Voksel gains from systematic restructuring

Since taking over in 2004 as CEO of PT Voksel Electric Tbk, one of Indonesia's leading cable manufacturers, Ferry Tjandrawinata has dramatically turned around the company's fortunes by putting together a task force that implemented a systematic restructuring plan over the span of one year.

The reorganization centered around four key areas: waste reduction, reduced inventory, market penetration and, most importantly, human resource development.

"The company can grow if you have strong human resources. To ensure having the spirit of a winning team, we have established an integrated hiring, training and motivation program," Tjandrawinata said.

"We have an excellent track record and we are developing a good company culture by focusing on our core values. We excel in everything we do. Our core values are customer focus, integrity, passion for excellence, responsibility and accountability, and social responsibility. And we reward employees and management based on merit," he added.

The results of those efforts speak for themselves. Voksel's profit increased 37 percent from 2005 to 2006.

"Our strategy is large-scale, efficient and quality production. Over the next two years, we are targeting an 18 to 20 percent growth in revenue and a 20 to 22 percent growth in profit for the medium term," explained Tjandrawinata.

Thanks to a long-standing collaboration with Showa Electric Wire & Cable Co Ltd, the company has applied Japanese quality management concepts for many years.

Voksel has also benefited from technology sharing with Showa.

Already one of the strongest suppliers of fiber optical and underground cables in Indonesia, Voksel is now looking to expand by branching off into other fields.

"We have to explore various other industries that can synergize with our core business. We must diversify in-line with our current business. I want to explore some kind of technical assistance with Chinese companies," explained the Chinese-speaking executive.

Voksel Electric is looking into the possibility of an alliance with a small to medium-sized power company in China or Indonesia, possibly for a joint venture or share acquisition.

"There is a bright future for Indonesian-Chinese relations. I am quite optimistic about electrification and telecom prospects and we are definitely open to making new contacts," said Tjandrawinata.

www.voksel.co.id

(China Daily 08/17/2007 page19)