Synergy Between PTPN And ID FOOD Development Of Products And Foods Of The Tea Market

The synergy between PTPN and ID FOOD is carried out to develop products and share the tea market both domestically and abroad. (Ist)

JAKARTA - Holding Perkebunan Nusantara PTPN III (Persero) synergizes with PT Rajawali Nusantara Indonesia (ID FOOD) to support product development and expansion of the domestic tea market share. This synergy is carried out through cooperation between its subsidiary, namely PTPN IV, which will acquire a tea plantation owned by PT Mitra Kerinci, as a subsidiary of PT Rajawali Nusantara Indonesia (Persero). This step was taken to support product development and expansion of the domestic tea market share.

The acquisition plan, which began with the signing of a conditional asset sale and purchase agreement by PTPN IV Director Sucipto Prayitno represented by SEVP Business Support PTPN IV, Budi Susanto and Director of PT Mitra Kerinci Arief Maulana Yamin at Agro Plaza Building, Kuningan, South Jakarta on Wednesday, November 16.

The signing of the conditional asset sale and purchase agreement was witnessed by the President Director of PT Perkebunan Nusantara III (Persero) Mohammad Abdul Ghani and the President Director of PT Rajawali Nusantara Indonesia (Persero) Frans M. Tambunan. Also present were the Deputy Assistant for Plantation and Forestry of the Ministry of SOEs Rachman Ferry Isfianto, and Assistant Deputy for Food and Pupuk Industry of the Ministry of SOEs Zuryati Simbolon.

In his remarks, the President Director of Holding Perkebunan Nusantara PTPN III (Persero) Mohammad Abdul Ghani said that the signing of this conditional asset sale agreement was part of the plan to integrate BUMN Plantations and Food to fulfill national food security. "One of them is to increase national tea production," he said.

Abdul Ghani said, after signing the sale and purchase agreement for this conditional asset, both the management of PTPN IV and PT Mitra Kerinci, they must remain committed to completing all prerequisite conditions so that they can be completed according to the target timeline. "Including shareholder approval, for the use of the budget and completion of the transfer process of name and extension of the HGU," he added.

"This transaction is based on the spirit of 'famity', so that the process can relatively be completed more smoothly," added Ghani.

Likewise, the President Director of PT RNI (Persero) / ID FOOD Frans M. Tambunan. In his speech, he said that this is part of the synergy with plantation SOEs in creating a tea ecosystem by reviving Indonesian tea culture. If upstream of the Kerinci tea plantation will later be managed by PTPN, the role of ID FOOD downstream will be optimized in distribution and market penetration.

Frans assessed that tea commodities have a fairly large export opportunity. Therefore, this synergy with PTPN is also expected to increase interest in tea consumption to G20 Member countries and other developing countries. This, he continued, is because throughout 2022 there is an interest in exporting Kerinci tea to a number of destination countries, such as Taiwan, Germany and Malaysia with black tea and special tea products. "Including local consumption interests, such as green tea products, is a favorite for local consumption in Indonesia," explained Frans.

PT Mitra Kerinci's acquisition plan by PTPN IV received a good response from the Ministry of SOEs, through the Deputy Assistant for Plantation and Forestry of the Ministry of SOEs Rachman Ferry Isfianto. As directed by the President of the Republic of Indonesia Joko Widodo on the B20 agenda, said Ferry, in order to address the world's economic challenges that are still not stable enough, there needs to be a grand strategy in order to deal with these conditions. This is also in line with what we have started at the Ministry of SOEs through industrial downstreaming, green energy development (green industry), and digitization," he said.

Although the tea commodity has not had a significant impact on the company, considering that the revenue contribution is not large enough, Ferry believes these improvement efforts and initiatives can boost the performance of the tea business at PTPN Group, provide benefits to society and the country, and make national tea products better known globally.

"This is just the first step and there are several more stages that we have to go through, we appreciate the good efforts that have been made by PTPN Group, PT Mitra Kerinci, and RNI to be able to carry out the signing of this conditional asset sale agreement," said Ferry.

The Deputy Assistant for Food and Pupuk Industry at the Ministry of SOEs, Zuryati Simbolon, also conveyed the same thing. According to him, the acquisition plan is a form of synergy between SOEs to optimize every line of business of the company. "To be stronger and focus on core business, PT Mitra Kerinci is handed over to a more expert, namely PTPN," he said.

It should be noted that PT Mitra Kerinci is a subsidiary of PT Rajawali Nusantara Indonesia which has been established since 1990 in South Solok Regency, West Sumatra. In addition to having a plantation with a Hak Guna Usaha license of 2,025 hectares, this company also manages factories, runs cultivation, production and sale of Green Tea Grade tea tea, Black Tea Leafy Grade, and Black Tea Broken Grade with the Liki Tea brand in each of its products.

PT Mitra Kerinci has a production capacity of 2,000 tons of dry black tea per year and 2,200 tons of dry green tea per year. Liki Tea garden is also used as agro-tourism. In addition, five waterfall points in this location also have the potential to be used for the development of power plants.