Global Business Guide Indonesia

PT Dan Liris PT Dan Liris PT Dan Liris PT Dan Liris PT Dan Liris PT Dan Liris PT Dan Liris PT Dan Liris
JOINT VENTURES | INVESTMENT
PT Dan Liris | Ms Michelle Tjokrosaputro
Ms Michelle Tjokrosaputro

Dan Liris has expanded upon its production process in terms of both variation in making fabrics as well as the technology used. This pertains to the use of the latest machinery in addition to the output of higher-grade fibers. 

Ms Michelle Tjokrosaputro, CEO

GBG Indonesia’s readers were first introduced to Dan Liris in 2014 as an integrated textile company specialising in spinning, weaving, finishing, printing and garment manufacturing. What can you tell us about the latest developments that have taken place at the company over the last year?

Dan Liris has expanded upon its production process in terms of both variation in making fabrics as well as the technology used. This pertains to the use of the latest machinery in addition to the output of higher-grade fibers. One example of this is a batik product which utilizes a yarn from an Austrian manufacturer. The textile offers the smoothness of silk, has the absorbance quality of cotton, and yet provides a neat appearance similar to that of polyester. It has all those elements but is actually a type of rayon. We have proceeded to use this fabric in collaboration with a Japanese designer. Using refined fabric and yarn in this capacity has brought a breath of fresh air for us compared to the ordinary ways in which we developed our textiles in the past. Compared to before, we are increasingly moving towards fashion by developing finer counts. Furthermore, we have been exploring with different types of yarn and have also built our machinery to better accommodate this.

Indonesia’s textiles industry has in recent months been the subject of attention as an industry significantly impacted by present challenges such as a declining rupiah. Given this context and its implications for textile businesses in the immediate future, what can you tell us about your outlook for the medium and long-term?

Indonesia’s textile industry is facing a big challenge because production costs continue to rise. I myself do not expect the trend to change anytime soon due to a couple of factors; the cost of labour and electricity. To give you an illustration, our electricity costs have risen by 40% between early 2014 and now - a massive jump in such a short amount of time. This begs the question of the fate of our industry in competing with countries like Bangladesh or Myanmar which at the moment offer more competitive costs. Dan Liris, however, is still positioned to perform well given that all of our garment products are export bound which has allowed us to survive amid this unfavourable condition that has already caused many local companies to close down.

As competing textile manufacturing hubs continue to struggle with issues related to worker conditions, Indonesia has in recent years made strides in changing the perception about the workplace environment for its human resources. How has Dan Liris sought to ensure the well-being of its employees through the provision of training, amenities and facilities?

In addition to what is required by the law, we have always placed the well-being of our employees as a first priority as they are the backbone of this company. To give an example, our factories are the first in the industry to provide a special room for nursing mothers. Also, we are currently developing a comprehensive pedestrian pathway within our company’s premises to ensure that our employees are not left exposed to bad weather, as well as provide shortcuts for saving time in getting around the vast complex.

We also appreciate these employees for their dedication and commitment to the company; therefore we have proceeded to reward them with a trip to Bali and Yogyakarta. Dan Liris has also designed many of its CSR programs with the goal of improving upon employee welfare even extending to their life after retiring from our company.

Dan Liris has expanded upon its area of focus to include operations in retail. How has your company’s plan progressed with regards to entering the retail market through in-house brands such as Bateeq?

Through Bateeq, Dan Liris already has 35 stores in operation and further plans to open outlets in train stations starting with Gambir Station in Jakarta and then followed by other locations in the cities of Bandung and Surabaya. We have identified train stations as a highly strategic location looking at examples from many countries throughout the globe where it is already common to find similar stores like us. That said, Dan Liris will be the first fashion retailer to set up shop at Gambir Station. Furthermore, we also have our Bateeq collection present in high-end department stores such as Metro and Debenhams, as well as in large shopping malls such as Plaza Indonesia and Senayan City in Jakarta. Hopefully, Dan Liris will have already opened 55 retail locations for Bateeq by the end of 2015.

In addition to diversifying into new areas of business, Dan Liris has demonstrated a commitment to modernising its manufacturing facilities through investment in new machinery and technology. What more can you tell us about this?

If there is one silver lining from the numerous textile and garment companies in Indonesia that have ceased operations, it is that machinery becomes available for us to acquire. This second-hand machinery adds to the new ones we also procured. Overall, the upgrade will provide us with enhanced flexibility such as allowing all three of our spinning units to produce export-quality products; which will be feasible in two years’ time. This goes in line with our textile division’s main goal of becoming a 100% export-oriented unit. Higher-grade textiles will never fall short of demand from buyers in the US, Europe or even the Middle East. As such, Dan Liris consistently pushes for higher quality with regards to its products because this particular consumer segment will not substitute quality for price. Within the context of Indonesian manufacturers, this ensures profitability against high production costs.

As a final message, what would you like Global Business Guide readers to remember about your company?

Dan Liris strives to continuously increase the quality of its products even as we have achieved notable success in terms of the number of buyers. This applies to our garment division as the more successful of our operations and all the more so for our textile unit given the challenges it currently faces. We have seen good results as reflected by the percentage of our products being exported which continues to increase.