Building and holding a presence in the Japanese market, one of world’s most challenging for foreign companies, has never been easy. The government, consumers and buyers are very demanding, especially the government, which strictly monitors the implementation of its regulations and requirements. However, winning the market is also rewarding, as it can become a stepping stone to enter the markets of other industrialized countries.

Asia Pulp and Paper (APP) Japan began operations in 1997 during the Asian financial crisis, in a joint venture with Itochu Corporation. Initially, the two companies had equal shares, but now APP Japan controls an 84 percent stake, while the rest is held by Itochu.

The company’s main exports to Japan include paper for photocopying, printing and industrial purposes, household paper products and stationery.

Earlier this year, the Japan Business Federation, also known as Keidanren, accepted APP Japan as its first member from Indonesia. The powerful lobby group counts 1,340 major Japanese companies among its members, alongside 109 industrial associations and 47 regional economic organizations.

“We are very proud to be the first Indonesian company with Keidanren membership, [to have] won the trust to become a member of the organization,” said APP Japan chairman Tan Ui Sian after accompanying a group of Indonesian journalists to a meeting with Keidanren on Tuesday.

The company now commands a 25 percent market share and is fourth on the list of producers of household paper products, such as tissue. With annual sales exceeding US$800 million, Tan said he believed his company would be able to increase its market share despite severe competition.

“The market for copy paper and tissue remains lucrative in Japan,” said Tan, adding that since 2013 the company only used raw material from its own industrial estates.

Resource-based industries, however are very sensitive to environmentally conscious consumers. Japan’s largest mail company, Askul, is one of Tan’s priority customers. The company regularly sends its staff to inspect APP’s factories and estates in Indonesia to ensure its compliance.

“Our customers are very conscious about environment-related issues,” said Askul’s vice executive officer, Kazuyuki Kamei.

Gakuji Fukatsu, the executive director of Green Purchasing Network, pointed out that Japanese consumers paid serious attention to the timber used as raw material. “It should be produced in accordance with the law and rules of the countries where the trees are logged,” Fukatsu said.

NGOs like the World Wildlife Fund (WWF) are also very influential among Japanese consumers. “The WWF has a strong voice here,” said Tan.

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