“ The Joko Widodo administration’s open approach to participate in free trade agreements with China and ASEAN has only increased competition for Indonesian companies. ”
Our company started at home where we began with a team of 8 – 12 staff members focused on small-scale production processes. Throughout the years, we have expanded our business operations thus we are able to provide consumers with four main product types. Since 2010, our business operations have expanded even further where we have also diversified our market reach. Our company employs a workforce of 150 staff members and we have reached export markets such as Malaysia where we have established close business ties with our Malaysian partner, and moreover we have supplied our carpets to esteemed companies in Singapore and the Philippines. Lung Victory Carpet has a unique industry advantage due to our unsurpassed service standards that is founded on the basis of attaining customer satisfaction. In supporting this role, we consistently motivate their staff members and strive to nurture their development because we believe that human capital serves as the backbone of our company’s growth in the present and future. This particular aspect is an area that I am confident cannot be found at any other carpet manufacturing company.
We are highly-interested in supplying artificial grass carpets to companies involved in football, golf, and futsal activities. To realise this, we have invested in the machine which we have at our factory operations. However, we are currently focused on manufacturing our own yarn products and we are expected to produce our in-house yarn fibre which uses wool top as the base material. Other product developments include carpet tiles so as to supply to airports and offices throughout Indonesia.
For the future, Lung Victory Carpet aspires to become the largest carpet manufacturing company in Indonesia with a specific goal of supplying carpets to hotels, residences, and apartments found across Indonesia. Furthermore, we are looking to become a company that strives to benefit our employees, stakeholders, and societies. In fact, I would like for the company to be beneficial for local communities in the country and later on, on a global scale. In addition, we would also like to become the first publicly-listed carpet manufacturing company by 2020 thus we have to establish a far-reaching national and international network. As such, we are taking the necessary steps in order to achieve our future goal by strengthening our cooperation with our customers and clients among other measures.
Due to the economic slowdown that has impacted Indonesia and the world, we have had to improve efficiency within our daily operations by carrying out several measures such as implementing a 5-day working period compared to the previous 6 days. Among other implemented strategies also include downsizing our workforce by 10% - 15%. We acknowledge that in spite of undertaking these measures, the impact has been minimal yet we are confident that the economy will rebound in December from the tax amnesty programme.
In my perspective, the tough economic condition would therefore result in deciding the most prudent companies that can play a long-term role in the industry. Given this context, Indonesia’s economy is in prime position to grow again by next year.
Debureaucratisation remains a challenge in spite of the government’s efforts to improve the country’s business climate. I believe that serious changes are needed to fix certain regulations in addition to reselecting members of the local government. Certainly infrastructure development will seek to reduce costs, however it will take approximately two years for the industry to see any concrete changes.
Moreover, the Joko Widodo administration’s open approach to participate in free trade agreements with China and ASEAN has only increased competition for Indonesian companies. Given that our trade partners are entitled to tax exemptions among other benefits, I believe that the government has to review the advantages of these free trade agreements.
In understanding China’s strengths as a manufacturing base in addition to its highly productive labour force, we are hoping that once the ASEAN Economic Community fully develops, we would be able to better compete with our Chinese counterparts. In keeping with the ASEAN Economic Community, Lung Victory Carpet will utilise this regional integration to further bolster sales growth in Malaysia, Singapore, and the Philippines.
In regards to foreign investors, we realise that often they view Indonesia as a retail market for carpets rather than as a manufacturing base for the product. We are very interested in partnering with Chinese firms particularly because I have a number of business friends from China. However, due to the different cultural behaviours, I would like to build upon the foundation of trust before proceeding with a partnership alongside Chinese investors. Furthermore, we are looking for technology transfer to assist us with the know-how on cutting techniques as well as better access to cutting-edge machinery that will enable us to push forth our goal of expanding our product portfolio. We are confident that Chinese companies possess the skillset in addition to the equipment to support us in accomplishing our mission.
We are a company that is open to cooperating with international companies that will support us in spurring our company’s growth by two and even three-fold in the coming years. There is an abundance of growth opportunities in Indonesia and we are confident that we can use this to our advantage as well as that of our partner.