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Fishery SOEs eye robust growth after planned merger this year
Indonesia's two leading state-owned fishery companies are expected to complement each other's business and achieve strong growth after a government-ordered merger.
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Traders prepare their stalls at a Muara Baru Modern Fish Market (PIM Muara Baru) managed by Perindo in Penjaringan, North Jakarta, at an unspecified date. (Perindo/Perindo)
P
erum Perikanan Indonesia (Perindo) and PT Perikanan Nusantara (Perinus), the country’s top state-owned fishery companies, are eyeing a 26 percent compound annual growth rate (CAGR) over five years after completing their government-ordered merger by June this year.
The growth estimate takes into account the combination of Perinus’s capture fishery business and Perindo’s fishery port management and aquaculture businesses, according to Raenhat Tiranto Hutabarat, the director of operations at Perindo.
The CAGR was expected to reach 15 percent for port services and 22 percent for fishery trade in five years’ time, in line with the two companies’ capacities and market opportunities.
“Pelindo’s business advantage will be complemented by Perinus’s capture fisheries business, which includes catching fish and offtaking fish from partner fishermen, to strengthen state-owned fisheries,” Raenhat was quoted as saying in a news release on March 5.
Read also: Minister's restructuring plan aims to make SOEs profitable, competitive
The merger plan comes at a time when the fishery sector is bouncing back from the pandemic-induced economic contraction as the sector grew by 1.06 percent year-on-year (yoy) in the fourth quarter of last year, according to data from Statistics Indonesia (BPS). The growth, however, remained below levels seen before the pandemic began.
