Indonesia

With a workforce of almost 3.5 million people, Indonesia's textile industry is also one of its most important industries. However, the sector has faced many challenges in the past few years, both locally and abroad. Increased competition from China, escalating labor costs and electric power charges are just some of the challenges the industry must continue to face if it is to remain competitive on the global playing field. " In these circumstances, having a strong local market as well as a steady export base seems the best strategy for effective competition."

Great River International, a leading fashion apparel producer, exporter, distributor and retailer in Indonesia is unique in its sector in specializing in the production and marketing of an assortment of products under license from world-renowned fashion brands. This has enabled the company to remain committed to the Indonesian market while simultaneously exporting goods to some 20 countries in the Asia-Pacific region, Europe and North America.

Established in 1976, Great River International employs over 10,000 employees, and has 21 branch offices and over 500 company-run exclusive retail outlets in Indonesia and the region. Through its wholesale and retail subsidiary, Inti Fasindo Internasional, a distribution subsidiary in Malaysia and an associated distributor in Singapore, Great River's market share domestically and in other ASEAN countries is growing significantly.
Sunjoto Tanudjaja, president director and CEO of Great River International

Sunjoto Tanudjaja, the Indonesian Textile Association's chairman of international relations and president director-CEO of Great River International, comments on the way his company has adapted to the necessities of the changing market conditions of the past years: "We have always exported and had our domestic business which gives our company two legs to stand on.

"Before the crisis, 20 to 30 percent of our business was exported and we had a good basis for selling to other countries. We increased our exports to Europe, North America and especially Japan, which accounts for one third of our foreign sales. At the end of 2000, however, the company changed focus and 70 percent of Great River's business was exported, compared to the other way round before the crisis," he adds.

While exports continue to be a major part of the company's core business today, domestic demand is predicted to increase further in 2003 due to the large domestic market. As the market continues to recover, Tanudjaja expects to eventually reach about a 50-50 export and domestic sales ratio in the near future.

"I think we will still have good economic growth in 2003 and Indonesia's potential is evident despite the challenges ahead," says Tanudjaja. "Many companies in Indonesia are still undergoing restructuring. Having completed our restructuring program earlier in 2002, we are in a much healthier financial position now so we can go on to the next level and grow. This is the direction we want to take."

Although Indonesia still has a long way to travel on the road to economic recovery, Tanudjaja believes his country will be up the challenge: "Our country's economic growth is currently at 3.8 percent despite the challenges we face so there are good signs on the growth side. We have competitive labor costs and we live in a more democratic country than others in Southeast Asia. Economically, I think we are going to be in healthier shape in the future."

"There are always opportunities to grasp here in Indonesia. It is a country with a great deal to offer. At Great River International, I believe it will be the actions of our people that will bring about change."

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