PT Astra International Tbk is one of Indonesia’s biggest broadened combinations.

The organization’s
activities started quite a while ago based on its center in automotive manufacturing and distribution,
which remains its biggest division, at almost 83 percent of all total sales of IDR 31 trillion ($3.7 billion) in
2002. The kickoff of Indonesia’s import market at the beginning of the 21st century, particularly to
individual ASEAN financial network individuals, has pushed Astra to adjust to it. Then in May 2003, the
organization auctions off virtually the entirety of its property in its long-term automotive jointventure
with Toyota. The move, the returns of which were reserved toward squaring away the organization’s $1
billion debt, pulled together Astra essentially on its automotive sales and distribution networks, which
remains the biggest in Indonesia. The organization holds the exclusive distribution rights to Toyota (the
nation’s greatest selling brand), Peugeot, Daihatsu, BMW, Isuzu, and Nissan, and also the exclusive
manufacturing and distribution rights for Honda motorcycles. It is Southeast Asia’s largest independent
automotive group. Astra continually aspires to become a corporate citizen that is considered to be a
pride of the nation, one who is actively involved in the national efforts to improve the welfare of the
Indonesian people. To this end, Astra runs business activities by a balanced combination of the business’
commercial interests and non-business contributions through ongoing social responsibility programs
focused on four basic areas: education, environment, small and medium enterprises (SME) development
and health.

At the end of 2019, Astra’s business operations across Indonesia are run through 235 subsidiaries, joint
ventures and associates, and supported by 194,359 employees. As one of the nation’s largest business
groups today, Astra has built a strong reputation through a diverse and quality products and services
offering, with due observance to good corporate governance and environmental governance standards.

PT Astra International, like all companies started out small, but with the right strategy and management,
they have grown into one of the biggest if not the biggest corporate in Indonesia.

They have their own corporate philosophy and visions and mission as well which are for them to be one
of the best managed corporate in Asia Pacific and also to be sustainable and to be a socially responsible
coporation.

The analysis done in this paper are PT Astra International’s VALUE CREATING DIVERSIFICATION, THE FIVE
FORCES OF COMPETITION MODEL, TYPE OF DIVERSIFICATION, INTERNAL ANALYSIS, EXTERNAL ANALYSIS
and FIVE BUSINESS LEVEL STRATEGY, we know that PT Astra International is not just a company, but a
corporation with many subsidiary companies under them which consist of companies that they started
themselves or companies that they acquired through purchasing the shares. They do this to keep their
costs low as each of the subsidiary companies can operate simultaneously with the other so that each
subsidiary company doesn’t have to rely on other company in other sector to move as they have their
own subsidiary company in said sector, and from those analysis above, we can know how PT Astra
International operates and understand how did PT Astra International became one of if not the biggest
corporate in Indonesia.

My suggestion for PT Astra International is that PT Astra International should start opening branches
overseas so that PT Astra International can expand their market even further and gain more recognition
internationally. This could open up new business opportunities which PT Astra International couldn’t get
before. This will also help Indonesian company to be known in the global market which of course will
bring benefits to PT Astra International and all of its subsidiary companies which fortunately moves in
almost all of the main sectors of the Indonesian economics from transportation, agriculture, mining,
constructions information system, financial services and also logistics. So I think it will be a wise decision
for PT Astra International to try and not just export their products, but also start to open offices or
another subsidiary company abroad.