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Wheat flour market in Indonesia.

1. Background

Wheat flour flour, finely ground, usually sifted, meal of grain, such as wheat, rye, corn, rice, or buckwheat. Flour is also made from potatoes, peas, beans, peanuts, etc. Usually it refers to the finely ground and bolted (i.e.  is one of basic staple 1. (language) STAPLE - A programming language written at Manchester (University?) and used at ICL in the early 1970s for writing the test suites. STAPLE was based on Algol 68 and had a very advanced optimising compiler.
2.
 foods and its consumption has increased considerably in the last 15 years following the popularity of various foods made from wheat flours and food diversifications from rice to other type of staple foods. Per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals.  wheat flour consumption has increased from 9.9 kg/ capita in 1992 to around 17.1 kg per capita in 2007.

Up to the middle of 1998, BULOG BULOG Badan Urusan Logistik (Indonesian national logistics agency) , the state owned logistic lo·gis·tic   also lo·gis·ti·cal
adj.
1. Of or relating to symbolic logic.

2. Of or relating to logistics.



[Medieval Latin logisticus, of calculation
 body of the Government monopolized the distribution wheat flour. At that time wheat flour millers were set up as only millers to receive orders for milling from BULOG. In June 1998, Indonesian Government liberalized the flour industry by removing the monopoly and, from that time forward, all national flour companies, have operated as flour producers who regulate the supply of raw materials, the production of their own brands as well as their distribution

For many years, there were only four flour Milling Industries operating in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. , but since the last two years, the market is getting competitive with the entry of new producers and also penetration of low price flours from other countries.

This report will discuss various issues covering the development of domestic industry of wheat flour, key players, the market size and share, related government regulations on imports and trade, and increasing imports of wheat grain to meet the demand for flour millers.

2. Wheat flour: characterized char·ac·ter·ize  
tr.v. character·ized, character·iz·ing, character·iz·es
1. To describe the qualities or peculiarities of: characterized the warden as ruthless.

2.
 by protein, moisture and ash contents

Wheat flour is the main material for noodle, bread, biscuit biscuit,
n the firing bakes, or stages (referred to as
low, medium, and
high), during the fusing of dental porcelain preceding the final, or glaze, bake.


biscuit

in dogs, a grayish-yellow coat color.
 and various cakes. It is produced from wheat grains through milling process.

It is available in the market with the protein content of 8%-9%, 10.5%-11.5% and 12%-14%. It is important to choose the right type of wheat flour when preparing the wheat flour based food. Wheat flour with protein content of 12%14% is ideal to make bread and noodle, 10.5%-11.5% to make biscuit, pastry/pie and donut, and 8%-9% to make fried 1. (hardware) fried - Non-working due to hardware failure; burnt out. Especially used of hardware brought down by a "power glitch" (see glitch), drop-outs, a short, or some other electrical event.  food, cake and wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications.

(2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter.
. Thus, a specific kind of wheat flour cannot be used to produce all kinds of food. The quality of wheat flour is also determined by the water content (moisture), ash content and other physical parameters, such as water absorption, developing time, stability and others.

Moisture. It is the level of water in the wheat flour. If the amount of moisture exceeds the maximum standard then the shelf life of the wheat flour shall decrease due to its quick damage, fungi Fungi (fŭn`jī), kingdom of heterotrophic single-celled, multinucleated, or multicellular organisms, including yeasts, molds, and mushrooms. The organisms live as parasites, symbionts, or saprobes (see saprophyte).  attack, odorous.

* Low moisture content more expensive [right arrow] more expensive

* High moisture content [right arrow] cheaper

% Protein: Acknowledging the protein content within the flour, users are able to determine the kind of flour that is most appropriate to produce particular food products. Protein determines the final quality of the products. Protein is greatly related to gluten gluten, mixture of proteins present in the cereal grains. The long molecules of gluten, insoluble in water, are strong and flexible and form many cross linkages. , where gluten itself is a mineral that makes flour chewy chew·y  
adj. chew·i·er, chew·i·est
Needing much chewing: chewy candy.



chewi·ness n.
 and elastic. The higher the protein, the higher its gluten content and vice versa VICE VERSA. On the contrary; on opposite sides. .

* Low protein cheaper

* High protein more expensive

Ash content. The amount of ash contained in the wheat flour affects the end product, i.e. the color (crumb color for the bread and noodle) and stability level of the dough. The higher the ash content is the low quality of the wheat flour would be and on the contrary, the lower the ash content is the better quality of the wheat flour would be. This, however, does not have any relationship with the amount and quality of the protein.

Water absorption. The ability of wheat flour to absorb the water shall decrease if the water content of the flour (moisture) is too high or the storage place is moist moist

having a moderate moisture content, slightly wet to the touch.


moist dermatitis
see moist dermatitis of rabbits.

moist grain storage
grain stored at about 30% moisture in airtight silos.
. Water Absorption shall depend on the product to be produced. Higher water absorption is required for bread than for noodle and biscuit.

Developing time. If the flour is insufficiently mixed then it is called under mixing that results to flour output not at its maximum volume, the bread surface becomes rough, the bread is too elastic, the bread becomes odorous, the bread easily gets harden hard·en  
v. hard·ened, hard·en·ing, hard·ens

v.tr.
1. To make hard or harder.

2. To enable to withstand physical or mental hardship.

3.
, the bread surface cracks off and grow thick. While if over mixing, it will impact to the bread being enlarged and flat, breed insufficiency INSUFFICIENCY. What is not competent; not enough.  of the bread, crumb color of the bread, the upper part of the bread becomes small, and the bread becomes inelastic inelastic

Of or relating to the demand for a good or service when quantity purchased varies little in response to price changes in the good or service.
.

Stability. It is the ability of the wheat flour to hold the dough stability as to be always at its perfect feature though it has passed the developing time. The stability of the wheat flour is resulted from the amount of the protein, the quality of the protein, and additives.

Like the most manufacturing processes, flour milling generates by-products. When wheat is milled and sifted, bran and pollard pollard

fine protein-rich feed supplement for farm animals; a byproduct from the milling of wheat for flour. Called also shorts.
 are from flour. These become ingredients for the animal-feed industries that blend the bran and pollard with, for example, corn, Soya meal, rice bran, fishmeal fish·meal  
n.
A nutritive mealy substance produced from fish or fish parts and used as animal feed and fertilizer.


fishmeal
Noun

ground dried fish used as feed for farm animals or as a fertilizer
 and bone meal. Nowadays local modern feed mills are using bran and pollard in palletized form. Bogasari also exports palletized bran and pollard to Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , Japan, Taiwan and Middle East.

Since 1986, Bogasari also produces another by-product i.e. industrial flour, which is used by plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel.  industry and feed mills for aquamarine aquamarine (ăk'wəmərēn`, äk'–) [Lat.,=seawater], transparent beryl with a blue or bluish-green color. Sources of the gems include Brazil, Siberia, the Union of Myanmar, Madagascar, and parts of the United States. .

In the beginning, Bogasari only produces three types of flour:

* Cakra Kembar / Golden Crest (hard) protein 12-12.5%. (Made using hard wheat)

* Segitiga Biru / Blue Triangle (medium) protein 10.5-11.5%. (Made using a mix of soft and hard wheat)

* Kunci Biru / Gold Key (soft) protein 8-9% (Made using soft wheat)

Other than the three types of flour, Bogasari now produces other types of flour with the objective to satisfy the needs of customers in terms of the amount of protein content that is really required to obtain maximum results for particular types of food products.

PT Sriboga Raturaya also offers various brands of flours for different applications and different market segments. Characteristics of the products markets by this company is presented by the following table:
Table-2

Product specification of wheat flours produced by Sriboga

Quality details    Unit           Naga Hijau     Tali emas

Moisture           %              13.00-14.0     13-14
Protein (Nx5.7)    %              8.0-8.5        13-14
Ash                %              0.50-0.55      0,50-0.55
Falling Number     sec            300-650        300-550

FARINOGRAM
Water Absorption   %              53-58          62-65
Development Time   minutes        2-10           5-10

Stability          minutes        3-10           15-25
Tolerance Index    BU             10-30          10-30

AMYLOGRAM

Amylogram Peak     BU             700-1800       1200-1800
Temp of
gelatinization     [degrees] C    59-62          59-62

GLUTEN

Wet Gluten         %              21-25          33-36
Dry Gluten         %              7-8            11-12
Gluten Index       %              90-99          90-99

Application                       Economical     Premium
                                  multipurpose   bread
                                  products:
                                  cakes,
                                  cookies, dry
                                  noodle

Quality details    Naga biru      Beruang Biru

Moisture           13-14          13-14
Protein (Nx5.7)    9,00-10,00     10,00-0,50
Ash                0.5-0,6        0.50-0,55
Falling Number     300-600        300-600

FARINOGRAM
Water Absorption   58-60          5-908
Development Time   3-5            3-5

Stability          8-10           10-15
Tolerance Index    20-40          15-30

AMYLOGRAM

Amylogram Peak     1000-1800      1000-1800
Temp of
gelatinization     59-62          59-62

GLUTEN

Wet Gluten         25-30          25-30
Dry Gluten         8-10           8-10
Gluten Index       90-99          90-99

Application        Wet noodle     All baking
                                  purposes

Source: Sriboga


3. Domestic industry slowed down in 2008

Established in 1971, Bogasari Flour Mills which is currently named PT ISM See ISM band.  Bogasari Flour Mills, is the first flour mill operating in Indonesia. Prior to establishment of Bogasari Flour Mills, Indonesia had to import all its flour needs. But it was later realized that after arrival at Indonesian ports, the flour quality degraded de·grad·ed  
adj.
1. Reduced in rank, dignity, or esteem.

2. Having been corrupted or depraved.

3. Having been reduced in quality or value.
, such as infected in·fect  
tr.v. in·fect·ed, in·fect·ing, in·fects
1. To contaminate with a pathogenic microorganism or agent.

2. To communicate a pathogen or disease to.

3. To invade and produce infection in.
 by lice or it had musty smell due to long time transportation. Therefore, the government of Indonesia, through BULOG (the state owned logistic body) decided to mill the flour locally.

Up to the middle of 1998, PT Bogasari, was only operated as flour miller which received orders for milling from BULOG (the stated own national logistic body) which was entrusted by the Government to take the control of wheat import and flour distribution in the country. The deregulation Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Notes:
Traditional areas that have been deregulated are the telephone and airline industries.
 in the flour industry in June 1998, following the country's economic crisis, removed the monopoly in the distribution of wheat flour and imports of wheat. Since then flour producers are free to manage their own supply of wheat, production of their own brands and set up their own distribution system.

For many years, there were only four flour Milling Industries operating in Indonesia, namely PT ISM Bogasari Flour Mills (Jakarta and Surabaya), PT Pangan Mas Inti Persada (Cilacap), PT Sriboga Ratu Raya (Semarang), and PT Eastern Pearl (Makasar). Since the last two years, however, new flour millers including PT Fugui Flour & Grain in East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. , has commenced their operations. Despite the entry of the new comers in flour milling, Bogasari is presently still the largest miller controlling some 60% of wheat flour production in the country.

Domestic production of flours generally follows the fluctuation Fluctuation

A price or interest rate change.
 in domestic market demand as almost all of the productions are for local market. Data of the Ministry of Industry and APTINDO, (the Association of Indonesian Flour Millers) shows that production has slightly fluctuated with down trend in 2008.

Difficult conditions were encountered during 2008, with high wheat prices and declining purchasing power Purchasing Power

1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.

2.
, particularly affecting the small and medium-sized enterprises (SMEs) segment. Wheat prices hit record highs on the international market during the year, as a result of shortfalls in production in major markets due to bad weather and a general steep rise in the price of food crops.

During 2008, global food stocks had fallen to their lowest for 29 years as competition for land use from biofuel bi·o·fuel  
n.
Fuel such as methane produced from renewable resources, especially plant biomass and treated municipal and industrial wastes.



bi
 crops spiked and global demand increased, driven by higher sales in China and India. Wheat flour millers operating costs operating costs nplgastos mpl operacionales  were also impacted by high crude oil prices in the first half of 2008. Shipping costs moved significantly higher during the first half, falling back in the second half.

This combination of factors led to price rises, but in the domestic market, small-and medium-sized end-product producers were unable to pass on higher costs to consumers, resulting in a reduction in sales volume. Further complicating com·pli·cate  
tr. & intr.v. com·pli·cat·ed, com·pli·cat·ing, com·pli·cates
1. To make or become complex or perplexing.

2. To twist or become twisted together.

adj.
1.
 conditions for existing flour millers, new competitors emerged and the temporary removal of Indonesian National Standard (SNI (1) (Subscriber Network Interface) The point of interface between the customer's equipment (CPE) and a communications service from a common carrier.

(2) (SNA Network I
) quality certification led to a rush of flour imports. These factors led to drop in production and sales volume of domestic flour millers by around 7% in 2008. The drop in the production of flours of APTINDO members was even bigger namely around 18% from 3.37 million tons in 2007 to only 2.76 million tons in 2008.

In 2006, the utilization rate of the production capacity of domestic wheat flour industry ranges from the lowest of 47.8% of PT Sriboga Raturaya and the highest of 71% of PT ISM BOGASARI FLOUR MILLS with an average of 69.1%. However in 2008, there was a sharp decline of the utilization rate of major flour millers to an average of 57.5%, with the lowest experienced by PT Panganmas Inti Persada of 33.5% and the highest by PT Eastern Pearl Utama Flour Mills of 69.5%. At the end of 2008, the production capacity of flour by APTINDO members was around 4.8 million tons. According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a statement of APTINDO executive, with the operations of new flour millers, the total production capacity was estimated at around 5.7 million tons at the end of 2008.

Our checking to companies revealed that the production volume also reflects the sales volume of each producer, as the quantity of flour produced by the companies follow the amount required by the market.

[insert table 2]

a. PT ISM Bogasari Flour Mills

Bogasari Flour Mills which is now operating as a business unit of PT Indofood Sukses Makmur, has been a major force in the Indonesian food industry for more than three decades. It is not only the largest integrated flour miller in Indonesia but is also the largest installation of its type in a single location anywhere in the world.

Bogasari has two wheat flour factories, one in Jakarta covering 33 hectares and one in Surabaya of 13 hectares, that provide modern, integrated facilities for milling, storage and [un]loading ports.

Bogasari Jakarta and Surabaya have milling capacities of 10,000 and 5,900 metric tons (mt) per day respectively. Moreover, Jakarta has a palletizing capacity of 110 mt per hour and Surabaya 38 mt per hour.

To provide an adequate supply of wheat flour, Bogasari Jakarta has 140 wheat silos with a total capacity of [+ or -] 4000,000 mt, pellet pel·let
n.
1. A small pill; a pilule.

2. A small rod-shaped or ovoid mass, as of compressed steroid hormones, intended for subcutaneous implantation in body tissues to provide timed release over an extended period of time.
 silos with a capacity of 69,000 mt and warehouses for the storage of goods with a capacity of 65,000 mt. Surabaya has 84 wheat silos with a total capacity of [+ or -] 214,000 mt, pellet silos with a capacity of 60,000 mt, and storage warehouses that can hold 35,000 mt.

In its operation, the group is supported by shipping operation with five vessels-2 of the panamax type and 3 of the handymax type. These are used partly to transport wheat from both the southern and northern hemispheres.

The Packaging Division in Citeureup, West Java, stands on 8 hectares of land and can produce more than 4.5 million cotton and polypropylene polypropylene (pŏl'ēprō`pəlēn), plastic noted for its light weight, being less dense than water; it is a polymer of propylene. It resists moisture, oils, and solvents.  sacks, nearly all of which are used by the two wheat flour factories.

Delivery of unloaded grain can be in bulk or in pack (upon request). The bulk delivery is done directly from the silo to the truck with the speed of 8,000-10,000 MT per day. Meanwhile, the bagging plant consists of ten lines with the total packing capacity of 6,000 MT per day and is completed with digital scale. To ensure weight accuracy during the delivery, the Bogasari GTS GTS
abbr.
gas turbine ship
 provides three weighing bridges with the capacity of 80 MT per weighing bridge.

b. PT Eastern Pearl Flour Mills (EPFM EPFM Elasto-Plastic Fracture Mechanics )

PT Eastern Pearl Flour Mill (EPFM) is the new name of PT Berdikari Sari Utama Flour Mills, a long established flour millers which commenced operation in early 1982. In November 2005, the company's status was changed from domestic investment company to foreign investment with the entry of Interflour, a foreign company as the shareholder.

Situated in South Sulawesi South Sulawesi is a province of Indonesia, located on the western southern peninsula of Sulawesi island. The province is bordered by Central Sulawesi province to the north, South East Sulawesi province to the east and West Sulawesi province to the west (West Sulawesi province was , Eastern Pearl Flour Mill is the world's fourth largest flour milling plant. The mill comprises of a seaside Seaside.

1 City (1990 pop. 38,901), Monterey co., W Calif., on Monterey Bay, in a fruit region; founded 1887, inc. 1954. Its economy is based largely upon tourism. California State Univ. Monterey Bay is there, on the former site of Fort Ord.
 Buhler mill and a new modern city side Ocrim mill.

The Buhler mill has a milling capacity of 240,000 MT per year. It is situated on the mill's exclusive wharf WHARF. A space of ground artificially prepared for the reception of merchandise from a ship or vessel, so as to promote the convenient loading and discharge of such vessel.  and houses the majority of the storage space.

The Ocrim mill was commissioned in 2001 and has a milling capacity of 270,000 MT per year. It is 400 m from the wharf and both mills are connected by a 250MT per hour belt conveyor Conveyor

A horizontal, inclined, declined, or vertical machine for moving or transporting bulk materials, packages, or objects in a path predetermined by the design of the device and having points of loading and discharge fixed or selective.
. The Ocrim mill was built for expansion, with every floor of the mill having the space to install additional milling equipment to a capacity that would double the current output. The total storage for both the Buhler mill and Ocrim mill is 110,000MT.

EPFM introduced several brands i.e. Gerbang, Gunung, Kompas, and Gatotkaca, in additions to other brands Pirana, Serdadu Merah, Kawan Baru, and Teko Mas. Of these brands, KOMPAS is the most popular brand in the eastern Indonesia market.

c. PT Sriboga Raturaya

The flour mill PT. SRIBOGA RATURAYA is built on 25.860 m2 of area port of Tanjung Emas, Semarang. Manufacturing plant consists of 12 floors which broadly equals to 17.192,25 m2. It also has an intake tower as high as 52 m above sea level and a dock facility whose length is 180 m and 10 m into sea. The dock is equipped with an equipment to unload To remove a program from memory or take a tape or disk out of its drive.  up to 300 ton /hour grain and an equipment of loading grain with 150 ton /hour capacities.

In conducting the production process, PT. SRIBOGA RATURAYA has advanced technology machines consisting of 2 lines of mill system with total capacities of 1500 metric ton grain per day. The extraction of about 74% in average yields 1110 ton of flour per day or equals to 28.860 ton each month which is equivalent by 1,15 million ton of @-25-kg bags per month.

After the production process, two kinds of main product are yielded, they are flour and additional products; Pollard and Bran. Both types of the product will be stored in bins before packed. The capacities of bins to be a depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box.  of bulk flour is 3.360 ton, while the capacities of bins for the additional products accommodate 480 ton Bran and 200 ton Pollard.

At present PT. SRIBOGA RATURAYA has a warehouse to store the products packed in bags with 80.000 flour bags and 26.000 bags of additional products capacities. With special apparatus, the bags can be directly loaded to trucks or stored in a warehouse. Besides that, PT. SRIBOGA RATURAYA has a facility of palletizing brand and a special warehouse for bran which have become pallet with 5.000 ton capacities. This enables the machine operators to load to ship by using loading-crane.

According to the company's executive, PT Sriboga has a plan to increase the production capacity by 10% in 2009. The company also is also assessing the possibility to produce mocal Modified Cassava cassava (kəsä`və) or manioc (măn`ēŏk), name for many species of the genus Manihot of the family Euphorbiaceae (spurge family).  Flour by fermenting tapioca .

d. PT Panganmas Inti Persada

The flour mill PT. PANGANMAS INTI PERSADA was built on 60,000 m2 of area port of Tanjung Intan, Cilacap, Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. . Commenced operation in 1997, it has a milling capacity of 1,000 MT / day with a silo capacity of 75,000 MT. It also has a dock facility whose length is 120 m and 10 m into sea. The dock is equipped with an equipment to unload up to 400 ton /hour grain . As presented by table 2, production of PT Panganmas Inti Persada slashed slash  
v. slashed, slash·ing, slash·es

v.tr.
1. To cut or form by cutting with forceful sweeping strokes: slash a path through the underbrush.

2.
 from about 100 thousand tons in 2007 to only 74,000 tons in 2008. Despite the lower market demand, the slump Slump

A temporary fall in performance, often describing consistently falling security prices for several weeks or months.
 is mostly likely connected with the increasing market competition from local and imported low price flours.

4. New producers entering the market

According to data of APTINDO (the Association of Indonesian Wheat Flour Millers), there are 16 new investment wheat flour milling projects up to 2008. Many of the new flour mill projects are planned by current distributors/ importers of wheat flour, or are associated with major end users of wheat flour.

However, according to APTINDO the implementation of these projects are quite slow. There are 4 companies which have commenced operation in 2008, but not all of them produce regularly. PT Fugui Flour and Grain (foreign investment) in East Java has invested some US$ 37.5 million in a 270,000 tons flour mill in East Java. This company started operation in 2008, and presently markets their products mostly to their affiliate company involved in instant noodle manufacturing, known as " Mie Sedap". PT Jakarana Tama, another producer of instant noodle industry in North Sumatera has also started trial production of wheat flour. As stated by an executive of APTINDO, the production of the factory in North Sumatera has not been regular yet.

PT Berkat Indah Gemilang (BIG) has also started operation in 2008 and markets their products under Mustafa and Swordish brands. The company has a milling capacity of 100 tons wheat per day producing 60 tons flour per day. This company was recently accused as producing flour with quality below the national standard (SNI). These "under standard" products were reportedly repacked by major hypermarkets in Indonesia under their own brands.

PT Federal Pundi Kencana which plans to produce wheat flour in its factory in Cilegon, Banten, is a foreign investment company with a Malaysian based company (Federal Flour Mills) as their foreign partner.

PT Kwala Intan New Grain in Asahan, North Sumatera plans to invest some US$ 13.9 million in wheat flour milling as well in rice and corn milling. Several new investment projects are as followed :
Table-5

New investments in wheat flour milling

Company                                Location           Planned
                                                          Capacity
                                                          (Tons/year)

Fugui Flour & Grain Indonesia, PT      Gresik             270,000
Purnomo Sejati, PT                     Sidoarjo           120,000
Asia Raya, PT                          Sidoarjo           72,000
Berkat Indah Gemilang, PT              Tangerang          43,000

Federal Pundi Kencana , PT (Federal    Cilegon            600,000
Flour Mills)
Kwala Intan New Grain, PT              Asahan             210,000
Bungasari Flour Mills, PT              East Java          175,000
Cerestar Flour Mills, PT               Banten             123,000
Daya Agung, PT                         Banten             600,000
Tri Pilar Pangan Utama, PT             North Sumatra      250,000
Prima Anugrah Mulya, PT                Banten             270,000
Jakaranatama                           North Sumatra

Company                                Planned
                                       Investment
                                       (S$)

Fugui Flour & Grain Indonesia, PT      US$ 37.5 MIL
Purnomo Sejati, PT                     Rp 24 billion
Asia Raya, PT                          Rp 10 billion
Berkat Indah Gemilang, PT

Federal Pundi Kencana , PT (Federal    Rp 682 billion
Flour Mills)
Kwala Intan New Grain, PT              US$ 13.9 million
Bungasari Flour Mills, PT              US$ 18.7 mill
Cerestar Flour Mills, PT               US$ 23 mill
Daya Agung, PT
Tri Pilar Pangan Utama, PT
Prima Anugrah Mulya, PT
Jakaranatama

Source : BKPM


5. Flour import tend to increase despite a slide in 2008

The last five years shows a fluctuation in imports of wheat flour with a rising trend , from only 307 thousand tons in 2004, 478 thousand tons in 2005 to 581 thousands tons in 2007 and down to 532,000 tons in 2008. Substantial import growth was experienced in 2005-2007 due to rising domestic demand and penetration of low price flour from Turkey, Srilangka and China. In 2007, total imports reached its peak of 581,000 tons then dropped by 8% in 2008 due to high wheat prices and declining purchasing power, In January- March 2009, imports of wheat flours were recorded at 94,129 tons.

[ILLUSTRATION OMITTED]

While, volume of wheat flour imports declined in 2008, their value continues increasing. In 2008, the total import value was around US$ 271 million or more than one and half of the value in the previous year. This increase was strongly connected with the hike of grain price as well as wheat flour rice.

6. Export still small and declining

A very small amount of wheat flour are exported by local manufacturers including Bogasari and Sriboga. Export continued declining over the last 4 years as local manufacturers focused on fulfilling the domestic demand rather than export.

Official export statistics indicated the following export figures :
Table-7

Export volume of wheat flour, 2005-2008

                                               (tons)
Destination         2005     2006     2007     2008

Republic of Korea   13,491   631      2,941    5,371
Timor-Leste                                    5,055
Singapore           21,768   23,911   2,515    1,032
Sweden                                         708
Japan               14,021   8,524    5,517    665
Others              13,711   14,107   3,739    552
Total               62,991   47,173   14,712   13,383

Source : BPS


The value of the export also declined except in 2008 which rose b y around 40% as a result of flour price hike.

7. Antidumping committee looks into imports

The Indonesian Antidumping Committee (KADI Ka´di

n. 1. A Turkish judge. See Cadi.
), has since November 2008 looked into allegations of dumping practices by wheat flour producers from Australia, Sri Lanka Sri Lanka (srē läng`kə) [Sinhalese,=resplendent land], formerly Ceylon, ancient Taprobane, officially Democratic Socialist Republic of Sri Lanka, island republic (2005 est. pop.  and Turkey.

Self-dumping petition filed since October 2008 by three companies, the PT Eastern Pearl Flour Mills, PT Sriboga Raturaya, and PT Inti Mas Persada. Wheat flour producers ask the Ministry of Trade immediately set incoming anti-duty (BMAD BMAD Bonfire Madigan (band)
BMAD Berthing Mechanisms Advanced Development
) 57% of the wheat imports, which indicated the dumping. According to this petition, the practice of dumping during the period 1 October 2007 to 30 September 2008 has resulted in the loss of three flour mills such as the decline in domestic market of 8.7% and 7.9% of production. While the market of imported products even increased 28%.

Executive Director of the Flour Producers Association of Indonesia (Aptindo) Ratna Sari Lopies explained in evidence submitted to the Kadi, the price of wheat sold by wheat exporters from the three countries is far cheaper than prices in the international market, which is around US$ 650 per MT . This figure already includes the cost of production and profit of around 10%. She cited, that, the ex factory price of flour from Turkey is US$ 421 per MT, therefore the margin dumping of flour from Turkey is US$229/MT or approximately 51.51%. Meanwhile, the price of Australia's wheat is US$ 513.6/ MT and the margin dumping is estimated at 25.5%. Similarly, according to APTINDO executive, dumping margin of Srilangka's flour is estimated at 38.5% with their export price of U.S. $463/MT.

Until mid of 2009 this case is still under investigation and KADI has not issued its decision yet regarding allegation The assertion, claim, declaration, or statement of a party to an action, setting out what he or she expects to prove.

If the allegations in a plaintiff's complaint are insufficient to establish that the person's legal rights have been violated, the defendant can make a
 of this dumping practices.

8. Domestic consumption dropped by 7%

Domestic market size which reflects the domestic consumption of wheat flour is the sum of sales of domestic industries plus import minus export. The following table shows that the domestic market size of wheat flours has increased strongly in 2006 and moderately in 2007, but in 2008, the market size dropped by around 7% from around 3.9 million tons in 2007 to only 3.7 million tons in 2008.

As discussed earlier, difficult conditions were encountered by flour millers during 2008, with high wheat prices and declining purchasing power, particularly affecting the small and medium-sized enterprises (SMEs) segment which in fact, the main users of wheat flour in Indonesia. Wheat prices hit record highs on the international market during the year, as a result of shortfalls in production in major markets due to bad weather and a general steep rise in the price of food crops.

This combination of factors led to price rises, but in the domestic market, small-and medium-sized end-product producers were unable to pass on higher costs to consumers, resulting in a reduction in sales volume.

[ILLUSTRATION OMITTED]

9. Despite declining share, Bogasari still dominating the market

PT ISM Bogasari Flour Mills, the largest flour miller in Indonesia Indonesia has for many years dominating the market of wheat flours in Indonesia. In 2008, the company has encountered a difficult situation as reflected from the drop in their domestic sales from around 2.6 million tons in 2007 to only around 2.1 million tons in 2008. Consequently their market share is estimated to have reduced from about 65% in 2007 to only about 57% in 2008 (in volume term). Despite the reducing demand for their products due to lower purchasing power of end-users, the drop is also attributed to the emerge of new competitors in the market, and the temporary removal of Indonesian National Standard (SNI) quality certification led to a rush of flour imports.

Except Sriboga, declining market shares have also experienced by other flour millers i.e. PT EPFM, and PT Pangan Mas Inti Persada. Pangan Mas market share is estimated to have slashed by 6 point from 2.5% to only 1.9%.

In value terms, the market share of all flour millers which are members of Aptindo have experienced a downturn Downturn

The transition point between a rising, expanding economy to a falling, contracting one.


downturn

A decline in security prices or economic activity following a period of rising or stable prices or activity.
. Bogasari shares down to 60% from 67%, Sriboga 's share dropped slightly from 4.2% to 4%, PT EPFM from 12.9% to 11.6% as presented by the following table:
Table-11

Estimated market share in terms of value, 2006- 2008

DESCRIPTION                        January-December

                                   2006     2007     2008

DOMESTIC SALES (Rp billion)

ISM BOGASARI FLOUR MILL, PT        8.997    11.614   14.944
EASTERN PEARL UTAMA FLOUR,         1.665    2.217    2.883
  MILLS, PT
PANGAN MAS INTI PERSADA, PT        433      431      478
SRIBOGA RATURAYA, PT               504      716      996
OTHERS                                               2.340

IMPORTED PRODUCTS                  1.687    2.233    3.106
TOTAL CONSUMPTION                  13.286   17.209   24.746
MARKET SHARE (%)

ISM BOGASARI FLOUR MILL, PT        67,7     67,5     60,4
EASTERN PEARL UTAMA FLOUR,         12,5     12,9     11,6
  MILLS, PT
PANGAN MAS INTI PERSADA, PT        3,3      2,5      1,9
SRIBOGA RATURAYA, PT               3,8      4,2      4
OTHERS                                               9,5
IMPORTED PRODUCTS                  12,7     13       12,6

TOTAL MARKET SIZE (CONSUMPTION)    100      100      100

Source: Data Consult


10. Import of wheat grain

Wheat flour producers in Indonesia still heavily depend on imported wheat grains reaching more than 90% of their raw material.

The soaring soaring: see flight; glider.
soaring
 or gliding

Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released.
 price of wheat in world markets during 2007/08 reduced Indonesian wheat imports by 4.4 percent to 4.5 million tons. Imports are estimated to rebound rebound (rē´bownd),
n/v 1. a recovery from illness.
n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus

rebound adjective
 in 2009, mostly driven by several new wheat millers entering the market.

The three top exporters of wheat to Indonesia are Australia, Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy.  of America. In the last two years, export of wheat from China to Indonesia has also increased. The following table also indicates that in terms of volume, Australia is the largest exporter to Indonesia, while in value term, Canada has highest export to Indonesia in 2008.

In value term imports of wheat from Canada increased at an average of 44% a year in 2003-2007, while in volume term, the growth was 38%. Imports from USA also shows a strong annual growth i.e. 46% in value term and 40% in volume term. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified"
meantime, meanwhile
, imports from Australia indicates a relatively slow growth i.e. 10% in terms of value and only 3% in volume term.

The trade indicator in wheat between Indonesia and its main supplying countries are as follows:
Table-14

Wheat trade indicators between Indonesia and its main supplying
countries, 2003-2007

Partner       2007         Share of    2007
countries     Import       import      import
              value        (%)         volume
              (US$000)                 000 tons)

Canada        387,543      33          1,489,496
Australia     370,383      31          1,505,042
USA           259,605      22          997,809
China         116,837      10          432,802
Russian
Federation    23,928       2           98,091
Pakistan      9,728        1           42,041
Argentina     6,341        1           26,420
Singapore     6,160        1           22,000
Ukraine       789          0           1,993
France
Germany
World total   1,181,313    100         4,615,694

Partner       Unit         2003-2007   2003-2007
countries     price        Import      Import
              (US$/ton)    Value       Volume
                           growth      growth
                           (%/year)    (%/year)

Canada        260          44          38
Australia     246          10          3
USA           260          46          40
China         270          62          42
Russian
Federation    244          242
Pakistan      231          212
Argentina     240
Singapore     280
Ukraine       396          (49)        (60)
France
Germany
World total   256          15          6

Partner       Ranking      Share of    Export Growth
countries     Of partner   partner     of partner
              countries    countries   countries
              in world     in world    in 2003-2007
              export       expo        (%/year)

Canada        2            14          19
Australia     6            5           (1)
USA           1            27          14
China         9            2           17
Russian
Federation    3            12          49
Pakistan      27           0           (20)
Argentina     5            7           17
Singapore     69           --          21
Ukraine       17           1           28
France        4            11          10
Germany       8            3           16
World total                100         15

Source : ITC


11. Distribution system

Up to the middle of 1998, the Government ruled that the import of wheat and the subsequent distribution of flour was completely under the control (monopoly) of BULOG, the state-owned distribution and logistics company. At that time wheat flour millers were set up as only millers to receive orders for milling from the Government through BULOG. In June 1998, Indonesian Government liberalized (deregulated) the flour industry by removing the monopoly and, from that time forward, all national flour companies, , have operated as flour producers who regulate the supply of raw materials, the production of their own brands and types of flour as well as their distribution

In order to support its strategy of ensuring the availability of flour, PT ISM Bogasari Flour Mills has formed depots in various strategic locations and appointed distributors in many parts of the country. This company has 33 distributor's area and 18 depots all over Indonesia, including Java, Bali, Sumatera and Kalimantan. PT Sriboga Raturaya has also appointed several distributors mostly in Central Java. It has no distributor outside Java island. PT Eastern Pearl Utama Flour Mills has strong distribution networks in eastern parts of Indonesia especially in Sulawesi.

Local producers of wheat flours distribute the flour through their appointed distributors. From distributors, the flour are re-distributed to wholesalers/ cooperatives or to retailers. Along with the development of modern retail outlet retail outlet npunto de venta

retail outlet npoint m de vente

retail outlet retail n
, such as hypermarket hy·per·mar·ket  
n.
A very large commercial establishment that is a combination of a department store and a supermarket.


hypermarket
Noun

a huge self-service store [translation of French
, supermarkets, minimarts particularly in major cities of Indonesia, an increasing volume of flour is now distributed through these modern outlets. However, the traditional distribution system still plays the major important role. The distribution system of locally produced wheat flour is presented by the following table:

[ILLUSTRATION OMITTED]

12. Price Development

Since December (2007) wheat flour price has increased gradually. Wheat flour price increase was triggered by higher price of wheat as raw material. Wheat flour producers in Indonesia still heavily depend on imported raw materials. Cost for wheat grain constitutes more than 90% of their production cost. in 2007 the average wheat price increased significantly compared with the year before; effecting wheat-based food producers across the globe.

Increased demand from China and India combined with reduction of output in major wheat producing countries resulted in tightening of global wheat stocks to a historical low for a period of 29 years. Unfavorable weather conditions and increased land usage for competing crops due to the growth in the biofuel industry are partly to blame for the reduction of wheat output.

These inauspicious in·aus·pi·cious  
adj.
Not favorable; not auspicious.



inaus·pi
 conditions were further exacerbated by the increase in shipping costs because of higher oil prices, forcing flour producers to increase selling price. As a result of this price hike, consumption of flour increased slightly in 2007, decelerating from earlier trends that saw increasing per capita consumption of wheat products as urban dwellers demonstrated a lifestyle preference for fast foods and other wheat-based foods. Higher flour prices combined with weak consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level.  power mostly affected small and medium enterprises (SME (1) (Small and Medium-sized Enterprise) See SMB.

(2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division.
). With limited working capital, the SMEs were forced to reduce the volume of flour purchased or to shift to cheaper grades.

[ILLUSTRATION OMITTED]

The comparison of domestic wheat flour price and international wheat grain price in the last three years is presented by the following chart.

[ILLUSTRATION OMITTED]

13. Recent related government regulations

VAT VAT

See: Value-added tax


VAT

See value-added tax (VAT).
 & Import duties

Due to the soaring price of wheat in the international market during trade year of 2007/08, in February 2008 the Government of Indonesia through the Minister of Finance regulation No. 010/PMK.011/2008 temporarily removed the 10 percent Value Added Tax value added tax n (BRIT) → impuesto sobre el valor añadido or agregado (LAM)

value added tax n (Brit
 (VAT) for wheat and wheat flour and the import duty for wheat flour to maintain an affordable wheat flour price for consumers. Removal of the duties prompted 8 potential new wheat millers to delay milling and to import instead enter the market because the 10 percent VAT imposed on domestically produced wheat flour would add to production cost. The import duty for wheat is zero.

The 10 percent VAT on wheat and wheat flour was reinstated in January 2009 (Minister of Finance regulation No. 234/PMK.011/2008) and the 5 percent import duty on wheat flour was re-imposed on January 28, 2009 by the Ministry of Finance decision (No. 07/PMK.011/2009)..

Indonesian National Standard & Fortification fortification, system of defense structures for protection from enemy attacks. Fortification developed along two general lines: permanent sites built in peacetime, and emplacements and obstacles hastily constructed in the field in time of war.  of wheat flour

On January 24, 2008 the Ministry of Industry issued a regulation temporarily lifting the Indonesian National Standard (SNI) fortification requirements on wheat flour through Ministry of Regulation No. 02/M-IND/PER/1/2008 replacing the regulation Nomor 153/MPP/Kep/5/2001 on SNI for wheat flour as food materials.

Formerly In 2001, the Ministry of Industry issued a regulation regarding mandatory fortification of wheat flour, known as SNI 01-3751-2000. Under this regulation, all wheat flour traded in Indonesia should contain Iron, folic acid folic acid: see coenzyme; vitamin.
folic acid
 or folate

Organic compound essential to animal growth and health and needed by bacteria as a growth factor.
, zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table.  and vitamin B vitamin B
n.
1. Vitamin B complex.

2. A member of the vitamin B complex, especially thiamine.



vitamin B, vitamin B complex

a group of water-soluble substances described separately.
1 and B2 in sufficient amounts as stated in the SNI to assure nutritional value.

The compulsory Wikipedia does not currently have an encyclopedia article for .

You may like to search Wiktionary for "" instead.

To begin an article here, feel free to [ edit this page], but please do not create a mere dictionary definition.
 policy of SNI for wheat flour was re-enforced in July 2008 when Government of Indonesia considered that the price of wheat in international market was stable. This re-enforcement is stated on the Ministry of Industry regulation No. 49/M-IND/PER/7/2008 dated July 14, 2008 and at the same time, the government enforces the new SNI on wheat flour i.e. SNI 01-3751-2006. There is basically no significant change with the former SNI (SNI 01-3751-2000) only the institution issuing the certification was changed from previously the standardization center of Ministry of Industry (Pustan Depperin) to private institutions which have been accreditated by national accreditation accreditation,
n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice.
 committee.

14. Market segmentation Market Segmentation

A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action.
 

End users of flour include noodle, pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. , bread, biscuit, cake, cookies , pastry pastry, general name for baked articles of food made of paste or having paste as a necessary ingredient. The name is also used for the paste itself. The essential elements of paste are flour, liquid (usually milk or water, sometimes beaten egg), and shortening.  industries and fried food. Based on data of APTINDO, the consumers of wheat floor in Indonesia consists of wet noodle industry/makers (30%), Biscuit and snack Industry (15%), bakery industry (25%), instant noodle industry (20%), Fried food (5%) and household consume about 5%.

Flour has been widely used as a food ingredient for small-scale/traditional businesses up to large modern industries as well as for household use. In fact, the largest users of flour in Indonesia are the small-scale/traditional users such as the wet & dry noodle industry .Some 65 % of flour users are small/traditional industries, 5% are households and while the remaining 30% are large and medium size modern companies. Using this composition of the market, the consumption of wheat flours by market segment is estimated as follows:
Table-15

Market segment of wheat flour by type of end products, 2008

Type of products           2006     2007     2008     Share(%)

Wet noodle                 1,139    1,179    1,097    30
Biscuit, cookies & snack   570      590      548      15
Bakery, pastry, cakes      950      983      914      25
Instant noodle             760      786      731      20
Fried food                 190      197      183      5
Household                  190      197      183      5
                           3,798    3,931    3,655    100

Source : Data Consult


About 65 % of consumption are made by traditional small and medium enterprises which are involved mainly in wet noodle industry, bakery, cookies and cake industry. Meanwhile Large and medium size industries controlled the instant noodle industry with Indofood Sukses Makmur which is connected with Bogasari dominating the industry.

15. Market prospect

After a consumption slump of around 7% in 2008, wheat flour consumption in 2009 is expected to recover steadily and increase by around 8% due to additional demand derived from campaigning political parties distributing free basic foods during general and presidential elections this year. In the following years demand growth rate is expected to be at around 5- 6% a year. The following table is the projection for wheat flour demand over the next 4 years.

With the entry of new flour millers and penetrations of low price flours from other countries, the competition in the domestic market is estimated to be stronger. Despites its lower market share, Bogasari is estimated to keep its dominant role in supplying flours to the domestic market.
Table-1

Product specification of wheat flours produced by Bogasari

Product               Cakra       Cakra       Segitiga      Kunci
specification         Kembar      Kembar      Biru          Biru
                      Emas

Moisture(%)           Max 14.3    Max 14.3    Max 14.3      Max 14.3
Protein(%)            14.0-15.0   13.0-14.0   12.0-13.0     Max 11.0
Ash(%)                Max 0.55    Max 0.64    Max 0.64      Max 0.64
Falling Number(sec)   Min 300     Min 300     Min 300       Min 300
Gluten Wet(%)         Min 34      32-36       28-32         Max 26
Water Absorption(%)   62-64       60-64       59-63         56-58
Recommended for       Premium     Breads,     Brownies,     Cookies,
                      breads,     pastry,     pound         cakes,
                      rolls       noodles,    cake,         biscuits
                                  doughnut    martabuck,    and
                                              doughnut      wafers

Product               Lencana     Kastil      Taj Mahal
specification         Merah

Moisture(%)           Max 14.3    Max 14.3    11.0-12.0
Protein(%)            11.5-12.5   12.5-13.0   11.5-12.5
Ash(%)                Max 0.69    Max 0.69    1.2-1.6
Falling Number(sec)   Min 300     Min 300
Gluten Wet(%)         25-31       30-33
Water Absorption(%)   Min 58      60-62
Recommended for       Economic    Breads      Indian food
                      noodles,    and rolls
                      cookies
                      and fried
                      food

Source: Bogasari

Table-3

Production of wheat flour, 2005-2008 (January-December)

Year       Production    Growth
           (000 tons)    (%)

2005       2,924
2006       3,308         13.1
2007       3,365         1.7
2008       3,136         -6.7

Source: several sources.

Table-4

Production of wheat flour by main producers, 2006-2008
(January-December)

Producers                              Prod.Cap      2,006
                                       (tons/Year)

                                                     Production
                                                     (000 tons)

ISM Bogasari Flour Mills, PT           3,600         2,550
Eastern Pearl Utama Flour Mills, PT    640           477
Pangan Mas Inti Persada, PT            220           124
Sriboga Raturaya, PT                   330           157
Sub-total APTINDO members              4,790         3,308
Others ( estimate)
TOTAL                                                3,308

                                       Prod.Cap      Production
                                       (tons/Year)   capacity
                                                     utilization
                                                     rate (%)

ISM Bogasari Flour Mills, PT           3,600         71
Eastern Pearl Utama Flour Mills, PT    640           75
Pangan Mas Inti Persada, PT            220           56
Sriboga Raturaya, PT                   330           47
Sub-total APTINDO members              4,790         69.05

Producers                              2,007         2,008

                                       Production
                                       (000 tons)

ISM Bogasari Flour Mills, PT           2,570         2,070
Eastern Pearl Utama Flour Mills, PT    519           445
Pangan Mas Inti Persada, PT            101           74
Sriboga Raturaya, PT                   175           167
Sub-total APTINDO members              3,365         2,756
Others (estimate)                                    380
TOTAL                                  3,365         3,136

                                       Production
                                       capacity
                                       utilization
                                       rate (%)

ISM Bogasari Flour Mills, PT           71            58
Eastern Pearl Utama Flour Mills, PT    81            70
Pangan Mas Inti Persada, PT            46            34
Sriboga Raturaya, PT                   53            51
Sub-total APTINDO members              70.25         57.53

Notes: production is assumed equal to sales
Source: Various sources

Table-6

Imports of wheat flour by country of origin, 2005-2008 (Jan-Dec)

Country of origin   2004      2005      2006      2007      2008

QUANTITY (TONS)

Turkey              23,964    44,236    57,554    172,825   228,775
Australia           143,296   187,541   176,214   152,659   146,370
Belgium             17,516    61,939    53,176    45,761    70,704
Sri Lanka           14,328    71,071    155,410   114,961   61,067
China               61,991    42,808    35,565    77,508    13,718
Japan               3,570     6,230     6,271     7,508     5,290
Singapore           4,865     13,277    4,310     7,426     4,792
Others              37,853    50,875    48,504    2,289     1,731
Total               307,383   477,977   537,004   580,937   532,447
Growth rate (%)               55.50     12.35     8.18      -8.35

VALUE (US$ 000)

Turkey              5,862     9,390     12,653    48,429    104,223
Australia           40,184    54,321    51,060    52,623    85,246
Belgium             4,550     16,345    13,652    14,283    39,278
Sri Lanka           4,011     20,297    43,818    38,639    33,254
China               14,487    10,314    8,419     21,905    4,708
Japan               802       1,548     1,576     2,265     2,873
Singapore           1,393     3,700     758       1,417     805
Others              8,121     12,094    11,174    756       876
Total               79,410    128,009   143,110   180,317   271,263
Growth rate (%)               61.20     11.80     26.00     50.44

Source : BPS

Table-8

Export volume of wheat flour, 2005-2008

                                               (US$000)
Destination         2005     2006      2007    2008

Republic of Korea   1.249    168.000   1.321   3.302
Timor-Leste         0        0         0       3.397
Singapore           4.857    5.788     1.062   1.314
Japan               5.001    2.761     2.301   444
Others              4.883    3.867     1.750   767
Total               15.990   12.584    6.434   9.224

Source : BPS

Table-9

Market size of wheat flour, 2006-2008 (January-December)

                                                    (000 tons)
Description                 2005    2006    2007    2008

Sales of local industries   2,924   3,308   3,365   3,136
Import                      478     537     581     532
Export                      63      47      15      13
Domestic market size
(consumption)               3,339   3,798   3,931   3,655
Growth rate of                      13.7    3.5     -7.0
  consumption (%)

Source: Data Consult

Table-10

Estimated market share of wheat flour in terms of volume, 2006-2008

DESCRIPTION                         January-December

                                    2006    2007    2008

DOMESTIC SALES * (000 TONS)

ISM BOGASARI FLOUR MILL, PT         2,515   2,563   2,070
EASTERN PEARL UTAMA FLOUR           477     519     445
  MILLS , PT
PANGAN MAS INTI PERSADA, PT         124     101     74
SRIBOGA RATURAYA, PT                145     168     154
OTHERS                                              380
TOTAL DOMESTIC PRODUCERS*           3,261   3,350   3,122
IMPORTED PRODUCTS                   537     581     532
TOTAL MARKET SIZE (CONSUMPTION)     3,798   3,931   3,655

MARKET SHARE (%)

ISM BOGASARI FLOUR MILLS,PT         66.2    65.2    56.6
EASTERN PEARL UTAMA FLOUR           12.6    13.2    12.2
  MILLS, PT
PANGAN MAS INTI PERSADA, PT         3.3     2.6     2.0
SRIBOGA RATURAYA, PT                3.8     4.3     4.2
OTHERS                              0.0     0.0     10.4
IMPORTED PRODUCTS                   14.1    14.8    14.6
TOTAL CONSUMPTION                   100.0   100.0   100.0

Notes: *) excluding export sales

Table-12

Import of wheat, 2005-2008 (January-December)

Year       Volume        CIF Value       Average CIF price
           (000 tons)    (US$ million)   (US$/ton)

2004       4,544.3       838.6           185
2005       4,428.5       799.0           180
2006       4,482.8       816.1           182
2007       4,615.7       1,181.3         256
2008       4,497.2       1,975.5         439

Source: BPS

Table-13

Import of wheat by country of origin, 2005-2008 (January-December)

Country of origin    2005        2006        2007        2008

Volume (tons)

Australia            2,439,822   2,905,094   1,505,042   1,758,404
Canada               889,644     1,006,243   1,489,496   1,258,755
United States of     118,518     217,533     997,809     1,100,646
  America
China                n.a         34,859      432,802     211,052
Argentina            429,377     --          26,420      79,346
Russian Federation   442         74,706      98,091      42,497
Others               550,708     244,371     66,034      46,493
Total                4,428,511   4,482,806   4,615,694   4,497,193

Value (US$000)

Australia            445,069     524,927     370,383     782,447
Canada               165,430     187,176     387,542     565,083
United States of     25,300      43,420      259,605     493,675
  America
China                n.a         6,811       116,837     59,858
Argentina            73,502      --          6,341       34,801
Russian Federation   74          13,243      23,928      18,766
Others               89,628      40,544      16,677      20,850
Total                799,003     816,121     1,181,313   1,975,480

Average CIF price (US$/ton)

Australia            182         181         246         445
Canada               186         186         260         449
United States of     213         200         260         449
  America
China                n.a         195         270         284
Argentina            171         n.a         240         439
Russian Federation   167         177         244         442
Average (total)      180         182         256         439

Source: BPS

Table-16

Projected demand for wheat flour, 2009-1012

Year   Projected demand
       (000 tons)

2009   3.911
2010   4.106
2011   4.353
2012   4.614

Source: Data Consult

Chart-2

Import value of wheat flours by country of origin, 2008

Turkey      44%
Australia   27%
Belgium     13%
Srilanka    11%
China        3%
Others       2%

Note: Table made from pie chart.

Chart-3

Import value of wheat flours by country of origin, 2008

Turkey      39%
Australia   31%
Belgium     14%
Srilanka    12%
China        2%
Others       2%

Note: Table made from pie chart.
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Title Annotation:INDUSTRY PROFILE
Publication:Indonesian Commercial Newsletter
Article Type:Market overview
Geographic Code:9INDO
Date:Jun 1, 2009
Words:7670
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