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FOOD AND BEVERAGES - JAKARTA. PT Cerestar Indonesia Tbk, a wheat flour processing company (TRGU), is ready to secure wheat supplies ahead of the Ramadan period.
Cerestar Indonesia's Corporate Secretary, Mulyadi Chandra, said that based on previous experiences, there is a slight increase in the demand for flour for making cakes and other typical Eid dishes during Ramadan.
"In facing this increased demand, we have taken strategic steps. For wheat needs, we have ensured its availability until the first quarter of this year, even until the beginning of the second quarter," Mulyadi told KONTAN on Tuesday (6/2).
In addition, Mulyadi said, TRGU sees that flour consumption in Indonesia is still relatively low, so the company has consistently expanded its capacity since 2014.
Currently, the total capacity of TRGU's wheat flour milling plant is 1,600 MT/day, and as known, the company has added a capacity of 600 MT/day, making the total commercialized capacity 2,200 MT/day, which is expected to operate at the end of the first quarter of 2024 or at the beginning of the second quarter of 2024.
Mulyadi stated that last year the price of flour experienced a significant decrease due to the decrease in the price of wheat raw materials. Since the fourth quarter of 2023, wheat prices have started to stabilize, followed by the stabilization of flour prices.
"At the beginning of this year, the price of flour tends to experience a slight increase or rebound from last year. Currently, the price of flour is approximately Rp. 6,000,- /kg," said Mulyadi.
For information, the price of rice in Indonesia has reached Rp. 13,000,- /kg. Looking at the significant price difference between flour and rice, there is still a possibility of an increase in the price of flour.
In addition, TRGU also continues to monitor market conditions and conducts careful analysis of the factors that affect the price of flour. With a good understanding of market dynamics, the company can take the right steps to keep prices stable and controlled.
Mulyadi emphasized that in normal market conditions, there are no major obstacles related to wheat supply or flour prices and ahead of Eid. Producers generally have prepared well to ensure stock availability and keep prices stable.
However, Mulyadi continued, the company always remains cautious and continues to monitor the development of the wheat market and flour demand carefully, and the company is ready to adapt to external changes that may affect this industry.
In 2024, TRGU hopes that revenue will continue to grow, and projections for improvements in selling prices can increase margins.
