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We have attained a Platinum level at the Indonesia Best Brand
Award from 2002 to 2012, and Diamond level for the Indonesia
Customer Satisfaction Award from 2000 to 2012.
2012 Review
The EOF Division reported total revenue of Rp9.6 trillion in 2012,
representing a 5% growth over 2011 mainly attributable to higher
sales of cooking oil and copra-based products. In 2012, the Division
processed approximately 836,000 tonnes of CPO (including 65%
from our own plantations), a 2% increase over 2011.
Supported by higher refning capacities and increased demand,
the Division’s 2012 sales volume for edible oil products (which
comprises cooking oil, margarine and crude coconut oil) grew 5%
over 2011 to 808,000 tonnes.
In terms of sales contribution, this Division accounted for 69% and
72% of the Group’s total external sales in 2012 and 2011 respectively.
In 2012, 87% of our EOF revenue was derived in Indonesia, while
the balance was derived from exports to 35 countries, including the
United States, China, Netherlands, Singapore, Italy, Nigeria, Spain,
East Timor, Philippines and South Korea.
In 1Q2012, we successfully completed the construction of margarine,
bottling, warehousing and research and development facilities at
the Tanjung Priok refnery. The additional capacities, coupled with
their logistically advantageous location, are in line with the growth
strategy for our cooking oil and margarine business.
As part of our strategy to capture greater value across the entire
supply chain and to lower operating costs, the Division invested
in four new tugboats and barges to supplement its existing feet
of three tugboats and barges, which were acquired in 2011. With
a capacity of 5,000 tonnes each, the new vessels will reduce our
reliance on third-parties when transporting CPO to our refneries.
2013 Outlook
In 2013, we expect to further utilise our downstream production
by enhancing the Division’s output and specialty fats production
capability to meet rising demands.
Our integrated agribusiness model has provided us with signifcant
economies of scale and cost advantages, which will, in turn, increase
our competitiveness. In particular, the EOF Division bolsters our
ability to weather short-term downturns in CPO demands as CPO
can be processed into refned form with a longer shelf life.
Growth trends are increasing infuenced by changing consumer
habits and aggressive suburban markets. As modern mini-marts
replace traditional markets in the provision of daily necessities,
consumers are confronted with increasingly wider selections of
branded products.
Anticipating demands, Bimoli will launch 250 ml and 500 ml refll
packs in 2013 targeted at novice users of branded cooking oil. These
new products will be sold both in traditional and modern markets,
including mini-marts and discount stores.
We expect the demand for palm oil products to be well supported
by Indonesia’s fast-expanding food and beverage industry and
population growth. In return, we will sharpen our advertising and
promotional strategies to improve brand awareness. We will also
enhance after-sales services, heighten product visibility and focus
on high-end distribution outlets to take advantage of their rapid
growth in Indonesia.
Indofood Agri Resources Ltd. • Annual Report 2012 31