Indofood to boost output to meet higher demand<\/p>\n
JAKARTA (JP): Publicly listed food giant PT Indofood Sukses
\nMakmur plans to raise its instant noodle production by 6.25
\npercent to 8.5 billion packs next year to meet an expected higher
\ndomestic and overseas demand.<\/p>\n
Indofood's chief executive officer (CEO) Eva Riyanti Hutapea
\nsaid on Friday that about 14 million packs of planned production
\nwould be exported.<\/p>\n
\"We plan to raise our production capacity to 8.5 billion packs
\nof instant noodles annually next year. With the increase in
\nproduction, we also plan to raise exports,\" she said after the
\nceremony in which the company received an ISO 9002 certification.<\/p>\n
Eva said the increase in production capacity would come from
\nIndofood's plants throughout the country, including from its
\nbiggest plant in Cibitung.<\/p>\n
\"Our plant in Cibitung owns 23 production lines, one of the
\nbiggest instant noodle plants in the world,\" she said.<\/p>\n
She said exports had become an attractive alternative to
\nIndofood following sluggish domestic demand since last year as a
\nresult of the economic crisis.<\/p>\n
In the past three years, Indofood has exported instant noodles
\nto the United States, Canada and European countries, such as the
\nNetherlands, Germany, Greece, the United Kingdom, Malta and
\nRussia.<\/p>\n
The company also exported noodles to South Africa,
\nUzbekishtan, Kazakhtan and Middle East countries.<\/p>\n
Exports to the Asia Pacific region have reached Taiwan, Hong
\nKong, Malaysia, Brunei, Singapore, Papua New Guinea, Australia
\nand New Zealand, Eva said.<\/p>\n
\"Our plants were built in different places to suit our export
\ndestinations. For example, exports to Singapore, Malaysia and
\nBrunei come from our plant in Pekanbaru, and our plant in
\nCibitung supplies the domestic demand,\" she said.<\/p>\n
To reduce distribution risks and costs, Eva said, the company
\nbuilt processing plants in 11 provinces in Sumatra, Java,
\nKalimantan and Sulawesi.<\/p>\n
Currently, some local instant noodle manufacturers are trying
\nto emulate Indofood's distribution strategy by building plants in
\nplaces closer to customers, she added.<\/p>\n
Eva said Indofood would continue to improve the quality of its
\nproducts to maintain its existence on the world market.<\/p>\n
The Ministry of Industry and Trade has said that Indonesia
\nshould be able to export more instant noodles in the coming years
\nfollowing the government's approval for the operation of 13 new
\nnoodle companies next year.<\/p>\n
Director General of Chemical, Agricultural and Forestry
\nProducts Gatot Ibnu Santosa said earlier this year that Indonesia
\ncould not export significant amounts of noodles due to the fast
\ngrowth of domestic consumption in the past.<\/p>\n
Indonesia, the world's second largest instant noodle producer
\nafter China, has 16 producers operating in 11 provinces,
\nproducing 8.6 billion packs or servings per annum with more than
\n50 brands. The giant PT Indofood Sukses Makmur dominates the
\nmarket with more than 90 percent.<\/p>\n
In Indonesia, instant noodles first hit the market in 1969
\nwith the Supermi brand produced by PT Lima Satu Sankyu Industri
\nPangan. But instant noodles did not achieve wide popularity among
\npeople until the early 1980s when local flavor products were
\nintroduced.<\/p>\n
Since then consumption has grown at the rate of about 10
\npercent per annum, reaching a high point in 1997 at about 8.7
\nbillion packs before sinking to about 8 billion packs last year
\nwhen the economic crisis affected the industry.<\/p>\n
Indonesia's instant noodle consumption per capita stood at
\n39.1 packs last year, down from 42.3 packs in 1997. The figure is
\nexpected to recover slightly to 41.9 percent this year.<\/p>\n
According to Indofood, popular flavors are onion chicken,
\nspecial fried noodles, chicken soto and special chicken, followed
\nby meatballs and chicken curry. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indofood-to-boost-output-to-meet-higher-demand-1447893297",
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