Indofood plans more Middle East exports
Indofood plans more Middle East exports
JAKARTA (JP): Publicly listed food giant PT Indofood Sukses
Makmur said on Friday its noodle exports to the Middle East were
expected to reach about 5 percent of its total production in 2001
as compared to 3 percent this year.
Indofood president and chief executive officer Eva Riyanti
Hutapea said the company currently exported about 80 million
packs of instant noodles to the Middle East, worth about Rp 64
billion (US$6.7 million).
"I know it's not much, but we have to start somewhere," she
said during a breaking of the fast gathering with the Indonesian
Chamber of Commerce and Industry's Committee for the Middle East.
Eva said Indofood's exports are mainly directed to the Middle
East, which at present accounts for about 50 percent of its total
instant noodles exports.
Indofood exports to the Organization of Islamic Conference's
28 member countries, including Brunei, Malaysia, Bangladesh,
Egypt, Jordan, Kuwait, Lebanon, Morocco, Nigeria, Qatar, Saudi
Arabia, Yemen and the United Arab Emirates.
"(We export to) Saudi Arabia especially, because there are
many Indonesians working there and (the habit) may spread to
their employers as well," she said.
The increase will be achieved gradually, Eva said, explaining
that in the first stage Indofood would export and market its
goods directly from Indonesia without appointing a local agent or
distributor.
When Indofood is more well known to the public, Indofood will
then appoint local distributors and carry out an advertising
campaign for our brands, while the noodles will still be exported
from Indonesia, she said.
"And when export volume is sufficient, we plan to invest in a
factory in the Middle East," Eva added.
She explained that at the moment the market was still too
small to open a factory in the Middle East. "If the market
continues growing, then we will think of investing there."
She said Indofood was also contemplating exporting its
packaged palm oil Bimoli to the Middle East.
"But first we will start with what we know how to process
best, and that is instant noodles," Eva said.
Beginning next year, Indofood will also begin assisting small
and medium-size businesses near its 14 factories and 22
distribution outlets in Indonesia, she said.
"We will create another division in our company called the
International Trade Division that will look into each area's
potential and help small and medium businesses there," Eva said,
adding that many businesses had good products but lacked an
understanding of quality packaging and export procedures.
"We will help them improve the quality of their processing and
help them export their products to the Middle East," she said.
(tnt)