100 Stories1974 Indachi, a Pioneer in Overseas Business

The abbreviation for P.T. Indonesia Asahi Chemical (INDACI), has a since ring to it in the local language, as it is made up of the words for beautiful (INDAH) and water (CCI). It was Asahi Kasei's first full-scale overseas business venture.

INDACI was established in 1972 as a joint venture with Itochu Corporation, Marubeni Corporation, Sumitomo Corporation, and Nomura Trading for the purpose of manufacturing and selling nylon 6 and conducting acrylic spinning and dyeing business in Indonesia.

In 1974, the Cashmilon Spinning and Dyeing Plant and the Nylon Plant started operation respectively and entered commercial production. It also coincided with the worst economic period after the oil crisis, so companies including Asahi Kasei, Toray, and Kuraray did not hold opening ceremonies for new plants.

Therefore, in 1976, two years after the start of operations, a joint opening ceremony was held for the textile plants of 16 companies. The ceremony was attended by Indonesian dignitaries, including Indonesian President Suharto and his wife, Minister of Industry Yusuf, as well as distinguished members of the Japanese delegation, including Yuji Kobayashi, Vice President of Asahi Kasei, Katsutoshi Kura, President of Asahi Kasei International, in addition to the presidents of Toray and Kuraray. The Indonesian operations had actually already been in commercial production for two years, but this opening ceremony officially recognized them as an Indonesian company.

Although there were some difficult times during operations due to the oil crisis, nylon recovered quickly, and in 1975, the company took the first step toward expanding its brand name. Against the backdrop of such favorable business accomplishments, the company began to expand its facilities in 1979. In 1984, the company's 10th anniversary of operation, it achieved record sales and profits. In the 1990s, the company's performance continued to improve steadily, and in 1997, the fourth phase of its force expansion was almost completed with the start of the expansion of nylon production.

However, after the Asian currency crisis of the late 1990s, the company's performance continued to improve for three years starting in 1999. However, in 2002 it suffered a downturn due to the global economic recession and the rapid increase in Chinese textile products in the international market. Unable to stem the tide, the company decided that it had no choice but to liquidate its assets amid the rapid deterioration of the business environment. Liquidation began and operations were terminated in November 2004, and corporate liquidation will begin in December 2004.

At the time, Asahi Kasei as well as other Japanese companies were forced to withdraw from Indonesia. While other companies were unable to withdraw from Indonesia due to labor disputes and other problems, INDACI was surprisingly courteous, paying over three times the stipulated severance pay to avoid labor disputes, ensuring full supply of ordered products, selling bid assets to a local Chinese corporation, and providing job placement assistance at a local Japanese company.

This was the result of the labor-management relationship that had been cultivated in good faith by those posted to Indonesia since the company's founding and through participation in family-oriented recreational activities and community events. The company did not treat its employees as mere laborers, but rather treated them as compatriots. A union was formed, and the company had a reputation for its good employment environment.

The quality of this relationship can be glimpsed in the events that transpired at the time of the withdrawal. When the factory union leaders and the Jakarta headquarters' employee representatives came to an agreement on the retirement conditions, they asked if there were any other requests, and were surprised when both sides asked for a recreational event with their families as a commemorative event.

A total of 80 people, including the president, were to take two large buses for a two-day and one-night trip to a resort hotel. They enjoyed recreation on the beach, games, karaoke, and other activities, and it was hard to believe that these people were about to leave the company. The local employees' love for Asahi Kasei, under the slogan, “A beautiful finish to a beautiful start: INDACI!” is unforgettable.

INDACI was been a pioneer in Asahi Kasei's overseas business for 30 years. After a long period of good performance, the end came abruptly due to the rapid deterioration of the global market. Even now, the beautiful memories of the company, as the company name suggests, remain in the memories of those involved.