11 Barriers for Remanufacturing Business in Southeast Asia …
155
11.3 Interviews
Based on the literature review, the present study focuses on the two likely barriers:
(1) regulations on the trade of cores and remanufactured products and (2) trust on
remanufactured products.
The study adopted the interview method with remanufacturing companies that
included questions on the aforementioned items. The study is based on the interviews with 12 remanufacturing companies in 4 Southeast Asian countries (Malaysia,
Indonesia, Singapore, and the Philippines) and five Japan-based companies having
remanufacturing facilities in these countries. A part of the interviews (nine interviews) were commissioned to a survey company in which the question items were
prepared by the authors, and the other interviews (eight interviews) were conducted
directly by the authors. The product areas included: auto parts, electronics products
(mainly personal computers), photocopiers, heavy-duty and off-road (HDOR) equipment components, and ink and toner cartridges. In the interviews, we first asked the
basic features of the companies’ businesses that include the companies’ profiles, their
remanufacturing businesses, market properties, and the companies’ market shares.
Then, we inquired the regulations on trade of cores and remanufactured products.
Next, we asked the companies’ customers’ perceptions of remanufactured products.
The interviews were supplemented with desktop surveys on regulations and markets.
11.4 Results
11.4.1 Regulatory and Access Barriers
A desktop survey of the regulations in the four countries was conducted before the
interviews. Table 11.1 summarizes the results. This study found that the Indonesian
government restricts the imports of used capital goods. The cores for remanufacturing are mostly in the category of used capital goods. A large mining industry
thrives in Indonesia, and major global mining machine OEMs (or HDOR OEMs)
such as Caterpillar, Komatsu, and Hitachi Construction Machinery have set up their
remanufacturing facilities here. A few of these companies import used parts for
remanufacturing. The government issues an importer’s identification number (API)
to a company in order imports goods. Acquiring an API is often difficult, especially
for foreign-affiliated companies. The permit to import used goods is even more
difficult to obtain. Global HDOR OEMs that import used parts for remanufacturing
collaborate with the Indonesian companies having the said permits. The opportunities for such collaborations are also limited. The interview results revealed that the
regulation restricts remanufacturing and lacks fairness.
In Indonesia, refurbished photocopiers have a high market share. The local Indonesian companies import used photocopiers and supply refurbished photocopiers to the
local market. A photocopier refurbisher stated in the interview that Indonesia restricts
155
11.3 Interviews
Based on the literature review, the present study focuses on the two likely barriers:
(1) regulations on the trade of cores and remanufactured products and (2) trust on
remanufactured products.
The study adopted the interview method with remanufacturing companies that
included questions on the aforementioned items. The study is based on the interviews with 12 remanufacturing companies in 4 Southeast Asian countries (Malaysia,
Indonesia, Singapore, and the Philippines) and five Japan-based companies having
remanufacturing facilities in these countries. A part of the interviews (nine interviews) were commissioned to a survey company in which the question items were
prepared by the authors, and the other interviews (eight interviews) were conducted
directly by the authors. The product areas included: auto parts, electronics products
(mainly personal computers), photocopiers, heavy-duty and off-road (HDOR) equipment components, and ink and toner cartridges. In the interviews, we first asked the
basic features of the companies’ businesses that include the companies’ profiles, their
remanufacturing businesses, market properties, and the companies’ market shares.
Then, we inquired the regulations on trade of cores and remanufactured products.
Next, we asked the companies’ customers’ perceptions of remanufactured products.
The interviews were supplemented with desktop surveys on regulations and markets.
11.4 Results
11.4.1 Regulatory and Access Barriers
A desktop survey of the regulations in the four countries was conducted before the
interviews. Table 11.1 summarizes the results. This study found that the Indonesian
government restricts the imports of used capital goods. The cores for remanufacturing are mostly in the category of used capital goods. A large mining industry
thrives in Indonesia, and major global mining machine OEMs (or HDOR OEMs)
such as Caterpillar, Komatsu, and Hitachi Construction Machinery have set up their
remanufacturing facilities here. A few of these companies import used parts for
remanufacturing. The government issues an importer’s identification number (API)
to a company in order imports goods. Acquiring an API is often difficult, especially
for foreign-affiliated companies. The permit to import used goods is even more
difficult to obtain. Global HDOR OEMs that import used parts for remanufacturing
collaborate with the Indonesian companies having the said permits. The opportunities for such collaborations are also limited. The interview results revealed that the
regulation restricts remanufacturing and lacks fairness.
In Indonesia, refurbished photocopiers have a high market share. The local Indonesian companies import used photocopiers and supply refurbished photocopiers to the
local market. A photocopier refurbisher stated in the interview that Indonesia restricts