“ The Indonesian government has not given enough attention to the paper packaging industry which we hope will change in the future. This is particularly because our industry requires large numbers of imported raw materials in the production of paper package ”
Our company is divided into two divisions in which Paperocks Indonesia is focused on the domestic market whereas Glopack Indonesia is our group company which was established in 2005. The early days of Glopack Indonesia primarily focused on product exports, however in 2009 – 2010, the company began targeting the local market due to greater competition from the Chinese market. As such, we founded Paperocks Indonesia in order to maximise the opportunities of the Indonesian market. Paperocks Indonesia has a staff of 20 individuals at our head office and a 300-strong workforce at our factory.
Paperocks Indonesia prioritises on the middle to upper market segments which has become a successful venture. We experienced rapid business growth in 2011; in fact, we currently have approximately 300 local clients and we believe that further growth can be expected due to regulatory changes including a ban of styrofoam products in Bandung and the North Jakarta area. These newly imposed laws that promote environmental sustainability thus bring about new areas of opportunities for our company namely to enter new fields such as bakeries, restaurants as well as cafes.
Moving forward, we are looking to utilise our widespread local network as a means to develop business ventures in the F&B industry. Among the areas we are looking to explore is to supply furniture products for commercial venues in addition to the supply of kitchen utensils such as napkins. Furthermore, we are striving to tap into the FMCG sector in which we are already supplying paper packages to esteemed local companies in Indonesia.
Generally speaking, our business incurs an annual growth of 20% - 25% and we are able to maintain this trajectory despite the economic slowdown because of our adept sales team. We also have an upper-hand in product development which enables us to generate further interests from FMCG companies looking to diversify their product line. Thus we remain highly optimistic about our business expansion particularly because global F&B brands continue to widen their presence in Indonesia despite the current economic conditions. This trend therefore provides us with greater confidence in the short-term outlook of Paperocks Indonesia.
Under the Joko Widodo administration, I can say that the business climate has become more conducive. However every year, we realise that the Indonesian government has not given enough attention to the paper packaging industry which we hope will change in the future. This is particularly because our industry requires large numbers of imported raw materials in the production of paper packages. Paperocks Indonesia is still reliant on the European and Chinese markets to obtain the raw materials for our products – this dependency thus is easily impacted by fluctuations in the exchange rate which in turn impacts our business
Paperocks Indonesia has agents spread across the globe and we are looking to add more agents in these locations in addition to increasing our participation in various exhibitions. This measure should assist us to enter new markets as well as bolster sales in countries that have not indicated optimal performance. As such, we are looking to boosting our sales support for our agents in the Middle East, Japan, South Korea, and Taiwan. Two years ago, our company recently began exporting to the Middle East whilst Australia remains our largest market share.
We are interested in initiating partnerships for a new business venture that will utilise our existing local network while also offering technology transfer and technological advancement purposes. With greater competition from international players, we acknowledge the importance of manufacturing paper packaging products that have more advanced features in order for us to remain ahead in the industry. Moreover, we are looking forward to improving our IT infrastructure at our factory operations in order to create improved efficiency and inventory control. Understanding that we primarily supply paper packaging to restaurants, hotels, and cafes, we also realise other business potentials in these three business segments; among these include the supply of napkins, furniture products, kitchen equipment, and dining utensils. Another area we are interested in is the supply of syrup which we believe has immense market potential domestically. By taking advantage of our far-reaching local network of consumers, we would hence be able to offer our partners the market reach to introduce their products in Indonesia.
Paperocks Indonesia is a company that thrives on product development and we are constantly seeking cutting-edge advancements to improve our product portfolio. As a result, we remain confident in our growth trajectory given the market potential for paper packaging consumption in Indonesia.