The Government's Efforts To Strengthen The Performance Of Food SOE Holding To Fruit Results, ID FOOD Optimistic To Achieve Positive Performance In 2023

President Director of PT Rajawali Nusantara Indonesia (Persero)/ID FOOD Frans Marganda Tambunan. (Photo: Doc. ID FOOD)

JAKARTA - Food SOE Holding ID FOOD supports the efforts of the Ministry of SOEs in improving and strengthening the financial performance of Holding members. This step is part of strengthening Food Holding which is considered to have a strategic role in the national food ecosystem.

This was conveyed by the President Director of PT Rajawali Nusantara Indonesia (Persero)/ID FOOD Frans Marganda Tambunan in his statement, Thursday, January 11, in Jakarta. According to him, the improvements made have had a positive impact. This can be seen from the positive achievement of ID FOOD's consolidated financial performance until November 2023.

"Since the formation of ID FOOD two years ago, the Ministry of SOEs has continued to support and oversee the process of improving and transforming the Food Holding body. To this day we can see progress. At the beginning of the formation of the company's food holding, it recorded a consolidated loss of IDR 823 billion in 2021, improving to a loss of IDR 298 billion in 2022, and in 2023 to November ID FOOD managed to record a net profit of IDR 65 billion," he said.

Furthermore, Frans explained, the net profit of IDR 65 billion until November rose 129 percent above the achievement in 2022. In the same period last year (November 2022) the company experienced a net loss of IDR 223 billion.

"The performance improvement was due to a number of factors, such as revenue growth and gross profit, where gross profit was reached IDR 1.836 trillion, an increase of 16 percent above last year of IDR 1.586 trillion. This achievement was due to improvements in gross profit in the sugar, agriculture and salt industries," he said.

Frans admits that this year's increase in gross profit is one of the key factors of the company's positive performance.

"This is in line with the transformation of EBITDA which is currently being carried out by ID FOOD Group. Through the transformation of EBITDA, the company's performance continues to grow with a significant increase in EBITDA and operating profit," he said.

Another factor, he added, also cannot be separated from the performance of the subsidiary that has improved. Commodities that achieve the company's Budget Work Plan (RKAP) target are sugar, salt and fishery. Meanwhile, commodities that experienced growth above last year were food crops, fisheries, trade distribution, and other industries. Meanwhile, the company that managed to record profits until November 2023 there were 8 subsidiaries.

In addition to improving operational performance, Frans also explained that performance improvements were also supported by financial performance improvements. Throughout 2023, the company has completed financial restructuring in subsidiaries such as PT Perkebunan Mitra Ogan. Currently also completing the financial restructuring of PT Sang Hyang Seri and PT Perikanan Indonesia.

With improved operating performance, financial performance and improved business processes, going forward, Frans ensured that all Food SOE Holding entities consisting of 16 subsidiaries will continue to support the efforts of the Ministry of SOEs to transform business models so that ID FOOD becomes an effective holding both in terms of finance and operations.

"We believe that in 2024 the performance of ID FOOD will continue to be better, plus the increasingly strategic position of Food Holding in the landscape of the national food ecosystem. It is proven by the government's trust in ID FOOD to carry out assignments related to food security such as the implementation of Government Food Reserves (CPP) for 9 strategic food commodities," he said.

As for maintaining CPP stocks, ID FOOD together with BULOG are trusted by the government to get cheap loans of IDR 28.7 trillion. In addition, improving the financial structure has an impact on reducing the Debt to Equity Ratio (DER) by 23 percent, thus making the company's financial posture healthier.

"With the improvements that have been carried out, I invite food stakeholders, including Ministries/Institutions, SOEs, banking and food business actors, associations, academics, and the media to collaborate with ID FOOD to develop food businesses and ecosystems. 2024 will be a year full of optimism for us with various targets that have been set," he concluded.