Martina Berto on AFTA:

Martina Berto on AFTA: 'Not a threat, but much opportunity'

The newly implemented ASEAN Free Trade Area (AFTA) spells only opportunity for Indonesia's leading traditional cosmetics and skincare producer PT Martina Berto of the Martha Tilaar Group, to expand its market with its quality products.

According to the founder and the chairperson of the group, Martha Tilaar, the new free trade arrangement involving Indonesia and the other Southeast Asian countries has indeed offered a great chance for her company to penetrate the massive market, which has a population of almost half a billion.

"Now we are no longer talking only of Indonesia's 210 million people-more than double that figure has been opened up to us," Tilaar said.

Removing barriers to trade has brought immense benefits to the business players as well as to the people in the region as rivalry grows to offer quality products with a competitive advantage, with no more protection of any kind provided by the participating governments.

Martina Berto has a proven track record as a world-class company producing traditional cosmetics and skincare products. The company has a research and development division that utilizes the most modern technology to create innovative products. It also has a research center that facilitates the pharmacological and experimental plantation of herbal plants for use in cosmetics and health supplements.

In 1996, it became the first Southeast Asian producer of cosmetics and skincare products to receive the ISO 9001 award. In 2000, the company became the first Indonesian traditional cosmetics and herb maker to gain certification for its Good Manufacturing Practices.

The company achieved ISO 14001 certification for environmental management in February last year.

Its current position, and its achievements, outstanding facilities, skilled staff, and top-class management make Martina Berto more than ready to enter AFTA with great confidence.

"We are well prepared to enter AFTA. We are the only Asian cosmetics and skincare producer that manufactures traditional products based on natural materials to international standards," Tilaar continued.

Its experience has also given the company the vision to become the world's leading cosmetics producer combining eastern and natural nuances with modern technology and research and development to give added value to consumers. It has a mission to operate a world-class enterprise within cosmetics and related industries, based on innovations that will create employment and enhance human resources empowerment using sophisticated business and management approaches that are appropriate for Asia.

However, Tilaar admits that competition in the industry is getting fiercer, as many similar products will flood the market soon.

"Consumers in this region will soon have a wide range of options. But not all products are suitable for Asians, and not all products are suitable for those who live in a tropical climate."

With a sophisticated background in herbs and natural plants, Martina Berto produces various skincare products and cosmetics, combining materials from Indonesia's rich natural resources based on careful research.

At present, the company produces dozens of traditional cosmetic brands: Sari Ayu herbal, skin and haircare products; Biokos; Pac; Caring Colors; Oil of Java; Dewi Sri Spa; Solusi; Natural Color SA; Martina Martha Tilaar; Berto Tea; Rudy Hadisuwarno; Madonna; U Series; Tahiti; and Mirabella.

All products have been created from natural plant extracts to work in harmony with human cells. Most of the products are for women as beauty is naturally associated with them. The products are suitable for a tropical climate and are made of natural ingredients processed by modern technology for women who believe that external beauty is equally as important as what Tilaar calls "internal beauty".

Tilaar said the products were greatly inspired by Indonesian culture and tradition to provide external treatments to beautify the face and body, and internal treatments to assist beauty from within by promoting inner health.

For example, the jamu (herb) products, which are made from 100% pure herbal ingredients, consist of a combination of herbs, which work to ensure harmony between inner and outer beauty. Tilaar believes that once the body is in good condition, natural beauty always shines through.

Meanwhile, Oil of Java, inspired by the increasing popularity of aromatherapy, was created to provide concentrated mixtures with a therapeutic function. Made from pure essential oils, the products are used either as massage oils or in steam to treat problems related to beauty and well-being.

The Dewi Sri Spa aromatic products are created from the finest rice extracts and pure essential ingredients to offer users the convenience of a spa at home.

With a greater market in AFTA, Martina will concentrate on each market in every member state in ASEAN.

"We will approach the market depending on the cultural orientation of each nation. Some countries are western-oriented, while others are more keen on traditional aspects. Therefore we will market products with the characteristics that suit the orientation," said Tilaar.

"There should always be evidence that particular products are really good and suitable, and we are sure of this," she said.

Though they still face difficulties in being accepted by large department stores in Indonesia, long before the birth of AFTA, Marina Berto's products were popular with consumers in Malaysia, the Philippines, and other nations. It has also exported its products to the Middle East and the Netherlands and has established offices in Singapore and Brunei.

In addition to its confidence in entering AFTA, Martina Berto will also expand its business to areas beyond ASEAN. The company has opened an office in the U.S. to distribute its products to North America.

The company will also soon launch Jamu Garden, a jamu product that is 100 percent made from herbs.