AN OVERVIEW OF THE INDONESIAN WHEAT FLOUR INDUSTRY By: Franciscus Welirang Chairman of APTINDO (Association of Flour Producers in Indonesia) Director of PT Indofood Sukses Makmur Tbk(Bogasari Flour Mills) Singapore, March 12, 2014 GLOBAL GRAINS ASIA
HIGHLIGHTS (1) Flour Mills Industry Grows Since the 1998 Deregulation > 1970 1998 (Bulog Era) : 5 Flour mills 1999 2008 (post deregulation): 6 new Flour Mills 2009 2013 (post deregulation): 12 new Flour Mills 2014 2015 (to be established) : 6 new Flour Mills > Total in 2015 will be 29 millers (Centralized in Java, 24 millers and 5 millers are outside of Java) > Used Capacity approximately at 60% Indonesian Wheat Flour Consumption: > In 2012: 5.1 MMT, rise by 8.9% compared to year 2011 (Wheat equivalent: 6.7 MMT) > In 2013: 5.3 MMT, rise by 3.0% compared to year 2012 (Wheat equivalent: 7.0 MMT) > Domestic Supply : 96% & Import: 4%
HIGHLIGHTS (2) Indonesian Wheat Flour Exports: > 2012: 45.937 MT (26.3 million USD), rise by 43.7% compared to 2011 > 2013: 68.183 MT(37.1 million USD), rise by 40.9% compared to 2012 Indonesian By Product Exports (Brand Pollard): > 2012: 409.753 MT (88.1 million USD), rise by 23.9% compared to 2011 > 2013: 431.629 MT(105.8 million USD), rise by 20.1% compared to 2012 Indonesian Wheat Flour Based Product Exports: > 2012: 210.516 MT (441. 9 million USD), rise by 602% compared to 2011 > 2013: 257.306 MT (564.6 million USD), rise by 27.8% compared to 2012
SUBJECT PRE & POST DEREGULATION OF INDONESIAN WHEAT FLOUR INDUSTRY PRE Deregulation (BULOG Era) 1970-1998 1999-2008 POST Deregulation 2009-2013 (Now) 2014-2015 Total Total 5 5 + 6 = 11 11 + 12 = 23 23 + 6 = 29 Location Jakarta (1);, Surabaya (1); Makassar (1); Semarang (1); Cilacap(1); Gresik(1); Tangerang(1); Sidoarjo(3); Medan (1) Cilegon(3); Tangerang(1); Medan (2); Bekasi(3); Gresik(1); Sidoarjo(1); Mojokerto(1); Tangerang(1) Cilegon(2) ; Gresik (2): Medan (1) Java: 24 Outside Java: 5 (Centralized in Java Island) Total of WheatMill Capacity : +/- 9.7 million MT/year 4
FLOUR MILLS INDUSTRY LOCATION PRE DEREGULATION (BULOG ERA) 5 FLOUR MILLS Bogasari FM Jakarta Sriboga FM Semarang Eastern Pearl FM Makassar Bogasari FM Surabaya Panganmas FM Cilacap
Jakaranatama Medan FLOUR MILLS INDUSTRY LOCATION POST DEREGULATION (up to 2013: 23 FLOUR MILLS) Halim Sarigandum Medan Bogasari FM Jakarta Sriboga FM Semarang Note : Pre-deregulation Post-deregulation Agri First Medan Panganmas FM Cilacap Mustafa Mesindo - Tangerang Bogasari FM Surabaya Eastern Pearl FM Makassar Agrofood makmur Mandiri, Mojokerto Pioner Flour MiIls Sidoarjo BIG - Tangerang Cerestar FM - Cilegon GGM- Cilegon Pundi Kencana - Cilegon Horizon - Bekasi Bumi Alam Segar - Bekasi Lumbung Nasional - Bekasi Purnomo Sejati Sidoarjo Asia Raya Sidoarjo Pakindo Jaya Sidoarjo Fugui Flour & Grain Gresik Murti Jaya Gresik 6
NEW FLOUR MILLS TO BE ESTABLISHED PERIOD: 2014 2015. (6 FLOUR MILLS) Cerestar FM Medan Crown FM Tangerang Bungasari FM Cilegon Mayora FM Cilegon Wilmar FM Gresik Cerestar FM Gresik 7
INDONESIAN FLOUR MILLS LOCATION 2014 (29 FLOUR MILLS) Jakaranatama Medan Cerestar FM Medan Halim Sarigandum Medan Agri First Medan Bogasari FM Jakarta Sriboga FM Semarang Panganmas FM Cilacap Bogasari FM Surabaya Note : Pre-deregulation Post-deregulation Next to be establish Crown Flour Mills - Tangerang Eastern Pearl FM Makassar Agrofood makmur Mandiri, Mojokerto Mustafa Mesindo - Tangerang Pioner Flour MiIls Sidoarjo BIG - Tangerang Cerestar FM - Cilegon GGM- Cilegon Pundi Kencana - Cilegon Bungasari FM Cilegon Mayora FM Cilegon Horizon - Bekasi Bumi Alam Segar - Bekasi Lumbung Nasional - Bekasi Wilmar FM Gresik Cerestar FM Gresik Purnomo Sejati Sidoarjo Asia Raya Sidoarjo Pakindo Jaya Sidoarjo Fugui Flour & Grain Gresik Murti Jaya Gresik Total Cap.: +/- 9.7 million MT/year Centralized in Java 8
INDONESIAN WHEAT FLOUR CONSUMPTION DATA 9
INDONESIAN WHEAT FLOUR CONSUMPTION (2009 2013) YEAR 2009 2010 2011 2012 2013 SUBJECT DOMESTIC SUPPLY 000 MT % 000 MT % 000 MT % 000 MT % 000 MT % 3,325 84 3,627 82 4,041 86 4,662 91 5,089 96 IMPORTS 645 16 776 18 679 14 480 9 205 4 Total 3,970 100 4,403 100 4,721 100 5,142 100 5,294 100 Wheat Equivalent 5,224 5,793 6,210 6,766 6,966 GROWTH,% 12.54 10.91 7.12 8.93 3.0% (Domestic: 9.1%) Indonesian Wheat Flour Consumption (2013): 5.3 million MT, Wheat grain equivalent 7.0 million MT 10
INDONESIAN WHEAT GRAIN IMPORTS 11
INDONESIAN WHEAT GRAIN IMPORTS, 2013 UKRAINE 5% INDIA 6% RUSSIA 3% TURKEY 1% OTHERS 1% UNITED STATES 8% CANADA 20% AUSTRALIA 56% Total Import: 6.7 MMT 12
INDONESIAN WHEAT FLOUR IMPORTS 13
INDONESIAN WHEAT FLOUR IMPORTS, 2013 MALAYSIA 2% UKRAINE 4% SINGAPORE 2% JAPAN 2% OTHERS 4% SRI LANKA 28% TURKEY 29% INDIA 29% Total Import: 205.447 MT 14
INDONESIAN WHEAT FLOUR EXPORTS 15
INDONESIAN WHEAT FLOUR EXPORTS, 2010 2013 (Value in.000 USD) 2010 2011 2012 2013 Value, (000 USD) 18,703 18,296 26,297 37,063 Growth, % 92.0% -2.2% 43.7% 40.9% 16
INDONESIAN WHEAT FLOUR EXPORTS, 2010 2013 (Value in.000 USD) 37,063 26,297 18,703 18,296 2010 2011 2012 2013 17
INDONESIAN BY PRODUCT EXPORTS 18
INDONESIAN BY PRODUCTS EXPORTS, 2010 2013 (Value in.000 USD) 2010 2011 2012 2013 Value, (000 USD) 71,660 71,043 88,055 105,762 Growth, % 54.0% -0.9% 23.9% 20.1% 19
TREND: INDONESIAN BY PRODUCTS EXPORTS, 2010 2013 (Value in.000 USD) 88,055 105,762 71,660 71,043 2010 2011 2012 2013 20
INDONESIAN EXPORTS OF WHEAT FLOUR BASED PRODUCTS 21
INDONESIAN EXPORTS OF WHEAT FLOUR BASED PRODUCTS 2011-2012 No HS CODE Export of Wheat Flour Based Products QTY, MT VALUE (USD) QTY, MT 2012 2012 vs 2011 VALUE (USD) QTY, MT VALUE (USD) 1 1902304000 Instant noodles 92,872 144,584,246 91,538 150,628,631-1.4% 4.2% 2 1902309000 Other stuffed pasta 18,349 19,339,841 24,618 32,951,788 34.2% 70.4% 3 1905100000 Crispbread 1,605 5,342,702 1,152 2,351,689-28.3% -56.0% 4 1905311000 Sweet biscuits not containing cocoa 29,548 81,606,302 23,784 78,730,536-19.5% -3.5% 5 1905312000 Sweet biscuits containing cocoa 27,074 65,267,340 26,830 53,482,121-0.9% -18.1% 6 1905320000 Waffles and wafers 22,201 62,530,446 27,942 93,883,975 25.9% 50.1% 7 1905409000 Rusks, toasted bread & similar toasted products 994 1,282,763 288 855,825-71.0% -33.3% 8 1905901000 Unsweetened teething biscuits 3,143 6,710,596 3,360 7,021,443 6.9% 4.6% 9 1905902000 Other unsweetened biscuits 970 1,829,144 527 757,215-45.7% -58.6% 10 1905903000 Cakes 115 252,572 163 327,542 41.8% 29.7% 11 1905904000 Pastries 229 481,416 347 571,837 51.8% 18.8% 12 1905907000 Communion wafers, sealing wafers, rice paper and 28 262,333 39 119,199 38.8% -54.6% 13 1905908000 Other crisp savoury food products 846 1,733,894 1,994 3,606,312 135.6% 108.0% 14 1905909000 Other baker wares 11,293 24,853,221 7,934 16,583,338-29.7% -33.3% 2011 TOTAL 209,267 416,076,816 210,516 441,871,451 0.6% 6.2% Exports of Wheat Flour Based Products in 2012 rise by 6.2% compared to previous year
INDONESIAN EXPORTS OF WHEAT FLOUR BASED PRODUCTS, 2013 No HS CODE EXPORT OF WHEAT FLOUR BASED PRODUCTS TOTAL 2013 2013 vs 2012, % QTY, MT VALUE QTY VALUE 1 1902304000 Instant noodles 111,488 185,874,607 21.8% 23.4% 2 1902309000 Other stuffed pasta 19,535 23,989,043-20.6% -27.2% 3 1905100000 Crispbread 717 2,134,109-37.8% -9.3% 4 1905311000 Sweet biscuits not containing cocoa 41,550 135,522,206 74.7% 72.1% 5 1905312000 Sweet biscuits containing cocoa 30,799 58,648,437 14.8% 9.7% 6 1905320000 Waffles and wafers 36,521 120,703,565 30.7% 28.6% 7 1905409000 Rusks, toasted bread & similar toasted products 395 1,115,188 37.0% 30.3% 8 1905901000 Unsweetened teething biscuits 4,007 8,670,405 19.3% 23.5% 9 1905902000 Other unsweetened biscuits 1,028 1,506,704 95.2% 99.0% 10 1905903000 Cakes 129 272,043-20.4% -16.9% 11 1905904000 Pastries 171 603,098-50.8% 5.5% 12 1905907000 Communion wafers, sealing wafers, rice paper and sim 48 191,723 22.9% 60.8% 13 1905908000 Other crisp savoury food products 1,762 2,972,617-11.6% -17.6% 14 1905909000 Other baker wares 9,155 22,442,669 15.4% 35.3% TOTAL 257,306 564,646,414 22.2% 27.8% 2013 vs 2012 46,790 122,774,963 Growth yoy, % 22.2% 27.8% Exports of Wheat Flour Based Products rise by 27.8% compared to the same period of 2012; 564,6 million USD
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