Strengthening Economic Value

Indofood establishes partnership programs with the suppliers of raw materials for production. These include partnerships with upstream farmers and agribusiness stakeholders, as well as SMEs in the downstream of our supply chain.

Partnerships with Farmers
We partner with local agricultural farmers of potato, chili, cassava, shallot and coconut sugar to generate mutual and long-term economic value. To help the farmers improve their productivity and outputs, we provide training on good agricultural practices and farming techniques. In 2019, we continued to support these partnerships, which secures the supply of raw materials for production and while providing economic welfare for the farmers.
Partnerships with Oil Palm Smallholders
The Agribusiness Group provides training programs for smallholder farmers on agronomic practices, effective plant breeding techniques and sustainable operations. This helps farmers to better understand the mechanism of work and land management, and to continue creating value to the environment. In 2019, the Agribusiness Group continued to provide support and other services to farmers, including the provision of quality seeds.
Partnerships with Cow Breeders
CBP Group has had partnerships with cow breeders through the dairy farm cooperatives since 2013. The partnership program entails supplying hundreds of dairy cows to be managed and developed by cooperative members, providing soft loans for the purchase of milk coolers and other equipment, and offering guidance to improve the quality of dairy cows. The program has enabled the continuous supply of fresh milk as raw material for our products to meet the increasing demand.
Partnerships with Tempe Entrepreneurs
Tempe is a healthy traditional ingredient for one of our snack products. Over the years, our partnership with tempe entrepreneurs has fostered a strong community of tempe suppliers who are able to share experiences, knowledge and training on the production of tempe in accordance with GMP. In 2019, we continued to support our partnerships with our tempe entrepreneurs by improving the quality and efficiency of their production, which provides the entrepreneurs with increased income.
Partnership for Indonesia Sustainable Agriculture (PISAgro)
Indofood is a member of PISAgro, a joint initiative between the government and various agribusiness stakeholders to support national food security and improve the welfare of farmers through sustainable agricultural practices. Indofood also chairs the Potato Commodity Working Group, whose mission is to train 2,500 potato farmers responsible for 5,000 hectares of land; and is a member of the Soybean Commodity Working Group, whose mission is to engage with 4.3 million soy farmers responsible for 2 million hectares of land.
Indomie Entrepreneurs Partnership (“Warmindo”)
CBP Group partners with Indomie stallholders through the Warmindo program, which aims to impart best practices on food hygiene and food stall management, and to encourage better welfare among the stallholders.
Bogasari Mitra Card
The Bogasari Group expanded its BMC membership program for SME customers, who are able to enjoy exclusive benefits such as monthly rewards, health insurance, special promotions and access to funding from banks. Throughout 2019, BMC members were invited to participate in culinary exhibitions, as well as to attend the annual Bogasari SME Awards.
Partnership with Food Entrepreneurs (“Pojok Selera”)
Pojok Selera is an economic empowerment program in support of SGD Goal 1 to “End Poverty”. It encourages the local communities surrounding our operating units to become culinary entrepreneurs. During the year, the community received training on the operating of small businesses and coaching on the preparation of non-rice food products. Other supports, in the form of assistance with Halal Certification, baking equipment and initial capital to kick-start the business, were also provided.
Santripreneur Program for Pondok Pesantren
The Santripreneur Program is an entrepreneurship training program aimed at Pondok Pesantrens or Islamic boarding schools. It inspires students to become future culinary entrepreneurs by providing training, equipment and business assistance. The program was initiated under the Community Economic Empowerment Program by the Coordinating Ministry of Economic Affairs in collaboration with private-sector partners.