Global Business Guide Indonesia

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Export | Technology Partnerships | Joint Ventures
Daya Cipta Kemasindo | Mr Hendriko Wijaya
Mr Hendriko Wijaya

There is considerable room for the packaging industry to expand, and this process will only be accelerated by the emergence of the country’s FMCG sector and increasingly consumption driven population.

Mr Hendriko Wijaya, President Director

Specialising in the production of corrugated carton boxes, Daya Cipta Kemasindo is a leading player in the Indonesian packaging industry. What can you tell us about the company’s background and its strategies going forward?

Daya Cipta Kemasindo was founded in 1994 with the goal of meeting packaging needs and providing box accessories. As our business grew, we recognized that opportunities were available in East Jakarta and decided to build a second plant in Cibitung, Bekasi in 2006; in close proximity to a large industrial estate occupied by several multinational companies. After experiencing double digit growth in the years that followed this initial expansion, we opened a third plant in Karawang in 2011. In doing so, we once again chose to strategically locate ourselves near customers by finding property positioned next to industrial land. The bulky nature of our products makes it crucial for us to build our manufacturing sites within a 100 km radius of our target clients; anything further than this can limit our company’s ability to optimise its services and have efficient transportation costs. This strategy will continue to be central to our approach as we develop and branch out to new regions.

It is imperative that we manufacture products that are innovative, high quality and competitively priced. To become the market leader, we need to appeal to customers that are at the forefront of their respective industries. We must, however, not ignore middle sized companies that have the potential to evolve into major players in the future. The majority of our clients are in the food & beverage industry; the prime target market for packaging companies. Continuing to work with these types of customers will allow us to become one of the country’s top three players in this line of business.

Given the context of a rising middle class and substantial growth in purchasing power; what is your outlook for the paper packaging industry?

The annual consumption of paper per capita in Indonesia is only 33 kg; a very low figure compared to consumption levels in Singapore and Malaysia which exceed 100kg per capita. As a result, there is considerable room for the packaging industry to expand, and this process will only be accelerated by the emergence of the country’s FMCG sector and increasingly consumption driven population. We also expect that the electronics and textiles sectors will bring about even more opportunities for businesses in our field in the future.

What can you tell us about your innovation priorities and new products you plan on introducing?

Our design team works together with customers to conceptualize and create products that address the latter’s specific needs.

For example, increasing labour costs have incentivized companies in Indonesia to pursue automated processes and we have adapted to this trend by designing packaging conducive to being automatically filled. Our willingness to innovate has helped our clients utilise mechanized filling and packaging procedures even when they need to use irregular boxes which usually need to be filled by hand.

Is your company open to working with foreign investors looking to enter the Indonesian market with a high quality local partner?

When I started this company, I wanted to make certain that it was built to last and as such implemented modern management techniques to ensure that we are well suited to working with foreign entities. Working with international partners requires that both parties have the same mindset, and it is our goal to prepare our staff via training and the introduction of workplace concepts such as KPIs, so that they are fully capable of teaming up with foreign investors.

In what area are you most interested in cooperating with foreign partners?

Our first priorities are technology and access to the global market. To us, a strategic partner is one that is capable of transferring technological knowhow and has an active presence in a host of markets abroad. Should we find a partner that matches this description, we believe that cooperation with a foreign party can rapidly accelerate our transformation and expansion. We are particularly interested in cooperating with firms in the paper mill industry, as we would like to increase our industrial paper exports. Indonesian paper companies are well suited to carrying out this type of venture, as a lack of government subsidies and protection have built for an environment in which only the most competitive companies thrive.

We currently have a contract with Ekman, one of the world’s largest paper traders based in Sweden, to export 100,000 pounds of industrial paper and we hope to establish similar agreements with other companies. At present, we are placing an emphasis on seeking out projects with partners in the ASEAN region.

What would you like our readers to remember about Daya Cipta Kemasindo and Indonesia as a final message?

There is still significant room for the packaging industry in Indonesia to grow. Our company and any potential partners looking to work with us are thus being presented with a real opportunity to play a role in helping the industry realize its potential to become South East Asia’s primary producer and supplier of industrial paper and its related products.

Global Business Guide Indonesia - 2014

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