Agribusiness and Food
Continuous research & development as well as implementation of environmentally friendly agricultural practices enable continuing increase in productivity and profitability
Sinar Mas started the agribusiness by trading in coconut oil and later integrated into production to support the trading activities. In 1968, Pabrik Bitung Manado Oil Ltd., the first factory to produce coconut oil was setup and later on Sayang Heulang in Bandung and Mulyorejo in Surabaya were added. In 1980, Sinar Mas modified its production facilities to enable the production of palm oil. In order to secure raw material supply, the company bought over a small company that cultivated palm plantation estate and produced crude palm oil. From this small palm plantation, Sinar Mas saw great potential in generating jobs for a large number of Indonesians. Today, the cultivation and operation of palm plantations is the foundation of Sinar Mas Agribusiness and Food division. The plantations are a major employer of local resources and indirectly support a greater number of people and communities throughout Indonesia.
Accreditation from the Hazard Analysis Critical Control Point (HACCP) and other quality and environment management systems have helped in penetrating the international markets and assisting the product to become the preferred choice both in the industrial as well as consumer segments. Extensive distribution network ensures the availability of the products and helps in constantly increasing market share. Intensive advertising and in-store promotion are also carried out to support the various brands.
The journey from trading in coconut oil to its present position has seen a lot of transition. The product range now includes cooking oil, margarine, shortening, specialty and frying fats amongst others. Today, the products from the agribusiness and food division can be found in almost all the houses in Indonesia and also in many other parts of the globe.
