INDONESIA March 2020
 
Jebsen & Jessen Packaging making a major investment in Indonesia
 
Jebsen & Jessen Packaging (J&J) is making a strategic move into the Indonesian market with the acquisition of a 60% stake in leading Indonesian beverage packaging manufacturer, PT Indo Tirta Abadi (ITA).
A sale and purchase agreement was earlier signed on 31 January 2020 between J&J and the current shareholders of ITA, with the transaction completed recently in early March.
ITA which started its operation in 2003 with a single production machine has grown strongly over the years to become Indonesia's leading packaging manufacturer, supplying many of the top global and local beverage manufacturers such as Danone (Aqua), Coca-Cola, Sosro, Nestle and Yeo's. Currently, ITA runs 2 ISO9001 and ISO22000 (Food Safety Management System) certified production plants using state-of-the-art moulding machines - a main facility in Tangerang and a smaller one in Gempol, on the outskirts of Surabaya. ITA's turnover in 2019 was US$30 million. Its product portfolio comprises of PET bottles, PET preforms and HDPE closures.
ITA was founded by Mr. Herman Ali and is supported by an experienced management team. Reflecting on the start of the new partnership with J&J, Mr. Herman Ali said “We are very excited to embark on this new partnership with Jebsen & Jessen, a company with a history of continued success built on strong core values. With a shared vision and mission, we believe this partnership will take ITA to the next level and continue to lead innovations in the industry.”
Mr. Chui Tau Siong will, in addition to his current responsibilities as Jebsen & Jessen Packaging Regional Managing Director, be taking on the role of President Director in ITA once the transaction has been completed. Mr. Chui said, "With the investment into ITA, our Packaging Regional Business Unit (RBU) will grow its business by 50%. I am excited by this strategic growth move and am delighted that the partnership with the Ali family helps us expand our platform beyond Singapore, Malaysia and Vietnam to now also include ASEAN's largest economy, Indonesia.” Mr Chui added that ITA has a solid track record which is 2nd to none with AAA customers.
Mr J. Heinrich Jessen, Chairman of Jebsen & Jessen said that the investment is a long and careful decision made driven by J&J’s Grow Indonesia strategy. He added, “We are thrilled to have the chance to partner with the leading beverage packaging player in a steadily growing industry and to see our strong and trusted Packaging RBU enter the Indonesian market where all other Jebsen & Jessen RBUs are already present.”
ITA has built a credible reputation in the Indonesian and international beverage markets producing more than 2.5 billion closures annually, 320 million preforms per month and 1,800 bottles per minute. ITA operates from 2 production facilities in Java island to supply across the Indonesian archipelago as well as exports to ASEAN countries and Australia.
For latest update and more details on this acquisition, we interviewed Per Magnusson, Jebsen & Jessen Group Executive Vice Chairman and the excerpts of the interview are as follows:
1. What are the immediate plans for the company (ITA) and Jebsen & Jessen moving forward after the acquisition ?
The immediate plan is to focus on the synergy between Jebsen & Jessen and ITA. This means leveraging Jebsen & Jessen’s proven success in the ASEAN region and ITA’s understanding of the local market as Indonesia’s leading beverage packaging manufacturer to serve our customers. Customers can expect better service, with the highest reliability in the delivery and quality of our products.
Additionally, the strong financial standing of the new entity allows for additional growth, such as expansions into new customer segments and new products. We always endeavour to push boundaries in the process of providing the best solutions and products for our customers. One of the plans with ITA is to look into developments and investments that will pave the way for sustainable packaging materials such as rPET.

2. How important is the Indonesian market for Jebsen & Jessen business in ASEAN ?
Indonesia has always been one of our key markets, even prior to this acquisition. Strategically, we recognise the huge growth potential of Indonesia’s economy - with the country constituting one-third of ASEAN’s GDP. In particular, the FMCG industry in Indonesia is projected to grow faster than the general market in the coming few years. With a sharp focus and dedication to the Indonesian market and strong support to our local and regional teams, we are excited for the opportunities and feel positive of Jebsen & Jessen Group’s continued growth in the country.

3. What are the 3 main objectives that Jebsen & Jessen seek from the acquisition
Firstly, is to sustain our position as the leading beverage packaging manufacturer in Indonesia. This means that we are in a strong position to serve customers better, to be more relevant, and achieve sustainable growth for ITA. In particular, our key focus will be on providing highest quality and always on-time deliveries.
Secondly, to be the leader in sustainable beverage packaging manufacturing in Indonesia. We recognise the need to address the global demand for more sustainable solutions in the industry, such as rPET. This requires the attention of several players in the value chain and we are committed to take a leading role to develop the technologies and infrastructure required.
Finally, we will work to integrate and leverage on the products and services of our packaging business unit in the region. In the longer term, the ITA acquisition will provide a platform from which our wide range of products and services, which has seen success in the ASEAN region, can be launched into the Indonesian market.
 
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