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Cold storage industry in Jakarta and surrounding area.


Business in cold storage service offering place to keep goods fresh serves to support a number of business in other sectors such as food processing industry, fishery industry, retail chains, restaurant chains and importers of meat, etc. Cold storage facilities are generally part of an integrated business but there are also ones operating as independent units for rent.

The Greater Jakarta area has around 40 cold storage companies. Some 28 of them have a total capacity of 75,056 tons.

Demand for cold storage facility could be estimated from the consumption of meat, fruits, vegetables, frozen potatoes, fish, shrimps, etc. In the Greater Jakarta areas. Consumption of the food products in the Greater Jakarta area in 2009 totaled around 441,000 tons/month with 25.8% or 114,000 tons of which needing cold storage. Realization, however, is that only 73,800 tons of them used cold storage facility that year including 9,600 tons of beef, 25,600 tons of fresh fish/frozen shrimps, 9,473 tons of fruits, 5,985 tons of vegetables, 2,364 tons of frozen potatoes and other fresh products. The demand estimate is based on assumption that only 80% of imported meats in the Greater Jakarta area need cold storage facility for 30 days before they are sent to the end. Based on the assumption, 9,600 tons of the total consumption of 12,000 tons of meat in the Greater Jakarta area are put in cold storage for 30 days.

Demand for cold storage service has increased in the past several years to follow the expansion of retail business in the Greater Jakarta area. Most retail chains have outlets located in various areas that they need standard stock at each outlet for which they will need cold storage to keep their stock in good quality.

However, not all of the chain stores have enough cold storage rooms to hold their goods especially food products including frozen food, beverages, ice cream, fruits, meat, fish, etc. With the limited capacity of their cold storage, some of the stores have to rent a space in the cold storage facility of other companies mainly logistic companies.

Most cold storage service companies in the Greater Jakarta are located in areas having adequate infrastructure and transport facility with easy access to toll roads to guarantee smooth distribution to consumers. The main locations of cold storage in the Greater Jakarta are North Jakarta, West Jakarta and Bekasi

Types of cold storage

Cold storage facilities are designed to have a certain temperature for the storage of various types of goods to keep them fresh and prevent them from damage.

Refrigerators consist of four type's chilled room, freezer room, blast freezer, and blast chiller.

Chilled Room is a refrigerator with low temperature of 1 ~ 7 deg C. This room is used for the storage of fresh food, such as vegetables, fruits and other materials with an endurance of up to two months.

Chilled room could function as a thawing room for food processing industry used to increase the temperature of meat, chicken meat and fish after being frozen under a temperature of 7 to 10 deg C, before the process of cooking.

Freezer Room has a temperature of between -15[degrees]C ~ -20[degrees]C used for warehouse of fish, meat, sausage, milk, cheese, potato and all types of foodstuff and other materials and other materials needed in freezing temperature.

Blast Chiller is used for fast refrigeration after the process of cooking with temperature targets of 1[degrees]C to 4[degrees]C.

Blast Freezer is used for fast freezing for processed foods and meat, fish and shrimp. The temperature targets are -20[degrees]C ~ -25[degrees]C.

Blast Chiller and blast freezer are used to:

1. Prevent contamination by bacteria.

2. Maintain the taste of foods

3. Prevent reduction of water content

4. Maintaining nutritional content

Meanwhile, by the capacity of refrigerator machine, there are two types of cold storage facilities commercial and industrial cold storage facilities.

Commercial cold storage facilities are generally designed and built for rent or main facility of business activities such as logistics and supply chain management.

Design include configuration of machines and storage system (racking) made flexible to suit the flows of goods. Machines of commercial cold storage are generally smaller in capacity but larger in number that could operated flexibly.

Examples of commercial cold storage facilities are those used for the storage of meat, fish, and vegetables at supermarkets and hypermarkets. The capacity of commercial cold storage in Indonesia is generally below 500 tons.

Industrial cold storage facilities generally function as part of production facilities. The configuration of machine and facilities are like racking system. The capacity of industrial cold storage facilities in Indonesia is generally larger than 500 tons.

Lately there are companies operating commercial cold storage facilities in large scale fully for rent. In addition, there are industrial cold storage facilities changing function into commercial cold storage facilities with the largest part of their space is rented out such as that of PT. Bonecom (BOSCO). In the beginning the entire capacity of cold storage facility of BOSCO was for own use of the company to support its shrimp export business. Later, however, when shrimp business was on the decline the space of its cold storage facility was rented out to other companies.

Products needing cold storage facility

Cold storage facilities are used for the storage of various products like meat, fish, vegetables, fruits and cooked foods, etc.

Those products have different characteristics and need different conditions in temperature and humidity.

The supply of cold storage in Indonesia

Generally cold storage are used to keep food products such as meat, fish, fruits, vegetables and food basic materials, fresh under freezing temperature or to prevent them from damage.

Many companies, however, do not have own cold storage as it will need large investment. They choose to rent that facility or cooperate with cold storage companies rather than buying one.

Business model of Cold storage companies in Indonesia

Based on business purposes in the Greater Jakarta area there are:

a. Cold Storage for own use (integrated with other business)

b. Cold Storage entirely for rent

Cold storage for own use

Some companies have the cold storage facility for their own use. The facility is integrated with other business of the owning company serving to support operation of the core business.

The main function of cold storage facility is to keep goods in stock for short or longer time. The owning company handles the job of keeping in cold storage or distributing and sending the goods later.

Cold storage having such functions is owned by companies operating in ice cream industry, exporters of fish and other sea food products, importers of meat, importers of fruits, vegetables and other fresh food products.

Sometimes, however, the companies rent part of the space in their cold storage facility to other companies having similar core business or products.

Examples of integrated cold storage those of PT. Samudra Dharma Fishing, which operates in the exports of sea fish products and PT. Unilever, which produces Wall's ice cream

Cold storage for rent

Lately cold storage rental business begins to flourish in the Greater Jakarta area. There are two types of companies operating in cold storage rental business:

- Logistics and distribution companies, and

- Companies specially renting out cold storage

Companies specially renting out cold storage

The need to rent cold storage began when a number of large scale food manufacturing companies have cold storage with limited capacity or have no such facility for their products that have to be kept in cold storage before being processed or distributed. Such companies, therefore, have to rent cold storage.

In the beginning most cold storage rental companies served only certain main customers, but later they offered their service to various other customers. Generally such rental companies have small size cold storage but larger in number.

There are also cold storage companies which have changed their functions. In the beginning they had cold storage for own use such as for shrimp exports, but when the shrimp business declined they offer the service of their cold storage to other users.

The rental fee is set per square meter space per month. The companies that use the rental service are entirely responsible for all activities from the keeping of products in the cold storage to sending then out.

Most products kept in rented cold storage are manufactured food products such as frozen food, fruits, vegetables, etc.

The main users of rented cold storage are producers of manufactured food products, importers of frozen food, importers of meat, importers of fruits, etc.

Logistics and distribution companies renting out cold storage

In the past several years' cold storage business is operated more professionally by logistics or distribution companies.

Logistics service companies build their dry storage facilities and cold storage facilities entirely for rent. Operations of the two facilities become the core business of the companies. A logistics company handles everything from the transport of products from their original place to the cold storage and distribution from the storage facility to the final destination based on the request of the clients.

Indonesia has few logistic companies, which have own cold storage facility, serving also as distribution centre. Large logistic companies which also serve as distribution centre include PT. YCH, PT. Sukanda Djaya and PT. Wira Logitama Saksama. Logistic company DHL also begins to offer cold storage service by building own cold storage.

There are also logistic service companies which operate only in renting out space in their cold storage. The entire activities of storage and distribution of their products are handled by the renter.

Many logistics companies which have cold storage facility were established by their parent companies to serve as distribution companies the products of the parent companies. Distribution companies having large cold storage facility later expanded business to serve distribution of products of other companies. Among such companies are PT. Sukanda Djaya (SD) and PT. Wira Logitama Saksama (Wira Logistics). Cold storage facility owned by PT. Sukanda Djaya was originally built to keep in storage ice cream produced by its parent company PT. Diamond Ice Cream. As the cold storage facility has excess space PT. Sukanda Djaya rents out the space to other users.

Currently several large restaurant chains such as Kentucky Fried Chicken, Pizza Hut and A & W rent space at the cold storage of PT. Sukanda Djaya. Their goods include ice cream, potatoes and frozen chicken meat. Currently PT. Sukanda Djaya is the largest operator of cold storage having a number of cold storage facilities in Indonesia.

Cold storage facilities of Wira Logitama Saksama were established to support the operation of its parent company PT. Wicaksana Overseas International, which is a large distribution and whole sale company with products including foods and beverages. As a logistic company Wira Logitama Saksama serves not only members of its company group but also other customers that need cold storage and logistic services.

Number of cold storage facilities and their production capacities

Cold storage companies in Indonesia generally began business as an exporter of fishery products. This business expanded rapidly in the 1990s' but declined in the following years.

According to the association of Cold Storage Indonesia (APCI) which deals with fishery companies and exporters of fish and shrimps, around 50% of 94 cold storage companies in Indonesia have stopped operation since 2004. Most of the cold storage facilities were owned by fishery companies and exporters of fish and shrimp. They could not continue operation on weak competitiveness of Indonesian shrimps in international markets. Thailand and China have strengthened their domination of the international markets.

Local products of shrimps are inferior in quality facing shrimps from rival producer like Thailand and China. Indonesia shrimps are less competitive not only in quality but also in price because of the soaring prices of feed.

Since 2004, many fishery companies have moved from Jakarta to Surabaya, East Java, where they could be more integrated with the sources of fish and shrimps. For the same reason APCI has moved its office to Surabaya, East Java, where there are still many or around 30-40 fishery companies in operation.

In the past several years fishery industry began to grow in Jakarta after the United States, the largest shrimp market in then world imposed import restriction of shrimp from rival producers including China. A number of cold storage facilities such as that of PT. AGB Tuna located at Muara Angke, have been busy handling the storage of fish/shrimps for exports and local market. Many cold storage facilities which have been left idles for several years began to show brisk activities.

Jakarta is not only the center of state administration but also the largest economic and business center in the country offering great opportunity for cold storage business to grow faster.

According to data at the Association of Indonesian Freezing Chain (ARPI), there were 92 cold storage companies in the country in 2004.

A field research carried out by Data Consult shows there are 40 cold storage companies in the Greater Jakarta areas Jakarta, Bogor, Tangerang and Bekasi and 26 of the companies have large capacity totaling 75,056 tons.

The companies include food processing companies and meat importers, slaughterhouses, fishery and shrimp companies, ice cream producers, importers of fruits and retailer networks.

Among the owners of cold storage facilities, 11 are independent operators of cold storage facilities renting out part or the entire space in their cold storage with a total capacity of 62,285 tons, and total space of 41,376 sq.m.

The largest in capacity among the 11 companies is PT. Sukanda Jaya, which has a capacity of 45,000 tons, followed by PT. Bonecom Servistama Compindo (Bosco) with a capacity of 6,000 tons; and PT. Wirontono Cold Storage & Industry with a capacity of 3,840 tons.

Geographic distribution of cold storage in Greater Jakarta and surrounding areas

The Greater Jakarta area is the largest economic and business center in the country. The growing business in Jakarta requires larger cold storage facilities.

The Greater Jakarta areas could be divided into four regions--Northern, Eastern, Southern and Western regions. Cold storage business is the main supporting business for food processing and fishery industries, retailer network, restaurant chains, importers of meat, etc.

Modern retail business has grown fast in Jakarta and its satellite cities. The retail companies have outlets in various locations in the cities. Therefore, they need cold storage services.

Some of the retail companies have cold storage with limited space not enough to freeze their products of food, fruits, meat, fish, etc. They were forced to rent space in cold storage facilities owned by logistics companies.

The cold storage facilities are generally located in strategic areas having enough infrastructure facilities with good access to toll roads.

Most of the cold storage facilities for frozen food, meat, fish, fruits and vegetables, are located in Northern region of Jakarta including Ancol, Sunter, Muara Baru, Muara Karang and Pademangan. In that region, there are 7 cold storage companies

The location in the northern side of the city is strategic being close to the country's largest port Tanjung Priok, making is easier in the shipments and loading and unloading. That area is also linked with the Cawang-Tanjung Priok toll road and Tanjung Priok--Pluit toll road that cold storage companies in this area will gain in cheaper transport cost.

The western region such as Muara Angke, is close to the fish auction center, and places selling fresh sea fishes. Interaction with fish traders and exports is brisker. Muara Angke also is strategic in location being close access road to Pluit toll road leading to Jakarta's Soekarno Hatta airport and to the Jakarta city center.

The cold storage warehouses are located area eastern region mainly in Cibitung where three largest logistics service companies in the country are located. Among the cold storage warehouses are owned by retailer company Superindo.

The Cibitung industrial zone is facilitated with good transport access. In the industrial estate of MM2100 Cibitung there are two logistics companies PT. Wira Logitama Saksama and PT. Sukanda Jaya. There is also PT. YCH in Cibitung outside the industrial estate.

The three logistics companies chose the location in Cibitung, as Cibitung offer ample space for office, warehouses and parking area close to toll road. Transport between Cibitung and Jakarta city center is facilitated with the Jakarta--Cikampek toll road.

Cold storage companies located in northern area include PT. Bosco, PT. Wirontonso Cold Storage & Industry, PT. Pluit Cold Storage, etc.

In western part of the area there are PT. AGB Tuna which offers cold storage facility for fish and shrimp products.

The earner area mainly Cibitung has the country's largest logistics companies including YCH, PT. Wira Logitama Saksama and PT. Sukanda Jaya The dry warehouses and cold storage of YCH are located in Cibitung outside industrial estate. PT. Wira Logitama Saksama is located in the Industrial Estates of MM 2100 close to PT. Sukanda Jaya.

The two logistics companies chose Cibitung because of the ample areas provided for office, parking and warehouse facilities etc.

Major players

PT. Sukanda Djaya

PT. Sukanda Djaya (SD) is one of the largest refrigerated food distribution companies in Indonesia. It is the only refrigerated food distribution company that operates on a national level. The company was established in 1978 and is wholly owned by PT. Diamond Cold Storage (DCS), the largest ice cream producer in Indonesia.

Part of ice cream production of PT. Diamond Cold Storage is kept in its own cold storage but the largest part is kept in the cold storage owned by PT. Sukanda Djaya.

PT. Sukanda Djaya also offers space of its cold storage to other companies. Currently its customers include a number of large restaurants in the Greater Jakarta area such as Pizza Hut, Mc Donald, Sizzler and A&W. They rent a space in the cold storage of PT. Sukanda Djaya for their frozen products including meat, chicken, potato and spices and other food flavors for restaurants. PT. Sukanda Djaya handles all work of distribution from the cold storage to all outlets of restaurants in Java.

The warehouse of PT. Sukanda Djaya located in Cibitung, is one of the largest cold storage warehouses in Indonesia. The warehouse of PT. Sukanda Djaya has a space of 14,000 sq.m with a cold storage capacity of 45,000 tons. Its has a fleet of 100 trucks to support its operation. It has 10 forklifts for handling activities in the warehouse.

PT. Sukanda Djaya has a number of branches of distribution centre located in various areas including Denpasar (Bali), Surabaya (East Java) and Bandung (West Java), and Balikpapan (East Kalimantan).

PT. Bonecom Servistama Compindo (BOSCO)

Bosco was established in 1989. It is one of the country's largest cold storage companies. Bosco operates cold storage for fishery products including shrimp of its company group. When shrimp business was on the decline most of the space in its cold storage was rented out to other companies to keep meat, fish, chicken, and instant food products and frozen foods.

Currently, Bosco cold storage warehouse with space of 8,750 sq.m located in Muara Baru, North Jakarta. Bosco has three units of cold storage with a total capacity 6,000 tons.

The facility in the warehouse of Bosco include platform (special room) with a temperature of 5 [degrees]C. The Platform allows the customers of Bosco to see the process of storing their products at Cold Storage. Currently PT. Bosco operates 14 loading docks to speed up the process of loading and unloading in the warehouse.

Bosco has a transport fleet of refrigerated lorries with a capacity of 2 tons, 4 tons, and 20 tons.

So far Bosco serves only customers in the Greater Jakarta area and Bandung. It hopes to expand its capacity to expand its service market to other large cities in the country.

Among the customers of Bosco are meat processing industry and large restaurants including PT. Japfa Comfeed, Kentucky Fried Chicken, Haagen-Dazs, Delfi Chocolate, Japfa Seafood (So Good), Gelare Ice Cream, etc.

PT. Yap Cwe Hok Indonesia (YCH)

YCH Group was established in 1955 in Singapore. It operated integrated business as end-to-end supply chain management and logistics partner for a number of multinational companies as producers of hi-tech/electronics, chemicals and manufactured consumer products.

YCH has a total area of 15 hectares in Cibitung but currently it has used only 6 hectares. Its cold storage facility occupies a land plot of 8,000 sq.m. YCH has 4 units cold storage with a total capacity 2,000 tons.

Currently the dry storage of YCCH is rented by PT. Danone Indonesia and PT. Frisian Flag (milk producer).

The entire cold storage facilities of YCH are rented by PT. Matahari Putra Prima, which operates Hypermart (hypermarket) and Foodmart (supermarket). Products kept in the cold storage include fruits, syrup, cake, chocolate, frozen foods, etc.

According to plan, YCH will expand its warehouse area with an additional 4 ha and its cold storage is to be expanded from 8,000 sq.m to 20,000 sq.m next year.

PT. Wira Logitama Saksama

PT. Wira Logitama Saksama (Wira Logistic) was established in 1995, and started commercial operation in 1997 as a logistics company. Its warehouse is located in the Industrial Estates of MM2100 Cibitung occupying a land plot of 6.2 ha. PT. Wira Logitama Saksama operates dry storage with a capacity of 66,000 tons and cold storage with a capacity of 1,600 tons.

In the beginning PT. Wira Logitama Saksama handles the storage and distribution of all milk products of its parent company PT. Wicaksana Overseas International. PT Wicaksana Overseas International established in 1964 is a large company operating in production and distribution of consumer goods and food products. PT. Wira Logitama Saksama also offers logistics service for other companies.

PT. Wira Logitama Saksama core business is warehouse and logistic services and supply chain management and distribution service center for producers, distributors wholesalers and large retailers. In April 1998, PT. Wira Logitama Saksama received the certificate of Pinnacle Award for GMP and Multinational Quality Guarantee with international standard.

PT. Wira Logitama Saksama also offer consultancy service and serves order management. PT. Wira Logitama Saksama operates warehouse of its clients.

PT. West Side Agritama

PT. West Side Agritama (WSA) was established in 1997. This company rents out cold storage space for fresh and frozen food products WSA serves cold storage warehouse system and distribution, from storage to shipment of goods to customers.

WSA has three units of cold storage ante room, chiller room and freezer room with temperature controlled to suit the customers. The temperatures of cold storage range from -20 degrees C to 8 degrees C.

WSA offers Fully Refrigerated service with loading and unloading quay. WSA service business includes:

* Refrigeration of all frozen products and chilled food products

* Cold storage to as low in temperature to -20 C.

* Chilled storage for 4 degrees C.

* Ambient + 18 degrees C.

* Ante room + 5 degrees C.

* Loading /unloading of 20 feet and 40 feet containers.

* Order picking--pallets and cartoon box.

* Sheet slip.

* Rotation of goods stocks.

* Inventorying goods stocks (cycle and periodically).

* Rotation of goods based on system of (FIFO / LIFO) or request of the customers.

The cold storage warehouse of WSA in Jakarta has easy access to the country's largest port of Tanjung Priok and Soekarno Hatta International Airport. WSA has a fleet of vehicles including refrigerated trucks to facilitate distribution of goods to customers. All refrigerated trucks are equipped with device to monitor the temperature integrated in VDO and GPS.

WSA's fleet includes 8 unit- ton of Multi-temperature Rigid Trucks, 4 unit-ton of Multi-temperature Rigid Trucks, 2 unit-ton of Multi-temperature Rigid Trucks, 48 unit-foot of Dry Tractor-Trailers, 40 unit-foot of Multi-temperature Tractor-Trailers and 40 unit-foot of Flatbed Tractor-Trailers.

WSA also has 3 distribution centers--in Jakarta (Pulogadung), Surabaya (Margomulyo) dan Bali (Denpasar)

Among the customers of WSA are Mc Donald, and instant food restaurants with 86 outlets in the Greater Jakarta area. Stocks of goods of Mc. Donald kept in the warehouse of WSA include potato, chicken and meat. Distribution to all outlets of Mc Donald in Indonesia is handled by WSA.

PT. AGB Ice & Fisheries

PT. AGB Ice & Fisheries was established in 2004 as a foreign investment (PMA) company from South Korea The company operates a fish exporter and producer of frozen fish and processed fish products. AGB has a processing factory and warehouse occupying a land plot of 4,130 sq.m, with building floor space of 1,911 sq.m all cost an investment of US$ 3 million.

This company processes various types of fish collected from fishermen such as layur, squids, cuttlefish, ray-fish and crabs. AGB also produces ice bars for fish freezing with a production capacity of 6,000 bars or around 300 tons per day. Its frozen fish is exported to various countries including Korea and Japan.

AGB has business renting out cold storage facility to other companies and serving processing and storage of frozen fish of other companies AGB has two units of cold storage with a capacity of 150 tons each. It also has a unit of Air-blast freezer (ABF) facility with a capacity of 5 tons and one Contact Freezer currently not yet put into operation.

PT. AGB Tuna

PT. AGB Tuna is a PMA company owned by Korean investors. AGB Tuna (AGBT) operates in business of renting out cold storage. AGBT has a 7,000 sq.m. warehouse in Muara Angke, West Jakarta. AGBT has 3 units of cold storage with a total capacity of 1,500 tons and one unit of ABF (Air Blast Freezer) with a capacity of 9 tons. The ABF has a temperature of -40 degrees functioning to freeze fish/shrimp in 10 hours.

The main products kept the cold storage of AGBT are fish, shrimp and ice cream. AGBT sets the rental tariff of Rp216 million per year under contract of at least 1 year. AGBT also offers non contract storage service with a tariff of Rp27million per month. Currently, however, the company does not rent out its cold storage facilities under contract, but it offers only storage service. The company plans to concentrate on business of exporting fish and shrimp, and using its cold storage facility mainly for its own use.

Currently its cold storage is full of products under storage system from customers. Some of the customers operate in the fishery sectors such as PT. Yanagi, PT. Starfood Indonesia, etc. One of its cold storage is entirely used by PT. Korinhub, an importers of the Cpre ice cream from South Korea sold to restaurants and hotels in the Greater Jakarta area.

Demand for cold storage in Indonesia

Identification of main users

The main users of cold storage service could be put in two groups manufacturing and trading companies that need cold storage with temperature that could be set. The chiller room is set at a temperature of 2-8 degree Celsius, and freezer room with a temperature of -18 to -20 degrees Celsius.

Cold storage is used to keep the quality, shape and taste of fresh food products and processed food products such as meat and seafood.

The first group are manufacturing companies producing fresh food products and basic materials of processed foods. They include food processing companies, fish processing companies and ice cream producers.

The second groups are trading companies selling fresh food and frozen food products. They include large retail companies, restaurants, importers of fruits and importers of meat.

Large retail companies

In the past decade the tentacles of world retail giants have reached the Greater Jakarta area. he retail business dominated by PMA ahs flourished with 152 outlets in the Greater Jakarta area.

Modern retailer include hypermarkets and supermarket/department stores. According to the classification of the trade ministry, a supermarket has a floor space of at least 600 m2 and mini-market or convenience store at least 140 m2, and hypermarket is larger than supermarket.

Among the hypermarkets are Carrefour with 34 outlets in the Greater Jakarta area Giant with 7 outlets, Hypermart 7 outlets and Makro 6 outlets. Those classified as supermarket include Hero with 49 outlets, Superindo 28 outlets, Alfa 20 outlets and Foodmart 7 outlets.

Currently retail companies having own cold storage warehouse for own use are Superindo with cold storage warehouse in Cibitung, having a floor space of 1,200.sq.m and a capacity of 500 tons; Carrefour with cold storage in Pondok Ungu, Bekasi and Giant together with Hero in the same company group with cold storage house in Cibitung.

Hypermart and Foodmart both under the Group of Matahari Putra Prima have no cold storage warehouse. Currently Hypermart rents cold storage warehouse of PT. YCH in Cibitung. The warehouse with a floor space of 8,000 sq.m and a capacity of 2,000 tons is wholly rented by Hypermart. The entire activities of storage and distribution of products to Hypermart & Foodmart outlets in Java are handled by PT. Matahari Putra Prima. PT. YCH provides only the facility renting out the space in its cold storage and take care of its maintenance.

Makro also has no large cold storage. Makro has only 2 units of chilling container in each of its outlets. Makro has relied on suppliers for fresh and frozen food products. Suppliers are responsible for the jobs of procurement and distribution.

Large Restaurant Operators

Restaurant business has expanded fast in the country with growing number of urban people choosing to take instant foods mainly for efficiency. Currently the Greater Jakarta area has 7 large restaurant companies with 1.008 outlets. None of the restaurant companies has large cold storage facility to keep food products like beef, burger, chicken meat, sausage, and potato. They generally rent cold storage space of other companies

Kentucky Fried Chicken is the largest instant food restaurant with outlets of 99 units in the Greater Jakarta area, followed by McDonald serving hamburger and fried chicken with outlet in the Greater Jakarta area.

Type of products/services required by different market segment

Different market segments need different cold storage facilities or services.

Retailers, restaurants, ice cream producers and food processing companies need cold storage having chiller room and freezer room.

Fishery and shrimp companies, apart from chiller room and freezer room, also need ABF (Air Blast Freezer) to freeze fish/shrimp under a temperature of -40 degrees. The freezing process normally takes 10 hours.

Importers of fruits need only chiller room as they needs only to keep the their fruits fresh and in good quality.

All customers or the market segments need services of transporting products from factories/ports/suppliers to be stored in warehouses and to be distributed later to outlets/agents, etc.

Consumer's preferences

A customer has criteria of cold storage to be rented. Among the factors they take into consideration before renting cold storage include tariff, handling rate, location, services, hygiene and security.

The rent rates are set on pallets per month. PT. Wira Logistik sets the tariff at Rp 300,000 per pallet per month. The tariff set by PT. AGB Tuna is Rp 27 million per month under storage system and Rp18 million per month under longer term contract.

Most cold storage companies have their own forklifts at least two unit each, but there are some handle the job manually

Distance is also an important factor, but distance is less important if the place has ease access such as with the availability of toll road. Cibitung, which has a number of cold storage companies including PT. Wira Logitama Saksama, and PT. YCH, PT. Sukanda Jaya is located far from Jakarta but the distance is less a problem as it has ease access to the Jakarta-Cikampek toll road.

Pizza Hut restaurants has rented cold storage of PT. Sukanda Djaya for 25 years to handle the distribution of its products to all outlets of Pizza Hut in Java.

Pizza Hut also has established cooperation with PT. Diamond Cold Storage (the parent company of PT. Sukanda Djaya). PT. Diamond Cold Storage as a producer ice cream has become the supplier of ice cream and milk for all outlets of Pizza Hut.

Procurement method and relation between customers and suppliers

Some cold storage operators such as PT. AGB Tuna and PT. Linggagoran Cold Storage, offer only warehouse with the customer handling all the activities of storage, loading and unloading and distribution

Most of such cold storage companies originally operated in the same line of business with their customers that the customers generally know the cold storage companies. Promotion, therefore, is not very necessary to attract customers.

There are also some owners of cold storage rent out their cold storage only to a single customers such as PT. YCH with customer PT. Matahari Putra Prima (MPP).

The cold storage of PT. YCH is entirely rented by PT. Matahari Putra Prima (MPP) since 2000 to keep the products of the retail company before being distributed to its Hypermart (hyper market), Foodmart (supermarket) and Bostons (drugstore).

MPP rents 5 units of cold storage facilities of PT. YCH including 3 units of chilled room and 2 units frozen room. MPP uses the facilities for frozen food products, beverages, chocolate and fruits before being distributed to 7 outlets of its Hypermart and 7 outlets of Foodmart in the Greater Jakarta area.

MPP rents the facilities for 5 years and extension is also for 5 years. The rent is paid every year. The tariff is Rp 2 billion per month or Rp 250,000/m2. Every year the rate is raised by 2%. The electricity bill is on the MPP. PT. YCH gives only the services and handles the maintenance of the facility. All handling activities of procurement. transport and distribution are handled by MPP

Logistics companies offer not only cold storage space, but also storage of the products, loading and unloading as well as distribution of products. PT. West Side Agritama, for example, handles all of the jobs of storage and distribution of goods to 86 outlets of Mc. Donald restaurants in the Greater Jakarta area

The system of long term contract of 5 years such as between PT. YCH and PT. Matahari Putra Prima (MPP) is rare. Most contract system is annually or for less than a year such as between Wira Logistics and its customers.

There are also monthly storage system with monthly payment. A customer using the cold storage for less than 30 days will pay full monthly fee. This system is widely used by customers having trade goods sold fast such as fresh fish that have to be disposed of in 1-2 days. PT. AGB Tuna for example, uses the system for PT. Yanagi and other customer.

Market size

Demand for cold storage facilities could be estimated based on the consumption of products (meat, fruits, vegetables, frozen potatoes, fish, shrimp, etc.) in the Greater Jakarta area and on the average frequency of storage of the products.

Consumption of the products (meat, fruits, vegetables, frozen potatoes, fish, shrimp, etc) in the Greater Jakarta area is estimated to average 441,000 tons/month, and 114,000 tons of the products would need cold storage facility per month. S/month. Realization, however, is estimated to reach only 73,800 tons/month in 2009 including beef 9,600 tons, fresh fish/frozen shrimp 25,600 tons, fruits 9,473 tons, vegetables 5,985 tons and frozen potatoes 2,364 tons.

The demand for cold storage service is based on assumption of average storage as shown in the following table. It is assumed that 80% of imported meat in Jakarta needs cold storage for 30 days on the average before the meat reaches the end consumers. Based on that assumption, 9,600 tons of the total consumption of 12,000 tons of meat in the Greater Jakarta are put in cold storage for a month. Cold storage capacity needed for meat in the Greater Jakarta area, therefore, is 9,600 tons.

The Greater Jakarta area has around 26 companies operating cold storage facilities in 2009 with a total capacity of 75,056 tons. Around 75% of the capacity is estimated to be rented out and 25% for own use.

Based on that assumption, the capacity is for rent is 56,292 tons. Base on the field surveys, 80% of the space of cold storage facilities for rent has been rented out under long term lease.

Assuming that the monthly rent is US$ 30 per sq.m per month, the total market value of cold storage service in the Greater Jakarta area is around US$20.53 million a year. The value does not include handling cost and supporting service cost, which are almost the same as the rent. The total market value therefore is around US$40 million a year.

Market projection (demand projections and prospects of new cold storage facilities).

Demand for cold storage service in the Greater Jakarta area is high as indicated by the act that almost all cold storage warehouses are always fully used for meat, fish, fruits, vegetables and ice cream. The strong demand has prompted capacity expansion by a number of operators such as PT. YCH Indonesia. yCh plans to expand the space of its cold storage warehouse from 8,000 sq.m with a capacity of 2,000 tons to 20,000 sq.m next year.

PT. Japfa Santory plans to build new cold storage facility with a capacity of 400 tons in 2009 and PT. Wirontonso plans to build 2 new units of cold storage with a total capacity of 4,000 tons next year.

Demand for Cold storage service is predicted to increase in the coming years especially from retail companies and restaurants, which grow fast in the big cities in the country.

Imports of food products like meat and fish and fruits, which need cold storage service are expected to increase to follow the growing population. Based on the past trend, demand for cold storage service will increase 10%-20% annually in the Greater Jakarta area bringing the capacity requirement to around 96,000 tons in 2010 or an additional capacity of 21,000 tons from the present capacity of 75,000 tons. See the following table.


Cold storage business in Jakarta has continued to flourish to follow the rapid expansion of retail business including restaurant chains and food and beverage manufacturing industry that will need cold storage service. Among the big retail companies with big chain are Carrefour, Giant, Hypermart and Lotte Mart. Restaurants having big chains are Kentucky Fried Chicken, Mc Donald, Pizza Hut, Hoka-Hoka Bento, etc. And big ice cream producers are Diamond Cold Storage, Unilever, etc. The food products need to be kept under a low temperature as low as 2 degrees below zero

In Jakarta and its satellite cities there are around 40 cold storage companies and 28 of them have a total capacity of 75,056 tons in 2009. The largest cold storage companies are is PT. Wira Logitama Saksama, PT. Sukanda Djaya and YCH. The capacity is not enough compared to requirement of 114,000 tons/month.

The location of cold storage facility is important to guarantee smooth distribution of goods. Apart from renting out the service the companies also serve to distribute goods on request from their customers. The cold storage facilities are generally located in areas with adequate infrastructure and transport facility close to toll roads. In Jakarta cold storage companies mainly offering storage of food products including frozen food, meat, fish, fruits and vegetables are located mainly in North Jakarta areas like Ancol, Sunter, Muara Baru, Muara Karang and Pademangan. The locations are strategic as they are close to the Tanjung Priok port the largest gate for export and import products. The locations are also linked with toll roads including Cawang--Tanjung Priok and Tanjung Priok--Pluit, to guarantee smooth distribution.

In West Jakarta, the main location of cold storage companies is Muara Angke, which is close to fish auction center, fresh fish market, and fishermen's kampongs. The location of Muara Angke is also strategic as it has good access to the Pluit toll road and the toll road leading to the Soekarno Hatta airport.

Cold storage warehouses as part of logistics companies are located mainly in East Jakarta such especially in the Cibitung industrial estate. In that area there are three logistic companies the largest in Indonesia including PT. Wira Logitama Saksama, PT. Sukanda Jaya and PT. YCH. In addition in that area there is cold storage warehouses of Superindo retain chain. The Cibitung industrial zone has an easy access to one of the Jakarta-Cikampek toll road.

With limited capacity of cold storage owned by retail chains and restaurant chains the opportunity is good for the expansion of cold storage facility for rent.

The retain business chains including restaurant chains are expected to continue to grow in the country with the expanding trend of the economy. Demand for cold storage service, therefore, is forecast to grow still in the future. In next five years, demand for cold storage in the Greater Jakarta area is expected to grow to reach a total capacity of 152 tons in 2012 up from 132 tons in 2011. The capacity is forecast to grow further to 212 tons in 2015.
List of products needing refrigeration and temperatures

 Products Temperature Relative
 ([degrees]C) Humidity (%)

Fresh grape, and 0 80-90
 date, Apricot
Mushroom 0 90 ~ 95
Banana, Durian half ripe 14 ~ 16 80 ~ 90
Chocolate 15 ~ 18 50 ~ 60
Fruits in general 4 ~ 6 80 ~ 90
Durian (ripe) 4 ~ 6 80 ~ 90
Cake 4 ~ 8 60 ~ 70
Vegetables 6 ~ 8 80 ~ 90
Flowers 8 ~ 16 70 ~ 75
Fresh meat -2 ~ 0 80 ~ 90
Seafood (Fish, shrimps, -2 95 ~ 100
Dairy Product (Cheese, 0 -
 milk, Yoghurt)
Fruit juices -2 ~ 0 -
French Fries -10 ~ 0 -
 (Frozen potatoes)
Frozen fruits -10 ~ 0 -
 and vegetables
Frozen meat -20 -
Ice cream -20 -
Frozen fish (seafood) -20 -
Frozen tuna -40 ~ -60 -
Premium beef -40 ~-50 -

Source: Field research

Number of cold storage operators by core business in
Greater Jakarta area, 2009

Business lines Number of Capacity
 companies (tons)

Cold storage (including logistics) 11 62.385
Ice cream industry 2 3.925
Food processing industry/imports of meat 7 3.730
 (including slaughterhouses operation)
Fishery and shrimp industry 3 3,535
Retail business 1 500
Imports of fruits 2 980
Total 26 75.056

Source: Data Consult

Companies and cold storage capacity in the Greater Jakarta area

No. Companies Cold storage Capacity (tons)
 space (sq.m)
 Cold storage

 1 PT. Sukanda Jaya 14,000 45,000
 2 PT. Bonecom Servistama 8,750 6,000
 Compindo (BOSCO)
 3 PT. Wirontono Cold 1,600 3,840
 Storage & Industry
 4 PT. YCH 8,000 2,000
 5 PT. Wira Logitama Saksama 1,200 1,600
 6 PT. AGB Tuna 2,100 1,500
 7 PT. Pincuran Mas Bina Usaha 3,000 960
 8 PT. Karunia Segar Utama 700 560
 9 PT. West Side Agritama 1,134 400
 10 PT. Pluit Cold Storage 400 225
 11 PT. AGB Ice & Fisheries 852 300
 Sub total 41,376 62,385


 Ice Cream Industry

 12 PT. Unilever (Wall's ice cream) 1,950 3,000
 13 PT. Diamond Cold Storage 6,000 925
 (Diamond ice cream)
 Sub total 7,950 3,925

 Food manufacturers/importers
 of meat

 14 PT. Indoguna Utama 6,600 1,000
 15 PT. Belfoods Indonesia 1,440 960
 16 PT. Dharma Jaya 664 720
 17 PT. Japfa Santori Indonesia 800 400
 18 PT. Anzindo Gratia 220 300
 19 PT. San Miguel Pure 300 200
 Foods Indonesia
 20 PT. Madusari Nusaperdana 221 150
 Sub total 10,245 3,730

 Fish and shrimp
 industry /exporters

 21 PT. Samudra Dharma Fishing 6,600 3,000
 22 PT. Jaya Samudera Mega Mas 240 400
 23 PT. Lola Mina 2,600 135
 Sub total 9,440 3,535

 Importers of fruits

 24 PT. Ancol Fruits Lestari 600 580
 25 PT. Linggagoran Cold Storage 500 400
 Sub total 1,100 980
 Ritailer networks
 26 Superindo 1,200 500
 Sub total 1,200 500
 TOTAL 71,311 75,056

Source Data Consult

Locations of cold storage facilities, 2009

 Areas Number companies Capacity
 (fruits) (tons)

North 9 10,390
East 11 60,046
South 5 2,520
West 3 2,100
Total 28 75,056

Source: Data Consult

Cold storage companies by locations

No. Name of Companies Lines of business

 Northern area

 1 PT. Bonecom Servistama Cold storage
 Compindo (BOSCO)
 2 PT. Linggagoran Cold Storage Importers of fruits
 3 PT. Ancol Fruits Lestari Importers of fruits
 4 PT. Wirontono Cold Cold storage
 Storage & Industry
 5 PT. Pluit Cold Storage Cold storage
 6 PT. Pincuran Mas Bina Usaha Cold storage
 7 PT. Diamond Cold Storage Ice cream industry
 8 PT. Lola Mina Fish and shrimp industry
 9 PT. Samudra Dharma Fishing Industri fish and shrimp

 Western area

 1 PT. AGB Tuna Cold storage
 2 PT. Anzindo Gratia International Importers of meat
 3 PT. AGB Ice & Fisheries Indonesia Cold storage

 Eastern area

 1 PT. West Side Agritama Distribution
 2 PT. Sukanda Djaya Distribution

 3 PD. Dharma Jaya Animal slaughtering
 4 PT. Indoguna Utama Meat importers of
 5 PT. Unilever (Wall's Ice Cream) Ice cream industry
 6 PT. Wira Logitama Saksama Logistic

 7 PT. YCH Logistic

 8 PT. Madusari Nusa Perdana Meat processing industry
 9 Superindo Retail

10 Carrefour Retail

11 Giant Retail

 Southern area

 1 PT. Jaya Samudera Mega Mas Fish and shrimp industry
 2 PT. Japfa Santori Indonesia Meat processing industry
 3 PT. Belfoods Indonesia Meat processing industry
 4 PT. San Miguel Pure Meat processing industry
 Foods Indonesia
 5 PT. Karunia Segar Utama Meat importers of

No. Products kept in storage

 Northern area

 1 Chicken meat, fish
 and frozen food
 2 Fruits
 3 Fruits
 4 Fish, meat and fruits

 5 Fruits, ice cream
 6 Fruits
 7 Ice cream
 8 Fish, shrimp
 9 Fish and shrimp

 Western area

 1 Fish, shrimp, ice cream
 2 Meat
 3 Fish, shrimp

 Eastern area

 1 Meat , potato
 2 Meat , chicken,
 potato, ice cream
 3 Meat
 4 Meat
 5 Ice cream
 6 Meat , chicken, frozen food,
 food basic materials
 7 Meat , chicken, fruits,
 syrup, chocolate, cake
 8 Meat
 9 Meat , chicken, fish, frozen
 food, fruits, vegetables
10 Meat , chicken, frozen
 food, fruits, vegetables
11 Meat , chicken, fish, frozen
 food, fruits, vegetables

 Southern area

 1 Fish, shrimp
 2 Frozen food
 3 Meat
 4 Meat, frozen food
 5 Meat

Source: Data Consult

Main users of cold storage in Greater Jakarta area

 Lines of business Description

Retail networks Storing trade goods such
 as meat, chicken, frozen
 foods, basic materials of
 manufactured foods,
 vegetables, fruits,
 chocolate, etc.
Restaurant chains Storing products like meat,
 chicken, sausage, fruits,
 vegetables, etc.
Importers of fruits Storing imported fruits
 before being distributed
 distributors, agent or fruit
 stores such as apple, grape,
 orange, kiwi, durian, etc.
Importer of meat/ Storing imported
 slaughtering meat such as beef,
 house chicken and
 duck meats
Ice cream industry Storing ice cream products
 before being distributed
 to retail outlets and stores.
Food processing Storing processed meat
 industry products such as chicken
 meat, sausage, nugget
 and potatoes.
Fishery Industry Storing fresh fish or
 processed fish/shrimp
 for exports or for
 domestic market.

Source: Data Consult

Retailers and number of outlets in the Greater Jakarta area

 Name of retailers Status Number of outlets

Carrefour PMA (France) 34
Hypermart Local 7
Giant PMA (Malaysia) 7
Makro PMA (Korea) 6
Superindo PMA (France) 28
Alfa Midi Local 20
Alfamart Local 1.700
Hero PMA (Malaysia) 49
Foodmart Local 7
Indomaret (Mini market) Local 488
Total 2.346

Source: Data Consult

Restaurant operators and number
of outlets in the Greater Jakarta area

Name of restaurants Number of outlets

Kentucky Fried Chicken 99
Texas Fried Chicken 28
Mc. Donald 86
Pizza Hut 78
Hoka-Hoka Bento 79
Solaria 21
Hanamasa 23
A&W 42
Wendys 20
Tamani Cafe 21
Popeye Chicken & Seafood 21
Baskin Robbins Ice Cream 50
Other around 20 companies 400
Total 1.058

Source: Data Consult

Products /services needed by market segments

Market segment Facilities needed

Retailers - Chiller Room
 - Freezer Room

Restaurants - Chiller Room
 - Freezer Room

Importers of fruits - Chiller Room

Food processing - Chiller Room
industry - Freezer Room

Fishery/shrimp - Air Blast Freezer
Industry & importers (ABF)
of fish - Freezer room
 - Chiller room

Market segment Type of services

Retailers - Transporting goods from
 suppliers to be
 stored in warehouse

 - Distribution of
 stocks to outlets

Restaurants - Transporting
 imported goods from
 suppliers or ports
 - Storage of
 goods in warehouse
 - Distribution
 of stocks to
 all outlets
Importers of fruits - Transport of
 importer goods
 from ports
 - Storage in warehouse
 - Distribution to
 agents/fruit stores
Food processing - Transport of
industry products from factories
 - Storage at warehouse
 - Distribution to
Fishery/shrimp - Freezing of fish
Industry & importers - Storage in
of fish warehouse
 - Distribution to
 - Transport to port
 for exports

Market segment Description

Retailers - Some retailers
 use the service of
 distribution companies
 centre (logistics)
 such as Makro
 - Some retailers
 handle their entire
 activities such
 as Hypermart
Restaurants Generally
 restaurants use the
 service of distribution
 company's centre
 such as Mc.
 Donald, Pizza Hut.

Importers of fruits Generally handle
 their entire activities

Food processing Generally use the
industry service of distribution
 companies centre

Fishery/shrimp Generally handle
Industry & importers their entire
of fish activities

Source : Data Consult

Factors determining choice of cold storage service

 Factors Description

Low tariff Low tariff is important.
 All cold storage companies
 offer different tariffs
 set on pallet per month.
Efficient handling Efficiency in handling at
 loading and loading time
 is factor to be considered
 by customers as they want the
 quality of their products
 unaffected. They do not want
 their products to have
 defect because of poor
Services Fast and good service
 will satisfy the customers.
Distance Ease access to the
 location of cold storage
 is important such as being
 close to port or toll road
 to save transport cost.

Factors Description
Security Security around the cold
 storage warehouse is
 important. The customers
 will feel safe to keep
 their products in that
 place round the clock.
Hygiene Cold storage warehouse must
 remain clean as he products
 to be kept in storage are
 generally easily polluted
 with dirt or contaminated
 with bacteria.

Source: Data Consult

Cold storage facility requirement
by goods needing cold storage per month in
the Greater Jakarta area, 2009

 Goods Consumption Needing cold Realization of
 tons/month storage (tons/month) goods using C.S

Beef 12,000 9,600 9,600
Chicken meat 14,000 3,500 3,500
Fish /shrimp 32,000 25,600 25,600
Fruits 126,300 18,945 9,473
Vegetables 171,000 25,650 5,985
Frozen 2,955 2,364 2,364
Ice Cream 10,000 10,000 5,000
Sub total 368,255 95,659 61,522
Lain-lain 73,651 19,132 12,304
Total 441,906 114,791 73,826

Source: Data Consult

Percentage of food products put
in cold storage and length of storage

 Sectors Potential Demand Average length of
 for CS storage (days)

Meat 80% 30
Fish /shrimp 50% 30
Fruits 15% 15
Vegetables 10% 7
Frozen potatoes 80% 30
Ice Cream 100% 15

Source: Data Consult

Estimate of market value of cold storage services
In the Greater Jakarta area, 2009

 Description Total

Capacity for rent (tons) 75,056 tons
Capacity is rented out 56,292 tons
Market value (US$) US$ 40 million

Source: Data Consult

Estimate of potential demand for cold storage in
the Greater Jakarta area, 2010-2014

Year Projected demand Demand for additional
 for cold storage Cold storage capacity (tons)
 capacity (tons)

2010 96 21
2011 132 36
2012 152 20
2013 175 23
2014 192 17
2015 212 19

Source: Data Consult
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Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Aug 1, 2011
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