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.