Strategizing for Vertical & Horizontal Growth
A diversified holding company unlocks new value through integrated planning and transformation management
Background
A leading diversified holding company with over 4 trillion Rupiah in revenue and 27 subsidiaries across four major sectors—palm oil, mining, energy, and contracting & services—was at a strategic crossroads. Despite its scale and reach, the group was facing inconsistent profitability across entities, limited visibility on long-term growth, and mounting debt obligations. The absence of integrated planning and formal transformation mechanisms made it difficult to align initiatives across the group.
Challenge
Without a unified growth strategy, the group struggled to prioritize initiatives and manage risk. Several subsidiaries remained unprofitable, and significant debt obligations strained cash flow. Governance between holding, sub-holding, and operating entities was unclear, often resulting in duplicated efforts and missed synergies. A bold yet structured transformation was needed to realign the group for sustainable expansion.
Ideas
Over a six-month planning period, we worked closely with the leadership team to architect a transformation roadmap centered on long-term value creation. Our support included:
Designing an integrated long-term plan with a clear three-phase strategy: operational excellence, accelerated expansion, and sustainable growth; including 30+ work programs across entities
Conducting comprehensive financial modeling to identify value enhancement levers and cash flow improvement strategies
Selecting and detailing strategic initiatives, including new business lines, operational turnarounds, and monetization opportunities
Transformation Management Office (TMO) to oversee and drive group-wide initiatives
Leading a financial restructuring program, including refinancing and balance sheet optimization, in collaboration with external financial partners
Developing a governance charter to clarify roles and interaction models between holding, sub-holding, and operating companies
Result
With a clear transformation roadmap in place and the TMO actively steering execution, the group is beginning to see early yet meaningful signs of progress. What was once a loosely connected portfolio of businesses is now moving toward greater alignment, financial discipline, and growth readiness.
Accelerated revenue performance, with the group on track to reach IDR 5 trillion year-to-date—outpacing historical benchmarks.
One of the group’s palm oil subsidiaries is on track for an initial public offering, projected to unlock over IDR 1 trillion in liquidity and growth.
A formal governance model now underpins holding, sub-holding, and operating company relationships, improving decision-making speed and clarity.
The group has begun meeting refinancing milestones, with a structured repayment plan improving balance sheet stability.
Together, these outcomes mark a shift not only in numbers—but in mindset. The group is now positioned to pursue both vertical and horizontal growth with sharper focus and renewed confidence.
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