Competitive Advantage
As a sole producer of AB in Indonesia, UIC competes with several
overseas producers. Nevertheless, UIC has competitive advantage
imported products is subject to import duty and logistic fee of 5.00%
and 2.00%.
Other important factor for UIC is to compete in quality. UIC always
affirms its commitment to keep the quality of its products. This effort
could be proven with the succeed of UIC in achieving international
quality standard certificate, ISO 9002, since 1996.
UIC is capable to supply its product by just-in-time method, that
allows UIC to supply the customers punctually. The ability to
implement this delivery service enables our customers to reduce their
storage cost and manage their stock efficiently.
Functional currency that is a currency in economic substance which
reflected in UIC operational activities is US Dollar. In 2003, UIC issued
bond in Rupiah denomination amounting to Rp. 600 billion. In risk
management to this foreign exchange, since 2003, UIC has been
participated in Cross Currency Interest Rate Swap with the purpose
to minimize risk that might arise from the Rupiah fluctuation
towards US Dollar.
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