“ Environmental concerns have become increasingly important to the paper packaging industry compared to 20 years ago. ”
I established this company in 1993 with my business partner where we originally began in the manufacture of paper packaging products. The British company, RMS International UK was one of Cermai Makmur Abadi’s first clients in which we supplied them with gift wrappers. Furthermore, I have always had a strong interest in design which motivated me to establish Cermai Makmur Abadi. Our product portfolio comprises of gift wrappers, greeting cards, paper packaging, boxes, paper bags, and a diverse range of other paper-based goods. We are also one of the biggest producers of Christmas crackers in the world. Due to the nature of our business, we have to constantly strive to create new designs and products every year so as to remain ahead of our competitors.
Cermai Makmur Abadi exports 100% of our products where we have reached every region of the globe except for the Asian regions as these companies are our competitors. Our main export markets are mostly North America, Europe, and Australia. While we remain focused on manufacturing end-products such as greeting cards and paper boxes, we will increase our industry presence in branded paper packaging manufacturing as we have done with the company, GAP.
Environmental concerns have become increasingly important to the paper packaging industry compared to 20 years ago. As such, we have long taken the necessary steps to obtain international certifications as well as fulfil global standards so as to tap into wide-ranging export markets. Furthermore, we also ensure that all of Cermai Makmur Abadi’s products are recyclable. In terms of certifications, we are BSCI, CEDEX, WCA, Citypath, and FSC-certified hence illustrating our adeptness in complying with international regulations.
We are one of the fortunate companies that have not been impacted by the economic slowdown. Instead, Cermai Makmur Abadi has incurred annual growth of 20% - 30% over the past three years. I am confident that the company’s trajectory will remain positive given that we have seen increased sales for the coming year. This allows us to forge ahead with expansion plans such as the establishment of new factories with greater production capacity.
We acknowledge that we have received government support for the procurement of raw materials which cannot be sourced in Indonesia. Our company imports paper materials from China, Taiwan, and Europe thus the government has helped us in levying taxes thereby serving as a benefit to Cermai Makmur Abadi. Moreover, under the current administration, we have noticed quicker lead time in ports which encompass one of several other government measures that have helped Cermai Makmur Abadi.
Nonetheless, labour costs remain a challenge for our company especially because we are based in Jakarta. We have successfully navigated past the rising wage issue thus far due to the foreign exchange currency rate which is a result of our export-oriented business approach.
We are supportive of the AEC as this regional integration would ease import regulations for selected raw materials. Through the AEC, we are looking to increase our market presence in Singapore and the Philippines provided that a solid business opportunity is made available to us.
Generally speaking, Cermai Makmur Abadi remains open to partnering with international companies that can offer mutual benefits in addition to positive prospects to our company. For us, we are highly-interested in working alongside foreign investors who can contribute to the future development of Cermai Makmur Abadi.
We encourage investors to invest in Indonesia because we are a stable country that continues to grow despite the global economic situation. With an abundance of natural resources as well as a young population, Indonesia is ready to assist businesses to succeed in the country.