“ The government has a role in empowering communities and businesses in order to boost confidence in regards to Indonesia's survivability within the AEC. ”
We are one of two state-owned companies involved in printing where we specialise in printing security paper-based products. As a company under the control of Indonesia’s National Intelligence Agency (BIN) and their Counterfeit Currency Eradication Coordination Authority (BOTASUPAL), we are responsible for the printing of security paper-based products such as bank notes, diplomas, state gazettes, e-KTP, and ATM cards among others. Aside from supporting BIN and BOTASUPAL’s printing activities, we also have a business operation that works for the government. For government-related printing needs, we are responsible for printing cards such as the Jakarta Smart Card and Jakarta Health Card. We also have business operations in digital archives as well as in trade. Furthermore, our establishment and line of business are stipulated under Government Regulation No. 72 of 2012.
As a company, we emphasise the importance of diversification and innovation as a means of maintaining our strength in the industry. In understanding the notion that PNRI cannot solely rely on the government, this has motivated us to release new products and thus enabled our product portfolio to continue expanding. Currently, PNRI is focused on catering to the local market, however, I have plans of one day exporting our products particularly in emerging markets such as Vietnam, Cambodia, and Laos. In order to achieve this goal, we would have to build up our level of competitiveness which nonetheless cannot be separated from receiving government support. Going forward, I would like to see PNRI continue to expand as a company in terms of size and capabilities.
The raw materials that we use for the production line of our products such as pulp & paper are mainly imported and thus we are susceptible to the changes impacting the foreign exchange rate. Furthermore, we face challenges due to the global economic slowdown as well as the acquirement of capital because and as such, we have had to participate in strategic alliances.
Although I have reached out to the government to assist us financially, their agenda is primarily focused on special sectors such as infrastructure, oil and gas, and transportation. As a result, we have to create a strategy that will enable us to continue operating in the industry despite limited access to capital and high costs of raw materials. Among these strategies are applying for bank loans in addition to reaching out to industry players in wide-ranging sectors such as FMCGs for the printing aspect of their packaging.
Moreover, the government should also establish a basic chemical industry in Indonesia so as to reduce the cost of raw materials for pulp & paper. Another benefit to this initiative is that it would create business opportunities for local players which would reduce the issue of monopolisation that has overshadowed the national pulp & paper industry. Environmental issues surrounding Indonesia will continue to pose a problem for our industry should local companies seek to enter the European and American markets. Lastly, the government must also reduce the interest rate to one digit given that Indonesia’s interest rate is noticeably higher than that of Japan and Singapore. Should the government fulfil this, I am confident that our country’s business sector will be more competitive because companies would have better access to financing.
The country’s economic slowdown has nonetheless brought out challenges such as high interest rates, an overflow of goods from China, and lower consumer spending levels. In terms of the future, I hope that the world economy recovers and that Indonesia can overcome its current economic hurdle. For PNRI, we strive to increase our production capacity but the concern is on how to encourage consumers to purchase our goods.
I am optimistic that an economic rebound will take place in the short-term because the government is set to accelerate government spending and reform the business sector. It is important to note that to realise this, the government and businesses would need to work together in order to achieve political and monetary stability which will improve the Indonesia's competitiveness.
We recognise Singapore and Thailand’s strengths in the ASEAN region hence Indonesia will need to work towards competing head-to-head with these countries through business diversification. At PNRI, we recently entered digital printing as a response to competing in the AEC in addition to bolstering our upper-hand in the industry. Price competition is a factor that can have an impact on Indonesia’s ability to succeed in the AEC. Thus I believe that the government has a role in empowering communities and businesses in order to boost confidence in regards to Indonesia's survivability within the AEC.
As a company, we always remain open to establishing partnerships with local and international companies because PNRI believes in collaboration. Through partnerships, we are confident that we can create strategic alliances with our partners in order to achieve growth. Also, PNRI does not hesitate to work with the private sector despite us being a state-owned enterprise. We believe that these partnerships would assist us with the supply chain process and distribution channels.
At PNRI, we have a belief that businesses around the world are all interdependent and therefore it is important to focus on providing equal opportunities to small and medium enterprises. Large-scale companies must remember to support small-scale industry players because it is through this system that all businesses are able to attain long-term sustainability.