JAKARTA, PT Japfa Comfeed Indonesia Tbk (JPFA, member of the Kompas100 index) continues to expand its export products. Issuers of the Kompas100 Index start targeting Middle Eastern and Chinese markets.
Deputy Director of Japfa Comfeed Bambang Budi Hendarto said the products to be exported to the Middle East were chicken meat and various preparations. This cannot be separated from the direction of the Minister of Agriculture who urged JPFA to seize the market share of processed chicken in the Middle East which has been controlled by Thailand.
Also Read: Throughout 2019, the export value of Japfa Comfeed (JPFA) reached Rp 500 billion
In fact, Indonesia is famous for its halal processed products and has the potential to penetrate the Middle East market, which is predominantly Muslim.
“Earlier I was given a directive by the Minister of Agriculture that in the Middle East there are many processed chicken products originating from Thailand. While we ourselves a country which is proven by its halal products will actually be easier to enter the Middle East market,” Bambang told Kontan.co.id, Sunday (12/12).
However, to smooth out this expansion plan Bambang hopes that government intervention through the Ministry of Agriculture. The expected regulation is price regulation so that JPFA products can compete with products from Thailand.
“This needs regulatory assistance that can support exports;” continued Bambang.
Also Read: Competition in the logistics business is getting tougher, Ritase offers multimodal services
Besides the Middle East, JPFA is also aiming at the Chinese market. Bambang said, JPFA had sent a team assigned to open markets in China. At present, JPFA is incessant to promote its products in the Bamboo Curtain country.
Bambang reiterated, the need for government intervention to realize government to government cooperation.
“We want to know how to regulate a product to enter the Chinese market,” he added.
Meanwhile, next year JPFA will allocate capital expenditure (capex) of around Rp 2 trillion. Bambang said, this capex will be used for investment and for other additional production facilities.
“According to the budget we propose, we will invest again for additional facilities and others of around Rp 2 trillion,” Bambang told Kontan.co.id, Sunday (12/8).
Also Read: JCI fell 1.16% to 5,953.06 levels amid the heating up of the US-China
Kontan.co.id noted, this year the issuer of the Kompas100 Index occupies capital expenditure of up to Rp 3 trillion. This much money used for capital expenditure will be used for business development.
Bambang admitted, all the capital expenditure budgeted this year has been used.