IESC brings experience, knowledge to RI
IESC brings experience, knowledge to RI
By Dean Carignan
JAKARTA (JP): Every morning at 7:30, Walt Szczesiul leaves home and commutes across Jakarta to his office at PT Pharos, much like he did for 35 years in America working as a pharmaceuticals expert. The difference is that Walt is not an employee with Pharos; nor is he a consultant. He is a volunteer with the International Executive Service Corps (IESC), a not-for-profit organization dedicated to bringing American knowledge and experience into businesses in developing nations.
IESC brings experienced men and women from American business, many retired like Walt, to developing nations to serve as short- term advisors for interested companies. These volunteers serve tours of one to three months, and bring a lifetime of experience to their host company.
IESC was founded in 1964 by David Rockefeller and others who realized that economic development requires more than just money; it takes training and the transfer of knowledge and skills by people who have acquired expertise through decades of experience.
In the mid-60's, as President Kennedy's Peace Corps volunteers were appearing in the towns and villages of the developing world, IESC began bringing executives into the cities to give a boost to fledgling businesses. Since then, IESC has completed over 17,000 successful projects in more than 120 countries worldwide.
The program was introduced in Indonesia in 1968, and has over 600 successful projects to its credit here. Recently, IESC's Indonesia office has readjusted its focus to include projects with a positive impact on the environment.
IESC advisors serve on a volunteer basis, receiving no salary.
"Their reward is a professionally enriching experience and the opportunity to contribute to Indonesia's economic development," explains Jerry Hargitt, IESC's Managing Director for Indonesia.
The costs of an advisor's round-trip transportation from the U.S., as well as administrative costs and living expenses while in Indonesia, are calculated based on the host company's ability to pay. The balance is subsidized by the U.S. Agency for International Development (USAID). Small businesses, for example, generally contribute only a small portion of their consultant's expenses, while larger firms assume more of the costs.
USAID has funded IESC in Indonesia since the 1960s. "We're pleased to fund IESC", says Jerry Barth of USAID in Indonesia, "because the program supports two of USAID's primary goals: promoting sustainable economic growth while protecting the environment."
IESC is headquartered in Stamford, Connecticut, USA, where the organization maintains a computerized "skills bank" of some 14,000 registered professionals ready to bring their experienced to overseas businesses. When a company wishes to receive an advisor, they first explain their specific needs to a local IESC representative, who prepares a written description of the assistance requested and faxes it to IESC headquarters for recruiting through the skills bank or through "networking" in that particular industry.
PT Pharos, for example, needed advice on how to expand their pharmaceutical plant in an environmentally conscious manner, the skills bank turned up Walt Szczesiul, whose background with several American pharmaceutical giants made him a natural match. Walt served a 3-month stint with Pharos in 1994, which proved so fruitful that the company invited him back for another two months.
IESC volunteers seem to have a lasting impact on their host companies. "Our advisors are not here simply to fix a problem or fill a position," says Jerry Hargitt. "They are here to teach and to pass on the skills and knowledge that will allow the company to operate effectively into the future, long after the volunteer goes home."
Volunteers often maintain contact with their host companies after returning to the United States, and many return for follow- up projects.
Advantages
What makes the program effective?
"IESC has two comparative advantages," explains Hargitt. "One lies in our ability to draw from a large pool of professionals in every skill area of every industry and bring just the right person in to do the job. The other is the symbiotic relationship we have with USAID. Our objectives are complimentary and mutually supportive. With their support and our skills bank, we can readily assist Indonesian businesses."
A number of local success stories bear out this claim, among them that of PT Sumi Asih, a major manufacturing operation located in Bekasi Timur.
Sumi Asih produces industrial and USP grade fatty acids and biodegradable soaps, a process that requires sizable intakes of water. A year ago, Sumi Asih's operation was drawing over 1,300 tons of water per day from the area's deep aquifers. Deep aquifers are the subsurface basins into which surface water seeps and collects. A crucial source of clean water, these basins are increasingly threatened by overdrawing in Indonesia's densely populated regions.
B.K. Hadisoebroto, Plant Manager and Director of Sumi Asih and a veteran hydrologist, recognized the environmental danger posed by the plant's heavy demand on deep aquifers. He concluded that the best way to reduce this demand would be to design a system to treat surface water, making it usable in the plant's operations. Hadisoebroto enlisted the aid of IESC for this task. A search of IESC's skills bank turned up William R. Birchall, an American chemical engineer with 40 years of experience in research, engineering, processing and management.
Efficient
"We knew how to make the basic process work," says Hadisoebroto, "but Mr. Birchall had the ability to modify the basics and design innovations that made it even more efficient."
Birchall designed and helped install a system that treats surface water, allowing PT Sumi Asih to reduce its daily deep- water draw by an amount equivalent to that used daily by 7,000 families.
Birchall also worked with Sumi Asih to develop a more effective process for removing waste products from processed water. He designed a skimming system that provided a more complete physical separation of waste. This system not only prevented the discharge of dangerous wastes in to the surrounding water systems, but allowed for the recovery of several solids -- crude palm oil and various hardened fatty acids -- that can be recycled and contribute to Sumi Asih's production output.
Sumi Asih's new skimming system allows processed water to be treated and retained for several days, sufficient time for conversion of all wastes into safe materials suitable for use in the wetland farming systems surrounding the plant.
Birchall also initiated a process in which the treated waste is mixed with pure oxygen, a waste gas produced by the plant. This process accelerates the rate of waste reduction, reducing the required time of retention, and improves the quality of the treated water, allowing increased growth of the crops cultivated in the surrounding wetland.
"Everyone benefits in this scenario," explains Jerry Barth of USAID. "The operation becomes more efficient, the environment is protected, and the local community profits from the improved ecology. PT Sumi Asih is an excellent example of how a small investment of time and expertise can have a profound and lasting effect. This is just the type of project that USAID seeks to support in Indonesia."
IESC believes that sound environmental practices mean good business. Several recent projects have shown how environmentally conscious innovations can have a significant dollar-and cents return to the company involved. PT Multi Nitrotama Kimia, for example, assigned Walter Kanat to the project. Recognizing that pollutants often result from inefficiencies in the manufacturing process, Kanat performed an analysis of every phase of the production line and recommended several modifications.
Amir Sulastiro, Multi Nitrotama Kimia's Technical and Production Director, noted that the problems Kanat identified and corrected significantly reduced the amount of free ammonia and ammonium nitrates in the wastewater to the point that 90 percent of previous losses were recovered for retention in the plant product stream.
"Conservatively," said M. Tjahjo, MNK President Director, "we estimate a saving of at least US$150,000 per year as a result of this 90-day IESC project." Kanat plans to remain in contact with MNK to provide assistance to further improve the firm's operation.
Achievements like MNK's illustrate how the causes of economic development and environmental preservation can be advanced simultaneously with the proper skills and training.
"In the years ahead", says Hargitt, "IESC will continue to assist Indonesian firms in their efforts to achieve this complementarity, which is a crucial element of sustainable development."