“ Slowing growth in Indonesia’s property sector has not affected the growth of our business due to the quality of our work as well as the price range for our services. ”
In 2009, I started my business in the hospitality industry and it was during that time that I realised the potential of Indonesia’s rising middle-class in addition to their growing awareness of health and beauty treatments. However, spas during that time were relatively expensive and therefore consumers had difficulties finding affordable spas and spa treatments. As such, this market demand was an opportunity for us to offer a local spa brand which utilises natural active ingredients from Indonesia and boasts a cultural experience as part of the spa service. Within the first two to three years after Royal Garden Spa was founded, we managed to gain a significant public following for our products. Royal Garden Spa now employs 245 staff members positioned in the field and ten employees based at its head office. We presently oversee the operation of 25 spa outlets with an expected six additional branches slated for completion this year. Upon developing our spa brand, I realised that a contractor was required in order to complete the project in a timely manner as well as to maintain consistent quality standards for the interior design. It was with this thought in mind that I ventured into the creation of Royal Construction which at the time was designated specifically for the development of our new spa outlets.
Our colleagues, business partners, and franchise holders were highly-pleased with the results of Royal Construction’s services and hence sought-after our business to assist in the development of houses and stores. It was through this opportunity that we created an in-house team of architects, project leaders, and field engineers for civil construction. Our civil construction business currently has a team of 400 field engineers with 15 individuals based in the head office. The interior design division employs 40 staff members designated for production at our factory in Tangerang led by four interior designers.
Over the past two years, the profit from our civil construction and number of employees has doubled by two-fold in comparison to our spa business. With the construction sector undergoing steady growth, civil construction continues to be our main area of focus. Slowing growth in Indonesia’s property sector has not affected the growth of our business due to the quality of our work as well as the price range for our services. Furthermore, we offer a one-stop solution by providing consulting services with our architects as part of the service. In regards to pricing, we normally win 80% of tenders thus we have 20 civil construction projects and 15 ongoing interior projects with an additional 12 civil construction developments set to take place during the fasting month.
The slowdown of a sector does not mean there is no market potential; it is about a company’s capability to obtain the most market share during this period of time. We ensure that our head office incurs low operational costs and that we achieve customer satisfaction in price, result, and maintenance. We thus currently have a 350 sq.m. factory in Tangerang dedicated to interior design. Through this specific business venture, we came to acknowledge the considerable market demand for interior design amongst Indonesia’s middle-class. Our track record of successful projects has enabled us to attain a number of awards and secure a number of project tenders for multinational corporations as well as the Embassy of Pakistan in Indonesia. This has driven me to believe that Indonesia’s property sector boasts a positive outlook for the coming years.
I was selected by the Indonesian government and the Association of Franchise Indonesia to represent local spa brands in China and Hong Kong in 2014. During that experience, the international audience acknowledged the growing reputation of Indonesian spas as providers of some of the world’s best spa treatments. This therefore means that Indonesian brands in the hospitality industry have the potential to attain overseas success through adept human resources and training. As such, we are in the process of establishing our first spa branch in the ASEAN in the coming year hence we have begun training our employees to also be fluent in English.
We will continue the expansion of the Royal Garden Spa brand and the many accolades for our spas encourages us to maintain our high-quality standards in order to become Indonesia’s largest spa chain. Going forward, we aim to become the first Indonesian spa outlet to thrive in the overseas market. In terms of the civil construction sector, we are looking to extend our capability to develop high-rise buildings including hospitals and hotels as well as road construction. We are dedicated to offering the utmost service quality while contributing to national development. Our new office in BSD City aims to support our growth in civil construction as well as with our interior design services. We will focus on the aforementioned three areas until we become a leading company ensuring complete customer satisfaction across these domains.
Prior to starting Royal Corporation, I worked for an international company for 10 years thus I understand that there will be mutualism between business partners interested in creating real developments to support local businesses and employees. Royal Corporation therefore remains open to working with overseas partners to realise mutual interests in the hospitality and construction sectors. International partners have a tendency to create solid SOPs whilst local companies have an in-depth understanding of the domestic market thus these two factors can complement one another; we are also interested in technology transfer to support our construction business given Indonesia’s need to develop more factories.
Royal Corporation is committed to providing excellent services for our customers, business partners, and suppliers. We are open to discovering areas of mutual benefit with prospective partners and we are constantly ready to support the needs of foreign investors.