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).