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.