Indofood CEO resigns over internal dispute<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The world's largest instant noodle maker, PT Indofood Sukses
\nMakmur, announced on Tuesday that its chief executive officer,
\nEva Riyanti Hutapea, had tendered her resignation from the
\ncompany, amid reports of growing disagreement with the Salim
\nfamily, the founder and controlling shareholder of the company.<\/p>\n
"It is with regret that the board of directors of Indofood
\nannounces that Eva has informed the board of her decision to step
\ndown," said Indofood in a statement.<\/p>\n
The company said the resignation would be effective after the
\nshareholders annual general meeting in May 2004. Pending the
\nmeeting, Eva would maintain her position on the board to ensure a
\nsmooth transition.<\/p>\n
The board, along with the commissioners, had agreed that
\nduring this transitional period, Anthony Salim would provide the
\nboard with all the assistance it might acquire, the company said.<\/p>\n
Anthony, the heir to the Salim Group business empire, is a
\ncommissioner at Indofood.<\/p>\n
The company, which has an 88 percent share of the instant
\nnoodle market in Indonesia, added that the board of commissioners
\nwould recommend a replacement for Eva to shareholders prior to
\nthe annual meeting.<\/p>\n
The company did not provide any details on what had caused
\nEva, who has been working for 10 years at the company, to resign.<\/p>\n
During the past few months, several media reports have
\nspeculated on her resignation due to rising disagreement over
\ncompany policy with Anthony and other Salim family members.<\/p>\n
For instance, Eva had been in a row with Franciscus Welirang,
\nthe son-in-law of Sudono Salim (founder of the Salim Group) and a
\ndirector at Indofood who oversees company subsidiary PT Bogasari
\nFlour Mills. Eva had reportedly been unhappy at the high price
\nIndofood had to pay for wheatflour from Bogasari, particularly
\nwhen compared to cheaper imported products.<\/p>\n
Indofood shares remained stable at the news, as they ended
\nhigher by Rp 25 to Rp 775 on the Jakarta Stock Exchange, although
\nthe shares were under pressure during morning trade amid fresh
\nrumors of Eva's resignation.<\/p>\n
Eva, the wife of Bank Indonesia deputy governor Bun Bunan
\nHutapea, had been successful in bringing Indofood back to profit
\nafter a Rp 1.2 trillion (US$141.5 million) loss in 1997.<\/p>\n
She has also been successful in reducing the company's huge
\ndollar-denominated debt, amounting in total to around $1 billion
\nin 1997, while at the same time erasing the company's negative
\nimage as a money-making machine of the former Soeharto regime.<\/p>\n
Indofood, established in 1990, was founded by Sudono Salim, a
\ncrony of former president Soeharto. The government recently
\napproved release and discharge status for the Salim Group over a
\npast violation of banking regulations after the group was deemed
\ncooperative in repaying debts to the government.<\/p>\n
In the first nine months of this year, Indofood recorded a net
\nprofit of Rp 453 billion, 30 percent lower than the Rp 651
\nbillion it earned in the same period last year because of higher
\nsales and operational costs.<\/p>\n
Analysts have predicted that for the full year, Indofood is
\nestimated to book a lower profit of Rp 613 billion, from Rp 802
\nlast year, due to a growing number of competitors.<\/p>\n
Instant noodles, the country's main staple food after rice,
\nare the main pillar of Indofood's business, and make a 55 percent
\ncontribution to net profit, followed by flour (22 percent),
\nedible oil and fats (19 percent) and miscellaneous items, such as
\nsnacks and baby food (6 percent).<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofood-ceo-resigns-over-internal-dispute-1447893297",
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