Sari Roti Expands Business into Livestock Feed Production, Optimises Production Waste

PT Nippon Indosari Corporindo Tbk (Sari Roti) is preparing to expand its business into livestock feed production. This strategic decision aims to improve the company’s financial performance.

In line with this plan, Indonesia’s largest bread producer will add livestock feed formulation operations with business code 10801. This feed production will utilise residual bread production waste.

“For animal feed flour products, the company will conduct its own production by leveraging investment in an animal feed formulation factory and supported by competent workforce,” management stated in an information disclosure on Friday, 27 February 2026.

Based on a Concise Feasibility Study Report conducted by KJPP Rengganis, Hamid & Rekan, the animal feed flour business is deemed viable from a market perspective given the expanding market driven by the expansion of layer hens as a result of the Free Nutritious Meal (MBG) programme.

In financial calculations, this animal feed business has an Internal Rate of Return (IRR) of 26.44 per cent, well above the normal parameter of 9.76 per cent. The capital payback period (payback period) is projected at approximately 5 years 7 months.

Regarding this plan, the company will hold an Extraordinary General Shareholders’ Meeting (RUPSLB) on 7 April 2026 to seek shareholder approval.

The company is confident that this expansion will add value to existing business operations by optimising bread production waste. Furthermore, the company already has the specialist expertise required to support operations of this new business.