Saturday, 01 September 2012
This young entrepreneur has made his name as a developer of
affordable homes (RSH). After successfully building 9 houses, he is now preparing
to construct seven more. His target market consists of low-income families
whose breadwinners are, for example, tire repairmen, bicycle repairmen, laborers
and teachers. With a down payment of Rp 1.5 million and repayment installments
of Rp 500,000 mortgage, they can finally get their dream homes.
The homes built by Elang are to be found in various places,
including Cinangneng, Cileubut, Citayam, Cigudeg, Cileungsi and Cidahu,
Sukabumi. To date, about 4,000 homes have been built on a total of 50 ha of land by Gemilang Property,
one of the Eagle Groupís subsidiaries.
Initially, Elang built made 2 types of house, namely, type
22/60 and type 36 (36/60 and 36/72). When he opened his first housing
development in 2007, he was courageous enough to offer his products at
affordable prices. Imagine, a type 22/60 house in Griya Salak Endah,
Cinangneng, Bogor, the first housing complex Elang developed, for only Rp 25
million, or a type 36/72 house for Rp 37 million. With a down payment of Rp.
1.25 million, and monthly installments of between Rp 25,000 and Rp 89,000 over 15
years. Not surprisingly, the his first two housing developments were quickly sold
out! Since then, in accordance with government rules, he has confined his
business to building type 36 homes.
believes that the success he has enjoyed to date is thanks to the prayers of
the ordinary people he has provided homes for.Ē
Although the selling price of his houses are now not as
cheap as they used to be, Elang still ensures that his homes are affordable for
the middle to lower income brackets. "The housing market is very prospective
in these segments. Not many developers are involved in this market niche as it
is more complicated. Thatís because of government subsidized mortgages,"
explained Elang, who is married to Detri Sri Angraeni, when interviewed at
Griya Salak Endah III, Cinangneng, Bogor. Developing homes of this type is
different from a situation where the development is self-financed.
As regards the growth of his business in 2012, Elang no
longer focused solely on affordable housing, but also expanded into the real
estate segment. "If you continue to rely on mortgages, then you have to depend
on the government, which makes it difficult to innovate. That's why I decided
to branch out into real estate. The proportions are now equal at about
50:50," said Elang, an alumnus of the Faculty of Management and Economics at
the Bogor Institute of Agriculture (IPB). However, in principle he continues to
support the provision of affordable housing, and uses his profits from
developing real estate to cross-subsidize the construction of affordable homes.
For Elang, providing homes for young, low-income people
provides him with a great deal of satisfaction given how difficult it is for such
people to start out on the housing ladder. He continues to adhere to this
commitment, and firmly believes that the success he has enjoyed to date is
thanks to the prayers of the ordinary people he has provided homes for.
According to Elang, he was once invited to carve up a thanksgiving chicken by a
couple who were overjoyed at finally having their own home.
Shining Thanks to
At first, Elangís parents doubted his ability to develop a
successful property business. This was understandable as he had already tried
his hand at a number of other businesses, but had failed each time. Finally, Elang
decided to learn from his father, H. Misbach, who was a building contractor. It
took Elang four years to convince his parents about his seriousness. His self-confidence
soared in 2007 when he was named winner of Mandiri Young Entrepreneur (WMM) competition
in the diploma and student category. By that stage, Elang was already a
building contractor, albeit a small-scale one, even though he was still in level
IV at the IPB. His win in the WMM was the turning point in the development of
his business, he acknowledges.
"Thanks to Bank Mandiri, I received various kinds of
business training. Not only that, we were also assisted with media promotions
and to take part in exhibitions," said Elang, the father of one son, Satria
Putra Gemilang. His business has grown significantly and his turnover soared since
he became a mentoring partner of Bank Mandiri. From tens of billions of rupiah
originally, his turnover is now worth hundreds of billions of rupiah.
Elang compared his relationship with Bank Mandiri to that of
a child and his parent. For example, even after he took part in
entrepreneurship competition, his relationship with the Bank is still ongoing. Elang
won similar competitions run by other institutions, but these relationships
quickly fizzled out after the competitions were over. Recently, Bank Mandiri
has also been helping Elangís business by extending mortgages to homebuyers.
"At the very least during 2012, there were a number of homes that I built that
could be purchased using a Mandiri mortgage," said Elang, who now provides
work to about 120 employees in the Eagle Group.
Name: Elang Gumilang
Place and date of birth: Bogor, 6 April 1985
Education: Bachelorís Degree, Faculty of Economics and
Position: CEO of Eagle Group
- Overall Winner, Mandiri Young Entrepreneur Competition (2007)
- Named 2008 Top Youth Entrepreneur by Warta Ekonomi(2008)
- Named 2008 Man of the Year by the Jawa Pos Group
- Named 2008 Youth of the Year by TV One
- Named Inspirational Man 2009 by Bentoel
- Named Top Figure by Tempo
- Ernst & Young Indonesian Entrepreneur Of The Year Award
- Andalan Nusantara Youth (2010)
Tips for Success:
Choose a business that you have a mastery of first.
Pay attention to service. Once you provide good service,
profits will automatically follow.
Do it properly. The business must be run correctly, including
as regards marketing, promotion, management and so forth. There must be a
balance between your plans and the efforts that you actually make.
From donuts to real
The entrepreneurial spirit of this eldest of the three
brothers born to H. Misbach and Hj. Priyanti did not come to the surface instantly,
but rather was the fruit of a long struggle.
- When at school at SMAN 1 in Bogor, every day he sold 10
boxes of donuts (one box contains 12 donuts) to students at a number of
elementary schools. His profit was Rp 50,000 per day
- In 2003, he won
economics competitions at IPB and the University of Indonesia (UI). While at college,
he made money by selling shoes to the students living in IPB student
dormitories. He had a turnover of Rp 3 million per month. But that did not last
long. The quality of the shoes he sold declined, which resulted in a slump in demand.
- Armed with a letter from his university, he submitted a
proposal to Philips to supply lamps to the campus. For every lamp he sold, Elang
earned a profit of Rp 15 million. However, as sales were incidental and money
was slow to come around, Elang decided not to pursue this business.
- He next tried his hand at selling cooking oil. But because
he was so tired delivering cooking oil to stalls, his studies were disrupted.
- His next business was an English education center called English
Avenue on his campus, which he jointly established with his friends with an
investment of USD 21 million. He was not directly involved in day-to-day
management but rather just kept an eye on the venture.
- Working as a real estate agent (based on a commission for each
home sold). It was this experience as a real estate agent that persuaded him to
go into business as a property developer.