Once upon a time, in the lively metropolis of Jakarta, a government-owned enterprise known as ID FOOD embarked on a quest to change their fortunes. With the unwavering support of the Ministry of State-Owned Enterprises, they toiled tirelessly to enhance the financial performance of the Food Holding, all in pursuit of fortifying its crucial role in the national food landscape.
Frans Marganda Tambunan, the CEO of PT Rajawali Nusantara Indonesia (Persero)/ID FOOD, spoke enthusiastically about the positive impact of their efforts. By November 2023, the company had witnessed a remarkable upswing in their financial performance. Their net profit soared to Rp65 billion, a staggering 129% increase from the previous year. This was a far cry from the net loss of Rp223 billion they had suffered in the same period the year prior.
“The Ministry of SOEs has been our guiding light ever since the inception of ID FOOD two years ago. Their unwavering support has steered us through the transformative journey within the Food Holding, and now we can witness the fruits of our labour. In 2021, after the formation of the food holding, we recorded a consolidated loss of Rp823 billion. This improved to a loss of Rp298 billion in 2022 and finally, in 2023 up until November, ID FOOD achieved a net profit of Rp65 billion,” Frans Marganda remarked.
He credited the enhanced performance to various factors, including an increase in income and gross profit. ID FOOD’s gross profit reached Rp1.836 billion, marking a 16% increase from the previous year. The surge in gross profit was mainly propelled by the sugar, agriculture, and salt industries.
Frans emphasized that the spike in gross profit was pivotal to the company’s positive performance. “This aligns with the ongoing EBITDA transformation within the ID FOOD Group. Through this transformation, the company’s performance continues to thrive, with notable hikes in EBITDA and operating profit,” he elaborated.
Furthermore, he highlighted the substantial role played by improved performance of subsidiary companies. Commodities such as sugar, salt, and fisheries had exceeded their targets, while agricultural crops, fisheries, distribution, and other industries had shown growth compared to the previous year. In total, 8 subsidiary companies had recorded a profit up until November 2023.
Besides operational enhancements, Frans also underscored the impact of financial restructuring. Throughout 2023, the company had completed financial restructuring in subsidiaries such as PT Perkebunan Mitra Ogan, while ongoing restructuring was taking place at PT Sang Hyang Seri and PT Perikanan Indonesia.
With improved performance across operations, finances, and business processes, Frans assured that all 16 companies within the Food Holding would continue to bolster the Ministry’s efforts to revolutionize the business model, making ID FOOD a financially and operationally efficient holding company.
“We are confident that ID FOOD’s performance will continue to flourish in 2024, especially with the Food Holding’s increasingly strategic position within the national food ecosystem. This is evidenced by the government’s trust in ID FOOD to handle tasks related to food security, such as managing the Government’s Food Reserves (CPP) for 9 strategic food commodities,” he declared.
To support the CPP stock, ID FOOD, together with BULOG, was entrusted by the government with a low-interest loan of Rp28.7 trillion. Additionally, the improved financial structure led to a 23% decrease in the Debt to Equity Ratio (DER), making the company’s financial position healthier.
“With the improvements we’ve made, I invite all food stakeholders, including the Ministries/Agencies, SOEs, banking and food industry players, associations, academics, and the media, to collaborate with ID FOOD in developing the food business and ecosystem. 2024 will be a year filled with optimism for us, with various targets already in place,” he concluded. (*)
