Remains for institutional investor or creditor due to;
Lack of common sense to deliver value for shareholders (conflict of interest or typical Agency Problem) from Board of Directors.
Lack of discipline in using other people’s money; in some cases management might divert the funds for project or to companies other than originally intended.
Lack of law enforcement in Indonesia cultivates ill motives of the sponsor or Board of Directors from doing the right things. (in some cases).
Lack of sense of Fiduciary duty as an appointed executive of Investor.
Low in quality and timely reporting on business and financial conditions.
Lack of knowledge in corporate finance, cash cycle management, value chain management business and costs drivers (in most cases)
Lack of knowledge in investment threshold, M&A and Risk management
Younger directors (despite academically qualified) appointed as Representative of an Institutional Investors are sometimes having hard times in board room meetings at top level management decision process.
This awkward management process is not an ideal situation for a fruitful investment, thus might reduce the long term yield for investor.
CEO builds on business model innovation, CFO leads innovation through insight
Sees through the depths of different types of transactions not just by the sheer number of money involved.
CEO empowers collaboration to innovate while CFO destroys innovation obstacles
Bridges the business process and innovation via financial engineering improvements; which will enhance the existing business model.
CEO lead the innovation process while CFO establish such conductive environment
Enforce innovative cultures without sacrificing growth progress. Be creative to get out of the ‘business as usual’ pattern