Future Economists

Seeds of future prosperity lies in today's children,
Let's join our hands to nurture the seed,
To its fullest growth,
for the greater welfare of Society.
Let's be united to remove the
poverty and corruption.


Saturday, March 16, 2013

Morin Factory Visit Report , by Tania 9Business

Economic growth is an increase of the amount of goods and services the whole economy produce over and above what is produced last year. It also means an increase in output, demand, and income in a country. Every positive increase that the country produces can be concluded as economic growth. Economic growth can be measured in multiple ways, the most important being GDP per capita. GDP per capita measures the income earned per person in a country and an increase in GDP per capita means that more people have more income to spend on. There’s also the level of education a country has, by measuring the number of schools and number of graduates in a country, and also literacy rate. Last but not least, the living standards of a country. And this report is made to explain about the importance of Morin company in the economic growth of Indonesia.

I’ll start with an introduction first. Morin is an Indonesian jam company located in Cikarang under PT. Astaguna Wisesa. It is the biggest jam company in Indonesia, and is currently the leader of the market, with them holding around 50% of market shares. And even though they have many competitors, when we compare the overall results, they still managed to be the best and even trying to go international and make Indonesian jam to be known. And as one of the biggest jam company producer, they help economic growth in many ways.

First, they create job for many people. In developed countries, factories use machinaries to do everything from the producing to packing, but Indonesia is a large country with high population growth and big population. We have to use resources to their fullest, so we need to hire employees. Employees in Indonesia aren’t as costly as it is in other countries. According to recent news, the minimum wage in Indonesia is 1 million IDR up to 2 million IDR a month, while the average wage per hour for employees outside the country costs $10-$20 an hour. And since the country has high unemployment level, Morin chooses to be one of the companies that uses labour-intensive method, judging by how they’re still employing many people for small tasks such as packing, when it can be done by advanced technology these days such as Teh Pucuk Harum who chooses to be more capital-intensive by using machines for every process. Even though it is not efficient enough and more mistakes will be made, it decreases unemployment and brings economic growth.

Morin is a financial-reward company that seeks for profit and getting more investments. They produce products to sell for families to eat in the morning and provide jams for flavoring of foods such as bread and ice cream. It generates profit everyday, but this does not mean all their needs are fulfilled. And as the company wants more income, they will advertise more and expand their market. Investors from other countries see this opportunity to invest seeing them being profitable, and if they’re set on investing, they will make investments in the company, bringing economic growth. However they might become too monopolizing, making the market for themselves with the help from overseas investors.

Morin made its international debut not a long time ago. The brand recognition outside the country is still poor, and as jams are produced originally from Europe, most people know Indonesia only for our spices. When it comes to jam, they will prefer European made ones and would wager over Morin’s. This is one of the barriers holding the product, however lately Morin has been promoting a lot and selling it over countries in Asia. More countries are now aware of Morin’s existence and their jam. This brings more recognition for Indonesia and connections between countries shall increase, expanding their imports exports field, in other word, increases international trade.

They also produce Carrefour’s original jam and some other jams, the difference is in the composition of the product and the label but produced in their factory. This means there are more competitors, which is a threat to them, but then it means that the market expands with more companies, and this can create a bigger rivalry between every company to make their brand the best, which means in bigger productivity. But this causes resources being used up so they have to use it efficiently.

By seeing all the things from above, we can conclude that they help the economic growth by factors such as reducing unemployment, helping economic growth, balance of payments, and increase in international trade. They do bring inflation problems, scarce of resources, and monopoly in the market, but problems can be covered if there’s a good control in economy that will keep the economic growth for the country kept controlled.

Wednesday, March 13, 2013

Study Tour : Morin Factory, Bekasi

Study tour to Morin factory: 
Student of
Penabur International
Tanjung Duren
Jakarta.

Study tour plays an important role in learning process. Students gets the opportunity to connect the class room learning to the knowledge of real life applications of various theories of Economics, Business Studiens and Accounting. 








Saturday, March 09, 2013

Visiting Morin company

Last time we were visiting Morin, one of the biggest companies in Indonesia. Astaguna Wisesa,PT. was made in 1978 and founded by an entrepreneur Hadi Januar and presently the product under brand "MORIN". It has been a No.1 market leader in the Jam & Spread category. Morin is a brand that used by PT Asta Guna Wisesa, they are also known as private limited company. Morin is the brad that was came from the "Nrimo" that means receive in Javanese language.In there we were doing a field trip, at there we could studied about some of their strategies of business. We were given a chance to go inside the production process. At the first they produce a peanut butter, and it was going well then they develop it until it becomes many types of it. Until now they produce it batch.They're the leader of the jam production in that country, so it means that they monopolize the jam supply in Indonesia. Now days they also produce some of the jam to some of the country in South East Asia and some Middle East area, they also produce to Egypt to satisfying consumer needs. They distribute their product to some of the distributor in Indonesia, like : Lotte, Makro, etc. they are not sell their product directly from production place. Their Segment are people who age from kids (6years old -12 years old) to teenage(12 years old to 20 years old) and to adult (20 years old - up). They produce their product also for family use, then they also produce some of their product to be used as the filling to food, such as filling for bread, also cake, etc.What I like from this company is their production process. They don't use many machine but more on labor so it means that it also helps economy to be better by decreasing unemployment. Even tough they are doing batch production they don't want to use all 100 % machines. Some of it ( about 40 %) was produced by machine but there are 60 % is produced by human resources. if inflation happens in an Economy ( Indonesia ) they prefer more on the quality of their product than the cost but that doesn't means that they don't try to push down the price of production, in case that there was a time when a coconut milk has disappeared in market they still produced their product but with higher price but they also control the good and also the nutrition and etc, this is from what I was researching.

In the production process they also produce some of others/private labels ( other company that wanted to makes a jam with lower price) that want to also produce jam but in lower price. Private labels are those company that want to produce goods in this case jam but they can’t so they negotiate with the producers then the producer makes the composition, from their original recipe they modify the recipe and they test it to them if they don’t agree they will change it again until they agree and the price meet with the agreement, and from that moment producer produce the goods and it labels with the other company name. private-labels develop because of the price of their jam is to high.

They also has the group of consumers such as consumers type A+( very rich / always use their products ), A ( they are rich but just often buy their product), B+ ( Middle class people that used their products), and the last is B ( middle class people but usually buy their products). But for type C+ and C ( lower class people  or low income people that wanted to buy their product but they cant) they can't buy their product, so Morin gives they C+ , and C to the private labels.

There is a way of their promotion strategies, it is the combination of above and below the line. They collaborate it so they use the above the line strategies to introduce their product to market so there will be brand awareness, but for increase sell they use below the line method. They also have collaboration of leadership style, like for the marketing site they use autocratic style of leader, but in the production process as what I saw was, they use democratic style. They said that they rarely use money as the motivation to their employees; instead of using money they give them extra holiday to their employees. So their employees will not tired working, they also do some activities with their employee such as gathering, outbound, etc. it means that they give non financial reward instead of financial.

Last time we were visiting Morin, one of the biggest companies in Indonesia. Astaguna Wisesa,PT. was made in 1978 and founded by an entrepreneur Hadi Januar and presently the product under brand "MORIN". It has been a No.1 market leader in the Jam & Spread category. Morin is a brand that used by PT Asta Guna Wisesa, they are also known as private limited company. Morin is the brad that was came from the "Nrimo" that means receive in Javanese language. In there we were doing a field trip, at there we could studied about some of their strategies of business. We were given a chance to go inside the production process. At the first they produce a peanut butter, and it was going well then they develop it until it becomes many types of it. Until now they produce it batch. They're the leader of the jam production in that country, so it means that they monopolize the jam supply in Indonesia. Now days they also produce some of the jam to some of the country in South East Asia and some Middle East area, they also produce to Egypt to satisfying consumer needs. They distribute their product to some of the distributor in Indonesia, like : Lotte, Makro, etc. they are not sell their product directly from production place. Their Segment are people who age from kids (6 years old -12 years old) to teenage(12 years old to 20 years old) and to adult (20 years old - up). They produce their product also for family use, then they also produce some of their product to be used as the filling to food, such as filling for bread, also cake, etc. What I like from this company is their production process. They don't use many machine but more on labor so it means that it also helps economy to be better by decreasing unemployment. Even tough they are doing batch production they don't want to use all 100 % machines. Some of it ( about 40 %) was produced by machine but there are 60 % is produced by human resources. if inflation happens in an Economy ( Indonesia ) they prefer more on the quality of their product than the cost but that doesn't means that they don't try to push down the price of production, in case that there was a time when a coconut milk has disappeared in market they still produced their product but with higher price but they also control the good and also the nutrition and etc, this is from what I was researching. In the production process they also produce some of others/private labels ( other company that wanted to makes a jam with lower price) that want to also produce jam but in lower price. Private labels are those company that want to produce goods in this case jam but they can't so they negotiate with the producers then the producer makes the composition, from their original recipe they modify the recipe and they test it to them if they don't agree they will change it again until they agree and the price meet with the agreement, and from that moment producer produce the goods and it labels with the other company name. private-labels develop because of the price of their jam is to high. They also has the group of consumers such as consumers type A+( very rich / always use their products ), A ( they are rich but just often buy their product), B+ ( Middle class people that used their products), and the last is B ( middle class people but usually buy their products). But for type C+ and C ( lower class people or low-income people that wanted to buy their product but they cant) they can't buy their product, so Morin gives they C+ , and C to the private labels. There is a way of their promotion strategies, it is the combination of above and below the line. They collaborate it so they use the above the line strategies to introduce their product to market so there will be brand awareness, but for increase sell they use below the line method. They also have collaboration of leadership style, like for the marketing site they use autocratic style of leader, but in the production process as what I saw was, they use democratic style. They said that they rarely use money as the motivation to their employees; instead of using money they give them extra holiday to their employees. So their employees will not tired working, they also do some activities with their employee such as gathering, outbound, etc. it means that they give non financial reward instead of financial.

Visiting Morin Company




Last time we were visiting Morin, one of the biggest companies in Indonesia. Astaguna Wisesa,PT. was mademademademademade in 1978 and founded by an entrepreneur Hadi Januar and presently the product under brand "MORIN". It has been a No.1 market leader in the Jam & Spread category. Morin is a brand that used by PT Asta Spread category. Morin is a brand that used by PT Asta Spread category. Morin is a brand that used by PT Asta Spread category. Morin is a brand that used by PT Asta Spread category. Morin is a brand that used by PT Asta Guna Wisesa, they are also known as private limited company. Morin is the brad that was came from the "the brad that was came from the "the brad that was came from the "the brad that was came from the "the brad that was came from the "Nrimo" that means receive in Javanese language. In there we were doing a field trip, at there we could studied about some of their strategies of business. We were were doing a field trip, at there we could studied about some of theirstrategies of business. We were were doing a field trip, at there we could studied about some of theirstrategies of business. We were were doing a field trip, at there we could studied about some of theirstrategies of business. We were were doing a field trip, at there we could studied about some of theirstrategies of business. We were given a chancea chancea chancea chancea chance to go inside the production process. At the first they produce a peanut butter, and it was going well then they develop it until it becomes many types of it. Until now they produce it batch. They're the leader of the jam production in that country, so it means that they monopolize the jam supply in Indonesia. Now days they also produce some of the jam to some of the country in South East Asia and some Middle East area, they also produce to Egypt to satisfying consumer needs. They distribute their product to some of the distributor in Indonesia, like : Lotte, they produce a peanut butter, and it was going well then they develop it untilit becomes many types of it. Until now they produce it batch. They're theleader of the jam production in that country, so it means that they monopolizethe jam supply in Indonesia. Now days they also produce some of the jam to someof the country in South East Asia and some Middle East area, they also produceto Egypt to satisfying consumer needs. They distribute their product to some ofthe distributor in Indonesia, like : Lotte, they produce a peanut butter, and it was going well then they develop it untilit becomes many types of it. Until now they produce it batch. They're theleader of the jam production in that country, so it means that they monopolizethe jam supply in Indonesia. Now days they also produce some of the jam to someof the country in South East Asia and some Middle East area, they also produceto Egypt to satisfying consumer needs. They distribute their product to some ofthe distributor in Indonesia, like : Lotte, they produce a peanut butter, and it was going well then they develop it untilit becomes many types of it. Until now they produce it batch. They're theleader of the jam production in that country, so it means that they monopolizethe jam supply in Indonesia. Now days they also produce some of the jam to someof the country in South East Asia and some Middle East area, they also produceto Egypt to satisfying consumer needs. They distribute their product to some ofthe distributor in Indonesia, like : Lotte, they produce a peanut butter, and it was going well then they develop it untilit becomes many types of it. Until now they produce it batch. They're theleader of the jam production in that country, so it means that they monopolizethe jam supply in Indonesia. Now days they also produce some of the jam to someof the country in South East Asia and some Middle East area, they also produceto Egypt to satisfying consumer needs. They distribute their product to some ofthe distributor in Indonesia, like : Lotte, Makro, etc. they are not sell their product directly from production place. Their Segment are people who age from kids (6 are people who age from kids (6 are people who age from kids (6 are people who age from kids (6 are people who age from kids (6 years old -12 years old) to teenage(12 years old to 20 years old) and to adult (20 years old - up). They produce their product also for family use, then they also produce some of their product and to adult (20 years old - up). They produce their product also for familyuse, then they also produce some of their product and to adult (20 years old - up). They produce their product also for familyuse, then they also produce some of their product and to adult (20 years old - up). They produce their product also for familyuse, then they also produce some of their product and to adult (20 years old - up). They produce their product also for familyuse, then they also produce some of their product to be used as the filling to food, such as filling for bread, also cake, etc. What I like from this company is their production process. They don't use many machine but more on labor so it means that it also helps economy cake, etc. What I like from this company is their production process. Theydon't use many machine but more on labor so it means that it also helps economycake, etc. What I like from this company is their production process. Theydon't use many machine but more on labor so it means that it also helps economycake, etc. What I like from this company is their production process. Theydon't use many machine but more on labor so it means that it also helps economycake, etc. What I like from this company is their production process. Theydon't use many machine but more on labor so it means that it also helps economyto be better by decreasing unemployment. Even tough they are doing batch production they don't want to use all 100 % machines. Some of it ( about 40 %) batch production they don't want to use all 100 % machines. Some of it ( about40 %) batch production they don't want to use all 100 % machines. Some of it ( about40 %) batch production they don't want to use all 100 % machines. Some of it ( about40 %) batch production they don't want to use all 100 % machines. Some of it ( about40 %) was produced by machine but there are 60 % is produced by human resources. if inflation happens in an Economy ( Indonesia ) they prefer more on Indonesia ) they prefer more on Indonesia ) they prefer more on Indonesia ) they prefer more on Indonesia ) they prefer more on the quality ofquality ofquality ofquality ofquality of their product than the cost but that doesn't means that they don't try to push down the price of production, means that they don't try to push down the price of production, means that they don't try to push down the price of production, means that they don't try to push down the price of production, means that they don't try to push down the price of production, in case that there was a time when a coconut milk has disappeared in market they still produced their product but with higher price but they also control the good market they still produced their product but with higher price but they alsocontrol the good market they still produced their product but with higher price but they alsocontrol the good market they still produced their product but with higher price but they alsocontrol the good market they still produced their product but with higher price but they alsocontrol the good and also the nutrition and etc, this is from what I was researching. In the production process they also produce In the production process they also produce In the production process they also produce In the production process they also produce In the production process they also produce some of others/private labels ( other company that wanted to makes a jam with lower price) that want to also produce jam but in lower price. Private labels are those company that want to produce goods in this case jam but they can't so they negotiate with the producers then the producer with lower price) that want to also produce jam but in lower price. Privatelabels are those company that want to produce goods in this case jam but theycan't so they negotiate with the producers then the producer with lower price) that want to also produce jam but in lower price. Privatelabels are those company that want to produce goods in this case jam but theycan't so they negotiate with the producers then the producer with lower price) that want to also produce jam but in lower price. Privatelabels are those company that want to produce goods in this case jam but theycan't so they negotiate with the producers then the producer with lower price) that want to also produce jam but in lower price. Privatelabels are those company that want to produce goods in this case jam but theycan't so they negotiate with the producers then the producer makes the composition, from their original recipe they modify the recipe and they test it to them if they don't agree they will change it again until they agree and the price meet with the agreement, and from that moment producer produce the goods and it labels with the other company name. private-labels develop because of the price of their jam will change it again until they agree and the price meet with the agreement,and from that moment producer produce the goods and it labels with the othercompany name. private-labels develop because of the price of their jam will change it again until they agree and the price meet with the agreement,and from that moment producer produce the goods and it labels with the othercompany name. private-labels develop because of the price of their jam will change it again until they agree and the price meet with the agreement,and from that moment producer produce the goods and it labels with the othercompany name. private-labels develop because of the price of their jam will change it again until they agree and the price meet with the agreement,and from that moment producer produce the goods and it labels with the othercompany name. private-labels develop because of the price of their jam is to high. They also has the group of consumers such as consumers type A+( very rich / always use their products ), A ( they are rich but just often buy their product), B+ ( Middle class A+( very rich / always use their products ), A ( they are rich but just oftenbuy their product), B+ ( Middle class A+( very rich / always use their products ), A ( they are rich but just oftenbuy their product), B+ ( Middle class A+( very rich / always use their products ), A ( they are rich but just oftenbuy their product), B+ ( Middle class people thatthatthatthat used their products), and the last is B ( middle class people but usually buy their products). But for type C+ and C ( lower class people or class people but usually buy their products). But for type C+ and C ( lowerclass people or class people but usually buy their products). But for type C+ and C ( lowerclass people or class people but usually buy their products). But for type C+ and C ( lowerclass people or low-income people that wanted to buy their product but they cant) they can't buy their product, so Morin gives they C+ , and C to the private labels. There is a way of their promotion strategies, it is C to the private labels. There is a way of their promotion strategies, it is C to the private labels. There is a way of their promotion strategies, it is C to the private labels. There is a way of their promotion strategies, it is the combination of above and below the line. They collaborate it so they use the above the line strategies to introduce their product to market so there will be brand awareness, but for increase sell they use below the line method. They also have collaboration of leadership style, like for the marketing site they use autocratic style of leader, but in the production process as what I saw was, they use democratic style. They said that they rarely use money as the the above the line strategies to introduce their product to market so therewill be brand awareness, but for increase sell they use below the line method.They also have collaboration of leadership style, like for the marketing sitethey use autocratic style of leader, but in the production process as what Isaw was, they use democratic style. They said that they rarely use money as thethe above the line strategies to introduce their product to market so therewill be brand awareness, but for increase sell they use below the line method.They also have collaboration of leadership style, like for the marketing sitethey use autocratic style of leader, but in the production process as what Isaw was, they use democratic style. They said that they rarely use money as thethe above the line strategies to introduce their product to market so therewill be brand awareness, but for increase sell they use below the line method.They also have collaboration of leadership style, like for the marketing sitethey use autocratic style of leader, but in the production process as what Isaw was, they use democratic style. They said that they rarely use money as themotivation to their employees; instead of using money they give them extra holiday to their employees. So their employees will not tired working, they also do some activities with their employee such as gathering, outbound, etc. it means that they give non financial reward instead of financial.give them extra holiday to their employees. So their employees will not tiredworking, they also do some activities with their employee such as gathering,outbound, etc. it means that they give non financial reward instead offinancial.give them extra holiday to their employees. So their employees will not tiredworking, they also do some activities with their employee such as gathering,outbound, etc. it means that they give non financial reward instead offinancial.give them extra holiday to their employees. So their employees will not tiredworking, they also do some activities with their employee such as gathering,outbound, etc. it means that they give non financial reward instead offinancial.


Sunday, March 03, 2013

Morin Factory


Topic Chosen: Economic Growth

Economic growth refers to the increase in the real output of an economy. It is measured by the 2 main economic indicators, GDP per capita or HDI (Human Development Index). GDP per capita measures the total output of an economy in terms of money to the working population of that economy to get the general average of earnings of the people. As the economy grows, people would earn more for their works and thus, will raise the general earnings of the society which will be indicated by the rise of GDP per capita. On the other hand, HDI measures the living standards of the society. A society enjoying high living standards will be better educated and healthier than those with lower living standards. An educated and healthy workforce will be significantly more productive than one that is neither educated nor healthy. A highly productive workforce supports economic growth and so, the economy grows in response. And with economic growth, people will earn more and they will then be able to provide better education and health care for their families, companies may earn more profit and government would have better funding source. Both the society and government will enjoy the benefits.

What role does the Morin Factory play in increasing the economic growth of the Indonesian Economy, then? Factories like the Morin Factory has played many vital roles for the economic growth of the Indonesian economy, this includes increasing the national GDP by the income they generate and their products.  The income generated by Morin is included in the national GDP. And since Morin Factory mass produces their product, Morin raises the national GDP significantly. Moreover, Morin is the market leader in the jam spread market. This means that no or little proportion of their total product becomes a waste, most of their products are sold. Therefore, Morin generates a lot of income which is beneficial for both the company itself and the national economy.

As well as rising GDP, Morin Factory also helped the economy by employing the local workforce. Unemployment in the region decreases as Morin Factory gathers all the workforces they needed, the demand for labor increases as a result and unemployment declines. By this, Morin Factory has already helped the government with another economic aim, which is a low unemployment rate. In addition, by employing the local workforce, the local workforce can learn new things such as new technologies and new production processes. They may receive trainings and guidance from the company which will improve the education of the local people. All in all, the government receives benefits from companies like Morin as the unemployment rate declines and their workforce became more educated.

On the other hand, companies like the Morin Factory may cause some problems as well. Morin produces jam spreads, which is a food product; therefore they need to keep all the products they sent to distributors in good condition. If a batch of products should fail, the false goods are burnt along with their glass jars. This causes air pollution as well as ground pollution. The smoke from the burning materials may also be harmful for the local society. Diseases may spread, and the local society suffers as a result.

Aside from the burning process, the production waste of factories, like Morin Factory, may also be extremely harmful. If these waste are not taken care of properly, the water may be polluted, it may even reach the local water source. Properly disposing factories wastes can be very expensive and companies may be reluctant to carry out the procedures as it would increase their costs and reduce their profits. If the local water source is affected, the whole region may suffer. These effects may reduce the overall health of the society and reduce living standards. Unhealthy workforce leads to ineffective production and decreasing labor productivity. In effective and decreasing labor productivity will then result to declining economic growth.

In conclusion, firms such as the Morin Factory may help support the economy and economic growth as well as economic development but they may also cause some severe problems for the government if not managed or monitored properly. Morin has helped the government by supporting economic growth, reducing unemployment and educating current workforce about the newest technologies and production practices. But, Morin may have contributed to the local pollution problem and this decreases the living standards as well as overall health which lead to a decline in economic growth and economic development. However, if these problems are taken care of properly, they can be solved or even avoided. 

By: Jennifer M (9 Business/06)

Morin Factory
Topic Chosen: Economic Growth
Economic growth refers to the increase in the real output of an economy. It is measured by the 2 main economic indicators, GDP per capita or HDI (Human Development Index). GDP per capita measures the total output of an economy in terms of money to the working population of that economy to get the general average of earnings of the people. As the economy grows, people would earn more for their works and thus, will raise the general earnings of the society which will be indicated by the rise of GDP per capita. On the other hand, HDI measures the living standards of the society. A society enjoying high living standards will be better educated and healthier than those with lower living standards. An educated and healthy workforce will be significantly more productive than one that is neither educated nor healthy. A highly productive workforce supports economic growth and so, the economy grows in response. And with economic growth, people will earn more and they will then be able to provide better education and health care for their families, companies may earn more profit and government would have better funding source. Both the society and government will enjoy the benefits.
What role does the Morin Factory play in increasing the economic growth of the Indonesian Economy, then? Factories like the Morin Factory has played many vital roles for the economic growth of the Indonesian economy, this includes increasing the national GDP by the income they generate and their products.  The income generated by Morin is included in the national GDP. And since Morin Factory mass produces their product, Morin raises the national GDP significantly. Moreover, Morin is the market leader in the jam spread market. This means that no or little proportion of their total product becomes a waste, most of their products are sold. Therefore, Morin generates a lot of income which is beneficial for both the company itself and the national economy.
As well as rising GDP, Morin Factory also helped the economy by employing the local workforce. Unemployment in the region decreases as Morin Factory gathers all the workforces they needed, the demand for labor increases as a result and unemployment declines. By this, Morin Factory has already helped the government with another economic aim, which is a low unemployment rate. In addition, by employing the local workforce, the local workforce can learn new things such as new technologies and new production processes. They may receive trainings and guidance from the company which will improve the education of the local people. All in all, the government receives benefits from companies like Morin as the unemployment rate declines and their workforce became more educated.

On the other hand, companies like the Morin Factory may cause some problems as well. Morin produces jam spreads, which is a food product; therefore they need to keep all the products they sent to distributors in good condition. If a batch of products should fail, the false goods are burnt along with their glass jars. This causes air pollution as well as ground pollution. The smoke from the burning materials may also be harmful for the local society. Diseases may spread, and the local society suffers as a result.

Aside from the burning process, the production waste of factories, like Morin Factory, may also be extremely harmful. If these waste are not taken care of properly, the water may be polluted, it may even reach the local water source. Properly disposing factories wastes can be very expensive and companies may be reluctant to carry out the procedures as it would increase their costs and reduce their profits. If the local water source is affected, the whole region may suffer. These effects may reduce the overall health of the society and reduce living standards. Unhealthy workforce leads to ineffective production and decreasing labor productivity. In effective and decreasing labor productivity will then result to declining economic growth.

In conclusion, firms such as the Morin Factory may help support the economy and economic growth as well as economic development but they may also cause some severe problems for the government if not managed or monitored properly. Morin has helped the government by supporting economic growth, reducing unemployment and educating current workforce about the newest technologies and production practices. But, Morin may have contributed to the local pollution problem and this decreases the living standards as well as overall health which lead to a decline in economic growth and economic development. However, if these problems are taken care of properly, they can be solved or even avoided. 

Morin Factory
Topic Chosen: Economic Growth
Economic growth refers to the increase in the real output of an economy. It is measured by the 2 main economic indicators, GDP per capita or HDI (Human Development Index). GDP per capita measures the total output of an economy in terms of money to the working population of that economy to get the general average of earnings of the people. As the economy grows, people would earn more for their works and thus, will raise the general earnings of the society which will be indicated by the rise of GDP per capita. On the other hand, HDI measures the living standards of the society. A society enjoying high living standards will be better educated and healthier than those with lower living standards. An educated and healthy workforce will be significantly more productive than one that is neither educated nor healthy. A highly productive workforce supports economic growth and so, the economy grows in response. And with economic growth, people will earn more and they will then be able to provide better education and health care for their families, companies may earn more profit and government would have better funding source. Both the society and government will enjoy the benefits.
What role does the Morin Factory play in increasing the economic growth of the Indonesian Economy, then? Factories like the Morin Factory has played many vital roles for the economic growth of the Indonesian economy, this includes increasing the national GDP by the income they generate and their products.  The income generated by Morin is included in the national GDP. And since Morin Factory mass produces their product, Morin raises the national GDP significantly. Moreover, Morin is the market leader in the jam spread market. This means that no or little proportion of their total product becomes a waste, most of their products are sold. Therefore, Morin generates a lot of income which is beneficial for both the company itself and the national economy.
As well as rising GDP, Morin Factory also helped the economy by employing the local workforce. Unemployment in the region decreases as Morin Factory gathers all the workforces they needed, the demand for labor increases as a result and unemployment declines. By this, Morin Factory has already helped the government with another economic aim, which is a low unemployment rate. In addition, by employing the local workforce, the local workforce can learn new things such as new technologies and new production processes. They may receive trainings and guidance from the company which will improve the education of the local people. All in all, the government receives benefits from companies like Morin as the unemployment rate declines and their workforce became more educated.

On the other hand, companies like the Morin Factory may cause some problems as well. Morin produces jam spreads, which is a food product; therefore they need to keep all the products they sent to distributors in good condition. If a batch of products should fail, the false goods are burnt along with their glass jars. This causes air pollution as well as ground pollution. The smoke from the burning materials may also be harmful for the local society. Diseases may spread, and the local society suffers as a result.
Aside from the burning process, the production waste of factories, like Morin Factory, may also be extremely harmful. If these waste are not taken care of properly, the water may be polluted, it may even reach the local water source. Properly disposing factories wastes can be very expensive and companies may be reluctant to carry out the procedures as it would increase their costs and reduce their profits. If the local water source is affected, the whole region may suffer. These effects may reduce the overall health of the society and reduce living standards. Unhealthy workforce leads to ineffective production and decreasing labor productivity. In effective and decreasing labor productivity will then result to declining economic growth.
In conclusion, firms such as the Morin Factory may help support the economy and economic growth as well as economic development but they may also cause some severe problems for the government if not managed or monitored properly. Morin has helped the government by supporting economic growth, reducing unemployment and educating current workforce about the newest technologies and production practices. But, Morin may have contributed to the local pollution problem and this decreases the living standards as well as overall health which lead to a decline in economic growth and economic development. However, if these problems are taken care of properly, they can be solved or even avoided. 

Saturday, March 02, 2013


Topics: Visiting Morin Factory

Morin is the biggest Jam factory in Indonesia ,Morin produce many kind of Jam . Batch production is a technique manufacturing that used by Morin, because it fast and more efficient. We can see how they sortation, roasting, cooking, filling, commercial product , and until packing. There are several market target at Morin factory , their first target is family and personal. They will distribute their product to supermarket and hospital to create easy access by the consumer to buy. There are some applicants is breakfast, and juice. Many workers work there and produce output which is jam.

Morin company help government to do their aims, government aims is create low unemployment. In Morin many employees work there to produce output that can help government also. When the output is increase , the company income will be high and government get income from income tax. The output is increase and the revenue also increase it happen because Morin factory using Batch processing. The tax will be used to build the infrastructure and also help poor people. one of the government aims is reduce poverty , poverty can be reduce by several ways. First government can give education to the poor people so they can work and fulfill their basic needs. Second government can give subsidy to the poor people so they can live. In Morin company more income also help them to expand their company and factory to become bigger. More bigger the factory they will increase their assets and it will increase the production. Morin employees using Batch production method's , this help the employees to work faster and more efficient. Batch production also get a revenue that can be used for pay the employees. Batch production is use technology so the employees can be educated by that machine . Jam also can give a nutrient to Indonesia they can study and educated. Morin also create a good relationship with other country which help to give training to their employees this will help their employee to increase their education .

On the other, hand Morin company uses batch production. Batch production is expensive and takes a large space in the factory. It also produce a waste product which create a pollution and pollution is very dangerous . Pollution create a conflict with the government aims, because government try to protect the air by planting more trees. Pollution also create some disease which will decrease the level of living standard. In river pollution also happen because of waste product, the waste product destroy the ecosystem and later on people will hard to find clean water. However, when the company get more revenue they will save and try to expand their factories. In addition that expand factories need new land to use, Morin company will destroy the forest to build a new factory produce more output . But it against with government aims which is "go green" , if there is no land left, people will fight for land when they lack of land space. land can be use for planting crops which is needed for basic needs. if there is no land it causes lack of resources because they can’t plant their basic need. Lack of resources can be happen due to the high population which increase the demand. If the demand increase but the supply is low and the market can’t fulfill the demand it will create scarcity. Many of people die because of pollution and lack of resources. This problem create a high death rate which decrease the local employees. After that the local employees decrease the government need to find other employee to other country which take a cost. 

In conclusion that Morin company create some disadvantages and it causes conflict with government aims, like pollution, destroy the forest for new land , and high death rate. But all of that can be prevent in the future since the technology development is fast .Technology development will create less waste product that can help the government aims. The development of technology is supported by high government income which help the cost to development . Development help the local employees to be educated and they can work to fulfill their basic needs . Moreover we can see now the advantages which can give income to the government that help the government to build the infrastructure to create easy access which help the development to be faster. Relationship with other company can create a good relationship and educated from employees training. Morin also help to reduce the unemployment it means that Morin help government objectives. Michael Elia 

Morin Factory visit Report


Topic: Employment and Economic Growth
 
Unemployment refers to someone who do not have any work and income, unemployment is a major problem around the world and it is one of government’s aim to achieve a high and stable unemployment. Without employment, people are not able to earn money which will lead to poverty. People are unable to complete their basic need and having an access to good sanitation which will then lead to another problem such as deadly diseases as their body are not well defended from the virus because they are living in an unsuitable environment. With the present of unemployment, it disturbs the economic growth and development as they are having less GDP per capita (People don’t have work), bad living standard. Goods and services produced is also less because productivity is low due to low people are working, leading business to bankruptcy. People are not able to spend because they don’t have any money and this will not provide enough sales for firms are they are forced to downsize their company or dismissing it which make unemployment further increases. As the development of technology progress real fast, labor are being replaced by machine which then increases further unemployment.
Morin Factory (PT. Asta Guna) protects employment as they are not replacing all the production process with machinery. They care about the people so they balance they balances the use of labor and machines. This also benefits them because the quality produced by humans are better than machines. Machines can’t fully replace the job done by human. Morin is really strict will their product quality so they still employing human labor in their production process to provide better quality to their customers.
They help the government reduce the level of unemployment, by providing them jobs with a good working condition with a reasonable working hours too. This reduces the number of people living in the poverty line as most of their work in the factory doesn’t really need a high level education, except the quality control team where they need a high education on chemistry. This benefits them as they are not well educated because of not having enough money to fund their education. Trainings are also provided to the workers so they are able to gain knowledge about the job they are working which benefits both the worker and the company. The worker are able to work more productively which makes the company be able to produce more.
Morin also promote economic growth for Indonesia as they are exporting jams abroad. This increases the output of Indonesia and contribute to Indonesia’s economic growth. People abroad now begins to use Indonesia’s homemade jam which increases the foreign investment interest to Indonesia which can help Indonesia to expand even further. This also reduce the dependency of Indonesia’s market as Indonesia now are able to make its own jam and will not be affected badly if abroad jam producer are having supply problem or even possibly Indonesia could be the one who will overcome the supply scarcity by exporting to them.
On the other hand, the decision of still mainly using labor is that they are not be able to produce more than they could with machines. Worker can only work in a limited amount of time where during their breaks, the company are unable to continue the production unless they hire more employees which will then increases cost of production of the company reducing its profit whereas they can produce more with less cost when investing on machinery. As technology develops, there are able to produce even more than humans be able to produce. They also don’t have consistent production as humans productivity varies overtime so they are not be able to produce the same amount of goods every time.
Worker could also stop working if the company are not able to fulfill what they want, such as insufficient payment and this stops the production process and force the company to increase their wages which again add their production cost. The company needs to keep satisfying their employees so they are more productive, but when the company replace them with machinery, they don’t need to worry as machines will do whatever they are instructed to do so. But this added maintenance cost to the company and the requirement of hiring a specialize engineers to operate the machinery.
Morin are able to use only machinery and cut cost but they must sacrifice their product quality and increases unemployment. Instead they use both labor and machinery as there are really strict with their quality product and they care about their employees which is a good decision. At least they are still gaining profit and contribute economic growth for Indonesia. Ferdin