Flour deregulation has changed business paradigm and industry structure

Transcription

1 AN OVERVIEW OF THE INDONESIAN WHEAT FLOUR INDUSTRY By: Franciscus Welirang Chairman: APTINDO (Association of Flour Producers in Indonesia) Director: PT Indofood Sukses Makmur Tbk (Bogasari Flour Mills) Melbourne, July 25 27, 2011 AUSTRALIAN GRAINS INDUSTRY CONFERENCE

2 DEREGULATION OF THE INDONESIAN WHEAT FLOUR INDUSTRY (1998) AND WHEAT FLOUR INDUSTRY UPDATES 2

3 INDONESIAN FLOUR INDUSTRY DEREGULATION (1998) Flour deregulation has changed business paradigm and industry structure BULOG ERA Wheat Flour Trade was monopolized by the Board of Logistics (BULOG) Wheat Flour was produced only by companies appointed by the Government Agency Imports of Wheat Flour were banned POST BULOG Wheat Flour Industries are free to import and sell wheat flour The market is open to new products Wheat Flour import ban was lifted In , large imports raised suspicions i of dumping, under invoicing, illegal labeling and falsification of local brands. The Government set regulations to protect customers by imposing 5% import duty, SNI and labeling system 3

4 INDONESIAN WHEAT FLOUR MILLS LOCATION 4

5 INDONESIAN WHEAT FLOUR MILLS CAPACITY NO COMPANY LOCATION MT/Day CAPACITY MT/Year 1 PT ISM Bogasari Flour Mills Jakarta 9,340 2,802,000 2 PT ISM Bogasari Flour Mills Surabaya 5,120 1,536,000 3 PT Eastern Pearl Flour Mills Makassar 2, ,000 4 PT Sriboga Ratu Raya Semarang 1, ,000 5 PT Fugui Flour & Grain Indonesia Gresik 1, ,000 6 PT Pundi Kencana Cilegan 1, ,000 7 PT Pangan Mas Inti Persada Cilacap 1, ,000 8 PT Cerestar Flour Mills Cilegon ,000 9 PT Berkat Indah Gemilang Tangerang , PT Halim Sari Gandum Medan , PT Lumbung Pangan Nasional Cibitung , PT Asia Raya Sidoarjo , PT Pakindo Jaya Perkasa Sidoarjo , PT Purnomo Sejati Sidoarjo , PT Jakaranatama Medan 75 22,500 TOTAL NATIONAL 23,075 6,922,500 5

6 INDONESIAN NEW FLOUR MILLS NO COMPANY LOCATION CAPACITY (MT/Year) 1 PTSari Pangan Makmur Sejahtera 2 PT Sarana Prima Makmur Sejahtera Medan 250,000 Palembang 250,000 Pontianak 198,000 Bangkalan 375,000 Serang 250,000 Banjarmasin 198,000 3 PTX?!! Medan Na 4 PT Bumi Alam Segar (BAS) Bekasi Na 5 PT Golden Grain Mills Cilegon Na 6 PT Tarlindo Makmur Abadi Na Na 7 PT Istana Kanya Na Na TOTAL >1,521,000 6

7 INDONESIAN WHEAT FLOUR CONSUMPTION 7

8 INDONESIAN WHEAT FLOUR CONSUMPTION SOURCES % 000 MT % 000 MT % 000 MT % MT 2011 (up to June) 000 % MT Local Production Wheat Flour Import 3, , , , , Total 3, , , , , Annualized Growth, in % INC (DEC) (11.01)

9 WHEAT FLOUR END USERS PROFILE SME 66% Small Medium Enterprises (SME) -Traditional management -Family-owned business -Community oriented, tradition-minded Bakery 22% Biscuit 4% Cake 2% Traditional Cake 6% Wet Noodle 9% Pancake 2% Big & Modern Industry 34% Pastry 1% Retailer 20% Big & Modern Industry -High-tech machinery -Professional management -Publicly-listed P l t d company

10 WHEAT PER CAPITA CONSUMPTION IN ASIAN COUNTRIES (Kg/capita/yr) Source: NO COUNTRIES Azerbaijan United Arab Emirates Turkmenistan Turkey Kazakhstan Uzbekistan Tajikistan Georgia Syrian Arab Republic Iran (Islamic Republic of) Kyrgyzstan Jordan Mongolia Israel Armenia Lebanon Pakistan Occupied Palestinian Territory Yemen Saudi Arabia NO COUNTRIES Kuwait Cyprus China Malaysia Maldives India Republic of Korea Japan Sri Lanka Nepal Brunei Darussalam Indonesia Philippines Democratic People s Republic of Korea Thailand Vietnam Bangladesh Myanmar Timor Leste Cambodia 2.98 Indonesian Wheat consumption (kg/capita/yr:) 2007 = 21.5; 2010 = 24.8 (Source: APTINDO) 10

11 INDONESIAN WHEAT GRAIN IMPORT 11

12 WHEAT GRAIN IMPORTS TO INDONESIA, NO COUNTRY OF ORIGIN (up to May), in MT & % 1 Australia 1,757, % 2,650, % 3,159, % 1,299, % 2 Canada 1,258, % 885, % 758, % 447, % 3 United States 1,100, % 602, % 633, % 288, % 4 Russia 42, % 283, % 72, % 0 0.0% 5 Lithuania 0 0.0% 0 0.0% 28, % % 6 Ukraine 8, % 178, % 17, % % 7 Brazil 8, % 25, % 0 0.0% 22, % 8 Bulgaria 0 0.0% 22, % 0 0.0% 0 0% 9 Singapore 0 0.0% 1, % 0 0.0% 0 0% 10 Taiwan 0 0.0% % 0 0.0% 0 0% 11 China 172, % 0 0.0% 0 0.0% 0 0% 12 Argentina 27, % 0 0.0% 0 0.0% 0 0% 13 France 13, % 0 0.0% 0 0.0% 0 0% 14 Vietnam 7, % 0 0.0% 0 0.0% 0 0% TOTAL 4,478, % 4,649, % 4,786, % 2,068, % GROWTH, % 3.8% 3.0% 8.6% 12

13 WHEAT PRICE MOVEMENT IN INDONESIA (Source: BPS, 2011) TYPE OF WHEAT JAN FEB MAR APR MAY MAY11 JUN AUG SEP OCT NOV DEC JAN FEB MAR APR MAY vs MAY 10 LOW PROTEIN % MEDIUM PROTEIN % HIGH PROTEIN % 13

14 INDONESIAN WHEAT FLOUR IMPORT 14

15 N O INDONESIAN WHEAT FLOUR IMPORT COUNTRY (2000 vs 2010) 2000 in MT 2010 in MT & in % 2010 vs Turkey 14, % 454, % % 2 Sri Lanka 0 00% 0.0% 166, % 3 Belgium 53, % 58, % 10.1% 4 Australia 53, % 57, % 7.2% 5 Japan 12,015 26% 2.6% 5,093 07% 0.7% (57.6%) 6 China 21, % % (98.3%) 7 Others 313, % 31, % (89.8%) TOTAL 469, % 775, % 65.3% 15

16 INDONESIAN WHEAT FLOUR IMPORT ( ) NO COUNTRY 2008 in MT & in % 2009 in MT & in % 2010 in MT & in % 2011 (up to May) 1 Turkey 227, % 382, % 454, % 151, % 2 Sri Lanka 61, % 132, % 166, % 86, % 3 Belgium 70, % 76, % 58, % 12, % 4 Australia 146, % 42, % 57, % 5, % 5 Japan 5, % 5, % 5, % 2, % 6 China 13,718 26% 2.6% 1, % 0.2% % 0.0% Others 6, % 5, % 31, % 14, % TOTAL 530, % 0% 645, % 0% 775, % 0% 272, % Growth YoY, % 11.1% 21.5% 20.2% (2.9%) 16

17 IGC PRICE INDEX vs INDONESIAN FLOUR PRICE ( ) 17

18 INDONESIAN EXPORT OF WHEAT FLOUR BASED PRODUCTS 18

19 EXPORT OF FLOUR BASED PRODUCTS (SOURCE: BPS) NO HS CODE PRODUCTS GROWTH, % 10 / Instant Noodles 71,402,290 83,446, Other StuffedPasta 19,411,072 21,422, Crisp Bread 485,298 2,233, Sweet Biscuits not containing Cocoa 8,095,676 24,493, Sweet Biscuits containing Cocoa 19,603,094 25,453, Waffles and Wafers 11,771,901 16,763, Rusk, toasted Bread & similar toasted Products 140, , Unsweetened Teething Biscuits 1,666,924 2,972, Other Unsweetened Biscuits 4,834, ,117 (86.3) Cakes 247, ,096 (58.8) Pastries 280, ,421 (53.1) Bakery products made without Flour 3,342 (100.0) Communion wafers, sealing wafers, rice paper and 15,153 33, Other crisp savory Food products 748, ,789 (25.4) Other baker wares 10,633,893 11,407, A. QUANTITY in KGs TOTAL 149,340, ,830,

20 EXPORT OF FLOUR BASED PRODUCTS (SOURCE: BPS) NO HS CODE PRODUCTS GROWTH, % 10 / Instant Noodles 94,928, ,777, Other StuffedPasta 16,869,759 18,370, Crisp Bread 789,764 9,553,326 1, Sweet Biscuits not containing Cocoa 22,197,522 55,697, Sweet Biscuits containing Cocoa 47,435,428 58,208, Waffles and Wafers 28,329,271 41,350, Rusk, toasted Bread & similar toasted Products 436, ,796 (17.0) Unsweetened Teething Biscuits 3,417,852 5,780, Other Unsweetened Biscuits 10,461,464 1,338,789 (87.2) Cakes 683, ,611 (44.7) Pastries 320, ,102 (25.2) Bakery products made without Flour 13,586 (100.0) Communion wafers, sealing wafers, rice paper and 50, , Other crisp savory Food products 1,341, ,814 (27.8) Other baker wares 20,575,942 22,023, B. VALUE in USD (FOB) TOTAL 247,860, ,159,

21 ADDITIONAL NOTES THE MINISTER OF AGRICULTURE REGULATION No. 27/Permentan/PP.340/5/2009, REGARDING FOOD SAFETY CONTROL OVER THE IMPORT AND EXPORT OF FRESH FOOD OF PLANT ORIGIN (PSAT), to assure the imported fresh food of plant origin into the territory of Indonesia complies with the plant quarantine requirements and doesnotcontain chemicalcontaminants exceeding maximumlimitthusitissafe and consumable. (pesticide residues, mycotoxin and/or heavy metal contaminants) Dumping Import Duty (BMAD). After an in depth investigation of the Anti Dumping Committee of Indonesia (ADCI; Komite Antidumping Indonesia KADI) finally recommended the imposition of anti dumping import duties (ADID) to all exporters or producers of wheat flour from Turkey with ADID ranging from 19.67% 21.99% Indonesia Custom Tariff (Buku Tarif Bea Masuk Indonesia BTBMI), will be issued in There is anewhs Code for Wheat Grain ( ), Wheat flour for food ( ) & Wheat flour for feed ( ). 21

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