Customer satisfaction is number one

Customer satisfaction is number one

Known collectively as the Lautan Luas Group, these companies
import, manufacture and distribute over 1,000 types of chemicals
to more than 2,000 industrial end-users, representing every
important manufacturing sector in Indonesia. The Group's core
activity is the distribution of specialty chemicals, sourcing
products from more than 100 international principals for
distribution through four branches and seven representative
offices in Java, Sumatra, Kalimantan and Sulawesi.

Lautan Luas' 40 years in the business ensures the Group's
dominant position in the Indonesian market. Being subject to
constant technical improvement, specialty chemicals are products
with a stable margin. As these chemicals usually constitute a
small component of manufacturers' raw material costs, product
knowledge, customer support and reliable supply considerations
have high value in addition to price.

The spectacular growth of Indonesia's industrial base during
the 1990s increased domestic demand for most basic and many
specialty chemicals to such a degree that local manufacturing has
become an increasingly viable proposition. The Lautan Luas Group
now includes eight subsidiaries and four affiliate companies,
with both local and international partners, manufacturing an
extensive range of basic and specialty chemicals.

Lautan Luas has maintained a strong position during this
crisis due to several factors: product diversification, services
and strong relationships with its suppliers and customers. The
group's policy of wide product diversification lessens dependence
on any industrial sector. Lautan Luas' specialty chemicals
constitute essential materials in many industrial processes. This
broad demand base cushions the group from the worst effects of an
economic slowdown.

Lautan Luas maintains high service standards, quality and
availability. Lautan Luas customer representatives are highly
trained consultants, advising customers on the best way to use
specialty chemicals to improve their operations. This is in
accordance with PT Lautan Luas Tbk's philosophy: Our corporate
objective has always been to bring added value to our customers.
We are not only selling chemicals, we also offer support to help
customers make the right choice of chemicals to suit their needs.
This is made possible by continuous in-house and on-the-job
training given by our principals before marketing the products in
Indonesia. Key to success of the group is "Customer satisfaction
is number one", as explained by the company's Director of
Business Development, Widyanto.

Widyanto further confirmed that besides providing satisfaction
to customers, this business strategy distinguishes Lautan Luas
from many other chemical companies.

"The challenges for Indonesian companies, particularly for
business during the economic crisis, are, among other things,
currency fluctuation and high interest rates," said Herman
Santoso, Corporate Secretary of PT Lautan Luas Tbk.

While some projects initiated before the currency turmoil are
being put on hold until the rupiah stabilizes, others are going
ahead, and the group remains open to considerations of new joint
venture and acquisition opportunities.

Looking ahead to further globalization in the region, PT
Lautan Luas Tbk is planning to set up a representative office in
Singapore. The plan is supported by professional human resources,
advanced technology, good relations with principals and
customers, and ISO 9002 certification as one of the requirements
of an international company.