ED. Can you give us a brief summary of your business activity with Indonesia?

We have opened a factory which has computer numeric controlled (CNC) machine facilities, sales office, administration, computer aided design (CAD) facilities and warehousing.

The company is called PT Selectrix Indonesia and it will have 2 major roles. One is to manufacture consumable items, such as industrial hinges / locks / latches and Brass earth and neutral links. The other is to service the domestic Indonesian market with something which I believe is a first for Indonesia. We are going to provide industrial locks, hinges, latches, and rubber sealing (a product range that comprises of 10,000 different inventory items) via a sales team who are highly trained in this specialized field. So they will have the ability to not just sell the product but also offer design advice for our clients. This innovative method of marketing has been successful in other markets we service and going by the response so far in Indonesia, it will also be successful there as well.

We will be able to offer to clients world class designs for all the accessories to go with any metal box which also has a door. Clients can be from industries such as; electrical switchboard industry, truck industry, industrial air conditioners, automotive, railways, industrial computer racks, etc. The list is seemingly endless.

ED. How did your business become involved in doing business in Indonesia?

After completing a successful move into New Zealand, we were looking again to use the same formula again. We were also looking for a base to manufacture high volume products whilst at the same time keeping true to our strategic alliances.

So with all this in mind and the usual positives that Indonesia presents, that being, close locale to Australia and time zone considerations, we decided Jakarta would be worth looking at. We then had access to contacts in Jakarta and that reinforced our views.

ED. How do you see your business’s outlook in Indonesia for the next 2-3 years? Positive? Stable?

We are very excited about Indonesia’s future prospects. Thus far we have found an immense amount of business possibilities and we have been extremely well accepted by our clients. In fact, there have been times where our clients have been incredibly supportive when we were initially finding difficulties during the start up phase.

As far as stability is concerned, we see that SBY is trying to do the right things, as long as he remains with those ideals and progress is made, we will be happy.

ED. What is one of the biggest challenge areas for your business in
Indonesia now?

One of the biggest challenge areas will be to further develop the domestic market. As described previously, we intend to provide unprecedented levels of service and technical advice in an industry that has not experienced that before. The training and selection of staff to achieve this will be our biggest challenge.

ED. Tell us about your business’s biggest success in the Indonesian
market?

We have only been in operation for some 8 months, and most of that time we have concentrated on our manufacturing and export operations. But I can say that we have had wonderful success through limited sales resources with the electrical switchboard industry.

The staff we have been able to recruit so far are very skilled tradesman. The quality of their work and their initiative has been an added bonus. This aspect of the business has exceeded our expectations.

ED. What is your background / history in AIBC?

I became involved with the AIBC when we first started looking at the Indonesian market some 2 years ago. This was the obvious place to obtain networking opportunities and advice as far as we were concerned.
Somehow I ended up on the committee of the Victorian Chapter, headed by Mr Phillip Morey. I have to say that the whole experience has been great and the committee works tirelessly and with such enthusiasm for Indonesia. It is difficult not to be caught up in that.

ED. How important is AIBC to your business’s success in
Indonesia?

The AIBC has been great for our companies success (I have to say that, I am on the committee!) by providing access to wonderful contacts of people who have had immense and extensive experience in Indonesia. All of these people have been giving of their time and advice on a whole range of issues. I would also suggest that if Indonesia is on anyone’s agenda that they get involved in the AIBC (I am involved in recruiting members as well!).

ED. Please tell us something amusing that has happened to you as a foreigner in Indonesia?

I like to describe doing business in Indonesia to people as being similar to the television show, The Amazing Race. One minute you are in a taxi and after traveling for an hour you finally figure out that you are going the wrong way and that the road has now turned into a track inaccessible by anything but a 4x4. Then you are sitting in the office of a high ranking government official, only to suddenly have him get up from his desk, revealing that he only has boxer shorts and socks on from the waist down and has decided during the middle of what you thought was an important meeting to practice his golf putting!

But the story that s ums Indonesia up for me is one about one of my New Zealand colleagues (who shall remain nameless to protect the innocent). This NZ colleague, lets call him Jim, decided to give his fellow ex pat New Zealanders in Jakarta a treat and bring some 10kg of prime NZ steak and sausages on the plane (as hand luggage I might add) for them to consume. Unfortunately he was stopped by Indonesian Customs and questioned about the meat he was carrying. Jim, not wanting to give up his offerings after getting so far, quickly responded that he was actually a famous NZ Chef (as if one exists) and that the meat was for a special dinner he was to prepare for the new president and his newly formed cabinet as a form of celebration. The customs official not wanting to upset the president and his personal Chef decided that this was plausible and escorted Jim and his prime beef through the customs area and into Jakarta. Of course, this story is told on a without prejudice basis.

As a final conclusion, so far business in Indonesia has been at times frustrating but in the end rewarding and enjoyable.

Selectrix Industries Pty Ltd
2 Merchant Avenue,
Thomastown VIC 3074

(More information click AIBC Newsletter - March 2006)