Global Business Guide Indonesia

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Joint Ventures | Export
Panca Budi
Mr Djonny Taslim

Mr Djonny Taslim, President Director


Panca Budi has a long history having been established in 1979 and has grown throughout the years to become a leading plastic packaging firm in Indonesia. What is the background to the founding of the company and the strategies currently being followed?

Mr Djonny Taslim

We started as a distribution company and focused on our distribution network over the manufacturing side as part of our strategy was to secure the orders from clients. Indonesia has a lot of potential for growth as the consumer market is growing. We therefore concentrate on consumer goods packaging as current per capita plastic packaging use is approximately 7-9 kg in Indonesia compared to double that in Malaysia and 30 kg per person in Japan.

Currently we are focused on Indonesia and are also keen on exporting to Europe. Indonesia offers real advantages as a manufacturing base due to the price of the labour compared to China and the character of our human resources which is much easier to manage. If you have a good relationship with your workers, then they are very cooperative and compliant.


How is the company positioned for joint ventures and technology partnerships?

Mr Djonny Taslim

For joint ventures with international companies, we are interested in technology over capital. In terms of technology, Europe has superior technology available in plastic production compared to China for example. We would therefore be interested in technology as well as new products from a joint venture partner. Our expertise is in managing human resources and factories as we know the Indonesian working culture and customers very well. These can be the most challenging areas for foreign companies entering Indonesia but we know how to handle the market effectively.

We are open to partnerships in an open and fair way. We have received many requests for partnerships but from companies interested in selling their machinery as opposed to offering equal and fair benefits for both sides. We need a transfer of knowledge and technology so we should be ‘in it together’ for any future joint ventures. We want to grow in Indonesia but also to venture into other markets in the future.


What can you tell us about Panca Budi’s future product lines and expansion plans?

Mr Djonny Taslim

Exporting to Europe and the United States is still a very attractive prospect for us as the market there is very large. Indonesia still holds the labour advantage to serve these markets. For Europe, we began exporting to the UK and three years ago we expanded to Germany, Spain and Scandinavia. Today, Scandinavia and Holland are very promising markets for us.

We are mainly concentrated on the traditional market in Indonesia. For new products we are looking at PET disposable cups, plastic trays and plates. We are currently in discussion with a Japanese company for this. For a joint venture, we would be looking for partners that are already established in disposable food packaging.

Global Business Guide Indonesia - 2012

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