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 62^nd in 2019 to 65^th 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.

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