Interview with Mr Ibnu Riyanto of Trusmi Group, Indonesia

Investment | Technology Transfer | Joint Ventures

Trusmi Group | Mr Ibnu Riyanto

We are most interested in obtaining the technological and financial means to advance our batik production. If batik can be produced using automated machinery, it would certainly be to our advantage when it comes to time saved and cost-efficiency. Mr Ibnu Riyanto, President Director
Trusmi Group was established in 2006 and has since grown to be a leading retailer of batik. What can you tell us about your company’s background and your strategy going forward? Trusmi is a holding company established in 2006 as a business mainly focused on the retail of batik products. Our expansion since then has seen us establish separate ventures in property development, media, culinary services, car rental services, and sports centres. I started the business at the age of 17 when I just finished high school. We grew so rapidly that by 2010, Trusmi was formally recognised by Museum Rekor Indonesia (MURI) for being the largest batik shop with the youngest owner, as I was only 22 years old at the time. In 2012, we launched shops in Medan, Jakarta, Surabaya and Bandung as part of our expansion plan. We also founded a property development company in 2013 which had the honour of being inaugurated by the Governor of West Java himself. Our shops have also received visits from some of Indonesia’s most well-respected figures, including President Joko Widodo and former President Susilo Bambang Yudhoyono. Currently, Trusmi Group employs 1,000 workers, divided into a property development company with 300 people and a batik division with 500, whilst the rest are spread amongst our other operations. To ensure that our group maintains a cohesive strategy and a shared vision across our many business ventures, we benefit from a corporate culture that encourages hard work and efficiency amongst all of our human resources. To distinguish ourselves within a highly competitive batik sector, we take pride in offering our consumers a complete fashion statement that draws upon the strengths of batik as a product of significant cultural value. With the new Joko Widodo administration taking office, what key measures or reforms will be necessary to boost the sector? Batik has a rich legacy as an integral part of Indonesian culture. As long as the government supports its preservation, I believe that batik will become increasingly popular. Having said that, one way to promote batik is by implementing a regulation for offices to have their employees wearing batik three days a week, instead of only on Fridays as has been in effect for quite some time now, since 2006. Batik has recently enjoyed exceptional growth in Indonesia due to controversies related to claims that the product originated in Malaysia, but steps need to be taken to maintain this positive momentum going forward. Having already opened many stores in several of Indonesia’s largest cities, what can you tell us about your plans for expansion at the domestic level? We plan to expand so that every province in Indonesia has Trusmi outlets. For this year alone, we are aiming to open 20 new stores. In addition to this, we are also looking at opportunities to expand regionally. Beyond Indonesia, the upcoming ASEAN Economic Community provides a broader opportunity for us.	We have made initial preparations in anticipation of greater integration within Southeast Asia. Amongst our initiatives, we recently held an expo in Thailand and we are planning to hold another one in Doha, Qatar, as well as in New York. Trusmi Group is currently already involved in a variety of sectors. Do you have plans to enter any new areas of business? We see considerable potential in the culinary business. We recognise that this sector is highly dynamic and as such have been developing restaurant project concepts, though no definite plans have been made. Our property development company is also paving the way for bigger and better projects. Only in its second year of existence, this venture has seen remarkable growth as we currently have eight projects with a total project value of 250 billion IDR. Our property projects are located mainly in Cirebon, but we have begun a collaborative project in Serpong. Our property development company partnered with a state-owned company, Waskita Karya, to build an apartment with a project value of approximately one trillion IDR. How is Trusmi Group positioned towards collaboration with international investors and foreign partners? Trusmi Group is very open to investments, both domestic and foreign. Based on feedback from the Indonesian Stock Exchange, we believe that it is feasible for us to soon go public, perhaps in two to three years. To date, we have already worked with a number of angel investors and as such have experience in working with other entities to speed up our growth and expansion. We are most interested in obtaining the technological and financial means to advance our batik production. If batik can be produced using automated machinery, it would certainly be to our advantage when it comes to time saved and cost-efficiency. As a young entrepreneur helming a fast-growing business group, what is your vision for the future of your group? My vision is to develop Trusmi Group as a global company and to further batik as an Indonesian cultural icon on the global stage. In order to achieve that, we must of course overcome many challenges, such as with capital and human resources, to name a few. As a final message, what would you like our readers to remember about Indonesia? Do not hesitate to invest here. Indonesia is a country of approximately 250 million people that constitute a highly dynamic market. Investors will find this country to be rewarding and investment-friendly.

We are most interested in obtaining the technological and financial means to advance our batik production. If batik can be produced using automated machinery, it would certainly be to our advantage when it comes to time saved and cost-efficiency.

Mr Ibnu Riyanto, President Director

Trusmi Group was established in 2006 and has since grown to be a leading retailer of batik. What can you tell us about your company’s background and your strategy going forward?

Trusmi is a holding company established in 2006 as a business mainly focused on the retail of batik products. Our expansion since then has seen us establish separate ventures in property development, media, culinary services, car rental services, and sports centres. I started the business at the age of 17 when I just finished high school. We grew so rapidly that by 2010, Trusmi was formally recognised by Museum Rekor Indonesia (MURI) for being the largest batik shop with the youngest owner, as I was only 22 years old at the time. In 2012, we launched shops in Medan, Jakarta, Surabaya and Bandung as part of our expansion plan. We also founded a property development company in 2013 which had the honour of being inaugurated by the Governor of West Java himself. Our shops have also received visits from some of Indonesia’s most well-respected figures, including President Joko Widodo and former President Susilo Bambang Yudhoyono.

Currently, Trusmi Group employs 1,000 workers, divided into a property development company with 300 people and a batik division with 500, whilst the rest are spread amongst our other operations. To ensure that our group maintains a cohesive strategy and a shared vision across our many business ventures, we benefit from a corporate culture that encourages hard work and efficiency amongst all of our human resources. To distinguish ourselves within a highly competitive batik sector, we take pride in offering our consumers a complete fashion statement that draws upon the strengths of batik as a product of significant cultural value.

With the new Joko Widodo administration taking office, what key measures or reforms will be necessary to boost the sector?

Batik has a rich legacy as an integral part of Indonesian culture. As long as the government supports its preservation, I believe that batik will become increasingly popular. Having said that, one way to promote batik is by implementing a regulation for offices to have their employees wearing batik three days a week, instead of only on Fridays as has been in effect for quite some time now, since 2006. Batik has recently enjoyed exceptional growth in Indonesia due to controversies related to claims that the product originated in Malaysia, but steps need to be taken to maintain this positive momentum going forward.

Having already opened many stores in several of Indonesia’s largest cities, what can you tell us about your plans for expansion at the domestic level?

We plan to expand so that every province in Indonesia has Trusmi outlets. For this year alone, we are aiming to open 20 new stores. In addition to this, we are also looking at opportunities to expand regionally. Beyond Indonesia, the upcoming ASEAN Economic Community provides a broader opportunity for us.

We have made initial preparations in anticipation of greater integration within Southeast Asia. Amongst our initiatives, we recently held an expo in Thailand and we are planning to hold another one in Doha, Qatar, as well as in New York.

Trusmi Group is currently already involved in a variety of sectors. Do you have plans to enter any new areas of business?

We see considerable potential in the culinary business. We recognise that this sector is highly dynamic and as such have been developing restaurant project concepts, though no definite plans have been made. Our property development company is also paving the way for bigger and better projects. Only in its second year of existence, this venture has seen remarkable growth as we currently have eight projects with a total project value of 250 billion IDR.

Our property projects are located mainly in Cirebon, but we have begun a collaborative project in Serpong. Our property development company partnered with a state-owned company, Waskita Karya, to build an apartment with a project value of approximately one trillion IDR.

How is Trusmi Group positioned towards collaboration with international investors and foreign partners?

Trusmi Group is very open to investments, both domestic and foreign. Based on feedback from the Indonesian Stock Exchange, we believe that it is feasible for us to soon go public, perhaps in two to three years. To date, we have already worked with a number of angel investors and as such have experience in working with other entities to speed up our growth and expansion.

As a young entrepreneur helming a fast-growing business group, what is your vision for the future of your group?

My vision is to develop Trusmi Group as a global company and to further batik as an Indonesian cultural icon on the global stage. In order to achieve that, we must of course overcome many challenges, such as with capital and human resources, to name a few.

As a final message, what would you like our readers to remember about Indonesia?

Do not hesitate to invest here. Indonesia is a country of approximately 250 million people that constitute a highly dynamic market. Investors will find this country to be rewarding and investment-friendly.

Global Business Guide Indonesia - 2015