CEO Insights Magazine

In Indonesia’s complex business environment, organizations rely on effective financial management to navigate challenges and achieve sustainable growth. This is where the role of the head of finance becomes crucial. The head of finance plays a pivotal role in overseeing the organization's financial operations, ensuring compliance with regulations, and providing strategic financial guidance to the leadership team. Amongst the leading finance leaders, one person creating a buzz in the Indonesian business world is Andi Saputra, CFO of OCS.

Andi's journey in accounting began in high school, where a fascination for its blend of mathematics and creativity sparked a lifelong interest. This passion led Andi to pursue a degree in accounting at university and kick-start a career as an accountant at a local bank in Indonesia. This curiosity propelled Andi to explore roles beyond traditional accounting, transitioning into positions such as a finance business partner and eventually assuming the role of the head of the strategic management office.

In this interview, Andi Saputra shares insights into his career journey and the importance of finance in the organization.

Could you please list some of the important responsibilities that a Chief Financial Officer (CFO) manage?

The CFO's primary mindset should be that business or financial results are the outcome of collective actions and collaborations within the company. This includes achieving a robust financial control environment and finalizing audit reports, which necessitates collaboration across divisions, not just within the finance team. Support and collaboration from other divisions are crucial for achieving these goals.

T he m ain t asks o f a C FO i nclude c ontrol a s a mandatory function, followed by support. Control is essential, but the primary focus should be on supporting the business. Setting a vision for the finance division is also important, with a focus on driving sustainable, profitable growth. CFOs should exhibit behaviors that drive and share this vision with the entire finance team, from reporting to providing insights, influencing decisions, and ultimately driving results.

To become a strategic player in the organization, CFOs must be trusted business partners to all parts of the company. Trust is crucial for both the control function and supporting the business. CFOs must strive to be independent thinkers within the company, articulating clear visions and goals, maintaining open communication, empowering and collaborating with others, and delivering on core outcomes such as analysis and advisory, risk management, resource allocation, compliance, governance, strategic planning, and staying updated with technology.

How do you ensure the financial health of the group, and what are your strategies for maintaining it?

Firstly, to create a fit-for-purpose finance organization, we must align its goals with those of the overall organization. This alignment enables mutual support and cohesion. Secondly, having the right people in the right positions with the right mindset is crucial. Once we establish a fit-for-purpose organization, we need to ensure we have the right individuals in key roles with the appropriate mindset. Thirdly, implementing a readiness system and processes is essential. These three elements form the core of our initial setup.

In every finance organization, I prioritize five strategic areas. The first is transparency, focusing on how we can create transparency and foster ethical leadership. The second is risk management and compliance, emphasizing the need to protect our license to operate through compliance management and robust internal controls. The third is process excellence, where the CFO plays a key role in driving process efficiency through standardization, especially in core finance processes like sourcing to pay, order to cash, record to report, and hire to retire.

The fourth priority is digitalization, highlighting the finance department's role in supporting digitalization efforts through enterprise IT platforms. Lastly, we prioritize becoming a trusted business partner by building and developing a strong, business-oriented finance community. This approach ensures that the finance function remains a reliable financial hub within our organization.

Could you explain your approach to risk management and how you identify financial risks that could impact the group's stability or reputation?

To ensure effective financial control, organizations should establish standard governance controls. These controls should cover key processes, such as sourcing to payment, order to cash, and hire to retire. They should also address compliance with finance-related clauses, regulations, and internal policies. Establishing these controls creates a framework for a robust financial control environment.

Once the standard governance controls are in place, a dedicated function should regularly monitor their implementation. Additionally, top management, including shareholders, the CEO, and other directors, must commit to supporting the implementation of these controls. This commitment is crucial for the success of the financial control system.

Each business process owner in the organization should conduct self-assessments related to their governance controls. Regular audits by an independent department, either at the country or group level, should also be conducted. These audits verify compliance with the established controls. Over time, these practices help establish a positive culture of financial control within the organization, improving financial risk management, stability, and reputation.

How would you describe your leadership approach?

I believe in an empowering and adaptive leadership style. Empowering team members involves delegating tasks, providing autonomy, and trusting them to make decisions. It fosters a sense of ownership and responsibility. I start by understanding the purpose of each team member and strive to build effective teams based on mutual trust. I also emphasize leading by example and continuous learning and development. These principles guide my leadership approach and help me lead teams to success.

Can you shed light on your future goals?

My future goal is to see OCS Indonesia and the Philippines, where I am in charge, achieve sustainable, profitable growth that aligns with shareholder expectations and benefits all stakeholders, including employees. I aim to contribute significantly to this goal through the finance team. Ultimately, I aspire to be a positive force for society, the environment, and the people around me.

Andi Saputra, CFO, OCS Indonesia & Philippines

Andi's journey in accounting began in high school, where a fascination for its blend of mathematics and creativity sparked a lifelong interest. This passion led Andi to pursue a degree in accounting at university and kick-start a career as an accountant at a local bank in Indonesia.