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Perhaps Peter Drucker, a well-known management expert in the world, thought about Indonesia when he said that “There are no underdeveloped countries, only mismanaged ones.” In the beginning of 1970s the Indonesian economic growth was 7% even though there was a chronic shortage of skillful managerial persons. Where could we obtain the managers when at that time all universities throughout Indonesia only generated 10,000 new graduates of all studies programs, while there was a need of 30,000 competent managers a year?
That is why a Jesuit priest, Dr. A.M. Kadarman envisioned of an institution such as Harvard Business School – an institution that was able to generate competent managers who were needed by Indonesian country in order to continuously support and speed up the Indonesian economic growth.
At the meeting held on 3 July 1967, it was established a foundation of Management Education and Training (PPM Foundation). The founders and board of directors were represented by elements of Catholics (IJ Kasimo), Islam (Prof. Dr. Bahder Djohan), and Christian (Dr. A.M Tambunan). The meeting agreed to appoint Dr. T.B Simatupang – who at that time was the chairperson of Church Council of Indonesia – as the first chairperson of PPM Foundation.
On 19 February 1968 Management Institute (PTM) was officially established. Dr. A.M Kadarman was appointed as the first Rector. PTM was well-known as an institution that rigorously selected their staff. Out of 250 applicants in 1970, for example, there were only 20 people who were accepted.
In 1969, as suggested by Indonesian Education and Culture department, PTM became School of Management (STM) and was accredited by the Indonesian Education and Culture department. Since it was founded, the institution was oriented to get acknowledgement from business community which utilized its graduates. In 1970, STM was transformed into Institution of Management Education and Training (LPPM) which provided short and long term trainings.
In 1977, LPPM introduced one of the excellent programs, i.e. Wijawiyata Management Program (WM). This is a 10-month non degree program for those who just graduated from tertiary education level. After a minimum of 12 months’ work, WM students can continue their study for obtaining a Master degree.
In 1985 LPPM founded PPM Graduate School of Management by opening a program of MBA (Master of Business Administration). Along with the development of the degree program, LPPM changed into Institute of PPM. In 1993, the MBA program became Magister program of Executive Management (MM Executives)
In 1999 the official name of Institution of Education and Management Training was transformed into Management Institution of PPM with the four strategic units, i.e. Directorate of Executive Training and Development, Directorate of Consultants (PT Binaman Utama), Directorate of Schools (Management Institute of PPM; PPM School of Management) and publication unit (PT Binaman Pressindo)
Currently Management Institute of PPM or PPM School of Management offers three study programs as follows:
1. Bachelor Study Program (accredited with an “A” by National Education Level (BAN-PT))
- Bachelor of Regular Business Management (SMB)
- Bachelor of Professional Business Management (SMB-Pro)
- Bachelor of Business Accounting (SAB)
- Integrated Bachelor and Master Degree PPM – Fu Jen University Taiwan
2. Magister Study Program (accredited with an “A” by National Education Level (BAN-PT))
- Magister of Wijawiyata Management (MM-WM)
- Magister of Young Executive Management (MM-EM)
- Magister of Executive Managements (MM-E)
3. Doctoral Study Program
- Doctoral Degree of Management (in process)