111-1520-001

September, 2011
Internal Version for BBS Used Only

GABRIEL CHANFARRY HADYLAW

FINGERLIN ANGELISA KILIS

SUCCESSFUL TURNAROUND RECAPITAL’S WAY

CASE STUDY OF PT AETRA AIR JAKARTA

In the year 2007, Recapital acquired PT Thames PAM Jaya (hereinafter referred to as “TPJ”),
through its subsidiary company, Aquatico Pte. Ltd., from RWE Thames Water. At that time, the
performance of the company experienced a downturn for three consecutive years (2005-2007).
In addition, for about nine years operating in Indonesia, TPJ never reached the target set by
Government1. However, after Recapital acquired 95% shares, the company experienced a
turnaround, where the company’s condition gradually improved and experienced significant
growth over the next three years (2008-2010). Recapital made changes to the management of
the company ranging from changing the name of the company, until the renewal in human
resources, business processes and organizations in it.

Recapital already had a good reputation and well-known expert in improving companies that
were in bad shapes. From 2002 to 2008, there were more or less 6 companies being acquired
and successfully improved by Recapital 2. So far, there had never been similar companies in
Indonesia that succeeded in increasing the performance and value of a company as was done by
Recapital, it was a phenomenal achievement.

After implementing the turnaround strategy in PT Aetra Air Jakarta (previously TPJ after the
acquisition), the company experienced growth and performance improvement in terms of volume
water sold, NRW, and the number of customers since 2008. Water volume increased in 2008,
even in 2009-2010 exceeded PAM Jaya target. The number of customers increased at 6,377
customers over 3 years (2008-2010) due to additional pipeline network and other promotion
activities by PT Aetra.

PT Aetra’s revenues increased 12.26% or 76.89 million rupiahs in 2008; 6% or 41.9 million
rupiahs in 2009; and 9.8% or 73,16 million rupiahs in 2010. Operational profit also continued to
increase, 25,9% from total profit of the company in 2008, 18% or 33.37 million rupiahs in 2009,
and 9.9% or 21.36 million rupiahs in 2010.

Company Background

PT Aetra Air Jakarta was a clean water pipeline supply company which got the concession to do
business for 25 years under the Cooperation Agreement with the Perusahaan Daerah Air Minum
DKI Jakarta (PAM JAYA). This cooperation was valid for 25 years effective since February 1, 1998

1
CEO Speak Aetra on Growth, 2010
2
SWA,2008

Gabriel Chanfarry Hadylaw and Fingerlin Angelisa Kilis prepared this case from field sources, assisted by Diane Natassia. BBS cases are
developed solely as the basis for class discussions. Cases are not intended to serve as endorsements, sources of primary data, or
illustrations of effective or ineffective management

Copyright © 2011 BINUS Case Center. To order copies and request permission to reproduce materials, call 62-21-720-2222 or go to
http://research.wherebusinessisreal.com. No part of this publication may be reproduced, stored in a retrieval system, used in a
spreadsheet, or transmitted in any form or by any means-electronic, mechanical, photocopying, recording, or otherwise – without the
permission of BINUS Case Center.
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

to January 31, 2023. PT Aetra Air Jakarta was responsible for managing, operating, maintaining
and investing to optimize, expand and improve clean water services in its operational area, which
was the east side of Ciliwung River that covered most areas of North Jakarta, some areas of
Central Jakarta and the entire area of East Jakarta3.

Initially, this company was named Thames PAM JAYA (TPJ) under the RWE Thames Water which
was based in the UK. On 17 January 2007, Recapital, through its subsidiary company, Acuatico
Pte. Ltd., officially took over the ownership of Thames Water to continue the concession, and
since 15 April 2008, TPJ came with a new name, PT Aetra Air Jakarta4.

PT Aetra main product was clean water that distributed through pipeline. The water source came
from Waduk Jatiluhur managed by Perum Jasa Tirta II (PJT II), which flowed to Jakarta via the
open pipeline Tarum Barat Canal (Kalimalang). Water was distributed to households and
industrial customers located in its operational areas through a network of piping. PT Aetra had
three service Divisions. Each Division was lead by a Director who had the authority to make
decisions related to their service coverage. The service region was divided based on the
company’s pipeline network, not on the Government’s administrative boundary 5.

Shareholders
The shareholders of PT Aetra Air Jakarta were Acuatico Pte. Ltd with 95% of shares and PT
Alberta Utilities with 5% of shares. Acuatico Pte. Ltd was a joint venture company of PT Recapital
Advisor (private equity firm) and PT Glendale Partners (infrastructure project management) 6, an
investment holding company for water infrastructure asset based in Singapore. PT Alberta
Utitilies was a holding company for water infrastructure service, industry and general trading 7.

Recapital

Recapital Advisors was a private equity firm (PEF) which expanded its business with expansion
strategy of acquiring (taking over a majority of shares) a company that was experiencing a
decline or in a state of stagnation then improved, and resold. Recapital was founded in 1997 by
Sandiaga Salahuddin Uno and Rosan Perkasa Roeslani with share composition of 50%-50%8.

From 2002 to 2008, Recapital Advisor had acquired around 9 companies to be improved,
including the acquisition of PT Aetra Air Jakarta. (See Exhibit 1)

There were five stages performed by Recapital in acquiring a company, which were preliminary,
due-diligence, negotiation, payment and closing, as well as revamping the company (SWA,
2008). The criteria of companies that would be acquired namely: first, that company was
classified as labor-intensive company because it had a high multiplier effect, for example, it could
reduce unemployment; second, that company should have Return Investment Return (RIR) with
a minimum period of five years. Recapital appointed a special team, Analyst Team, which was
assisted by Recapital Corporate Finance to conduct a feasibility study, cash flow analysis,
research and business proposal analysis (SWA, 2008).

3
(Annual Report of PT Aetra Air Jakarta, 2009)
4
(Annual Report of PT Aetra Air Jakarta, 2009)
5
(Annual Report of PT Aetra Air Jakarta, 2009)
6
(Global Water Intelligent, 2009-2010)
7
(http://www.aetra.co.id/)
8
(SWA, 2007)

Page 2 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Table 1. Recapital Acquisition Process

Acquisition
No Descriptions
Process
Criteria: labor-intensive company, Return Investment Return aspect (RIR),
1 Pre-Eliminary
minimum of five years.
Due diligence process by Investment Committee Recapital: Proses due
diligence oleh Investment Committee Recapital: aspects considered were
2 Due Diligence
financial condition, legality and industry (in collaboration with Pricewaterhouse
Coopers and Ernst & Young)
Investment Committee negotiated with the seller and adjusted with the buyers
3 Negotiation
demands.
SPA or payments made by buyer to the seller only 80%-90% were paid in full,
Payment and
4 the rests were paid within 6-12 months deadline, after the deal processes
Closing
(closing).
Post-closing, Recapital revamped, started from restructuring of finance, Human
5 Revamping
Resource, and corporate culture.
Source: SWA Research (Riset SWA), 2008, SWA Online:
http://202.59.162.82/swamajalah/praktik/details.php?cid=1&id=8355

Jakarta’s Water Supply Industry

Public Private Partnership

On February 1998, DKI Jakarta Regional Government (PAM Jaya) cooperated with Public Private
Partnership in managing clean water supply sector. PPP contract type used by DKI Jakarta
Regional Government was concession or franchising, where the private partner could invest with
a 25-year contract period. DKI Jakarta Regional Government (PAM Jaya) cooperated with
Thames PAM Jaya (TPJ) for East Jakarta area and PT PAM Lyonnaise Jaya (Palyja) for West
Jakarta. Both companies made concessions with PAM Jaya for 25 years. The background of this
concession was based on the limitation of funds and inefficiency experienced by PAM Jaya 9.

There were 6 indicators convering this cooperation, namely increase of water volume sold
(million m3), decrease of water loss percentage/NRW, increase of coverage percentage, increase
of customers’ percentage, boosting the quality of clean water into drinking water, and water
pressure. The Government of DKI Jakarta set the consumer classification, clean water tariffs, and
set the targets of achievement to avoid negative effects of monopoly market so companies could
not determined for themselves the target of consumers and water tariffs.

9
(Lanti A. et al, 2008)

Page 3 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Table 2. Technical Target and Standard Service PAM Jaya and the Private Parties
(Aetra & Palyja)
Description Year 5 Year 10 Year 20 Year 25
Water Volume Sold (million m3) 342 398 419 428
Water Loss (NRW) (%) 35 25 20 20
Service Coverage (%) 70 75 98 100
Population Served (million) 6.72 7.75 10.83 11.43
Water Quality Clean water by the end of Year 9 Drinking water by Year 10
Pressure 7.5 m of DKI 7.5 m of DKI 7.5 m 7.5 m
Jakarta area, Jakarta area by
except Pluit, by the end of Year
Year 5 10
Source: Council of water Services Regulator- DKI Jakarta Region (Badan Regulator Pelayanan Air Minum Wilayah DKI
Jakarta)
http://www.jakartawater.org/index.php?option=com_content&view=article&id=71&Itemid=204&lang=en&limitstart=4

Industry’s Dominant Economic Traits

The market structure in clean water pipeline industry was a monopoly market, and the level of
interference from DKI Jakarta Regional Government was very high to maintain the sustainability
and long-term availability of clean water, also to maintain the balance of interests between
producers and consumers in pricing. This clean water pipeline industry was still in the early
development stage, with a very slow/stagnant industry growth rate because of the monopoly
market structure. However, in the long run, the clean water pipeline had a great opportunity to
continue to grow, so did PT Aetra as the only producer in its operational areas.

Based on the Bureau of Statistic Centre (Biro Pusat Staristic/BPS) data in table 7 below, the
percentage of households with a viable source of clean water in Jakarta only reached 34.81% or
around 3,210,526 people, and households without a viable source of clean water reached
65.19% or around 6,012,474 people.

PT Aetra service area which was located in the eastern part of Ciliwung River had a total
population of 4,500,000. By 2010, total population that had been served by PT Aetra was
2,707,204 people, or around 60.16% from the total population 10. There were still 39.84%
consumers who had not been served.

The level of demand toward clean water was very high, but the water supply was limited,
resulting in excess demand. The size in this case was service coverage ratio (SCR), a ratio
between the numbers of population who became customers divided by total population.

The lower level of clean water supply than the level of demand did not affect the rise and fall of
prices, because the pricing was set by DKI Jakarta Regional Government. However, there was a
need to increase service coverage ratio and total customers towards achieving the target set by
the government in the cooperation contract, where PT Aetra service coverage on year 10 and
above had to reached 75%, and population served had to be reached 3.87 million people
(7.75/2) (see Exhibit 3).

The untapped high potential market in PT Aetra operational area became opportunities for the
company to maximize the economies of scale. PT Aetra could increase the product capacity and
pipeline network coverage to reach 39.84% target market that had been served. Furthermore, in
achieving the entire target market, PT Aetra could educate its consumers regarding Jakarta’s

10
(Fact Sheet PT Aetra, 2010)

Page 4 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

water availability and water product benefits and services from PT Aetra. By increasing the scale
of operation and total customers to 80-90%, PT Aetra could gain cost advantage even though
there had been no water tariff adjustment since 2007 by DKI Jakarta Regional Government.

Company’s Declining Condition

From 2005 to 2007 Thames PAM Jaya’s (TPJ’s) business performance has been decreased . TPJ
was not able to meet the target set by PAM Jaya for three years. The unmeet target was
accumulated by PAM Jaya into the company’s liabilities which had to be paid at a certain time11.
The corporate value deteriorated in the eyes of PAM Jaya and the community due to operational
issues and declining service quality. The company’s internal resources declined, both financially
as well as its human resource capabilities. After approximately 6 to 7 years operating, PT Aetra
had to fix many leaking and inadequate water installations.

Resource Munificence
Thames PAM Jaya’s financial resources were very low, other than caused by declining revenues;
and investment funds from investors were also very limited. Company’s financial condition was
very insufficient while company’s operational expenses were very high. The accumulation of
company’s liabilities to Government was also very high.

Recapital’s acquisition of TPJ in 2007 had a positive impact for the company. Financially, lack of
operational fund had been fulfilled, so company could execute the operational process well.

Human resources in TPJ were too abundant and not in accordance with the work loads. They
were over capacity against the number of customers. Also the other situations were the
availability of many foreign workers, no clear job description was not clear and the jobs were not
in align with employee’s competency. Employees of Thames PAM Jaya were split into two, PAM
Jaya party and TPJ party. This was triggered by differences in employee status, and gaps
between employees of TPJ and PAM Jaya.

Causality of the Distress

Externally, threats from other competitors were the usage of deep well, of silo well, and of water
processing machines was very high. It was about 40% of target customers who were using
these water sources. The company’s internal operation system was weak and affected the
company’s operational. Capacity utilization was low due to operational disturbances and the
degree of loss/unaccounted of water.

Internally, the name PT Thames PAM Jaya was synonymous with the name of foreign company
that directly or indirectly affected the loyalty of employees and consumers. TPJ performance
directed by the government did not reached the target number of customer networks, production
capacity, customer coverage ratio, volume of water sold and the level of water loss (NRW).

It took a long time to take action or to solve problems because only the central management that
was allowed to decide. Moreover, the company’s culture was formed by the combination between
regional-owned company culture and private company culture, and also multicultural
organization. This mixed up and disorganized culture raised confusion among the employees that
led to action based on their own perception.

11
(Financial Statement Aetra, 2008, and P.B. Hernowo, 2011)

Page 5 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Turnaround Strategies of PT Aetra

After the acquisition of PT Thames PAM Jaya completed, Recapital immediately made
comprehensive changes to the company. Two changes had been made toward the company:
identity change with Re-branding strategy and then followed with organization change with Re-
engineering strategy. Re-branding strategy was initiated and run by Recapital (P. B. Hernowo,
2011), while re-engineering strategy was formed and run by the company’s management which
headed by Syahril Japarin as Director of PT Aetra at that time (P. B. Hernowo, 2011) (see
Exhibit 4).

Re-branding
Recapital conducted company re-branding by changing the name PT Thames PAM Jaya into PT
Aetra Air Jakarta in 2008. This re-branding process was like a “rebirth process” of PT Thames
PAM Jaya into PT Aetra Air Jakarta with new vision, mission and corporate values. This caused
overall changes in the company’s strategy. Re-branding implementation of PT Aetra was divided
into three stages: 1) preparation (2007): in this stage, the management formed a special team to
set the corporate new vision, mission and values, and to prepare things needed in this re-
branding process. 2) New brand implementation: changing the name of the company and
implementing the new corporate values. 3) Corporate value internalization (2009-forward)
embedded the new corporate vision, mission and values internally toward its employees.

With the new vision, “Improving people’s lives, every moment”, PT Aetra wanted to position itself
inside the customers’ minds as a qualified clean water supplier, and could become a trusted
partner in improving the quality of people’s lives. To realize this matter, PT Aetra committed to
consistently providing excellent service with continuous improvement. The values built in the
company were to be a customer-oriented company, to have a high professionalism, and to be
respectful toward the community and environment in which PT Aetra located. Gradually, the
vision, mission and values of this company continued to be embedded into a strong culture within
the employees of PT Aetra.

While doing the initial stage of re-branding, Recapital gave six months for the previous
management to prepare for the next process of changes in the company.

Re-engineering
Re-engineering process of PT Aetra Air Jakarta started with the turn of the President of the
company by Syahril Japarin who led the company’s further change process. The management,
under Syahril Japarin, agreed to use re-engineering to improve the company’s internal business
process fundamentally. Re-engineering was started in early 2008.

The main focus re-engineering of PT Aetra was the people (see Exhibit 7). Strategy,
organization, system and operational of the company were prepared in accordance with the
vision, mission and customer-oriented value of the company (see Exhibit 8). There were 5 steps
taken by PT Aetra in re-engineering process: 1) Establishing Development Team, 2) Conducting
ESQ Training, as the initial step of change, 3) Re-designing Human Capital Management System
(HCMS), 5) Forming a new corporate culture focused on consumers (see Exhibit 9).

Development Team

Page 6 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

In performing this re-engineering, Development Team was formed, which contained of 11 TPJ
employees from cross-directorate managers and various departments. This team was responsible
for managing the planning and implementation of re-engineering, as well as defining new work
processes and driving the organizational change. In practice, this Team was assisted by
independent consultants. Then, in order to assist this Team-11, it was also formed several teams
of re-engineering covering Team 33 consisting of 33 managers from various departments who
were in charge of making new SOP for all areas; forming Team 29 who were authorized to
formuate PT Aetra values; forming Team 22 consisting of 22 supervisors from various
departments who acted as change agents, in charge of implementing change values and to be in
the change process example.

ESQ Training

In order to cultivate the spirit of motivation and changes, Management of PT Aetra started in
engaging all employees in ESQ Training. This was the initial step to change the mindset of the
employees and the company leaders by conducting Emotional Spiritual Quotient (ESQ) training in
200812. This training was conducted to mobilize and equip employees from emotional spiritual
aspect to grow the passion and the will to change. ESQ training was mandatory for all employees
of PT Aetra. The implementation was divided into four batches with a capacity of 400-600
employees per batch13.

Organization Design

In organizational re-engineering structure, management started to analyse and determine the

organizational model and form. The organization form was later changed from centralized one
into decentralized one and it was divided into two, consisting of main organizations which
focused on business development and supporting organizations and focused on operational
issues, especially in reducing the past problems. PT Aetra divided the organization into three
main divisions: North Division, Central Division and South Division. PT Aetra provided 13 Service
Points in 13 service districts so it became near to the customers, and the service process became
faster and more effectived.14

Then, management conducted distinct job profile, which included workloads and job analysis to
recount every job per employee, defined job descriptions and acknowledged the required amount
of employees needed in one division. Management also improved competency model by setting a
clear competency criteria starting from the supervisor level to general manager level.15

In structural change process, there were several divisions which was eliminated or merged in
order to reach efficiency. With this new structure, company’s organizational structure became
leaner and fewer organizational layers than before.

Human Capital Management System

Re-engineering in Human Capital Management System started with people planning. In this
process, the entire employees of PT Aetra followed an assessment test, and then placed in the
new structure positions that were in accordance with the employees’ competency and education
background. This was done evenly regardless of the status of the employees (employees of PT
Aetra or PAM Jaya).

12
(S. Japarin in SWA Online, 2009, and P.B. Hernowo, 2011)
13
(S. Japarin in SWA Online, 2009, and P.B. Hernowo, 2011)
14
(P. B. Hernowo, 2011)
15
(Japarin S. 2009 in SWA Online, 2009, and P.B. Hernowo, 2011)

Page 7 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Management also improved the company’s Performance Management System, Key Performance
Index (KPI) of employees which were aligned with the company’s goals, and established a
relevant and competent valuation system 16. The company uniformed the standard salaries and
facilities for employees of PT Aetra and PAM Jaya and then improved the reward and punishment
system. Excelled employees would get reward (bonus, raises, job promotion, etc.), while
employees who did not perform well would be demoted.

In preparing future leaders, PT Aetra involved professional institutions in the company’s

recruitment system. In addition, company also decreased the number of expatriate workers,
excluding the BOD.

Management of PT Aetra conducted training and development as well in order to increase

employees’ competencies, and to establish coaching system to support the gradual change in the
work process. First, conducted 4DX coaching in general. Secondly, conducted WIGs coaching.
This coaching was held once a week between employees and their superiors through making a
report of performances, evaluation, and making new plans for the week after17.

Organizational Culture

PT Aetra initially did not have a clear culture and smooth communication and interaction between
employees. Employees with superiors did not interact well due to the background differences in
experience, thus led to formation of small groups in the organization and caused the organization
into fragmentation. In the end, generally the formed organizational and person culture were
prioritized in individual’s or group’s target achievement and interests rather than the company’s
goals.

To change this culture, the company conducted organizational re-engineering through applying
Covey’s 7 Habits of Highly Effective People which aimed to achieve synergy between employees
and planting team work culture in order to gain harmonization of business process and
organization goals18. In acting so, the company implemented 4 Disciplines of Execution (4DX)
and Widely Important Goals (WIGs) programs as tools for strategy execution which started from
synergies among employees/departments/business units. WIGs were one of weekly 4DX
developments y strategies and served as planning and monitoring each employee’s target 19.
Therefore, step by step, the person culture started to change towards task culture which
prioritized the harmonization of team work. Through the implementation of 4DX, PT Aetra
created strategy execution as corporate culture and integrated it with the system that
encouraged the acceleration of the change process.

16
(Japarin S. 2009 in SWA Online, 2009, and P.B. Hernowo, 2011)
17
(P.B. Hernowo, 2011)
18
(Japarin S., 2010)
19
(P.B. Hernowo, 2011)

Page 8 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

The Result

After implementing re-branding and re-engineering strategy, company experienced growth and
performance improvement in terms of volume water sold, NRW, and the number of customers
since 2008. Water volume increased in 2008, even in 2009-2010 it exceeded PAM Jaya target
(Target: 128.3 and 131.8 million meters cubic; Achievement: 129.37 and 136.6 million meters
cubic)20. Non revenue water (NRW) decreased 2.21% from year 2008 to 2009. Although NRW
increased slightly in 2010, as much as 1.27%, but the overall declined was 1.6%. The number of
customers increased to 6,377 customers over 3 years (2008-2010) due to additional pipeline
network and other promotion activities by PT Aetra. The bill Collection system also imporved
each year due to the organization streamlining and rapid billing system, and payments through
ATM.

Revenues had increased 12.26% or IDR 76.89 million in 2008; 6% or IDR 41.9 million in 2009;
and 9.8% or IDR 73.16 million in 2010. Operation profit also continued to increase, 25.9% from
total profit of the company in 2008, 18% or IDR 33.37 million in 2009, and 9.9% or IDR 21.36
million in 2010.

What’s Next

Although PT Aetra Air Jakarta succeeded to turnaround the company in 3 years, there was no
good recipe that PT Aetra would become a successful and growing recovery corporation. There
were possibilities of failure chances as well. The issue which should be considered by the
company was where to go, what to do next after achieving this success turnaround strategy.
Company should keep thinking of the next strategy to stay ahead and achieve the contionuous
and sustainable growth.

20
(Fact Sheet Aetra 2009 & 2010)

Page 9 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Exhibits

Exhibit 1. Companies that has been Improved by PT Recapital Advisor

Year Description
1996 Recapital founded, as a financial advisor company.
2002 Acquired PT Sumalindo Lestari Jaya Tbk.
Acquired 80% shares of Sriboga Ratu Raya (Pizza Hut Indonesia), bought Pizza
Hut Mengakuisisi 80% saham Sriboga Ratu Raya (Pizza Hut Indonesia), at a
price of US$ 50 million or Rp 450 billion.
Sold PT Sumalindo Lestari Jaya Tbk. (Recapital succeeded in increasing 10
times of Sumalindo’s share).
Acquired PT Asuransi Recapital (Reguard), formerly known as PT Asuransi
Grasia Unisarana
Recapital held 7,2% shares of PT Abdi Bangsa Tbk.
2005 Acquired Hotel Kemang Jaya Raya
Won Dipasena first tender valued at Rp 1,5 trillion for 75% ownership shares;
2006 while the remaining 25% was still owned by government.
Acuatico took over 95% shares of PT Thames PAM Jaya from Thames Water
2007 Plc., UK.
Adding shares of Bank Kesejahteraan Ekonomi to 28,33% from its previous
2008 21,38%. Recapital disbursed fund Rp 12 billion for that addition.
Acquired Losari Coffee Resort from Teggia Group.
Sold 71% of its shares in Bank Tabungan Pensiunan Nasional (BTPN) valued at
US$ 175 million to Texas Pacific Group.
Source: Riset SWA, 2008, SWA Online:
http://202.59.162.82/swamajalah/praktik/details.php?cid=1&id=8355

Exhibit 2. Piped Water Consumers Classification

Page 10 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Exhibit 3a. Total Population and Households with Viable Clean Water Source
Percentage, Year 2007 - 2009

Total Population (Thousand)

2007 2008 2009 2010
Total Population of Indonesia 225.642,00 228.523,00 231.370,00 234.181,00
Total Population of DKI Jakarta 9.064,60 91.462,00 9.223,00 9.294,90
Source: Catalogue BPS 3101015, August 2010. Perkembangan Beberapa Indikator Utama Sosial

Population Percentage Population Density per km2

Population Percentage and Density
2009 2010 2009 2010
DKI Jakarta 399,00 3,97 12.459,00 12.556,00

Households with Viable Clean Water Source Percentage, Year 2007-2009

2007 2008 2009 2010
DKI Jakarta 49,27 39,20 34,81 -

Source: Indonesian Economy, page 12-13, 38

Exhibit 3b. Customer Connection Percentage, April 2011

Source: Fact Sheet PT Aetra Air Jakarta April 2011, page 3

Page 11 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Exhibit 4. Change Milestone of PT Aetra Air Jakarta

Source: Japarin S. 2010. CEO Speak Binus: Aetra on Growth. Page 6.

Exhibit 5. Re-engineering Focus

Source: S. Japarin, 2010. CEO Speak on Growth PT Aetra Air Jakarta. Page 9.

Page 12 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Exhibit 6. Re-engineering Steps of PT Aetra Air Jakarta

Source: S. Japarin, 2010. CEO Speak on Growth PT Aetra Air Jakarta. Hal. 8

Exhibit 7. Simple Examples of 4DX & WIGs

Lag Measure Lead Measure

Monitoring and evaluation:
- Achieving lead measurre (4 visits to customers)
- Achieving lag measure (water sales target volume)

Source: P. B. Hernowo, 2011

Exhibit 8. PT Aetra Air Jakarta Achievements, Year 2008-2010

2008 2009 2010

Volume (Million M3) 124,47 129,37 136,6

Non Revenue Water (%) 50,83 48,62 49,24
Customer (Numbers) 379.000 382.693 385.377
Collection (%) 99,1 99,21 -

Source: Fact Sheet Aetra, 2009 & 2010

Page 13 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

Exhibit 9. Sold Water Volume PT Aetra, 2008-2010

Source: Fact Sheet Aetra, 2009 & 2010

Exhibit 10. Income Statement of PT Aetra Air Jakarta, 2008-2010

31 December
In Million Rupiahs
2010 2009 2008 2007* 2006 2005
Income 818.698 745.538 703.632 626.735 617.949 518.500
Direct Cost (354.921) (310.344) (301.458) (267.582) (247.429) (231.695)
Gross Profit 463.777 435194 402.174 359.153 370.250 286.805
Operating Cost (226.447) (219.225) (219.573) (278.219) (209.968) (180.536)
Operation Profit 237.330 215.969 182.601 80.934 160.552 106.269
Other Revenues
(Expenses) (40.429) 865.052 (410) 1.080 (54.650) (135.518)
Profit (Loss) 1.190 947 11.953 (30.061) 68.411 (48.486)
Earnings (Loss)
before Tax 196.902 130.864 194.144 51.953 174.313 77.735
Income Tax
(Expense) Benefit (57.286) 11.513 (58.477) (42.557) (53.682) 35.039
Net (Loss) Profit 139.616 142.395 135.667 9.396 120.631 (42.698)

*Restated
Source: Income Statement of PT Aetra, 2008-2010

Page 14 of 15
111-1520-001 SUCCESSFUL TURNAROUND RECAPITAL’S WAY
CASE STUDY OF PT AETRA AIR JAKARTA

About the Author

First Author’s Profile

Author’s
Photo

Co Author’s Profile

Co Author’s
Photo

Page 15 of 15