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View all search resultsCompanies can construct buildings, but it’s the power of human touch that keeps a business running
Companies can construct buildings, but it’s the power of human touch that keeps a business running.
Banking on this opportunity, leading global provider of facility services ISS is still aiming high with its business expansion plans, including those for Indonesia.
PT ISS Indonesia, the local unit of the Copenhagen-based company, expects to enlarge its manpower by around 64 percent from 61,000 at present as it eyes greater slices in new projects amid its move to strengthen its grip in building management, according to president director Elisa Lumbantoruan.
“Our aspiration is to have 100,000 workers by 2020. One of the ways to reach this is by taking part in more projects, either governmental or private ones and focusing on the big ones,” said Elisa during a media visit to The Jakarta Post on Tuesday.
After first setting foot in Indonesia with 500 direct workers in 1996, ISS now serves 3,500 clients, mostly in the manufacturing sector, and controls less than 5 percent share of the domestic service industry.
Despite its significant number of clients, only 20 companies make up 40 percent of its total revenue, which stands as the fourth highest in the Asia Pacific.
The Indonesian unit, which has the highest manpower figures of any ISS branch in the world, contributed approximately 4 percent to the overall revenue of its parent company listed in Copenhagen and New York of US$13.1 billion in 2015.
Amid domestic economic slowdown, the firm’s revenue climbed by 14.8 percent in 2016, higher than the 13 percent recorded in the previous year.
The greatest contribution came from its facility services (72 percent), followed by security services (15 percent), and others, including parking, catering and building management.
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Elisa said that ISS was aiming for a revenue increase similar to that seen last year, which he described as “healthy” as it exceeded the regional wage hike.
Unlike most service companies, ISS employs its workers directly instead of using outsourcing and therefore pays minimum wage with benefits, including social security provision (BPJS).
Elisa further said that its strategy — reliance on large companies — had proven effective so far and would continue to drive its future business growth.
“By maintaining trust with the big clients, they can hire more types of services from us or employ more workers once they expand the business physically,” Elisa added.
ISS’ major clients are private firms, such as cigarette maker HM Sampoerna and hospital chain Siloam International Hospitals, and state-owned enterprises such as national flag carrier Garuda Indonesia, railway operator Kereta Api Indonesia (KAI) and airport operator Angkasa Pura II.
As the government accelerates infrastructure development, Elisa said the firm saw tremendous potential in tapping into various facilities, including power plants and those in the transportation sector.
The company already has contracts of cleaning services with some firms in several coal-fired power plants and a score of transportation infrastructure projects.
Executive vice president and chief financial officer Benny Julius Joesoep said that as Indonesia entered the liberalization of services enabled by the ASEAN Economic Community established early last year, more opportunities were available for Indonesian talent in the service industry.
“The quality of Indonesian human resources doesn’t lag behind our Southeast Asian peers,” Benny said.
ISS Indonesia itself sends local trainers to fellow ASEAN countries, including Brunei, Malaysia, and Singapore.
Linda Yulisman also contributed to this story.
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