Charting Fajar Paper’s Future

The Journey and Growth at Fajar Paper

Mr. Yustinus is the three-decade architect behind Fajar Paper’s transformation from a two-machine operation into an industry leader. Now, in his second term as President Director – Fajar member of SCGP, his tenure is defined by successfully navigating financial crises, leading expansion, and masterfully executing complex ownership transitions. His foundation was built on a Master of Industrial Engineering from the Georgia Institute of Technology and a Master of Business Administration from the State University of New York, followed by expertise in business system integration at Andersen Consulting. He joined Fajar Paper in 1995 as an engineer, mastering production and logistics. The true test of his strategic acumen came during the 1998 Asian financial crisis. His crisis leadership culminated in his promotion to Chief Operating Officer in 2010 and finally taking the ultimate helm as President Director in 2014 and 2024, solidifying his role as the key leader.

“The 1998 Asian financial crisis called for innovative solutions, with the domestic market collapsing and the currency exchange depreciating around 600 percent. The impact was severe, as most of the company’s debt was in US Dollars. After a change in management, I was appointed as Marketing Director. From then on, I took on additional assignments over production planning, logistics, and domestic recycling material sourcing, implementing improvements from manual systems to a computer system. In 2010, I was appointed as Chief Operating Officer (COO), managing all mill operations except Finance and Sourcing. Then, in 2014, I was appointed as President Director.

“Since 1995, Fajar Paper dramatically increased its capacity from two machines to six machines. We navigated many challenging milestones. Despite a financing freeze on the paper industry between 1998 and 2007, we expanded to our fourth machine (BM7) in 2007. I was part of the team that went on a roadshow to secure a bond issuance for the expansion. The company successfully issued a bond, making it the first paper company in Indonesia to do so for expansion during that period. Later, in 2015, the business faced extreme headwinds as consumer goods were down, paper prices dropped, and costs rose. To combat this while constructing BM8, we launched a new revolutionary innovative product: high-performance lightweight paper. This breakthrough involved substituting higher grammage paper with similar-strength, lower grammage paper. This pioneering product helped Fajar Paper pass the crisis, establishing us as the pioneer of lightweight paper in Indonesia.”

Under the guidance of the founder, Mr. Winarko Sulistyo, he gained comprehensive exposure to challenging situations, which compelled him to master nearly every facet of the company. In 2019, following SCGP’s Merger & Partnership, he was appointed as the Operational Director, tasked primarily with ensuring a smooth organizational transition and maintaining legal compliance. In 2024, he was reappointed as President Director. His main responsibility is the crucial task of guiding the company back to positive EBITDA and subsequent profitability.

Adapting Leadership Style

“My leadership style has evolved across three stages. First was the Authoritative style, heavily influenced by the founder. Given our debt and strong competitors, every move had to be fast and executed precisely—we were in the war every day. While this hands-on, directive style helped us pass several crises.

“Next is the transition period to SCGP in 2019, I shifted to a Transformation Style, focusing on communicating the vision change from a stand-alone company to a part of the SCGP family.

“Now, targeting a turnaround, my style is a combination of Transactional and Authoritative. Management sets clear targets, rewarding achievements, but retaining the authoritative approach where speed is needed to get jobs done faster and more efficient.”

Business Outlook and Our Competitive Edge

The Indonesian packaging business is significantly shaped by Fajar Paper, which commands approximately 32 percent of the domestic market share. The current market environment is severely challenged by an oversupply of nearly two million tons. Despite these immediate pressures, the long-term outlook for the region remains positive, with Indonesia’s growth projected at 4.7 percent in 2025. Fajar Paper retains a very strong brand presence, earning deep respect from customers, who often refer to the company as their “big brother”—reflecting the close and enduring bonds built over time.

“Our customer relationship and commitment are our strongest competitive advantage. Since most packaging factories are owner-run. They want quick, simple communication, and we provide a convenience, where owners can contact me directly for quick decisions. We also offer services and solutions, including just-in-time delivery, which minimizes our alliance customers’ inventory and working capital. Our product is sustainably sourced and approved, a key requirement for multi-national companies, enhancing our competitive advantage.”

Work Guiding Principles and Message to SCGP Staff

“I have two work guiding principles. My first is ‘there is no such thing as impossible, only unwilling’. Many people prematurely claim things are impossible. I was taught the value of persistence, and I push the team to try as much as possible—it may be hard, but as long as it is doable, we should go for it. My second guiding principle is ‘try your best, and God will do the rest’. It is a religious belief. When I try my best, I won’t regret the outcomes, knowing some things are beyond my capabilities, and I believe God will help when you do something good with your best efforts and in God’s way.

“As my senior advised me, everyone was hired to be a CEO. Therefore, you must strive to develop and challenge yourself to put in the necessary extra effort and time for significant achievements. Always grab opportunities to expand your knowledge. Finally, adapt to new technologies and embrace cultural differences, since SCGP will always be at the forefront in applying new technologies and operates in many countries with different cultures.”