Shifting to a newer paradigm a must<\/p>\n
Febriana Damayanti
\nContributor
\nJakarta<\/p>\n
Two international environmental institutions, the World
\nWildlife Fund and the Swedish Society of Nature Conservation,
\nrecently pointed their fingers at two of the country's major
\npaper manufacturers: Indah Kiat Pulp & Paper owned by Asia Pulp &
\nPaper, and PT Riau Andalan Pulp & Paper belonging to Asia Pacific
\nResources International Limited (APRIL).<\/p>\n
Both companies were accused of damaging some of Indonesia's
\ntropical forests by turning thousands of hectares of
\nirreplaceable natural treasure into eucalyptus and acacia
\nplantations to grow the raw material for their mills.<\/p>\n
The pulp and paper industry has for years now been strongly
\ncriticized for destroying nature. Communities surrounding plant
\nsites are not only extremely angry, but totally reject the
\npresence of these plants.<\/p>\n
One of the reasons behind the problems experienced by many
\npaper and pulp manufacturers is their inability to build
\ncompetitiveness, especially in the area of creating a positive
\ncorporate image. With their huge investments it is surprising
\nthat these giant-sized entities fail to comprehend recent
\ndevelopments in regard to people's concern and attitude toward
\nthe environment.<\/p>\n
Some analysts lament that while these companies have a wide
\nrange of almost unlimited resources and all the necessary means
\nto \"make amends\", to date they have not done anything
\nsubstantial. Perhaps they think that being just a few in number,
\nas this type of business is not a \"small amount\" game due to the
\nmassive investment required, they can afford the current
\nleisurely pace in responding to the constant outcries.<\/p>\n
Another reason why these companies fail to grasp the current
\nsituation is they are still firmly entrenched in their antiquated
\nbeliefs. They wrongly believe that much of competitiveness lies
\nin cutting down costs, like paying low wages, increasing tonnage
\nand above all securing government protection to keep their
\nbusiness \"safe and sound\".<\/p>\n
Their old beliefs and outdated mind-set have created a myriad
\nof problems that affect the entire pulp and paper industry.
\nTreating themselves as merely commodity producers in today's
\nworld of branded products, they have not been able to do much
\nabout modern marketing.<\/p>\n
Tragically, oversupply also often occurs due to a lack of
\ncapability in proper estimates and forecasts. The archaic
\n\"weapon\" -- price -- is still seen as the only effective tool in
\ntheir fight in the market. Their biggest weakness is the
\nineffective communication of their \"vision and mission
\nstatement\", which should have been translated into their actual
\nactivities to acquire public empathy or at least cool down the
\nheat with real sympathetic action.<\/p>\n
It is high time that the country's pulp and paper industry
\nleave the old paradigm behind and turn to a total concept of
\ncompetitiveness that nowadays incorporates a positive corporate
\ncitizen philosophy. In today's world, to last a lifetime or even
\nmore, companies have no choice but to be contributing members of
\nsociety. It is now recognized that their competitive edge and
\ncompetency should include not only the high values of products
\nand services they deliver, but, most importantly, the inherent as
\nwell as concrete \"spirit of participating\" like providing
\nreasonable wages, benefits and care for employees as well as the
\nsurrounding community and environment.<\/p>\n
A revamping of internal mind-set, especially from the top
\nlevel executives down to those who carry out the day-to-day work,
\nis obviously instantly needed.<\/p>\n
The \"Cluster Model\", as recommended by Michael Porter in his
\nbest-seller On Competition, can be helpful. This model describes
\nthe success stories of numerous world-class companies in building
\nup their competitiveness that comprises a spirit of active
\nparticipation and togetherness. The cluster is an integrated
\ncooperation and mutually supporting action among various
\ninstitutions, such as research agencies, companies' association,
\nacademics, colleges and universities, NGOs, respected figures and
\nrelated government offices. Not only discussions are conducted
\nbut implementable solutions are actually found by this cluster.
\nThe essential aim and ultimate purpose is saving both the company
\nand the whole society. In fact, a harmonious fusion is created.<\/p>\n
Quality of the national business environment is also crucial.
\nThis means, as a regulator, the government, through its well
\nthought-out regulations, should be able to create a conducive
\nclimate for the business world, including the pulp and paper
\nindustry in the country. This way the competitiveness and
\nproductivity of these companies should not be looked at partially
\nor only from the macro-economic point of view. For effective
\nresults, for the good of both pulp and paper companies as well as
\nthe environment, an integrated and solidly interrelated activity
\namong institutions is called for.<\/p>\n
Several years ago, one of the country's leading research
\ninstitutions found that Enceng gondok (a kind of water hyacinth)
\nor hibiscus cannabinus in Latin, which is abundant in most parts
\nof Indonesia, is suitable as the raw material for making pulp.
\nHowever, due to lack of coordination as the cluster referred to
\nabove is not in existence or dormant, this piece of valuable
\ninformation is simply lying in a drawer somewhere.<\/p>\n
With a new paradigm, probably resorting to a close
\ncooperation, as reflected in the cluster model, the country's
\npulp and paper companies will be able to overcome most of their
\ncurrent problems. This way these large corporations will be
\nperforming better, both in increasing their profits as well as
\nhighly contributing corporate citizens.<\/p>\n
Next to the vital role of the pulp and paper industry for the
\ncountry's revenue, it will be another plus when you can say that
\nthe paper you write on is produced by a company who cares about
\nyour environment. And that day seems to be not too far away.<\/p>",
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"sponsor": "Okusi Associates",
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