Jakarta Globe, Muhamad Al Azhari, November 25, 2017
Jakarta. Duta Abadi Primantara, a local company that holds licenses for some international mattress brands, is upbeat about its future business due to the expected growth of consumer buying power in years to come. The company is also eyeing a major expansion to the eastern part of Indonesia.
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| Duta Abadi Primantara, a local company that holds licenses for some international mattress brands, is upbeat about its future business due to expected growth of consumer buying power in years to come. The company is also eyeing a major expansion to the eastern part of Indonesia. (Photo courtesy of Duta Abadi Primantara) |
Jakarta. Duta Abadi Primantara, a local company that holds licenses for some international mattress brands, is upbeat about its future business due to the expected growth of consumer buying power in years to come. The company is also eyeing a major expansion to the eastern part of Indonesia.
The
company, first established in the 1990s, currently has four factories and 13
assemble point facilities in Sumatra, Java, Sulawesi, Bali and Kalimantan.
DAP holds
licenses to locally assemble high-end mattresses for brands based in the United
States, including Aireloom, King Koil, Serta and Tempur. The company has its
own locally-manufactured mattress brand, called Florence, that targets medium-
to low- income customers.
King Koil
and Serta are the leaders in the premium segment of the mattress industry in
Indonesia.
Anthony
Setiawan, the vice president director of Duta Abadi, said the company has seen
a healthy single digit revenue growth over the past few years and is bullish
about future businesses.
"There
has been a slowdown [in economic growth], we felt it too, but buying power is
predicted to increase in the future, a lot research has shown. Also, we noted
an interesting fact that people in Indonesia are now more aware that quality
sleep is important. If you look at the statistics, people spend a third of their
time sleeping. It is very important that they sleep well," said Anthony,
who is the second generation of the family who founded and owns DAP.
Indonesia’s
economy expanded at a slower pace in the third quarter this year compared to
market expectations, a disappointing outcome for the country as a slowdown in
private consumption dragged overall growth.
The economy
expanded 5.06 percent year-on-year in the third quarter, just slightly higher
than a 5.01 percent year-on-year growth in the previous quarter. The third
quarter figure is lower than the median estimate from polling by Reuters and
Bloomberg, which showed figures of 5.13 percent and 5.2 percent growth
respectively.
Despite the
fact that Indonesia’s economy expanded at around 5 percent on average over the
last five years, government officials and economists generally remain upbeat
over growth outlook in the near term, thanks to new infrastructure development,
an expected rebound in commodity prices and more investment in the country.
Anthony
said about 80 percent of his company's products are sold to end-customers,
while the remainder are bought by hospitality industries like hotels and
healthcare operators like hospitals.
"We
started the business in the 1990s with Florence mattress. This is our first
brand, which we manufactured and
distributed. Then, in 1996, we acquired the exclusive license for King Koil in
the United States," Anthony told the Jakarta Globe on the sidelines of
Hotel Week, a three-day exhibition and conference that gathers players in
hospitality industry.
He said DAP
then expanded to acquire exclusive licenses to assemble mattresses for Serta,
Tempur and Aireloom.
Anthony
said the company imports raw materials for its premium mattress brands but
assembles them in Indonesia. DAP currently has a comprehensive distribution
network in Indonesia that covers Java, Sumatra, Sulawesi, Bali, East Nusa
Tenggara and Kalimantan.
He said the
next stage of expansion will be targeted to the eastern part of the country to
capture the higher purchasing power of people and benefits from expansions of
hotel operators in the region.
"The
hospitality industry is very important for us. When we started marketing King
Koil, our first customer was the Mulia hotel in Senayan. From this, we started
being acknowledged among five-star hotels. This continues until now as hotel
owners and operators are getting more aware that mattress are one of the most
important factors in their hospitality services," Anthony said.
"For
customers, when they stay at a particular hotel, when they feel they have a
good sleep and rest, they will look at the brand of the mattress, usually they
may be encouraged to buy the same at home."
DAP has
also started to tap into the hospital market due to more attention in the
sector from the government.
"There
is a specific requirement if we want to tap into the hospital bed mattress, for
electronic-adjustable bed, there is a certain certification that a manufacturer
and supplier must secure, currently we cooperate with a certain supplier [of
hospital beds], but we are working on the way of making our own
[electronic-adjustable mattress]," Anthony added.
DAP
currently holds the exclusive license to assemble and distribute King Koil
products in Indonesia and China and distribute Serta products in Indonesia,
Singapore, Malaysia, Vietnam and the Philippines.
