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  • AN OVERVIEW OF

    THE INDONESIAN WHEAT FLOUR INDUSTRY

    By: Franciscus Welirang

    Chairman of APTINDO (Association of Flour Producers in Indonesia)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)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%

  • 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

    HIGHLIGHTS (2)

    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

  • PRE & POST DEREGULATION OF INDONESIAN WHEAT FLOUR INDUSTRY

    SUBJECT

    PRE

    Deregulation

    (BULOG Era)

    POST Deregulation

    Total

    1970-1998 1999-20082009-2013

    (Now)2014 - 2015

    Total 5 5 + 6 = 11 11 + 12 = 23 23 + 6 = 29

    4

    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 Wheat Mill Capacity : +/- 9.7 million MT/year

  • Eastern Pearl FM Sriboga FM

    FLOUR MILLS INDUSTRY LOCATIONPRE DEREGULATION (BULOG ERA) 5 FLOUR MILLS

    Bogasari FM Surabaya

    Eastern Pearl FM Makassar

    Sriboga FMSemarang

    Panganmas FM Cilacap

    Bogasari FM Jakarta

  • Bogasari FM Surabaya

    Eastern Pearl FM Makassar

    Sriboga FMSemarang

    Panganmas FM Cilacap

    Bogasari FM Jakarta

    Agri FirstMedan

    Halim SarigandumMedan

    Jakaranatama Medan

    Pioner Flour MiIls Mustafa Mesindo -

    Note :Pre-deregulation

    Post-deregulation

    FLOUR MILLS INDUSTRY LOCATIONPOST DEREGULATION (up to 2013: 23 FLOUR MILLS)

    Agrofood makmur Mandiri, Mojokerto

    6

    Fugui Flour & Grain Gresik

    Pundi Kencana -Cilegon

    Purnomo Sejati Sidoarjo

    Asia Raya Sidoarjo

    Pakindo Jaya Sidoarjo

    BIG - Tangerang

    Cerestar FM -Cilegon

    Lumbung Nasional - Bekasi

    GGM- Cilegon

    Bumi Alam Segar - Bekasi

    Horizon -Bekasi

    SidoarjoMustafa Mesindo -Tangerang

    Murti Jaya Gresik

  • NEW FLOUR MILLS TO BE ESTABLISHEDPERIOD: 2014 2015. (6 FLOUR MILLS)

    Cerestar FM Medan

    7

    Mayora FMCilegon

    Wilmar FMGresik

    Bungasari FMCilegon

    Cerestar FM Gresik

    Crown FMTangerang

  • Bogasari FM Surabaya

    Eastern Pearl FM Makassar

    Sriboga FMSemarang

    Panganmas FM Cilacap

    Bogasari FM Jakarta

    Agri FirstMedan

    Halim SarigandumMedan

    Jakaranatama Medan

    Pioner Flour MiIls Mustafa Mesindo -

    Note :Pre-deregulation

    Post-deregulation

    Next to be establish

    INDONESIAN FLOUR MILLS LOCATION 2014 (29 FLOUR MILLS)

    Agrofood makmur Mandiri, Mojokerto

    Cerestar FM Medan

    Crown Flour Mills - Tangerang

    8

    Fugui Flour & Grain Gresik

    Pundi Kencana -Cilegon

    Purnomo Sejati Sidoarjo

    Asia Raya Sidoarjo

    Pakindo Jaya Sidoarjo

    BIG - Tangerang

    Cerestar FM -Cilegon

    Lumbung Nasional - Bekasi

    GGM- Cilegon

    Bumi Alam Segar - Bekasi

    Horizon -Bekasi

    SidoarjoMustafa Mesindo -Tangerang

    Mayora FMCilegon

    Wilmar FMGresik

    Total Cap.: +/- 9.7 million MT/yearCentralized in

    JavaMurti Jaya

    Gresik

    Bungasari FMCilegon

    Cerestar FM Gresik

  • INDONESIAN WHEAT FLOUR INDONESIAN WHEAT FLOUR

    CONSUMPTION DATACONSUMPTION DATA

    9

    CONSUMPTION DATACONSUMPTION DATA

  • INDONESIAN WHEAT FLOUR CONSUMPTION (2009 2013)

    YEAR 2009 2010 2011 2012 2013

    SUBJECT000

    MT% 000 MT % 000 MT % 000 MT % 000 MT %

    DOMESTIC

    SUPPLY3,325 84 3,627 82 4,041 86 4,662 91 5,089 96

    IMPORTS 645 16 776 18 679 14 480 9 205 4

    10

    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

  • INDONESIAN INDONESIAN

    WHEAT GRAIN IMPORTSWHEAT GRAIN IMPORTS

    11

    WHEAT GRAIN IMPORTSWHEAT GRAIN IMPORTS

  • INDONESIAN WHEAT GRAIN IMPORTS, INDONESIAN WHEAT GRAIN IMPORTS, 2013

    AUSTRALIA

    56%CANADA

    UNITED STATES

    8%

    INDIA

    6%

    UKRAINE

    5%

    RUSSIA

    3%

    TURKEY

    1%OTHERS

    1%

    12

    56%CANADA

    20%

    Total Import: 6.7 MMT

  • INDONESIAN INDONESIAN

    WHEAT FLOUR IMPORTSWHEAT FLOUR IMPORTS

    13

    WHEAT FLOUR IMPORTSWHEAT FLOUR IMPORTS

  • INDONESIAN WHEAT FLOUR IMPORTS, 2013

    INDIA

    29%

    TURKEY

    SRI LANKA

    28%

    UKRAINE

    4%

    MALAYSIA

    2%

    SINGAPORE

    2%

    JAPAN

    2%

    OTHERS

    4%

    14

    TURKEY

    29%

    Total Import: 205.447 MT

  • INDONESIAN WHEAT INDONESIAN WHEAT

    FLOUR EXPORTS FLOUR EXPORTS

    15

    FLOUR EXPORTS FLOUR EXPORTS

  • INDONESIAN WHEAT FLOUR EXPORTS, 2010 2013

    (Value in .000 USD)

    2010 2011 2012 2013Value, (000 USD) 18,703 18,296 26,297 37,063

    16

    Value, (000 USD) 18,703 18,296 26,297 37,063 Growth, % 92.0% -2.2% 43.7% 40.9%

  • INDONESIAN WHEAT FLOUR EXPORTS, 2010 2013

    (Value in .000 USD)

    26,297

    37,063

    17

    18,703 18,296

    2010 2011 2012 2013

  • INDONESIAN INDONESIAN

    BY PRODUCT EXPORTSBY PRODUCT EXPORTS

    18

    BY PRODUCT EXPORTSBY PRODUCT EXPORTS

  • INDONESIAN BY PRODUCTS EXPORTS, 2010 2013

    (Value in .000 USD)

    2010 2011 2012 2013Value, (000 USD) 71,660 71,043 88,055 105,762

    19

    Value, (000 USD) 71,660 71,043 88,055 105,762 Growth, % 54.0% -0.9% 23.9% 20.1%

  • TREND: INDONESIAN BY PRODUCTS EXPORTS, 2010 2013

    (Value in .000 USD)

    71,660 71,043

    88,055

    105,762

    20

    2010 2011 2012 2013

  • INDONESIAN EXPORTS OF WHEAT

    FLOUR BASED PRODUCTS

    21

    FLOUR BASED PRODUCTS

  • QTY, MT

    VALUE (USD)

    QTY, MT

    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%

    2012 2012 vs 2011No HS CODE Export of Wheat Flour Based Products

    2011

    INDONESIAN EXPORTS OF WHEAT FLOUR BASED PRODUCTS

    2011 - 2012

    Exports of Wheat Flour Based Products in 2012 rise by 6.2%

    compared to previous year

    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 similar products28 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%

    TOTAL 209,267 416,076,816 210,516 441,871,451 0.6% 6.2%

  • QTY, MT VALUE QTY VALUE1 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%

    HS CODE EXPORT OF WHEAT FLOUR BASED PRODUCTSNo 2013 vs 2012, %TOTAL 2013INDONESIAN EXPORTS OF WHEAT FLOUR BASED PRODUCTS , 2013

    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 similar products48 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 46,790 122,774,963Growth 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

  • 24