Several large business groups in Indonesia are currently demonstrating a paradigm shift in their business management. Amid challenging capital market dynamics, conglomerates such as the Lippo Group, Sinarmas, and Agung Sedayu appear to be moving away from the aggressive expansion strategies that once drove their growth.
Instead of venturing into new business sectors, these business giants are now focusing more on strengthening their internal ecosystems. This approach is carried out by optimizing existing assets and enhancing synergies between business entities under the same corporate umbrella.
This strategic move reflects the companies' efforts to improve operational efficiency and strengthen their fundamental business structures amid an economic climate that demands agility. A prominent example is PT Dian Swastatika Sentosa Tbk. (DSSA) of the Sinarmas Group, which has chosen to solidify the foundation of its business structure rather than pursue high-risk diversification.
By prioritizing the integration of business units, these conglomerates aim to create more stable added value. This step is viewed as a form of risk mitigation as well as a long-term strategy to maintain profitability amid increasingly intense market competition.
