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Six SOEs combine to form staple food holding
The deal comes one quarter later and three companies fewer than originally planned.
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he government has established a state-owned staple food holding company by integrating five companies into PT Rajawali Nusantara Indonesia (RNI).
RNI signed on Jan. 7 an agreement with state-owned logistics company PT Perusahaan Perdagangan Indonesia, agribusiness company PT Sang Hyang Seri, fishery company PT Perikanan Indonesia, poultry company PT Berdikari and salt manufacturer PT Garam to form the holding company, said the diversified food manufacturer in a statement issued the same day.
RNI’s establishment follows the issuance of Government Regulation No. 118/2021 on state capital injection to RNI and its implementing regulation, Finance Minister Decree No. 555/2021, though its formation comes around three months later than expected.
Read also: State-owned staple food holding company to be formed by September
“[RNI] is expected to strengthen the food sector in general by combining the [five companies’] strengths through strategic efforts, from increasing production capacity to expanding market access and the food distribution network,” said Deputy State-Owned Enterprises (SOEs) Minister Pahala Mansury.
“The holding company can also optimize potential assets, rely on the supply chain and apply business digitalization and technology,” he added.
The establishment of the latest state-owned holding company is part of the government’s efforts to restructure SOEs, which now total 41 entities from more than 100 SOEs in 2019.
It is also one of the Joko Widodo administration’s strategies to increase the country’s agricultural output, in addition to establishing food estates in Central Kalimantan and North Sumatra.
The government had initially planned to consolidate three other SOEs under the holding company, namely fishery company Perikanan Indonesia (Perum Perindo), agribusiness company PT Pertani, and logistics company PT Bhanda Graha Reksa (BGR). RNI’s statement did not say why the three were excluded.
RNI president director Arief Prasetyo said in the statement that the signing of the agreement was a historic moment, given the long process leading up to this point. Arief added that the government was planning to launch a new brand name and logo for the new holding company.
“This holding company builds upon the strengths of the agriculture, fishery, livestock, salt and logistics sectors,” he was quoted as saying.
“Today is the beginning for the holding company to realize its three objectives, namely supporting national food security, inclusion of farmers and fishers, as well as becoming a world-class company.”
