and Olema being the only variant of condensed milk available - but from the first day I believe MM could identify very quickly areas that needed improving. I was also glad with our supervisor who took time to guide me in greater detail with regards to the work that is done prior to the setting up of the actual toko which she handles.

Speaking of human aspects, Cik Farid treated the opening team to dinner for their hard work in opening the two tokos at a warung that was known for their sambal (It was good, though not as spicy as claimed). We were all full and satisfied, it was a good dinner and the company was great. They were not just colleagues or a team, they were friends. At the end of it they gave sincere appreciation personally to Cik Farid for the dinner and made their way home.

This was the second time I'm seeing such a lively spirit. Even yesterday, Cik Farid's birthday celebrations were done with an amazing sincerity. Like, he got cakes from all over Indonesia. During the celebration there was not just a "syarat" (for the sake of it) kind of air that you might get at some places - but they seemed like they genuinely wanted to celebrate Cik Farid's birthday. He came to work and for a brief moment there was a party. They each gave a big smile and wished him a happy birthday personally! I imagined that this is not a birthday celebration for a boss. It was a birthday celebration for someone who has made an impact on people's lives. This is really testament to a person's character and leadership in my opinion, and something I would like to aspire towards someday. To really make a difference.

It was amazing really. Before entering Micromart, I expected a corporation, workers more like gears to fuel capitalism, what I found instead was a family.

Day 11: HIPMI x MICROMART Collaboration

Today was the launch of a joint cooperation between HIPMI and Micromart. It was a lively event, and everyone was talking with everyone - with the brightest of smiles. I suppose that even networking does not necessarily have to be very focused or impersonal. They seemed genuine and looking towards a brighter future ahead. Come to think of it, I suppose this means that Cik Farid himself is being recognized for his ability and efforts in bringing up the name of Micromart into the public sector. To have HIPMI acknowledging Micromart kind of shows that MM certainly has made progress.

Earlier in the day though, Cik Farid asked me the same question yet again - what my perception of him. I suppose that really is a difficult question as it has only been a week. The only time a person really ever knows what I think of the person is when I myself have affirmed my own views to be true after getting to know a person. You add that to my tendency to see the good in people rather than find points to criticize, you can imagine how diplomatic I tend to be on such matters.

That said, I have been around him quite a fair bit over the past few days. Of his two aspects, I would say the one's that I can say very easily would be his leadership capacity and his sincerity. He is very clear with the direction he wants to go to, and inspires his staff to follow suit. He is honest, but not flattering. Capable of making decisions and taking action that is required of him - and not taking the easy way out by being soft. However, despite being firm and fair to his staff, he is also kind. He smiles and jokes with them not as a boss, but as a person and his staff are visibly comfortable around him. Even with those outside of his company, he approaches them with the same level of sincerity that he shows to others.

He is also a very "hungry" person. He knows success is no formula, but there are definitely key ingredients - one of it being hunger. He does not subscribe to defeatist mentalities, nor sees any task as too daunting. What he wants to achieve he will strive to achieve, but he won't do it alone. He is capable of humbling himself even at his position to learn from others, and depend on other capable people.

I wanted to know if I was at least right on this matter, but having the intern ask around about the boss so bluntly is clearly the way to not get honest answers. However the answer came to me without me even asking. I was talking to the kind man who helps keep our office neat and tidy - and telling him about how Singaporeans usually tend to be workaholics, like Pak Farid. He smiled and agreed, and then he actually turned around and told me:

"Tapi Pak Farid 'best boss'! Gembira saya dgn dier. Dier orangnya baik, hatinya mulia. Kpd semura orang dia pun hatinya baik. Penuh kasih sayang."

In my best attempt at translation, "Mr Farid is the best boss! and I am happy to be with him. He is a good person with a pure heart. Even to anyone, he has a good heart, full of compassion."

Everyone was tired, it was getting late, but after saying that he showed me a smile and a vigorous thumbs up that it was a real pity that only I got to see it. Cik Farid was only a few paces ahead, giving advice to a young person who probably wanted to learn from him too - giving his usual beam of happiness and encouragement. If he saw that thumbs up, I'm sure he could have been motivated to do anything.

Day 12: “Mover”.

When Pak Farid said, “you will join me for a meeting tomorrow morning”, I didn’t know what to expect. Little did I know that today’s Sunday morning would take up a wholly different form and meaning. Pak Farid gave me the opportunity to join him for a meeting with Pak Rahim Tahir – a Singaporean, former CEO of DHL Indonesia and now JNE Express Group CEO, the largest logistic company in Indonesia.

Throughout the meeting, the discussion between the two of them revolved around evaluating and thinking of current and viable strategies that Pak Farid can use in his operations. I was in awe, and secretly thankful that I brought my notebook to be able to type out minutes. There’s no way I could have captured it on pen and paper (Can’t help it, tech age, more comfortable with keyboards than a pen). One area I never noticed was how Micromart’s approach was vastly different from the way other convenience store tried to set up and it was a better model to be applied to Indonesia, while at the same time learning the strengths that others had going for it. Some others apparently drove itself into a corner due to incurring costs that were too high.

In essence, MM would be best put in a position where it was operating within a “blue ocean” instead of a “red ocean”, one of the points being to reduce cannibalism.

Understanding the strengths that MM has for itself, they then identified areas that MM could seek to improve itself. As per Pak Rahim’s area of expertise, much of it largely covered the way MM would handle its logistical operations.

Much of it was a cost-benefit evaluation when deciding whether to have fixed costs or expense. For my benefit they even put it in terms simple enough for me to understand. This included the idea of making sure that you are not incurring losses with static inventory or even making sure that if you’re handling logistical operations – that it is always operating efficiently and not being redundant. “If there is unutilized capacity, there is loss”. Instead, the money could be better served in using the money to expand your business: execute marketing strategy, drive sales, etc. Get someone else to invest in the logistics on your behalf. This actually challenged what I knew. I always thought to be cost-efficient, you would ideally manage all of your operations rather than outsource parts of it. I always thought it would have been cheaper when the mover works for you rather than outsourced to another company that is also looking for a profit margin. That said Pak Rahim then reiterated that one must be aware of the objective he has in freeing up logistics. Is it to free up capital? Is it a productivity or service issue? If you are no longer efficient doing it yourself that is when you need to outsource. One good model to emulate would be that of Walmart where double handling would be minimized.

They then took a deeper look at the supply chain, particularly when considering the new provinces that Pak Farid will be involved in. This included the necessity of knowing the geographic and cultural realities of the area to open in, the demand points, and ensuring that there is discipline within the logistical operation. There are several things that need to be known: such as working out transit times and the cultures of the locality that you will be setting up in. This will allow you to set up standard operating procedure that maximize efficiency and ensure reliability. On top of that, knowing the culture also gives you a greater sense of control over the human aspects. This would ultimately boost productivity.

Both of them linked it back to the theory by Steve Blank on “Business Canvas”. Use your business canvas to challenge your model; all hypothesis needs to be validated. Look hard at the supply chain. On top of that, they discussed the importance of having a market for your operations to thrive in. This involved an understanding of the need to be aware of one’s own capital gearing and knowing how to create a market for your products.

Business talk aside just sitting there was an overwhelming experience. Pak Farid and Pak Rahim were giants in their own right, and I was sitting next to a window overlooking the whole of Semarang. You can imagine how that feels like. They side-tracked a little bit to let me know of their background. I realized both of them had similar “formulas” to success. It was simply drive, and leveraging on their experience. In my educational environment – there is an assumption that you’re either a scholar or you’re everyone else. The two people I saw before me were definitely not scholars. They had their fair share of failures – but they pressed on, willing to toil at the bottom and prove themselves. This was hunger, this was drive. They were really people who wouldn’t take “no” for an answer, to challenge the odds.

What I liked best however was actually seeing that they were both willing to help people they cared about – be it their staff, or the underprivileged, or even each other. Even to a completely green person like me, they shared information and knowledge. “The importance of always learning, business itself is never static” as Pak Rahim said. “Successful people don’t watch TV, just the news”, affirmed Pak Farid. I guess even for giants, they were very much human at heart.

Day 13: "Humble Beginnings" - The First Micromart

Look at the photo, just take a good look at it. That's the first Micromart. Literally the beginning of something big. Today Cik Farid brought me to Paragon seeing that I didn't exactly have the opportunity to explore the landmarks in Semarang. It was a lively place, attached to Crown Plaza Hotel and clearly a popular place to hang out. International brand names like Starbucks, J.Co and Haagen Dazs could be found there. It was certainly what one would expect from a supermall.

"Ismail, you want to see the first Micromart?" asked Cik Farid with this smile that suggested I wouldn't expect to see what I saw.

Impressive, I thought. First Micromart outlet in a place like Paragon. This is a man who certainly starts off with a bang. So we went up a few levels... past the top floor of Paragon. I was starting to wonder what to expect. Is this Micromart crowning the top of Paragon? Well, then we even ended up on the carpark level. Something must be wrong I thought what kind of building planning is this.

We entered the carpark and he pointed ahead with a proud smile on his face. My first reaction was honestly a laugh. I couldn't believe it. That was more kedai runcit (mama shop) than the Micromart I knew. I mean look at it, that is a Micromart before it was even decided that Micromart's colors was the iconic red-white. I could even accuse him of not having any originality in deciding the color scheme.

He told me that was his first Micromart, and he had a team of 7 people crammed in a small space that only had a printer. "Humble beginnings" was what I could say of it. To look at that particular outlet and the 30 chains that exist today, I cannot even begin to comprehend the journey that a person and his team must have undertook to make Micromart into what it is today, with an office in Simpang Lima and 30 outlets to his name. The expression on my face was laughter, but so many things were going through my mind I couldn't express an amazement in any other way than to laugh.

We had dinner at a rather upmarket place to fill a fancy for steamboat. That exposed me to yet a different perspective. The demographic of the people dining there were certainly different than one would expect to find at a regular eatery or warung in Semarang. It was different, yet it felt very familiar. That was actually what I can expect to see in my home country. Cik Farid was apparently aware of this as well, and we discussed into the various factors that actually can determine why is there a similar trend throughout Southeast Asia. What sets one group of people apart from the other people? Somehow, in my experiences working in the social sector, I had some answers of my own.

In the discussion, we discussed the various problems that seem to hinder a community from progress. Frankly speaking, these are still big questions left unanswered and academic discourse on the issue is far and wide - dating back to colonial periods even. However, right now - it seems that there are certain factors that Cik Farid has come to be aware of in his many years experiencing the world.

Firstly, there are tendencies to experience subtle discrimination. It surprised me to even learn that Cik Farid himself has struggled with discrimination. However this is human nature, it is harder to trust what we are not familiar with - and to make things worse there are tendencies to typecast certain negative aspects onto a whole group of people. Certainly we are moving toward a different world today - but such mentalities are bound to persist over time and are hard to change.

In response to that, there is a lack of hunger; of ambition. I suspected that this could be due to the fact that as a community, we do not place an emphasis on the culture of status or "face". We tend to be easily thankful with what we have, but the problem is that we do not strive to change our circumstances, preferring to leave it as what we are given. However that shouldn't be the approach, we may be dealt a certain hand, but it does not mean that we do not make the most out of it. Cik Farid said it is certainly no impossible task, we have to work hard for it. Double, Triple what others might have to do to even be acknowledged for our efforts. I believe that's what he also meant by the need to have hunger rather than accept circumstance.

In my time in Semarang, I have also met people who have benefited from the aid provided by Cik Farid and Micromart. It can be as simple as being given a grant for education. Higher Education in Semarang by local standards is expensive, but Cik Farid told me of the drive they possess, of how hard they work to break free of their own circumstance, to pursue big dreams. I am here wondering what I will do following my education - and it embarrassed me to admit that at times even I have not paid much thought to the opportunities I have back home that they might not. It's a hard truth to take in - but it expanded my world view. When we give aid, we don't want to give a fish. We want to teach them how to fish. They take the aid they have and make the most out of it. Sometimes I wonder if we do the same. It was a humbling truth to be exposed to, but even from the perspective of a donor, even I do believe it makes better sense to know how you're impacting someone's life. Someday I would want to be in that position, to be able to directly change a person's life too, even in doing the small things.

"One of the ways to reach out to your employees is to take care of them, and their families" - Cik Farid.

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