The two largest cassava industry players in Indonesia—which produce sorbitol, tapioca flour, and other cassava derived products—are PT Sorini Agro Asia Corporindo Tbk (IDX: SOBI) in Pasuruan, East Java and also PT Budi Starch & Sweetener Tbk of Sungai Budi Group (IDX: BUDI) in Bandar Lampung, Lampung Province.

PT Sorini Agro Asia Corporindo Tbk (PT Sorini) of Aneka Kimia Raya (AKR) Corporindo Group) was established by Soegiarto Adikoesoemo in 1983. The idea of establishing PT Sorini as a sorbitol producer came when Soegiarto was an importer of sorbitol for Unilever Indonesia in the late 70s. Back then, Soegiarto realized that Indonesia has plenty of raw materials—cassava and tapioca flour—for the production of sorbitol. He thus embarked on the quest to produce sorbitol himself.

PT Sorini did not begin operation until 1987, the year when its tapioca factory in Ponorogo and its sorbitol production facilities in Pasuruan, East Java were completed.  PT Sorini was able to produce up to 5,000 tons of liquid sorbitol per annum in its early years. The company were reportedly able to double its production within two years of operation.

PT Sorini is known to produce starch and starch derivative products ranging from sorbitol syrup and powder, maltitol, extrorse monohydrate, maltose syrup, maltodextrin, and fructose syrup—which are known as the raw materials for consumer goods products such as cosmetic, pharmaceuticals, and also food and beverages. The company sells its product to a number of multinational companies such as Unilever, Colgate, Nestle, Arcor and also Palmolive.

Nowadays, PT Sorini has five starch factories and two sweetener factories located in Lampung and East Java. According to 2013/2014 SOBI annual report, the company has been able to produce 428,265 tons per May 2014, this figure is higher compared to similar period in the previous year (366,652 tons per May 2013). Meanwhile, the sales of Sorini’s sweetener products reached 293,506 tons per May 2014, which is slightly higher compared to the sales in the previous year, which was 274,844 tons per May 2013.

PT Sorini was able to generate net revenue of 2,132,090 million Indonesian Rupiah per 2014, with 4 percent increase from previous year, which was 2,048,023 million Rupiah per 2013.

In January 2011, PT Sorini Agro Asia Corporindo Tbk was acquired by PT Cargill Foods Indonesia with 85.01 percent ownership of the company. By May 2011, Cargill Indonesia owned 97.99 percent of PT Sorini. Since then, PT Sorini became the subsidiary of PT Cargill Food Indonesia.

PT Budi Starch & Sweetener Tbk (which is formerly known as PT Budi Acid Jaya Tbk), on the other hand, was established under the business group of Sungai Budi Group in 1979 by Widarto and Santoso Winata. The duo have been actively involved in PT Budi Starch and Sweetener since 1987.

Since its establishment in 1979, the company has developed three subsidiaries—PT Associated British Budi, PT Budi Lumbung Ciptani and also Budi Starch & Sweetener Singapore Pte. Ltd (in Singapore)—with 21 factories located in East Java, West Java and Lampung.

Established as a tapioca flour producer, PT Budi Starch and Sweetener has expanded its business to produce derivative products of cassava ranging from glucose, fructose, maltodextrin and also sorbitol. PT Budi Starch & Sweetener believes that the sweeter product has added value as they contributed to 30 percent increase in sales.

According to the 2013 PT Budi Starch & Sweeteners annual report, the company produced 720,000 tons of tapioca flour, 64,800 tons of glucose and also 18,000 tons of glucose and sorbitol in 2013. Referring to 2013 BUDI annual report, BUDI generated revenue of 2,569 billion Rupiah in 2013, this figure is higher compared to the previous year, which was 2,295.4 billion Rupiah.

DISCLAIMER: AUTHOR HAS NO POSITION IN STOCKS MENTIONED

 

By Elisabeth Oktofani

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