The Journey of The Biggest Food

and Drink Company in Indonesia ;

Indofood

Student’s Name : Evelyn Amelia Wijaya

Number ID # : 06

Teacher : Evie F

Due Date : 9 March 2023

World Count : 1,156

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Outline

Topic : The Journey of Indofood

Thesis Statement : Indofood is the biggest food and drink company in Indonesia
because they fulfill almost all Indonesian’s necessities.

1. Introduction of Indofood :
A. The history of the Indofood company which was founded by Sudono in 1990.
B. The popularity of PT Indofood in Indonesia.
C. The reason why the writer chose PT Indofood is because it's the biggest food and
drink company in Indonesia.

2. The plus points existence of Indofood :

3. Failure of Indofood :
A. The decreased company profits due to exchange rate friction
B. The Indofood product was not 100% successful.

4. The market of Indofood :

5. Conclusion of the Indofood journey :

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Draft

Indofood CBP Sukses Makmur is the biggest food and drink company in Indonesia with a long

journey to reach success. This company was started in 1990 by Sudono as the founder. Long ago,

this company was named as Indofood Sukses Makmur, because they were a result from the

merger of Panganjaya Intikusuma, a subsidiary of the Salim Group, and Sanmaru Food

Manufacturing. But it's changed to Indofood CBP Sukses Makmur because of some business

reasons.

As the biggest food and drink company in Indonesia, the popularity of PT Indofood is no longer

in doubt. Almost all Indonesian people have been infiltrated by Indofood products. This is

evidenced by data showing that 99.2 percent of Indonesia's population buys Indomie (one of

Indofood's products) with a frequency of 2 purchases a week. With a broad sells market , PT

Indofood's performance will also develop better.

The great success of Indofood made many people interested in the history of this company.

Therefore, the author created this essay with the aim of fulfilling readers' curiosity about the

successful career journey of Indofood. Starting from how Indofood was able to dominate the

market, various kinds of Indofood products, even several failures, will be written in this essay.

Indofood is a fulfillment of people's needs. This company fulfills almost all the daily needs of

Indonesian people. Starting from snacks, Indofood has various types that can be consumed by

the public. Chitato, Qtela, JetZ, TrenZ, Dueto are several snack brands under the auspices of

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 GAC008 AE#2 Evelyn Amelia Wijaya 06

Indofood. Apart from snacks, Indofood also makes their own food seasoning brand which is

called Bumbu Racik. Bumbu Racik serves a variety of spices for Indonesian cuisine. So that

everyone can feel the pleasure of Indonesian cuisine. It feels incomplete discussing Indofood

products without mentioning their famous instant noodle brand named Indomie. Indomie is one

of the Indofood brands which is worldwide. This instant noodle brand is loved by many people

because it tastes very delicious and the price is 100% economical. With only IDR 2.000, instant

noodle connoisseurs can satisfy their hunger. Apart from food products, Indofood also has

drinks products that are no less interesting, such as Cocobin, Ichi Ocha, and Club mineral water.

With so many products made by Indofood, they need several raw materials to make them.

Usually these raw materials are obtained from outside the company. For example, in making

Indomie, of course, PT Indofood will need flour. The existing flour is made from wheat which

can only be obtained from farmers. Apart from that, there are also Indofood dairy products,

whose raw materials can only be obtained from cattle breeders. Therefore, Indofood needs help

from several people outside the company. As a result, many jobs are open. With so many

existing jobs, the economy of the people in a country will improve. Because unemployment

conditions will decrease.

Indofood has succeeded in becoming the largest food and beverage producing company in

Indonesia. With a fairly wide sales range, Indofood definitely has a very good distribution

strategy until they can reach almost all markets in Indonesia.

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 GAC008 AE#2 Evelyn Amelia Wijaya 06

The process itself is divided into 3 stages starting from the production process, distribution by

wholesalers and distribution by resellers.

First of all it is necessary to have the product to be distributed. So, PT Indofood made their own

product at their 36 Indofood factories across Indonesia. The process of producing these goods is

called the production process.

After the production process is complete, products are usually being purchased by wholesalers.

Wholesaler is a company or individual, who buys products in large quantities. Products that are

sold by wholesalers usually have lower prices than any prices in convenience stores. This is

because the wholesaler is the first stage “buyer”, that will distribute their product to convenience

stores or grocery stores. An example of an existing and well-known wholesaler in Surabaya is

Indogrosir.

Different from wholesalers who sell products in high quantities, retailers usually sell their

products in low quantities. From retailers, customers can buy the product depending on their

needs. This is the third and the last step for distributing the Indofood product.

Finally, after passing through the retailer stage, the goods produced will be easier to buy and

consume by the public.

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 GAC008 AE#2 Evelyn Amelia Wijaya 06

As a big company, of course PT Indofood has several failures and losses. One of their loss that

have been experienced is caused by the exchange rate shift. As a result, indofood need to

terminate their partnership with Pepsi co which had existed since 1990. Pepsico itself has a 49%

stake or the equivalent of 494 billion which is embedded in PT indofood CPB Sukses Makmur,

through their intermediaries, IFL or Indofood Fritolay Makmur. Indofood CPB Sukses Makmur

terminated the partnership by buying 49% of the shares owned by IFL. This termination caused

the production process in several food brands such as Lays, Doritos and Cheetos (cooperation

product between Indofood and IFL) are stop produced by CPB since last August 2021.

Besides their loss, some of Indofood product also can’t satisfy Indonesian people. Some of the

company’s products actually reap a lot of criticism from the public. For example, indomie salted

egg. Many people think that the taste of this indomie is quite strange, therefore the sales of this

product are decreasing. As a result, Indofood is no longer continuing the production of indomie

salted eggs.

The indofood market is not only developing in Indonesia. But they also market their products

abroad. Indofood has established regional offices in each country that sells their products. Apart

from that, several shops owned by Indonesians who are abroad also helped the popularity of this

company to foreign countries. Some of these countries include Thailand, Hong Kong, Taiwan,

and Saudi Arabia. In Saudi Arabia itself, 1,200 shops have been established. This shops are

specialize in selling Indonesian food, including Indofood products.

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 GAC008 AE#2 Evelyn Amelia Wijaya 06

With maximum sales both from within and outside the country, customers will have no trouble

finding Indofood products. Currently, all Indofood products are spread across supermarkets,

even minimarkets throughout Indonesia. All online buying and selling platforms have also

included indofood in their selling list. So if Indofood’s customers cant buy their products

offline, they can get them online.

There is a secret why Indofood still become the biggest food and drink company in Indonesia .

The reason is the price of Indofood products. Their products are very affordable. With those

cheap price and also good taste and quality, the company’s fame will be guaranteed.

But unfortunately, currently Indofood only covers the food and beverage market. As a writer, I

suggest pt indofood to be able to further expand their products so that they can reach several

fields. For example, they can open a restaurant that sells a variety of foods made from indofood

products. This will certainly make the company’s success even better. As the largest company,

which has had quite a winding journey, it’s not wrong for Indofood to become a company with a

big name until now.

page 7
 GAC008 AE#2 Evelyn Amelia Wijaya 06

Indofood CBP Sukses Makmur is the biggest food and drink company in Indonesia with a long

journey to reach success. This company was started in 1990 by Sudono as the founder. Long ago,

this company was named as Indofood Sukses Makmur, because they were a result from the

merger of Panganjaya Intikusuma, a subsidiary of the Salim Group, and Sanmaru Food

Manufacturing. But it’s changed to Indofood CBP Sukses Makmur because of some business

reasons.

As the biggest food and drink company in Indonesia, the popularity of PT Indofood is no longer

in doubt. Almost all Indonesian people have been infiltrated by Indofood products. This is

evidenced by data showing that 99.2 percent of Indonesia’s population buys Indomie (one of

Indofood’s products) with a frequency of 2 purchases a week. With a broad sales market , PT

Indofood’s performance will also develop better.

The great success of Indofood made many people interested in the history of this company.

Therefore, the author created this essay with the aim of fulfilling readers’ curiosity about the

successful career journey of Indofood. Starting from how Indofood was able to dominate the

market, various kinds of Indofood products, even several failures, will be written in this essay.

Indofood is a fulfillment of people’s needs. This company fulfills almost all the daily needs of

Indonesian people. Starting from snacks, Indofood has various types that can be consumed by

the public. Chitato, Qtela, JetZ, TrenZ, Dueto are several snack brands under the auspices of

Indofood. Apart from snacks, Indofood also makes their own food seasoning brand which is

page 8
 GAC008 AE#2 Evelyn Amelia Wijaya 06

called Bumbu Racik. Bumbu Racik serves a variety of spices for Indonesian cuisine. So that

everyone can feel the pleasure of Indonesian cuisine. It feels incomplete discussing Indofood

products without mentioning their famous instant noodle brand named Indomie. Indomie is one

of the Indofood brands which is worldwide. This instant noodle brand is loved by many people

because it tastes very delicious and the price is 100% economical. With only IDR 2.000, instant

noodle connoisseurs can satisfy their hunger. Apart from food products, Indofood also has

drinks products that are no less interesting, such as Cocobin, Ichi Ocha, and Club mineral water.

With so many products made by Indofood, they need several raw materials to make them.

Usually these raw materials are obtained from outside the company. For example, in making

Indomie, of course, PT Indofood will need flour. The existing flour is made from wheat which

can only be obtained from farmers. Apart from that, there are also Indofood dairy products,

whose raw materials can only be obtained from cattle breeders. Therefore, Indofood needs help

from several people outside the company. As a result, many jobs are open. With so many

existing jobs, the economy of the people in a country will improve. Because unemployment

conditions will decrease.

Indofood has succeeded in becoming the largest food and beverage producing company in

Indonesia. With a fairly wide sales range, Indofood definitely has a very good distribution

strategy until they can reach almost all markets in Indonesia.

The process itself is divided into 3 stages starting from the production process, distribution by

wholesalers and distribution by resellers.

page 9
 GAC008 AE#2 Evelyn Amelia Wijaya 06

First of all it is necessary to have the product to be distributed. So, PT Indofood made their own

product at their 36 Indofood factories across Indonesia. The process of producing these goods is

called the production process.

After the production process is complete, products are usually being purchased by wholesalers.

Wholesaler is a company or individual, who buys products in large quantities. Products that are

sold by wholesalers usually have lower prices than any prices in convenience stores. This is

because the wholesaler is the first stage “buyer”, that will distribute their product to convenience

stores or grocery stores. An example of an existing and well-known wholesaler in Surabaya is

Indogrosir.

Different from wholesalers who sell products in high quantities, retailers usually sell their

products in low quantities. From retailers, customers can buy the product depending on their

needs. This is the third and the last step for distributing the Indofood product.

Finally, after passing through the retailer stage, the goods produced will be easier to buy and

consume by the public.

As a big company, of course PT Indofood has several failures and losses. One of their losses that

have been experienced is caused by the exchange rate shift. As a result, indofood needed to

terminate their partnership with Pepsico which had existed since 1990. Pepsico itself has a 49%

stake or the equivalent of 494 billion which is embedded in PT indofood CPB Sukses Makmur,

page 10
 GAC008 AE#2 Evelyn Amelia Wijaya 06

through their intermediaries, IFL or Indofood Fritolay Makmur. Indofood CPB Sukses Makmur

terminated the partnership by buying 49% of the shares owned by IFL. This termination caused

the production process in several food brands such as Lays, Doritos and Cheetos (cooperation

products between Indofood and IFL) to stop being produced by CPB since last August 2021.

Besides their loss, some of Indofood products also can’t satisfy Indonesian people. Some of the

company’s products actually reap a lot of criticism from the public. For example, indomie salted

egg. Many people think that the taste of this indomie is quite strange, therefore the sales of this

product are decreasing. As a result, Indofood is no longer continuing the production of indomie

salted eggs.

The indofood market is not only developing in Indonesia. But they also market their products

abroad. Indofood has established regional offices in each country that sells their products. Apart

from that, several shops owned by Indonesians who are abroad also helped the popularity of this

company to foreign countries. Some of these countries include Thailand, Hong Kong, Taiwan,

and Saudi Arabia. In Saudi Arabia itself, 1,200 shops have been established. These shops

specialize in selling Indonesian food, including Indofood products.

With maximum sales both from within and outside the country, customers will have no trouble

finding Indofood products. Currently, all Indofood products are spread across supermarkets,

even minimarkets throughout Indonesia. All online buying and selling platforms have also

page 11
 GAC008 AE#2 Evelyn Amelia Wijaya 06

included indofood in their selling list. So if Indofood’s customers can’t buy their products

offline, they can get them online.

There is a secret why Indofood still becomes the biggest food and drink company in Indonesia .

The reason is the price of Indofood products. Their products are very affordable. With those

cheap prices and also good taste and quality, the company’s fame will be guaranteed.

But unfortunately, currently Indofood only covers the food and beverage market. As a writer, I

suggest pt indofood to be able to further expand their products so that they can reach several

fields. For example, they can open a restaurant that sells a variety of foods made from indofood

products. This will certainly make the company’s success even better. As the largest company,

which has had quite a winding journey, it’s not wrong for Indofood to become a company with a

big name until now.

page 12
 GAC008 AE#2 Evelyn Amelia Wijaya 06

References
Brief History of The Company, Indofood.com [online]. Available at :https://www.indofood.com/company/history
[Accessed 23 March 2023]

Friana, H. (2022), Sejarah dan Profil Perusahaan Indofood, Fortune Indonesia [online]. Available at :
https://www.fortuneidn.com/business/friana/sejarah-dan-profil perusahaan-indofood
[Accessed 1 March 2023]

Hewata. (2022), PT Indofood, Perusahaan Makanan Terbesar Indonesia, Hewata.com [online]. Available at :
https://hewata.com/perusahaan-makanan-terbesar-indonesia/
[Accessed 17 February 2023]

Jalur Distribusi PT. Indofood Sukses Makmur, TBK, Lisa Aprilia Story [online]. Available at :

http://lisa-april.blogspot.com/2021/01/jalur-distribusi-pt-indofood-sukses.html?m=1

[Acessed 4 March 2023]

Muzaki L. (2021), Bidang Usaha dan Contoh Varian Produk Indofood, Obligasi [online]. Available at :

https://www.obligasi.co.id/2021/05/produk-indofood.html?m=1 [Acessed 3 March 2023]

Ramadhani, P. (2021), Indofood CBP Putus dari PepsiCo, Begini Kata Analisis, Liputan6 [online]. Available at :

https://www.liputan6.com/saham/read/4486914/indofood-cbp-putus-dari-pepsico-begini-kata-analis

[Accessed 17 February 2023]

Susanto, H. (2013), Cerita Indomie Sukses Menembus Pasar 80 Negara, Katadata.co.id [online]. Available at :

https://katadata.co.id/herisusanto/indepth/5e9a57564e051/cerita-indomie-sukses-menembus-pasar-80

negara [Accessed 24 February 2023]

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