Jebsen & Jessen Packaging making a major investment in Indonesia
Jebsen & Jessen Packaging 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).
In an exclusive interview with Asia Food & Beverages, our Group Executive Vice Chairman Per Magnusson discussed the company’s plans and how this new partnership will help our business and standing.
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
~ Article excerpt from Asia Food & Beverages (March Issue)