“ The recently launched tax amnesty programme by the Joko Widodo administration has reassured us given the government’s plans to use these funds to continue with national infrastructure projects. ”
Our corporate vision for Langgeng Jaya Group and its subsidiaries is to become the number one company in Indonesia renowned for its recycled plastic manufacturing services. Our subsidiary, Langgeng Jaya Fiberindo was established in 2003 and is involved in the manufacture of fibres, polyester staple fibres, and strapping bands. We have a workforce of approximately 1,000 employees and we have a far-reaching network of garbage collectors throughout the country. Langgeng Jaya operates three factories situated in Surabaya, Medan, and Jakarta and it is through these factory operations that we are able to export our recycled flakes to a number of countries including China, South Korea, Vietnam, Thailand, Australia, and Japan among others. Moreover, as our company developed, our focus shifted to the production of polyester staple fibre (PSF) which is manufactured at our factory in Jakarta. It was through this opportunity that we began supplying PSF to our Chinese partners in 2005. Approximately 80% – 90% of our group’s products are exported and as such, we prioritise on maintaining the highest level of product quality.
As the founder of Langgeng Jaya Group, I have made it my intention to provide numerous solutions to Indonesia’s plastic waste problems and thus I stress the recycling of plastic waste products derived from this country. This therefore means that we also seek to create measures that encourage environmental sustainability. To achieve our goal, Langgeng Jaya Group prioritises the use of environmentally-friendly products, understanding that this initiative will assist in developing as well as promoting the plastic recycling industry. Furthermore, our company strives to initiate partnerships that are mutually beneficial.
Moving forward, we will be looking into developing a number of products that can be manufactured using recycled materials given Indonesia’s ongoing problems with plastic waste. This measure will enable us to sustain our business activities while also aiding the local government. We also remain focused in the development of our geotextile products and thus we have invested in new machinery that can manufacture inline geotextiles which uses 100% recycled plastic. For consumer plastic goods, Langgeng Jaya and the Indonesian Recycled Plastics Association are currently in talks with the government to develop plastic-based items that are safe for use by consumers.
As Chairman of the Indonesian Recycled Plastics Association, I have raised our industry’s issue regarding the 10% tax rate. The imposition of taxes on recycled plastic will therefore result in the increase of our product price compared to goods which are not made from virgin flakes material. This issue is further complicated due to the complex process in producing recycled plastic-based products. We have been fortunate because the association’s efforts to overturn this taxation policy has garnered support from various parties such as the Minister of Finance, the Directorate General of Tax Office, and the Minister of Environment and Forestry. The government has stated their intentions to offer our industry a tax rate of 1% and they are currently looking for companies that are eligible for this tax regulation.
To better engage the government with the recycled plastics industry, our association also actively offers advice to the government regarding products that promote environmental sustainability. Moreover, the association is planning to host a waste management event next year to raise awareness on an effective waste management system that takes into consideration the welfare of the environment. Through this programme, we hope to decide upon a single mission on how to properly manage plastic waste with the Indonesian government.
The recently launched tax amnesty programme by the Joko Widodo administration has reassured us given the government’s plans to use these funds to continue with national infrastructure projects. Taking this into consideration, we strive to establish a new company involved in infrastructure in order to support the industry’s needs. In fact, our geotextile product has been used as the foundation for the construction of highways which illustrates our capability to cater as well as engage in infrastructure development in Indonesia.
Due to tighter competition with our ASEAN counterparts, Langgeng Jaya Group remains committed to offering high-quality products through efforts such as obtaining the ISO 9001 certification which we are expecting to receive by end-2016. We understand there is a need to uphold stringent standards for the delivery of our product range given the potential effects on Langgeng Jaya Group’s ability to remain ahead of our regional competitors.
We welcome any opportunities to partner with international companies in order to spur further development of our industry. For our fibre products, we view Europe as an attractive export market for the future given the lack of industry players involved in the manufacture of recycled plastic products in that region.
Langgeng Jaya Group remains enthusiastic in initiating cooperation with companies for technology transfer and capital investment purposes. Earlier this year, our company was approached by a Japanese firm that wanted to share their technological advancements with Langgeng Jaya Group.
Having started this company with humble beginnings, I believe that nothing is impossible to achieve for partners interested in working alongside Langgeng Jaya Group.