Press Release
Success Story
Elang Gumilang, Building Homes for the Common People

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.

"Elang firmly believes that the success he has enjoyed to date is thanks to the prayers of the ordinary people he has provided homes for.Ē

Market Potential

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 Mandiri

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.

Biodata

Name: Elang Gumilang

Place and date of birth: Bogor, 6 April 1985

Education: Bachelorís Degree, Faculty of Economics and Management, IPB.

Position: CEO of Eagle Group

Awards:

  • 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 Magazine (2009)
  • Ernst & Young Indonesian Entrepreneur Of The Year Award 2010
  • 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 estate

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.



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