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State-owned staple food holding company to be formed by September
The holding company aims to improve Indonesia’s food security, farmers’ welfare and the agriculture industry’s modernity.
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A farmer plows rice fields using the help of two buffaloes on agricultural land near a rest area of the Bawean-Salatiga toll road in Central Java on Nov. 2, 2020. Ahead of the rainy season, farmers have begun preparing for the next crop of rice. JP/PJ Leo (JP/P.J. Leo)
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ine state-owned enterprises (SOEs) plan to consolidate into a basic foods holding company by the third quarter of this year in improving Indonesia’s food security, farmers’ welfare and the agriculture industry’s modernity.
Diversified food manufacturer PT Rajawali Nusantara Indonesia (RNI) is set to become the holding entity for all nine constituent companies whose combined assets are worth Rp 28 trillion (US$1.94 billion).
The eight SOEs are RNI, fishery companies Perum Perikanan Indonesia and PT Perikanan Nusantara, agribusiness firms PT Pertani and PT Sang Hyang Seri, logistics firms PT Bhanda Graha Reksa (BGR) and Perusahaan Perdagangan Indonesia (PPI), chicken and cattle producer PT Berdikari and salt maker PT Garam.
“We are going to consolidate a supply chain from the input down to the end, including in warehousing and retail,” said RNI president director Arief Prasetyo Adi in a virtual press conference on Thursday.
RNI, which has the largest asset value among the nine, mainly produces sugar – a business that contributes nearly half of its annual income – but it also produces tea, palm oil, leather goods and condoms, among other products.
Indonesia, the world’s fourth-most-populous country, went down three ranks in the Global Food Security Index from 62nd in 2019 to 65th last year, the second-lowest among the six major ASEAN economies after the Philippines, mainly due to Indonesia’s limited dietary diversity.
Statistics Indonesia (BPS) data show that Indonesia’s Farmers Exchange Value (NTP), a benchmark indicator of farmers' livelihoods, dipped 0.35 percent month-on-month to 102.93 points in April, amid declining prices in some basic foods and horticultural products. The indicator is, however, higher than during the same month last year.
