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Musim Mas Group.


The company dates back to 1937 when Anwar Karim established a soap factory named Nam Cheong in Medan, North Sumatra. The embryo of the Musim Mas Group (MMG) grew. The business was thriving and the company expanded operation to oil palm plantations. Success in the plantation business the company expanded business to the downstream sector by building crude palm processing factory.

Currently MMG is under the management of Anwar Karim's children Bachtiar Karim, Burhan Karim and Bahari Karim. Bachtiar Karim has assets worth US$ 230 million placing him in the ranks of the richest people in Indonesia.

Currently MMG has a number of subsidiaries including PT. Musim Mas, PT. Megasurya Mas, PT. Intibenua Perkasatama, PT. Indo Karya Internusa, PT. Agro Makmur Raya, PT. Mikie Oleo Nabati Industri, PT. Bina Karya Pratama and PT. Brastagi Bintang Asia. MMG operating in integrated industry hat includes oil palm plantation, CPO processing plants producing feedstock for soap, margarine, cooking oil and candle industries. mMg has one of the largest palm oil mills in Indonesia. MMG also has tankers, wheat terminal and mass tanker terminal. Its CPO processing, cooking oil and soap factories are located respectively in Medan, Bekasi, and Sidoarjo.

From 1992 to 2005, MMG won the token of appreciation Primaniyarta from the government as the best Indonesian exporter. It exports various commodities mainly fatty acid.

Soap, cooking oil and margarine industries

MMG, through its subsidiary PT. Megasurya Mas (PT. MSM), which was established in 1992, is located in Surabaya, East Java. It operates in bath soap, cooking oil and margarine manufacturing industries.

PT. MSM) was established in 1992 in Surabaya, East Java. Its bath soap products are known with the brand of Harmony, Lervia and Lark, and medicated soap with the brand of Medicare.

Lark is sold in Sumatra and Harmony and Medicare outside Sumatra. PT. MSM also produces cooking oil with the brand of SunCo.

Bath-soap with the brand of Harmony is quite popular in the market with the aromas of Orange Satsuma, Alpine Strawberry and Grape.

In 2000, PT. MSM started exporting bath soap Harmony and Lervia to various countries including Middle East, Ghana, Nigeria, Japan, South Korea, Taiwan India, Australia, Europe, Canada, Argentina, Brazil, Peru and Colombia. Currently the company exports 64% of its production.

Around 70% of perfume needed for its bath-soap products is supplied by the Symrise Group from Germany. However, in 2010, there was a dispute between PT. MSM and Symrise Asia Pacific in Singapore with PT. MSM claiming that Symrise failed in the delivery of perfume causing it a loss of US$11.87 million. Symrise rejected the claim and brought the case to an arbitration agency in Singapore.

PT. MSM has a production capacity of 10,000 tons of cooking oil per day from a number of its factories such as ones in Jakarta, Bekasi, Surabaya, Medan, Dumai, and Palembang. Its cooking oil product is known in the market with the brand of Sunco.

In 2011, PT. MSM fortified 80,000 tons of its bulk cooking oil with vitamin A to be disposed on in East Java. The fortification in March 2011 was to increase the nutritional value of the cooking oil. Fortification with vitamin A in Indonesia is not a requirement; therefore, not all products of cooking oil in the country have been fortified with the vitamin. The company plans fortification by phases starting in East Java. So far MMG has fortified 114, 000 tons of cooking oil with vitamin A since February 2010 for the canned product with the brand of SunCo.

By the end of 2011, PT. MSM and other producers of cooking oil including PT Salim Ivomas Pratama, Permata Hijau Group, PT Sinar Mas, PT Mega Surya Mas, Wilmar Group, dan PT Pratama Nabati Perkasa were assigned by the trade ministry to produce packaged cooking oil for the government with the brand of Minyakita for domestic supply in 2012.

The Trade Ministry has also named a number of distributors including PT Perusahaan Perdagangan Indonesia (PPI) to launch socialization with market survey. In 2011, the company that belongs to the trade ministry and the ministry of state enterprises distributed 4 to 5 tons of cooking oil per month.

Currently, distribution of Minyakita is still limited to a number of large cities--Bandung, Jakarta, Semarang, Surabaya, Medan, Denpasar, and Makasar. Around 63% of the domestic consumption of cooking oil is in bulk. The distribution of Minyakita is expected to help maintain stability in the prices of cooking oil in the country. The prices of cooking oil in the country have tended to increase to follow the trend in international market.

The prices of Minyakita are set below the prices of premium quality cooking oil but higher than the prices of cooking oil in bulk. Minyakita is packed in 1 liter, 0.5 liter and 0.25 liter containers.

Minyakita has secured the halal certificate from the Indonesian Ulema Council (MUI), distribution permit from drug and food watchdog--the Drug and Food Control Agency (BPOM), and the brand license from the ministry of justice and human rights. Its quality is up to the Indonesian National Standard. The government plans to give tax incentive for the producers of Minyakita to boost sales of the cooking oil in 2014.

PT. MSM also produces butter and shortening with he brands of Novina, Magareta and Minarin. The products of MSM have secured the certificate of international standard of HACCP, ISO 2001-ISO 14001. Its margarine and shortening production are sold mainly in East Java.

The company also produces household cleaning agent with the brand of Pizzi. The product include cloth softener and floor cleaner with the aroma of apple, pine, lemon and lavender, and soap dish cleaning soap with the aromas of lime and lemon, and hand cleaning soap with the aromas of orange, strawberry, apple and lemon.

PT. Bina Karya Prima (PT. BKP) was established in 1981 operating in soap, cooking oil and margarine industries.

The company produces cooking oil with the brands of Tropical and Frais Well. Its margarine is known with the brand of for Vita and shortening with the brand of Majesty.

Its products of personal care include medicated soap with the brands of Active and Zahara, fruity soap with the brand of Holi, bath soap with the brand of Shinzui, face cleaning soap with the brand of Dream, body spray perfume with the brands of Cool Man and Sportz.

Its products of toiletries include soap with the brands of Maxi and Zaap, laundry soap with the brand of Radio, laundry soap with the brand of Zinq and laundry soap with the brand of Radio.

Oleo-chemical Industry

PT. Musim Mas (PT. MM) was established in 1972 operating in soap industry. In 1988, the company expanded its business to palm oil sector by building oil palm plantation and palm oil processing factories. Its pal oil refinery has a production capacity of 100 tons per day. PT. MM started business in the palm oil sector by buying 1,400 hectares oil palm plantation in Rantauperapat, North Sumatra.

Currently its oil palm plantations have expanded to reach 28,000 hectares in Riau alone in addition to ones in Sumba and Central Kalimantan.

Currently PT. MM has 8 refineries in different areas in Indonesia. Its production capacity fatty acid and glycerin totals 160,000 tons/year. PT MM is the first Indonesian member of the RSPO (Roundtable on Sustainable Palm Oil).

In 2004, PT. MM already exported its products to 124 countries. The export commodities included processed products of palm oil and derivatives including fatty acid and glycerin which consist of 59 products valued at around US$ 602.3 million (Rp6 trillion).

In 2001, PT. MM began business in oleo-chemical industry by building fatty acid and glycerin factory. In 2005, PT. MM built a fatty alcohol factory with high technology. The construction of the oleo-chemical factories, which started operation in 2007, cost around US$170 million.

Currently the country's production capacity of fatty alcohol reached 320,000 tons per year. Other producers include PT Ecogreen Oleo-chemicals and PT Bakrie Sumatra Plantations. Meanwhile, the Wilmar Group is building a new factory in Gresik, East Java, with a capacity of 460,000 tons per year. In Asean, Malaysia is the largest producer of oleo-chemicals with producing companies including KLK and IOI.

PT MM has a CPO factory with a production capacity of 8,100 tons per day to provide the feedstock for its factories, and 80 palm oil processing capacity with a processing capacity of. 30 tons of fresh fruit bunches (FFB) of oil palm per hour with fruits supplied from around 400,000 hectares of plantations.

PT. MM needs 3 million tons of palm oil basic material per year to feed its factories. Part of the palm oil requirement is supplied from other companies state plantation companies (PTPN) and private companies.

The basic material in the form of palm oil is put into refineries that also produce soap as by product. Part of the palm oil is also used to feed its oleo-chemical factories.

PT. MM in Riau operates 2 units of palm oil factories with a total production capacity of 152,310 tons CPO and one palm kernel factory with a capacity of 34,417 tons. Fresh fruit bunches (FFB) are supplied from 6 plantations of the company. It has 28,000 hectares of oil palm plantations. Its two palm oil factories were granted the RSPO certificate in 2009.

PT. MM cooperates with oil palm plasma farmers by managing two cooperatives that group 833 farmers with 1,678 hectares of oil palm plantations.

In 2009 PT. MM expanded its oil palm plantations by 1,000 hectares in Riau, North Sumatra, Jambi, and Kalimantan. The expansion cost around US$5 billion or US$ 50 million per hectare.

In 2010 PT. MM proposed certification of its two factories and plantations in Pangakalan Kuras and Pangkalan Lesung, Palalawan, Riau.

In three from 2011, the MMG plans to invest US$860 million to expand its production capacity of its refineries, oleo-chemical factories ad well as bio-diesel, fine chemical and specialty fat plants. In the first phase capacity expansion is made by increasing the capacity of its existing plants. New factories will be built in Kalimantan and Sulawesi.

Currently PT. MM which has oil palm plantations in North Sumatra, Riau, and Kalimantan, contributes 10% to the world's palm oil requirement and 20% to the Indonesia's requirement. MMG exports 3 million tons of FFB, palm kernel and palm oil a year.

MMG also has a factory producing palm methyl ester with a production capacity of 50,000 tons per year. The factory came on line in 2007. Palm methyl ester is used as a component in a mixture with rapeseed and soybean-based bio-diesel.

In 2011, PT. MM and six other large oil palm plantation companies and palm oil producers started investing a total of Rp20 trillion in Indonesia. They were prompted by the government's offer of incentives including tax holiday and tax allowance. The MMG contributed Rp2 trillion to the investment. The six other companies include Wilmar International Group to invest Rp8.1 trillion, Sinar Mas Group to invest Rp2.3 trillion, Permata Hijau Group Rp 2 trillion, Domba Mas Group Rp1.6 trillion, PTPN III and Ferrostaal AG Rp3 trillion, and PT VVF (India's oleo-chemical company) Rp900 billion.

Hotel and Resort

MMG through subsidiary PT. Brastagi Bintang Asia (PT. BBA) has also business in hotel industry with hotel named Mikie Holiday Resort & Hotel in Brastagi, North Sumatra built in 2000. The hotel has 129 rooms. It has a big aula Star Theatre with a seat capacity of 1,052. PT. BBA is planning to build a larger theater with a 3,000 seat capacity.

In 2009 PT. BBA developed Mikie Funland, an outdoor recreation facility and a children's play ground over a 10 hectare plot of land. Funland provides 34 types of play mode such as Go-Kart, Bumper Boat, Flying Fox, Sky Rider, Hello Kiddies, Buzz Coaster, Video Arcade, Bumper Cars, Fun 'n Jump and Twister. Funland has around 2,500 visitors per day and 8,000 on holidays.

Early 2011, PT. BBA expanded its play ground and added two new types of play Dyno Egg and Sea Monster in the Funland It plans to add two new plays every year in the Funland.
Plantations in Pangkalan Kuras and Pangkalan Lesung, Riau

 Own farmers'
Plantations plantations plantations Total

Pangkalan Kuras :
--Size (Hectares) 890 -- 890
--Production of FFB (tons) 271,442 22,111 293,553
--Production CPO (tons) 69,519 5,749 75,268
--Production of palm kernel (tons) 16,287 1,327 17,614
Pangkalan Lesung:
--Size (Hectares) 850 -- 850
--Production of FFB (tons) 295,736 17,643 313,379
--Production of CPO (tons) 72,544 4,587 77,042
--Production of palm kernel (tons) 17,744 1,059 18,803

Source: ICN
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Title Annotation:COMPANY PROFILE
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Geographic Code:9INDO
Date:Sep 1, 2011
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