Case Study of Agribussiness Agent In Indonesia

Pada


Profile:
  • Name : Pasifik Agro Sentosa, Ltd
  • Category         : Private company
  • Focus : Palm oil industry and refined sugar. 
  • Motto : Go Sustainable Forever

Total land owned : +108,000 ha, consist of:
  • 53.733 ha planted
  • 7.238 ha ready for planting
  • 9.632 ha prepared for future development of oil palm plantations 
  • 27.600 ha prepared for the sugar cane plantations. 
Production sites:
  • 3 Oil palm plantations in North Sumatra
  • 1 Oil palm plantation in South Sumatra
  • 1 Sugar mill in Banten
  • 4 Oil palm plantations in West Kalimantan
  • 1 Sugar cane plantation and sugar mill in West Kalimantan
  • 2 Sugar cane plantation and sugar mill in Southeast Sulawesi
In total, 
Palm oil processing capacity: 225 Mt of FFB (fresh fruit bunches) /hour. 
Sugar refining capacity: 400,000 Mt/year.

International Certification:
  • Certified in international palmoil certification: Oil Palm Refiners Association of Malaysia (PORAM)
The analysis consist of:
  • Fatty Acids Free
  • Moisture and impurities
  • Iodine Value
  • Dobi, and
  • Carotene. 
Another certification:
  • ISO 9001 for quality management,
  • ISO 14001 for environmental management systems
  • ISO 22000 for food safety
  • OHSAS 18001 for occupational health & safety
  • SNI for quality refined sugar
With this quality standard, they are confident to expand they market in the coming years.

Principle:

PT PAS adopted the principle of 3P (Profit, People and Planet)

Corporate Social Responsibillity (CSR):
  • Actively implementing conservation by setting approximately 10,000 hectares or almost 20% of the owned area for conservation purposes. 
  • Implement Conservation Area Management Programme in cooperation with:
    • FFI (Fauna & Flora International)
    • USAID-IFACS (United State Agency for International Development - Indonesia Forest and Climate Support) and the direction of BKSDA (Natural Resources Conservation Board).
  • Since 2005, initiated a program called the Community Development Program, which is manage the social welfare of society and empower local communities. 
  • Member of the RSPO (Roundtable on Sustainable Palm Oil). 
ANALISYS

Strength Factors Identification:
  • Enviroment friendly & local technology
    • Circulation Fluidized Bed (CFB) type of boiler -> works with charcoal power that produced locally, Electroprecipitator (EP) -> absorb dust to ensure the cleanliness.
  • Research unit monitor every aspect of tree growing in every phase
  • Best product with strategic planting using only high quality seeds, high-grade & fertile land, slow release fertilizer, efective waterways system, and pest and weed management.
  • 3P Principle (Profit, People, Planet)
    • Focus on CSR programme and nature conservation.
  • Certified product & process 
    • ISO 9001, 14001, 22000 ;OHSAS 18001; and SNI 
  • Spreaded location of production sites
    • Create better access for shipping products with a lower cost to both 
    • Reduce the risk in the event of a natural disaster or accident
Opportunity Factors Identification
  • Big consumption in Indonesia & international market 
    • Increasing every year
    • Increase of population  increase of need
  • Main ingredients in many products
    • Palm oil : food (cooking oil, margarine, main ingredient of instant noodles) & oleochemical (materials for soaps, cosmetics, detergents, rubber additives and plastics)
    • Sugar : direct consumption & ingredients of food, drinks, and pharmacy
  • Increasing of health awareness 
    • Palm oil is an alternative to replace artificial trans fats
  • Renewable energy sources awareness
    • Palm oil is key element for the production of biodiesel
Weakness Factors Identification
  • Not the biggest palm oil & sugar factory in Indonesia
    • The total land owned is still small compared to the other
  • Not so well known
    • Sell the raw products to other company, not use-ready product for consumer
    • Don’t have any advertisement in public
  • The CSR just focused on near the production sites
  • Products that can not be differentiated from competitors' products
Threats Factors Identification
  • Big number of competitors
  • Competitors holds the largest market share
  • Facing environmental issues
    • Deforestation
    • Forest burning
    • Green house effect
  • Banned in some international market
    • Europe union banned palm oil and urged palm oil production to comes from the environmentally friendly and sustainable production. (Europe bans Indonesian palm oil? - The Jakarta Post. Sat, November 12 2016)


Salma Fadhilah
Presentation of Principal and Potential of Agribussiness course 
ASEAN International Mobility for Students (AIMS) Program 2016
Tokyo University of Agriculture & Technology 

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