Eva Hutapea: Captain of industry who cares about common folk

Eva Hutapea: Captain of industry who cares about common folk

T. Sima Gunawan, Contributor, Jakarta

Rice, honey, cookies, plastic containers, handicrafts and
several other things are on display in the meeting room at the
offices of Eva Riyanti Hutapea, who resigned last year from her
post as president director and CEO of PT Indofood Sukses Makmur
to run PT Usaha Kecil Makmur Indonesia (UKM).

"I want to link small and medium businesses with the big
ones," Eva said.

UKM, which was established last year by a number of
businessmen and religious leaders who are concerned about small
and medium enterprises, employs only about 40 people while
Indofood, the world's largest noodle maker, has around 50,000
employees.

Eva, 53, resigned from Indofood at the peak of her career
after winning many compliments for her success in saving the
company from disaster at the time of the financial crisis in
1997, which led to the company suffering a Rp 1.2 trillion
(US$141.5 million) loss. She was also successful in reducing the
company's huge debt, which in 1997 amounted to some $1 billion.

Eva worked as an accountant before she joined the Salim Group,
the owner of Indofood, in 1982. She was appointed the company's
president director and CEO in 1999.

Born in Jakarta on Dec. 26, 1952, she graduated from the
School of Economics at the University of Indonesia in 1973 and
took the Senior Executive Program at Stanford University in the
United States in 1986.

She currently holds important positions in various
professional associations, such as deputy chairwoman of the
Indonesian Chamber of Commerce and Industry (KADIN) for the field
of Small and Medium Enterprises and Cooperatives, member of the
Advisory Council to the National Board of the Indonesian
Employers Association (APINDO) and deputy chairwoman of the
Executive Council of the Indonesian Institute of Commissioners
and Directors.

Despite her tight schedule, Eva, who once wanted to become a
high school teacher, still manages to teach at the School of
Economics, University of Indonesia. She also serves as an
independent commissioner for PT Indosat Tbk.

She is married to Bunbunan Hutapea, the deputy governor of
Bank Indonesia, and has three daughters.

Below are the highlights of an interview she gave to The
Jakarta Post on the second floor of Menara Rajawali, a high-rise
building with tight security located just next to the JW Marriott
Hotel in Kuningan, South Jakarta.

Question: You were quite successful at PT Indofood but you
tendered your resignation to become president director of PT UKMI
in June last year. What makes you so interested in that area of
business?

Answer: Why not? There are so many small and medium
enterprises in Indonesia and the country has tremendous
potential. Just look at the marine resources or the fertile land
we have. And we also have more than 200 million people. If we
work on all this, there will be a chance for us to develop our
potential.

This company was established with only a small amount of
capital. Only Rp 21.5 billion. It is a trading house to link
small enterprises with big enterprises. For example, we connected
hundreds of farmers in Cianjur, West Java, with PT Amway
Indonesia.

What's important here is the quality and the continuity of the
product. The product should meet the manufacturing standard and
general manufacturing practice -- things that receive little
attention from small enterprises.

There are two things that should be taken into consideration
here: first, the requirements for the product itself, which are
technical in nature, and second, whether the market has an
interest in the product. If there is little interest, then the
market needs to be educated.

What are the general problems faced by small and medium
enterprises?

In general, they can make the products, but the packaging is
poor. Just like this rice. If we sell it just like that, people
will not be interested. So, we put it in a nice package and give
it a brand, UKMWAY. The factor of practicality is also noticed.
The branding, the packaging, yes, this means extra costs, so
another important thing is how to make added value. In the case
of the rice, hopefully the cooperation with Amway will provide
added value for our farmers.

We try to enter any market that we can -- not only in multi-
level marketing operations like Amway, but also, for example, the
cooperatives in banks, hypermarkets, minimarkets, gas station
shops and street markets. We also sell the products at special
events like arisan (social gatherings). We also try to export the
products. Our first export of handicrafts like hats, sandals and
bags to Japan cost 29 million yen or Rp 230 million.

Later on, let's say within two years, we hope to enter the
stock exchange market.

How important is the role of small and medium enterprises to
our economy?

Data from the Statistics Bureau in 1993 showed that there
were 42.39 million small and medium enterprises -- 99.9 percent
of the total number of working units. They employed 79.04 million
workers, or 99.04 percent of the total number of workers in the
country.

It's been one year since you set up your company. How are
things going? Have your expectations been met?

Well, I learn by doing. There are so many variations while our
capital is limited. Actually the lack of capital is our biggest
problem. How can we solve this problem? By asking for loans from
the banks, of course. But the interest rate of 15 percent is too
high. So we need to work on it together.

There are so many small enterprises. They exist in all
industries, but they are spread out and are not integrated. There
is a lack of concept and strategy. If they were handled well,
they would be able to enjoy economic development together.
Ultimately, the wide gap between the rich and poor could be
narrowed.

We have bought about five hectares of land in the Jababeka industrial
estate in Cikarang, West Java, where we will build a showroom, a
dealing room and a warehouse. A production center for small
enterprises will be built near the location.

When do you think you will be able to enjoy the fruits of your
hard work?

Life is too short. Hopefully within five years we will pass
the break-even point.

We are just ordinary people. We well know what our place is.
And that's why we have to implement the BALLS philosophy. B, for
brave enough to take risk, A for authentic enough to follow
trends and true business practices, L for loud (be-heard)
enough to attract serious attention, another L for lovable enough
to care for your employees and customers, and S for spunky enough
to do things differently. To be heard, we need to work with big
companies.

Import items, especially those made in China, are widely
available on the market. The quality is quite good and prices are
relatively low. How can we compete with them?

Try to produce things that are different from theirs. Don't
compete if you can't. If you can't beat them, join them. So, it's
better to cooperate with them. Asia is quite a prospective
market. Today, 52 percent of the world's population is in Asia
and in 2020 it will increase to 60 percent. The Asian market
share of various kinds of items is also increasing sharply. For
example, the market share in merchandising in 2003 was 25
percent of the global market, but in 2020 it is expected to grow
to 45 percent.

Some say that Indonesian workers are lazy. Based on your
experience, how do you see the work ethic of Indonesian workers?

If there are workers who are lazy, maybe it is because the
boss is lazy. It's better to see the strengths of employees and
not to focus on their weaknesses. It is important for the
employees to have self-motivation. The employees will have a high
success rate if they know their jobs well. So, the job must be
clear. And you need to find people who speak the same language to
work with. Besides, the rules of the game must be clear, too. And
what's also important is that there must be a fair distribution
of the profits.

At PT Indofood, I had 50,000 employees. Now, only 40. At
Indofood, if I wanted to hold a meeting, I just invited the
directors. But now I have to go to this place and that place. It
is more tiring.

And why would you take on such a tiring job?

I like challenges. And I have learned many things from this
job.

It seems that most people do not like having a female boss. Do
you feel that?

Absolutely. As a woman, you have to make three times the
effort of a man. Why? It is a never-ending story. Maybe it is
because women are considered as second-class citizens.

So, how did you get to the top?

Don't compete. It's better to compromise, to cooperate. Make
the most of your strengths as a woman.

When you were younger, did you ever think that you would
become a successful CEO?

No. I used to want to become a school teacher.

Are you happy with what you have achieved thus far?

Oh yes. Being happy is one of my principles. A woman should
have beauty, and should be healthy, happy and wealthy.

Who is the person who influenced you the most?

My husband, the father of my children and the CEO of my
household. He fully supports me and encourages me to be what I am
today.

Any figure do you admire the most?

Let me think. Hmm ... Warren Buffett. I like his concepts on
how to add value in a company.

You are involved in so many activities. Do you consider
yourself a workaholic?

No, I don't think I'm really a workaholic.

How long do you sleep everyday?

Around four hours. I don't keep regular hours. I might go to
bed at 10 p.m. and get up at 2 a.m. and go to bed again at 7 a.m.
to sleep for about half an hour. Or I might go to bed at midnight
and get up at 4 a.m.

What do you do at such times in the middle of night?

Work, dream up concepts, read.

What books do you read?

I'm reading a book on the paranormal at the moment. Hey, I
should show my (tarrot) cards, they're really cool. With these
cards you can see ... (she searches for the cards on her table)
Where are they? Ooops, it's a pity I don't have them with me
right now. But yes, I like such books, spiritual books, books on
the sixth sense.

I don't suppose you became successful because a paranormal
lent you a hand?

Oh no! Of course not.

So, what's the secret of your success?

I'm not good at making speeches. But if we speak from our
hearts, if we speak as it is, then we can do anything. Don't
waste time on basa-basi (small talk). I learned this from a book
about wisdom. It is a book on Islam. I am a Protestant, but I
read books on Islam, Buddhism and Catholicism.

If you talk, you should tell the truth. Well, this does not
mean that you should tell everything. There are degrees involved
in telling the truth. For example, if you ask me about my family,
I would only tell you a little bit about it. I won't tell you
all, but I won't lie, either.

Some people say that this country has too many people who do
not tell the truth, many people who are hypocrites, and that this
partly explains why we lag behind many other nations.

I don't think so (smiling, she refused to explain her thoughts
on this further).

You seem so calm and patient. Have you ever been angry?

Of course. As a human being, I can cry, I can be angry.

What makes you angry?

Well, usually I don't get angry because of complicated
problems. I can become angry because of trivial matters, for
example, if people do not do their jobs. But I don't want to
waste my energy by becoming angry.

You are such a busy person. How do you stay healthy?

I try to avoid putting on weight. To keep fit, I ride my
exercise bicycle. Even if you have a difficult job, if you have a
great interest in the job you will not find it onerous.

Are you on a diet?

No. I eat all kinds of food. I like lumpia Semarang (spring
rolls from Semarang, Central Java), soto Betawi (traditional soup
from Jakarta) and empek-empek (a kind of fish cake from
Palembang, South Sumatra).