4th CFO Innovation Indonesia Forum
The World Bank has projected Indonesia’s GDP growth for 2017 to be 5.3%. However, will this still hold true in the wake of Brexit, Donald Trump winning the US elections and Indonesia’s own volatile political atmosphere prevailing before the 2017 gubernatorial elections ? Donald’s victory precipitated chaos in the Indonesian financial market that also saw the Rupiah falling in anticipation of possible increase in Federal interest rate and implementation of protectionist US policies. Brexit has implications for Indonesia’s trading partners that would subsequently affect Indonesia. The tense run-up to upcoming 2017 gubernatorial Jakarta elections is also keeping the nation on its edge.
Contraction of exports due to weaker global demand especially in the key markets of China, South Korea and Singapore also proved to be a dampener on President’s Joko Widodo’s GDP growth target of 7%. However, the Indonesian Government efforts to deregulate the economy have paid off as the country jumped from 106 to 91 in the Ease of Doing Business Index for 2017.
Significant reforms have been undertaken in the 7 key areas: ease to establish a business, access to electricity, registering property, acquiring finance, paying taxes, cross-border trade and establishing contracts. In addition, there have been talks of cutting the corporate tax rate to make doing business in Indonesia more attractive.
In spite of external challenging circumstances and dynamics, efforts in promoting ease of doing business in Indonesia are bearing apparent results. Can the results be sustained? Will the ongoing abrupt changes in the global geopolitical scene derail the economic ground gained in 2016? What challenges can they anticipate to navigate in 2017? What parameters will define a CFO’s role in the digital environment?
This CFO conference will seek to answer the above and more in light of a resurgent Indonesia amid uncertain global conditions but promising domestic changes.
An impressive panel of A-list CFOs from both multinational and top national companies in Indonesia will be engaging in dynamic peer-to-peer discussions. They will share insights to help CFOs risk-proof their businesses and gain a better understanding of today’s economic environment, industry issues and future market outlook.
The issues to be addressed include:
- What kind of challenges can CFOs expect to tackle in 2017?
- How can regulatory and currency challenges be navigated?
- How can an early engagement with the Government be adopted by the CFOs to successfully manage the effects of new regulations and policies?
- Currency hedging: How critical is it?
- With volatile and uncertain global conditions, how to achieve prudent cash management?
- Digitization: Embrace or fall behind?
- Can Digital Platforms be the much needed weapon the CFOs are looking for?
- How is digital transformation defining CFO’s role?
- Why is it necessary to be innovative?
Who will attend?
- Chief Finance Officer (CFO)
- Chief Accountant
- Finance Director
- VP Finance
- Finance Controller
- GM/ Head of Finance
- Head/ Director of Treasury
- Chief Accountant
- Director of Internal Audit
- Risk Manager
- Account/ Finance Manager
- Other senior level finance executives
Director of Finance - PT ISPAT INDO
Finance Director - AVNET DATAMATION SOLUTIONS
Group Financial Advisor - SINAR GALAXY GROUP
CFO - INDOCENEMT
Director for Finance and Accounting - INDOPRIMA
Indonesia’s GDP growth for 2017 is projected to be at 5.3%(World Bank Report). However, major global political events such as Brexit and the result of the US elections have caused the global capital market to be more capricious. The events have not only impacted Indonesia’s financial markets but also heightened the prospect of stifled investment and capital flow into the country. The rupiah was making noteworthy gains for most part of 2016 until the US elections results which saw Trump voted in as the next US President. Fears of Trump’s protectionist trade policies saw the rupiah plunge the most since 2011. However, in spite of the external challenging circumstances, Indonesia efforts to deregulate have made commendable grounds.
Will Indonesia be able to maintain momentum and march on with domestic pro-business policy changes that will define the country an economic powerhouse? Will protectionist stances being adopted in key countries like Britain and US derail Indonesia’s efforts? If keeping the rupiah stable is key, can that be achieved under the current unpredictable global conditions?
Indonesia is now among the world’s top 10 improvers based on reforms according to the World Bank Index; Doing Business 2017: Equal Opportunity for All. The country also jumped from 106 to 91 in the Ease of Doing Business Index for 2017. Indonesia seems headed towards a deregulated and more business friendly environment as promised by the Government. However, volatile global conditions retarded the growth momentum in the last quarter of 2016. Will President Jokowi’s aim of achieving 7% growth be ever realized in the new future?
- Slowing growth is apparent in the key export markets of South Korea, China and Singapore, leading to contraction of exports to a deep 6% in Q3. What are the possible measures that the Government can take to stimulate the economy?
- Has the AEC benefited Indonesia?
- With Government announcing another round of budget cuts, infrastructure spending is likely to take a hit. What are the repercussions?
- How can CFOs prepare for the possible faster than expected increase in the US Federal interest rate?
With disruption presenting the real prospect of affecting or even terminating the businesses of companies in various industries, it has become pertinent to execute an effective cost management model. However, it has been seen that that conventional tactical cost-management programs have been failing at a high rate.
- Why are conventional cost cutting measures such streamlining business processes, trimming external spending and policy compliance not giving the expected results?
- What is strategic cost management?
- How to effectively employ strategic cost management and in which areas?
The rupiah was one of the strongest performing currencies in 2016 in the region right up till the US elections results. Trump being elected as the US President led to the steepest decline in the rupiah since 2011. This episode heightened the concerns of businesses operating in Indonesia, where the ban on domestic transactions in foreign currencies took effect in July 2015.
With the rupiah exposed to major fluctuations, businesses can face stressful times when engaging in cost management. Sudden and steep declines in the rupiah can drive up costs that will have damaging bearing on profit margins.
- How are companies addressing the problem of a fluctuating rupiah amidst unpredictable global conditions?
- How can the Government help?
- What are the latest solutions on hand?
Foreign Corrupt Practices Act(FCPA) , cybersecurity risk, credit risk and foreign exchange risk are amongst the many areas of risk a CFO has to take into account when crafting a comprehensive risk management strategy. New innovations in technology, ever-changing regulatory environment and growth expectations have all made risk management more pertinent as well extremely challenging.
- What are the limitations of the traditional ERM approach in addressing current risks?
- How can CFOs play a prominent role in devising an effective, across-enterprise risk management strategy?
- What would constitute a robust strategic risk management model in line with current risk landscape?
Digitization is affecting most if not all aspects of the global economy. The rate of digital disruption is set to grow at an exponential rate. According to McKinsey, digitization can make US150 b for Indonesia by 2025. With such tremendous global and local impact of digitization, how can CFOs wield it as the new weapon for evolving finance functions?
- How has digitization shaped the role of CFOs?
- What kind of leverage that technology like Data Analytics, Big Data etc. are offering CFOs?
- Why is it necessary for Indonesian CFOs to embrace digitization as an enabler in their comprehensive finance strategies?
- An effective tool to break down data silos in an organization?
Fintechs have taken the world by storm and unleashed a plethora of business changing solutions and products on the financial arena. Many of the solutions have the ability to assist the CFO in his/her role. However, with a great degree of sophistication accompanying the solutions (robo-advisers, algorithmic trading etc.), it has been reported that financial executives are bracing for the moment when technology might just replace them.
Let’s take an in-depth look at how Fintech will impact a CFO’s role in the very near future
CFOs are no longer just executives crunching numbers. They are strategic advisors and an indispensable asset in charting the growth and expansion of their companies. With technology and globalization, a CFO’s role has become rapidly evolved that demands intricate understanding of all the factors that that have an impact on the organization’s operations. A CFO often steps in as an interim CEO whenever a CEO departs unexpectedly. This dialogue will focus on what will make an effective transformation and transition of a CFO to CEO.
For all the efforts, measures and tweaking of company HR policies, hiring, grooming and retaining of finance talent still present a critical problem to companies in Indonesia. Without the appropriate talent, long-term growth plans and strategies can be crippled. With a volatile global economy and extensive disruption shaping the new order of global business, able and qualified talent who share the companies’ goals is an indispensable asset.
- With pro-business environment promoted by the Government, are there policies and measures they can implement to address finance talent shortage?
- Are the current benefits and compensation packages in place attractive and adequate to retain talent?
- Are companies in sync with local mindset when crafting HR policies?
- Is enough being done to engage current workers and make available a clear career path for them?
- Are changing aspirations of young finance professionals being picked up and catered to accordingly?
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