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Jakarta Post

Unilever to continue producing teabags after Sariwangi declared bankrupt

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, October 18, 2018   /   05:11 pm
Unilever to continue producing teabags after Sariwangi declared bankrupt A man pours tea into a glass. (Courtesy of/www.instagram.com/sariwangi)

Consumer goods manufacturer PT Unilever Indonesia has said that it will continue to manufacture Sariwangi teabags after the court declared the company's manufacturers of the teabags bankrupt on Wednesday.

The Jakarta Commercial Court declared PT Sariwangi Agricultural Estate Agency and Maskapai Perkebunan Indorub Sumber Wadung bankrupt in response to a lawsuit submitted by PT Bank ICBC Indonesia, one of its creditors.

Unilever, which acquired the Sariwangi teabag brand in 1989, said through its Twitter account on Thursday that the company no longer had relations with PT Sariwangi Agricultural Estate Agency and PT Maskapai Perkebunan Indorub Sumber Wadung.

Unilever, however, confirmed that it used to cooperate with PT Sariwangi Agriculture Estate Agency to produce the teabags.

Unilever Indonesia corporate secretary Sancoyo Antarikso said the company was still producing the teabags with the help of a third party.

“Sariwangi is still a market leader of teabags in this country,” he said as reported by tribunnews.com on Thursday.

Sariwangi Agricultural Estate Agency and Maskapai Perkebunan Indorub Sumber Wadung were declared bankrupt after they failed to pay Rp 1.5 trillion (US$98.80 million).

Sariwangi, which was established in 1962, initially ran a tea trading business. It expanded its business by manufacturing tea products and become a pioneer in teabag products.

In 2015, Sariwangi and its affiliate, Maskapai Perkebunan Indorub Sumber Wadung, faced financial problems after they failed to increase their production of tea leaves after investing a large amount of money in a watering system at their plantation. (bbn)