A view of Daesang’s starch sugar plant in Indonesia. (Photos: Daesang)

Daesang has an ambitious plan to dramatically expand its overseas business turf.

The food company aims to raise sales in the Indonesian business to 1 trillion won and become a top 10 food maker in that market in next 10 years.

Daesang plans to make Indonesia a springboard to enter the broader Southeast Asian market.

 
Daesang announced a blueprint on Feb. 17 to raise sales in Indonesia to 1.4 trillion won and become a top 10 food maker there by 2030.

The company saw sales in Indonesia rise to 369.7 billion won last year, a 7 percent increase over 2019 when sales stood at 346.4 billion won.

Daesang established PT Miwon Indonesia in 1973 and become the first Korean company to export a plant to Indonesia.

Starting with a bio business, Miwon Indonesia has been making strenuous efforts to tap the Indonesian market by expanding food and starch sugar businesses.

As for why Daesang is unveiling a blueprint 47 years after entering the market, a Daesang official said Indonesia represents a symbolic country in which Daesang launched a full-fledged market entry.

He also said Indonesia has abundant supplies of sugar cane, a raw material for the production of MSG (or monosodium L-glutamate), and it is an optimal location to expand its overseas business to the Asian region.

Indonesia is a representative Halal food market, and if a stable market presence is achieved there, Daesang believes the company could find it easier to enter neighboring countries, such as Singapore, Malaysia and Brunei, and as far as Central Asia and the Middle East. Daesang plans to expand its capabilities in the Indonesia food business on the back of the K-food fever that is all the rage in many parts of the world.

Daesang has come up with detailed plans to upgrade sales according to each marketing channel and expand logistics centers at major centers.

An employee with Daesang Indonesia’s plant shows laver products under the brand “Mamasuka Laver.”

The company has diversified its product portfolio after releasing its Indonesian brand “Mamasuka.” Daesang saw sales in the food business there soar to 132.6 billion won last year, a 12 percent jump over 118.4 billion won in the previous year.

Daesang ranked first in the laver and bread crumb segments, the company’s mainstay businesses, and second or third in the artificial seasoning and dressing segments. Euromonitor International reported that Daesang placed 26th among food makers in Indonesia in 2019.

A mainstay business in Indonesia other than the food business is the starch sugar business. Daesang dedicated a starch sugar plant in March 2017.

Daesang saw sales in the Indonesian starch sugar segment surge to 103.7 billion won last year, an over two-fold jump in three years.

Daesang has growing into Indonesia’s representative starch sugar maker as the company ranked first each in the corn starch sugar and high fructose markets.

The secret of the booming starch sugar business is owed to Daesang’s latest plant facilities and excellent localized technology power.

The starch sugar plant in Karawang is capable of producing 20,000 tons of Hala food products, including ones certified by Majelis Ulama Indonesia (MUI) per annum.

Daesang’s bio business is going well. Its bio plant in Indonesia is producing 80,000 tons of MSG annually. The company is ramping up the bio business there by capitalizing on 47 years of business experiences and expertise and its brand power.