The Ciputra Group: Shaping the City in Asia

Case Solution

Marleen Dieleman
Ivey Publishing ()

The Ciputra Group was founded in the 1980s by Mr. Ciputra after a long business career with the vision of providing a business for his children. The case describes the development of this group, which has become a leading and innovative player in the Indonesian real estate sector. Under Ciputra’s leadership, the company became known for its satellite cities, where the group combined engineering, construction and urban planning qualities with the ability to understand and maneuver the challenging Indonesian environment. The Ciputra group moved to areas where the government was weak (utilities, roads, sewerage, city administration, security, etc.) and as such became an “institutional entrepreneur” that shaped Indonesian cities. . This model was later exported to other emerging countries. The case ends with the company facing two interrelated problems. One sentence is strategic because the company’s business model has proven to be fragile and is undergoing several changes. The question is, what strategic option should the company choose? The second group of questions refers to the management and corporate structure of the group. Given that Ciputra is over 70 years old, a generational change in management is imminent and students are asked to think of the most appropriate way to develop the business from a charismatic entrepreneur to a professional family business. The two complexes of subjects are linked and harbor opportunities and limits.

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