Performance Continues To Grow, Food SOE Holding ID FOOD Is Optimistic This Year To Make Positive Results

ID FOOD President Director Frans Marganda Tambunan. (Photo: Doc. ID FOOD)

JAKARTA - The government's steps to build the national food sector must be supported by strengthening the role of food business actors, one of which is BUMN Food Holding ID FOOD formed by the government to support food security, inclusiveness, and to create world-class food companies.

ID FOOD President Director Frans Marganda Tambunan, in his statement Wednesday, October 11, said that ahead of the second year after the formation, ID FOOD had worked on a number of strategic programs to improve internal performance and strengthen the national food ecosystem.

"Towards 2 years of work, ID FOOD has made improvements, including in terms of finance, the company's revenue continues to grow. In 2021 ID FOOD recorded a revenue of IDR 15.3 trillion and increased to IDR 15.7 trillion in 2022," he said.

He added that the company's assets also continued to increase significantly from Rp27.9 trillion in 2020 to Rp28.6 trillion in 2022. From the EBITDA side, the company's earnings before interest tax also experienced a positive trend, where from 2021 to 2022 it experienced an increase of 51.8 percent and is projected to continue to increase in 2023.

"In 2021 ID FOOD recorded EBITDA of IDR 247 billion, growing in 2022 to IDR 375 billion and is targeted to reach IDR 655 billion in 2023. We are optimistic that we will continue to experience growth, this is in line with the EBITDA transformation movement that is being intensified. ID FOOD Group," he said.

Frans said that improving financial performance certainly leads to a positive profit achievement in 2023. This year we are optimistic that we can achieve profit. This means that the first time the Food SOE Holding has recorded a profit since it was formed. We hope this will be a good momentum for strengthening the food sector in the future," he said.

He added that the achievement and projection records are part of the performance targets that have been set out in the Food SOE Holding road map. In the initial period or in 2022-2023, his party admitted that they were focused on making basic improvements or Fix The Fundamental.

"The Fix the Fundamental Holding of Food SOEs includes long-term financial transformation, such as debt restructuring and EBITDA transformation, streaming subsidiaries, and asset optimization. That is important, because if the pillar of this financial performance is solid, it will determine various corporate actions and the development of Food SOE Holding in the future," he explained.

Other improvement processes that continue to be carried out, he added, are related to the procurement aspect, especially the optimization of supply chain and production excellence in order to encourage the production process to run efficiently, so as to reduce the Price of Main Production (HPP).

"Revitalization and improvement of production equipment are key factors that ID FOOD continues to encourage, so we have a competitive HPP. To become a world-class company for our food products, we must have good competitiveness," he said.

Frans said that the improvement and strengthening of the Food SOE Holding was in line with the direction of the President of the Republic of Indonesia which ordered the strengthening of food SOEs as off takers or underwriters for the purchase of agricultural, livestock and fishery products.

"With the Food SOE Holding which is getting healthier, support for food security will be stronger," he said.

The establishment of the Food SOE Holding will be carried out on January 7, 2022 through inbreng or transfer of government shares from prospective holding members consisting of PT Sang Hyang Seri, PT Perusahaan Trade Indonesia, PT Berdikari, PT Perikanan Indonesia, and PT Garam to holding holding, namely PT Rajawali Nusantara Indonesia (Persero) or ID FOOD. Currently, ID FOOD has 8 business lines run by 16 subsidiaries. The eight lines of business include sugar, livestock, salt, fishery, food crops, trade and logistics, retail and non-food, and support.