Leadership and Management

Business College at International House RTO Code: 91109 CRICOS 02623G

Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000

[email protected]| www.ihBC.edu.au

IndoAust Jaya Pty ltd Products and services

IAJ is fairly typical of a lot of Indonesian family businesses dealing in a variety of products and services as follows:

• The purchase of waste paper and paper recycling which is shipped to Indonesia for pulping and creating rolls of print to be sold to publishing companies in Australia New Zealand and South Africa

• Importing chemicals from Indonesia sold Australia-wide

• Exporting live cattle to Indonesia

• Waste paper and recycling

Waste paper and recycling IAJ buys all grades of pre and post-consumer and industrial waste paper and paper recycling in baled, skidded or rolled forms including:

• Old Corrugated Containers/Cardboard (OCC), • Old Newsprint (ONP), • Sorted Office Waste (SOW), • White Ledger (WL), • Coloured Ledger, • Computer Print-Out, • Single Stream waste • Co-mingled and Other Paper Recycling Materials.

IAJ’s major suppliers include:

• AMCOR in Western Australia • SKM Recycling in Victoria • Trans Pacific Industries Australia-wide.

IAJ exports about 50,000 tonnes of waste paper which it sells to PT Aspex, Indonesia’s largest producer of newsprint. Suppliers transport the waste paper to the port of embarkation where it is packed to be shipped in 40 foot containers. IAJ uses a number of shipping companies such as:

• Norske • Maersk • Orient Overseas Container Line (OOCL) • Swire Shipping and Regional Container Lines (RCL).

Business College at International House RTO Code: 91109 CRICOS 02623G

Level 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000

[email protected]| www.ihBC.edu.au

The company tends to jump from shipping company to shipping company chasing spot rates for consignments in attempt to keep its shipping costs to a minimum. Cargoes are generally contracted on a C & F basis.

Newsprint IAJ imports about 50,000 tons of fully environmentally friendly newsprint produced by PT Aspex, Indonesia’s largest producer of newsprint. PT Aspex arranges the shipments to Australia based on the availability of shipping and when it is due in the port of embarkation. This results in shipments to Perth and Melbourne occurring on an irregular basis. When it arrives in Australia IAJ then contracts a trucking company to move the newsprint form the port to the customer. IAJ chases price on a spot basis and consequently uses a number of different companies.

Chemicals IAJ also imports a range of chemicals from Indonesia and Thailand for plywood, newsprint, and the agricultural industry that are sold Australia-wide. Its main imports are:

• Phenol (C6 H5 OH) used in resins, plywood adhesive and lube oil additives • Melamine, used in resins and plywood adhesive

IAJ’s major ports of disembarkation are Fremantle and Melbourne. Sourcing of suppliers and the subsequent shipping to Australia is arranged by the Indonesian family company. Once in Australia trucking companies are contracted on a spot basis and a number of different companies are used.

Exporting live cattle to Indonesia IAJ acquired the Jaya cattle station in July 2005. It is located about 1,200 Km South East of Darwin and covers 331,800 hectares which equates to almost five times the size of Singapore. The cattle station has a carrying capacity of 15,800 head of cattle, consisting of the Brahman- Droughtmaster cross- breed that has a proven track record of growing rapidly and being able to adapt to tropical climatic conditions. IAJ exports about 20,000 head of cattle annually to Indonesian feed lots on a forward contract basis through Darwin into Jakarta and Surabaya. Cattle are moved to holding yards on the outskirts of Darwin and then when the carrier arrives at the port they are transported to the vessel when it is ready to receive them. Trucking companies are used on a spot basis which often leads to one company moving them to holding yards and a different one moving them to the vessel.