“ With a number of measures in place by the government, we believe that growth will begin to rebound during the second quarter of 2017. ”
We started in 1978 as an electronic shop where we retail a number of brands including the Federal brand. We then decided to establish a factory in 1982 situated in Bogor focusing on the manufacture of flexible wires. As such, we become the first company to produce electronic wires to the local market. Moreover, we began outsourcing cables to the local television company RCTI. Our market strategy evolved in 1997 - 1998, however, when the Asian Financial Crisis hit, we shifted our focus to the production of industrial cables. Through this measure, we were able to include Siemens and Schneider as part of our client portfolio. Our company’s focus on supplying to industries will soon change as we are looking to re-enter the retail market in the coming future. We are looking to promote our product portfolio which encompasses low-voltage cables that are ideal for industrial use, telecommunications industry, sound systems, and for data signal purpose. Currently, we supply sound system wires to XXI movie theatres across Indonesia and thus as we move ahead to increase our market presence, we have also undertaken rebranding strategies given the importance of adapting to the globalised era. As part of this process, we also strive to nurture the talents of our staff members.
At Federal Mardhika Citramandiri, we strictly maintain our product policy of using 99.99% pure copper conductors and so we only produce solely copper-based products. Furthermore, we are one of only a handful of companies that produces precise cross-sectional area cables thus which serves as our company’s upper-hand in the industry.
Customer service is at the core of product satisfaction from our customers. Therefore it is important for us to maintain our product quality and standards. Aside from this, we place a strong emphasis on the delivery time; we have created a rule where 92% of our company’s products must be delivered in less than three days. We are constantly looking to improve upon the delivery time thus in 2017 we are aiming to increase the target rate to 94%.
I believe that our company must look to different sectors such as infrastructure cables for buildings and offices; it will enable us to cut costs given that we produce high-end cables. I am confident that the annual growth for flexible cables will be around 20%. Federal Mardhika Citramandiri is one of only a handful of companies producing switchboard cables with precise cross-sectional area and available in 12 colours. This is a unique selling point for us because cable companies typically produce an average of four to five colours. We are also expecting an annual growth of 20% - 35% for sound system cables in the near future. Our company has proven the quality of locally-made cables to a number of sound system companies hence they have relied less on importing sound system cables from overseas markets. This industry’s misunderstanding thus motivates us to increase public knowledge on cables amongst Indonesian communities.
The government’s regulation on land acquisition has helped our company in delivering our products in a swift manner. Through the government’s subsidized housing programme, we are also able to experience rapid growth for cables. In my opinion, the government needs to improve on labour laws as this is an area that creates reluctance among investors. With a number of measures in place by the government, we believe that growth will begin to rebound during the second quarter of 2017.
Due to the government’s SNI programme, we have not been affected by much competition from our ASEAN neighbours. There is greater competition for the production of high-technology cables in comparison to standard cables in Indonesia, however should we request for example, fire-resistant cables, it will be difficult because the materials are not yet manufactured locally. In my opinion, Indonesia should invite ASEAN companies to work with local companies so as to ease cable manufacturing companies in assessing the materials and tools that are required by the industry. Among these materials and tools include PP yarn, aluminium foil, large-sized bobbins that are mainly produced in China, and diamond dies where only two local companies have the capacity to manufacture these goods.
Aside from aiming to produce fibre optic cables, we are also looking to begin manufacturing fire-resistant, submarine and thermocouple cables. Given the high demand for fibre optic cables in the industry, we are interested in engaging in partnerships that will assist us with future plans of producing fibre optic cables.
We are primarily focused on the supply and partnership for high-technology cables, submarine cables, thermocouple cables, and fire resistant cables. In this regard, we underline the importance of building trust with prospective partners as this serves as the foundation of all forms of cooperation. With regards to synergies, we are focused on partnership opportunities with the potential to offer the exchange of knowledge in addition to know-how on wireless technology. I believe that the future of wireless equipment is on the horizon hence we have to prepare ourselves in advance as this may pose as a challenge for our industry in the future.
Federal Mardhika Citramandiri is a dynamic company that employs a young, passionate workforce and we encourage our team to come up with innovative ideas. For our company, brand, people, and IT system are the three main priorities that are the foundation of our business operations. We believe that ground-breaking solutions are those that derive from ideas that are not of the norm, and this principle will always be upheld at Federal Mardhika Citramandiri.