Indonesia's "Tobacco Town" Back on the Map

Staff Report
Situated in East Java province in Indonesia covering an area of 3,293.34 square km is a small town called Jember. For more than 50 years now, Jember has been home to PT Mangli Djaya Raya (MDR), a tobacco manufacturing and exporting company. The company was founded on April 11, 1960 by Budi Laksmono, Indra Santoso, Effendy Santoso and Hasantono Santoso.

Within a few years, MDR, which exported Besuki Na-Oogst and Besuki Voor-Oogst, used in the production of cigars and cigarettes, quickly rose to fame. However, after 2001, MDR faced all kinds of financial difficulties.
The founders of the company were beginning to lose interest in their business and the supply of money to the company was halted. On July 1, 2007, MDR was sold to Nyoto Permadi, a tobacco businessman. Nyoto had been in the tobacco business since 1977, and he had been involved in exporting tobacco -
but always through PT. Persero, a government’s company.

After the acquisition of MDR in 2007, the company started to increase production and sales by exporting all types of Indonesian tobaccos around the world. Nyoto’s son, Christian Adi Njoto, joined MDR after completing his education in the US and under their leadership MDR has seen its tobacco activities increase sharply by as much as 200%.
The growth has prompted the company to invest in a tobacco processing plant to process all of its tobaccos. At present, MDR is outsourcing its redrying process.,
“By having the brand new tobacco processing plant, we will save on transportation and storage costs and at the same time, deliver a higher and a more consistent product to our customers,” according to Nyoto.


Awarding of ISO 9001:2008

MDR has been awarded ISO 9001:2008 on April 5th, 2011. The award, which was submitted by Governor of East Java Sukarwo, is intended for companies that have fulfilled the criteria of award receiver.

Quality Management Systems (ISO 9001:2008) is documented procedures and standard practices for system management, with the objective of assuring compatibility of process and product (good and service) towards particular necessity or requirement. These particular necessity or requirement are determined or specified by customer and organization.   




The benefits of ISO 9001:2008 implementation are as follows:

- Improving costumer trust
- As the guarantee of process and product quality
- Increasing company productivity and market share
- Strengthening employee motivation, innovation, and performance
- As the analysis instrument for company’s competitors
- Improving mutual relationship with suppliers
- Improving cost efficiency and product safety
- Improving means of internal communication
- Building the positive image of company
- Establishing the documented system of work
- As the medium of training and education

Through the implementation of ISO 9001:2008, MDR is bent on producing the best qualified East Java/VO tobacco for the satisfaction of our customers.