“ The government should provide more support to the Plastic Federation and not ban plastic usage, but look into providing alternatives such as through public education and environmentally-friendly plastic. ”
Naga Semut is a manufacturer of plastic products encompassing blown film and thermo-forming packaging from PP, PE, HDPE, Raffia and PET, the latter of which is our newest product line. When Naga Semut was established in 1967, the company began as a home-based industry and over the years grew extensively to become an integrated plastic manufacturer.
As a market challenger, Naga Semut constantly strives to provide better value for our customers whether in terms of price, product quality, or services. Particularly for our company’s service offerings, one of our strategies is to deliver high-quality services (including our after-sales services) while simultaneously advising our customers on what constitutes the right solution for their needs. Furthermore, in addition to the educational interaction and our products’ price competitiveness, Naga Semut is also open to customer feedback as the main tool for improving upon our deficiencies.
At present, Naga Semut continues to maintain its focus on the Indonesian market due to the country’s sheer size, as well as for its diversity and wide range of market segments. That said, we have also exported to a number of countries and have obtained Halal certification for our packaging. As a matter of fact, we may potentially extend our global reach as we are currently in the negotiation phase with international clients. We are actively looking to find overseas distributors to anchor our global presence.
We should always have a positive outlook. There is plenty of room to grow in the Indonesian market. As for the condition of other markets abroad, they have their own set of circumstances. Speaking within the context of the ASEAN One Market, I see the domestic market as providing greater opportunities compared to other countries in the region. Indonesia is the most populated country in Southeast Asia which means that the country’s aggregate consumption will already be substantial.
The government has been supportive of export activities in several ways, one of which is through their trade events which we have also participated in. The country also stands a good chance of increasing its export volume with the Indonesian rupiah currently experiencing a significant devaluation. This gives us a competitive edge in the global market. On the other hand, the main challenge for us as a company situated in one of Indonesia’s smaller cities is in finding skilled workers. It has been difficult to find individuals with a good educational background or the required expertise. There have been occasions when we attempted to recruit people from other cities or regions and they declined because they are not willing to relocate. Indeed, labour and technological inadequacies are the greatest challenges that we must overcome.
Additionally, the government should also prioritise improving infrastructure to reduce transportation costs and the time it takes to deliver goods. They could also provide support to the Plastic Federation and not ban plastic usage, but look into providing alternatives such as through public education and environmentally-friendly plastic. For example, educating the public to dispose of plastic bags responsibly and apply strict regulations similar to those in Singapore such as fines for those who do not abide. Moreover, rubbish and plastic bags could also be collected faster and pooled more efficiently before being recycled for further use or other purposes such as to generate power. This can provide a win-win solution as well as create a further driver to boost Indonesia’s large-scale plastic industry which provides thousands if not millions of jobs.
We are very open and we welcome the prospect, be it a joint venture, investment, or other forms of cooperation. One particular area which we believe will potentially provide us with the greatest benefit is joint ventures. It will allow us to acquire multiple dedicated partners that share the same vision as well as provide us with constructive input. More specifically, the most interesting synergy is one that involves technology transfer. Our company needs to catch up in terms of machinery, even more so when compared with European companies. In that respect, we are also open to partnerships with investors for that purpose.
A new area of expansion which we have recently started to carry out is producing polyethylene terephthalate or PET-based products. To support this move, Naga Semut has already prepared the machinery and land for the factory. Overall, Naga Semut has the vision to become a world-class plastic manufacturer that offers better value in terms of price, quality, the range of products and services. At the same time, we also practice environmentally-friendly production. Our commitment to green practices saw the company being recognised in June 2015 as being the only plastic company to receive an award from the Governor of Central Java in commemoration of World Environment Day.
I welcome prospective partners to our company; to enhance each other and grow together. Indonesia is a beautiful country with vast potential in which Naga Semut has established a far-reaching business network. Conclusively, Naga Semut values integrity, honesty, hospitality, unity in diversity, passion-inspired innovation, teamwork and spirituality.