Case Study: Fadlun

Fadlun - Top Pallet Maker
From a small wooden office, Fadlun supervises and runs his pallet production business. His enterprise, "Setia Kawan," is now one of APRIL's main pallet producers and is key to the smooth running of the paper production and transportation process. Setia Kawan produces around 6,000 pallets per month and has a monthly turnover of about Rp. 180 million. Located in the heart of Pangkalan Kerinci, it has 16 workers making high quality products.

Prior to establishing his pallet making operations, Fadlun was involved in various businesses such as groceries and sawmills long before APRIL existed in Riau. When APRIL established its operation, he took the opportunity to become a wood supplier. A year later the company offered him the chance to produce pallets. Enthusiastically he entered the business, but he and other producers found they lacked the skills required to meet the quality standards set by the company.

In 2001, Fadlun heard about the Community Development Department's Small and Medium Sized Enterprises (SMEs) Program and applied to be a partner in pallet production. He joined the 10-day intensive training in basic technical skills. To ensure the correct specifications were being followed, each trainee received ongoing supervision even after the course from an SME program representative. The program restored Fadlun's self-confidence and encouraged him to rebuild his small business. With his willingness to learn and a lot of hard work, "Setia Kawan Enterprise" went into full operation in mid 2001.

Such was the demand for pallets that Fadlun soon wanted to expand his capacity by adding more machinery and labor. The difficulty faced by many small businesses in securing a loan was overcome by the capital investment program offered by SME Program partnership with BNI Bank. Fadlun obtained both the initial loan he needed and subsequent loans to enable him to increase production still further.