Kencana Online: Exploring the Family-Owned Waste Management Business Led by MBA FEB UGM IMBA Student, Batch 83

What began as a family business founded by his father in 2005 has now been carried forward by Fajar Munichputranto, a student of the International Master of Business Administration Program, Faculty of Economics and Business, Universitas Gadjah Mada (MBA FEB UGM), Batch 83. He now leads PT Cipta Visi Sinar Kencana, a company specializing in composting and biogas production technology.

The company’s inception was inspired by a tragedy the Leuwi Gajah landfill landslide in Bandung in 2005, which claimed hundreds of lives due to the explosion of methane gas from accumulated organic waste.

“Our motivation is to find a solution for organic waste management. The goal is to reduce waste accumulation and minimize potential disasters or environmental damage,” Fajar explained.

Fajar began biogas production in 2015. Biogas is used as a source of heat for cooking and powering generators. The company’s operations began with the production of composters, particularly vertical standing and automatic horizontal drum types.

“The vertical standing type works like a conventional composter, where waste is stacked on top of each other,” he said.

He added that vertical composters use microbial activators that accelerate the composting process. “Our competitive advantage lies in our compost accelerators, it only takes five days to produce compost,” Fajar emphasized.

Meanwhile, the horizontal composter is shaped like a rotating drum that evenly distributes moisture within the waste, resulting in faster compost formation.

Educational Experience and Business Journey at MBA FEB UGM

As Vice Director of PT Cipta Visi Sinar Kencana, Fajar shared how his experience studying at MBA FEB UGM has significantly supported his business journey. Courses in business strategy, client relations, decision-making, and organizational management have provided him with valuable insights.

“Through interactions with lecturers, I can consult about challenges that arise in business operations,” said Fajar.

He considers the MBA FEB UGM lecturers as his mentors in discussion and reflection. His business acumen is also strengthened by six years of experience working in the banking sector. Fajar also faced the challenge of balancing his business activities with pursuing a dual degree MBA program between MBA FEB UGM and The University of Queensland.

Social Impact of the Business

Since its establishment, PT Cipta Visi Sinar Kencana has created a significant social and environmental impact. By processing organic waste, the company helps keep the environment cleaner and more aesthetically pleasing, while reducing carbon emissions and promoting public health.

The business also produces solid and liquid compost fertilizers, which are used in agriculture and plantations.

“Socially, our products contribute to the livelihood of communities around biogas power plants,” said Fajar.

The nutrient-rich liquid fertilizer derived from biogas helps produce higher-quality crops. Moreover, urban farming initiatives supported by the company’s compost products enable city residents to maintain food security sustainably.

Future Vision and Business Development

Located at Jl. Raya Banjaran No. 390, Bandung, the company currently employs six people. After successfully managing its waste-processing operations, Fajar now envisions expanding into waste management consulting services to educate the wider community on sustainable waste practices.

He also plans to develop portable waste processing machines, saying, “We want to create smaller, more communal-scale equipment that requires less land and capital investment.”

Fajar encourages fellow sustainability entrepreneurs to remain resilient. “There are still many challenges and opportunities in the waste management sector. It all starts with changing people’s mindsets and lifestyles about waste, particularly in waste segregation,” he shared.

He also believes that collaboration between entrepreneurs and academia, including lecturers, is key to advancing sustainable business practices. Fajar hopes to strengthen partnerships with various institutions in the future.

PT Cipta Visi Sinar Kencana’s products are available online through their official website kencanaonline.com, Instagram account @kencanaonline, and several marketplace platforms, as well as through direct sales to customers.

Reporter: Fitrianti Rizqi
Editor: Ayu Aprilia