Press Releases
Indofood Talks about Inclusive Business Towards Supply Chain Resilience at B20

Bali, 13-14 November 2022 - As a total foods solutions Company with a global presence, PT Indofood Sukses Makmur Tbk (Indofood) is proud to be part of the B20 Summit Indonesia 2022, themed “Advancing innovative, inclusive and collaborative growth”.

For decades, Indofood has contributed to the welfare of society through innovations and inclusive business models implemented by Indofood’s four Strategic Business Groups. We do this through the implementation of three sustainability pillars, namely Resilience in Delivering Food for All, Environmental Stewardship, and Stronger Together with Our People and Communities.

We also realize that recent challenges demand creative solutions from businesses, not only to survive, but continue to thrive. Covid-19, climate change, and geopolitical tensions are some of the recent challenges that have created disruptions. These disruptions have also highlighted the vulnerability of the global value chains (GVCs) and the need to diversify supply chain options to include a more regionalized model that is closer to end markets for critical resources.

Almost no country is immune from these challenges, including Indonesia. With a population of over 270 million people, Indonesia is increasingly playing a larger role in global supply chains as both an exporter as well as an importer. Indonesia is the largest producer of vegetable oils, globally producing 20% of global production and accounting for over 30% of global vegetable oil exports. At the same time, it does not produce wheat but is now the 11th largest global importer of wheat.

The Government wants to improve food security but have to rely on the global food supply chain, as they may not have the correct climatic conditions to grow staple foods. Close communications with governments, especially for shared objectives and public private partnerships, are crucial in building supply chain resilience.

To address these challenges, Indofood continues to strengthen its partnership with local MSMEs to help lessen the impact of GVC disruptions and create a more resilient economy. Multi-sourcing, building capacity, and resilience in local farmers are important to balanced import and local supply.

A good example of a public private partnership is the closed-loop system partnership. The partnership model includes Good Agricultural Practices (GAP) support, climate change risk mapping, and mitigation through a public private partnership with the government, farmers, and relevant stakeholders. This helps to diversify supply chain options and has proven to help lessen GVCs disruptions and create a more resilient economy.

“With the inclusive business model, Indofood has empowered thousands of farmers, MSMEs, and their families. This collaboration has not only generated sustainable growth for Indofood as a Company but also strengthened the economy of communities along our value chain,” Indofood’s Director, Axton Salim said.

To secure the supply of raw materials for our production, we have partnerships with more than 20,000 potatoes, chili, and cassava farmers, coconut tappers, and dairy farmers, as well as 48,000 oil palm plasma smallholders. We have also developed our own Industrial Potato Seed Production to reduce the volume of imported potatoes “This is an example of how we can utilize local sources – land, manpower, man hours – to increase local production. Hopefully, this is an example that we can replicate to other crops, livestock, and regions, and hence increase local resilience for food security while creating economic opportunities for the local people,” Axton Salim added.

The B20 event might be the platform much needed for countries to face these global challenges. Member countries and businesses can work together and share best practices on key aspects of supply chain resilience such as partnership, policies, and technological components of the supply chain. They can also impose fewer trade barriers or import restrictions, and allow more free trade agreements for a smooth flow of goods.

About PT Indofood Sukses Makmur Tbk

Indofood is a Total Food Solutions company with operations in all stages of food manufacturing, from the production of raw materials and their processing to consumer products in the market. It is renowned as a well-established company and a leading player in each business category in which it operates. In its business operations, Indofood capitalizes on economies of scale and a resilient business model with four complementary Strategic Business Groups (“Group”), namely:

Consumer Branded Products (“CBP”)
Supported by the strength of its product brands, the Group produces a diverse range of consumer branded products including noodles, dairy, snack foods, food seasonings, nutritional and specialty foods, and beverages.

The Group is primarily a producer of wheat flour as well as pasta, with business operations supported by its own shipping and packaging units.

The Group’s principal activities range from research and development, seed breeding, oil palm cultivation, and milling, to the production and marketing of branded cooking oils, margarine, and shortening. The Group also cultivates and processes sugar cane, rubber, and other crops.

With the most extensive distribution network in Indonesia, the Group distributes the majority of the consumer products manufactured by Indofood and its subsidiaries, as well as by third parties, to the market.

Kontak Media

Stefanus Indrayana
Head of Corporate Communications
PT Indofood Sukses Makmur Tbk
Sudirman Plaza Indofood Tower Lantai 9
Jl. Jend. Sudirman Kav. 76-78, Jakarta 12910
T. +62 21 5795 8822 ext. 1483