East-West Seed Indonesia and Salim Group Create A Joint Venture to Produce High Quality Potato Seeds

24 November 2016
East-West Seed Indonesia and Salim Group Create A Joint Venture to Produce High Quality Potato Seeds

Jakarta, November 23th – East West Seed Indonesia, known as “Cap Panah Merah” in Indonesia, will set up a joint venture with PT. Indo Hortikultura Sejahtera (Salim Group). The joint venture is an outcome of the Memorandum of Understanding that was signed on 22th of April 2016 in Den Haag, Netherlands. The announcement of the new joint venture was done during the Green Vocational Education Seminar in the presence of the Netherlands Prime Minister, Mark Rutte.

This Joint Venture is strategic cooperation to produce high quality research and technology based seed potatoes. The estimated investment for this project will be 100 billion rupiahs (USD 7-8 million). The increased availability of seed potatoes will decrease dependency on imported seed potatoes. Also, potato farmers will have access to better quality potato seeds, enabling them to increase their business yield and profit. The new company aims to supply up to 30% of national seed potato demand.

Glenn Pardede, Managing Director of East-West Seed Indonesia says “Currently, the limited availability of seed potatoes is regarded as the main problem of the potato business in Indonesia. We aim to increase the productivity and the income of potato farmers in Indonesia by contributing innovative technology, research and development. In addition, we will focus on improving production and marketing practices in the potato business.”

Koh Boon Hock (Salim Group Representative) adds “We have an objective to create a sustainable supply chain, in order to create a better environment, plants and foods for increasing the welfare of the farmers, society and other beneficiaries.”

Potato seeds are the main source for cultivating plant. High quality seeds are essential to increase production and quality of the products. Up until now, the national demand of seed potatoes is around 300.000 tons per year, representing a value of 3 trillion rupiahs. With the current low quality seeds, the productivity of potato farmers in Indonesia still at a low level of 15-17 tons per hectare. The new joint venture aims to increase their productivity to 25 tons per hectare. In comparison, European countries are able to produce 50 tons per hectare.

Potato consumption in Indonesia is very low. It is currently estimated at 4,7 kg/ capita per year. Some numbers for comparison:

  • China : 10 kg/ capita per year
  • Japan 17 kg/ capita
  • America 64 kg/capita
  • France 73 kg/capita and
  • England 109 kg/capita.

Indonesia’s Government is targeting an increase of potato consumption to 10 kg/capita per year.

“If we can increase potato farmers’ productivity, we trust that we can make fresh potatoes more affordable to the public and make potatoes an important national food source,” said Glenn Pardede.