Indonesia's Mayora Bets on Exports to Drive Double Digit Growth
(Bloomberg) -- PT Mayora Indah, Indonesia's largest listed consumer goods exporter, expects demand for its instant coffee and biscuits to drive a double digit growth in revenue during the next five years.
The company, which generates about half its revenue overseas, will boost instant coffee exports to Russia and Eastern European countries this year, said Ricky Afrianto, Mayora's global marketing director. It also plans to market more of its products in Southeast Asia, which accounts for 60 percent of its 10 trillion rupiah ($708 million) annual exports, he said.
Mayora's bullish export outlook comes amid efforts by authorities to boost shipments to narrow a record trade deficit amid a raging U.S.-China trade war. With global economic growth set to weaken demand for raw materials, the mainstay of Indonesian exports, the government is pushing for exports of more processed and finished goods.
“The potential that we have within the Asean markets remains huge,” Afrianto said in an interview. “We are not selling commodities, we are offering value added products. In terms of pricing, we are not too dependent on global conditions, or what the others are experiencing. That's the beauty of our business.”
Many of Mayora's products sold in its home market are currently not exported and the company seeks to ship more brands in the coming years, Afrianto said. The Jakarta-based company wants to position its instant-coffee brand Torabika globally, he said.
“If Japan has its Yamaha and U.S. has its Coca-Cola, Indonesia has no brand in the global market that can represent the country so far. We would like our Torabika to be that brand,” Afrianto said.
Mayora's revenue may have risen 16 percent to 24.1 trillion rupiah last year and may jump a further 14 percent this year, according to the median estimate in a Bloomberg survey of analysts. The company has yet to announce its 2018 earnings. The company's shares are little changed in Jakarta this year after more than tripling in the past four years.
To contact the reporter on this story: Harry Suhartono in Jakarta at hsuhartono@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Thomas Kutty Abraham, Tassia Sipahutar
©2019 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
