Global Business Guide Indonesia

Manufacturing in Indonesia Manufacturing in Indonesia Manufacturing in Indonesia Manufacturing in Indonesia Manufacturing in Indonesia
Joint Ventures | Technology Transfer | Export
Sanda Permai | Mr Wahono Saputro
Mr Wahono Saputro

Sanda Permai is keen on approaching prominent yarn brands to offer our services as an OEM for their products or obtain the license which will enable our factories to manufacture their products.

Mr Wahono Saputro, President Director

Sanda Permai is a well-established company in Indonesia specialising in yarn products as well as sewing and embroidery threads. What more can you tell us about your company and its main strategies going forward?

My parents established Sanda Permai in 1985 as a shop selling yarns purchased from other companies. Since then, this company has grown to be a specialist in yarn products with a further specific focus on dyeing and finishing. Sanda Permai does not produce its own yarn which in effect actually grants us a certain degree of flexibility in the market. Our main products presently consist of sewing yarns and embroidery yarns in addition to a range of special yarns which we have been developing over the last five years. For the special yarn category, the threads are commonly used in making products such as shoes and leatherwork. Sanda Permai has the capability to work on any type of yarn. At the moment, this company’s main strategy pertains to an ongoing effort to broaden the company’s portfolio of yarn products by adding more varieties of types, sizes and usages.

Our products are basically yarn, but one that has received accurate colouring. Sanda Permai has two market segments, namely home industries and garment companies. In terms of the composition of our customers, 99% of our direct customers are local companies. However, we are also very much looking to expand our sales into markets abroad. Among our many plans, Sanda Permai is currently in talks with a number of big companies from several countries we are seeking entry into. We see the ASEAN countries as the most promising strategic partners. The second focus would be on Europe and the US. Whether competing domestically or overseas for a project, Sanda Permai possesses a number of key strengths which include flexibility and speed in production. When we have a new task, we are able to complete it relatively faster than other companies. We also have reliable suppliers who can consistently meet our strict quality requirements.

Indonesia’s upstream textile industry has been buoyed by a growing domestic market while the downstream sector has been somewhat under-invested. What is your outlook for the yarn industry?

The yarn industry is already a substantial one, but our particular sub-sector takes the distinction of being less crowded. Sanda Permai as a specialist in dyeing and finishing holds a certain competitive advantage over the other companies in the industry. While yarn production typically involves a very simple process of entering raw materials into a machine to fabricate an output which will generally prove to be consistent, our specialisation requires a certain experience and skillset that is not easily replicable. Furthermore, to be able to set up an operation like ours requires a hefty amount of investment to begin with. This hindrance further extends to the additional investment needed to incorporate a waste water management system into the manufacturing facility.

Overall, the government has done a good job in stabilising the minimum wage requirement because previously, the increase could reach up to 60% in one year. Moreover, the new formula that has been implemented is also easy to forecast, thus easing companies in planning for the long term.

Many companies in Indonesia are well-positioned locally and have thus sought to initiate an international strategy. What do you consider to be the main challenges in exporting your brand internationally?

The number one challenge is in overcoming the barriers imposed by certain international governments. For example, the US has very strict certification standards and imposes an 11% tariff on exports; the government should try to negotiate the tariff. That said, Sanda Permai fully abides by proper standards, namely that our company does not employ underage workers, complies with the minimum wage requirement, and has a dedicated treatment system to manage our waste water.

Foreign investors in Indonesia have been quite active in recent years. How is Sanda Permai positioned towards working with international firms?

Sanda Permai is definitely open to cooperation with foreign counterparts. As a matter of fact, it is among my foremost priorities within the framework of driving this company’s progression in the next few years. We, of course, will also need to try to improve upon the company internally to better facilitate our engagement with our foreign partners. As for the scope of the partnership, Sanda Permai is keen on approaching prominent yarn brands to offer our services as an OEM for their products or obtain the license which will enable our factories to manufacture their products.

Furthermore, we also welcome joint venture opportunities as the prospective benefits would be extensive in facilitating the learning of new skills, knowledge, technology, or an increased capacity to innovate. Some examples of sought-after technologies include the method for incorporating carbon fibre inside a yarn to give it antistatic properties, or similar technologies to function as insect repellents or total waterproofing. We also see a number of potential markets that we have not tapped into. Specifically, we are targeting the airline industry to which we can supply flame retardant yarns to be used on airplane carpets or stitches.

As a final message, what would you like Global Business Guide’s readers to remember about Indonesia?

With the new government, I am very optimistic that the business climate will improve. The government has taken a lot of criticism and controversies for the current slowdown, but Indonesia will emerge as a recognised economic force in two to three years.

Global Business Guide Indonesia - 2016

icone share