Interview with Mr Alim Markus of Maspion group

Joint Ventures

Maspion Group | Mr Alim Markus

Maspion Group currently exports to international markets but the global economic slow down means that we are focusing on the Indonesian market as it offers a lot of potential for further growth. Mr Alim Markus, President Director
Maspion Group is a highly diversified group which is involved in consumer products, construction materials, property and financial services. What can you tell us about the current strategies being followed to further expand the group and its subsidiaries? Maspion was established in 1962 in the field of kitchenware and we have expanded significantly since then. Now we have around 10,000 products that we manufacture and are involved in many other areas such as property and transport. Building materials is another industry that we are engaged in as well as the durable consumer products industry such as home appliances. We also have a bank to enable our products to be purchased on credit as well as hotels. Consumer products are one of the most interesting areas for the future as the middle class is growing rapidly in Indonesia so we will continue to focus on this. Maspion Group currently exports to international markets but the global economic slow down means that we are focusing on the Indonesian market as it offers a lot of potential for further growth. In your opinion, what are the key areas that Indonesia needs to address to improve the business climate? Indonesia lacks good infrastructure and if we want to enlarge the business potential then it comes down to having more toll roads, airport and seaports. Today, all the country’s ports are completely congested and this is slowing down businesses in every sector. Labour regulations are also an area where Indonesia has insufficient laws and legal certainty. Labour strikes in West Java are becoming more common. I believe that it is better to leave labour regulations up to the labour unions and the business owners rather than the government as it should be dealt with at a local level. I also hold the role of chairman of APINDO for the East Java region. The China – ASEAN Free Trade Agreement has been seen in both a positive and negative light by Indonesian businesses. What is your opinion on the impact of the FTA on Indonesia? China has many entrepreneurs who have created their own brands.	In Indonesia, if we do not develop value added brands then we will face a lot of competition from China as a result of the China – ASEAN Free Trade Agreement. It means that Indonesian companies must increase their efficiency, introduce better quality control measures and to invest in their marketing and branding. Within the field of marketing, what do you think needs to be done to promote Indonesian made products internationally? Any business will eventually face cost competition. If you offer good quality and good aftersales service as well as pay close attention to areas such as packaging then Indonesian products can move up the value chain. I think this has been an area that has been lacking in the past. For Maspion, we have created excellent brand awareness and good quality products. The company is also engaged in other areas such as banking and property. What are the next projects that you have planned within the various companies of the group? I think in the next five years we will be interested in going into mass housing projects. Maspion Bank is performing very well, our non performing loans are only 0.2% so we will continue to develop our financial services in Indonesia. In all types of business, if there is an opportunity then we are open to it. Hotels and malls are really our focus and area of interest for now. How is the group positioned towards working with international partners and investors looking to come into the Indonesian market. For the future we are open to working with international partners who wish to set up their operations in Indonesia. We are open in all sectors as we already enjoy a significant market share in many segments in Indonesia.

Maspion Group currently exports to international markets but the global economic slow down means that we are focusing on the Indonesian market as it offers a lot of potential for further growth.

Mr Alim Markus, President Director

Maspion Group is a highly diversified group which is involved in consumer products, construction materials, property and financial services. What can you tell us about the current strategies being followed to further expand the group and its subsidiaries?

Maspion was established in 1962 in the field of kitchenware and we have expanded significantly since then. Now we have around 10,000 products that we manufacture and are involved in many other areas such as property and transport. Building materials is another industry that we are engaged in as well as the durable consumer products industry such as home appliances. We also have a bank to enable our products to be purchased on credit as well as hotels.

Consumer products are one of the most interesting areas for the future as the middle class is growing rapidly in Indonesia so we will continue to focus on this.

Maspion Group currently exports to international markets but the global economic slow down means that we are focusing on the Indonesian market as it offers a lot of potential for further growth.

In your opinion, what are the key areas that Indonesia needs to address to improve the business climate?

Indonesia lacks good infrastructure and if we want to enlarge the business potential then it comes down to having more toll roads, airport and seaports. Today, all the country’s ports are completely congested and this is slowing down businesses in every sector.

Labour regulations are also an area where Indonesia has insufficient laws and legal certainty. Labour strikes in West Java are becoming more common. I believe that it is better to leave labour regulations up to the labour unions and the business owners rather than the government as it should be dealt with at a local level.

I also hold the role of chairman of APINDO for the East Java region.

The China – ASEAN Free Trade Agreement has been seen in both a positive and negative light by Indonesian businesses. What is your opinion on the impact of the FTA on Indonesia?

China has many entrepreneurs who have created their own brands.

In Indonesia, if we do not develop value added brands then we will face a lot of competition from China as a result of the China – ASEAN Free Trade Agreement. It means that Indonesian companies must increase their efficiency, introduce better quality control measures and to invest in their marketing and branding.

Within the field of marketing, what do you think needs to be done to promote Indonesian made products internationally?

Any business will eventually face cost competition. If you offer good quality and good aftersales service as well as pay close attention to areas such as packaging then Indonesian products can move up the value chain. I think this has been an area that has been lacking in the past.

For Maspion, we have created excellent brand awareness and good quality products.

The company is also engaged in other areas such as banking and property. What are the next projects that you have planned within the various companies of the group?

I think in the next five years we will be interested in going into mass housing projects.

Maspion Bank is performing very well, our non performing loans are only 0.2% so we will continue to develop our financial services in Indonesia.

In all types of business, if there is an opportunity then we are open to it. Hotels and malls are really our focus and area of interest for now.

How is the group positioned towards working with international partners and investors looking to come into the Indonesian market.

For the future we are open to working with international partners who wish to set up their operations in Indonesia. We are open in all sectors as we already enjoy a significant market share in many segments in Indonesia.

Global Business Guide Indonesia - 2012