Could you introduce Salim Agro to our international audience?

Salim Agrochemical is part of the Salim Group, one of the largest diversified conglomerates in Indonesia. Within the crop protection business, the group consists of three main entities: Inti Everspring, which represents our manufacturing business and Mitra Kreasi Dharma (MKD) for our domestic business, as well as Joy Harvest, our venture in Australia. Salim Agro Chemicals is one of the most integrated crop protection companies in the country, having backward integrated to produce active ingredients, as well as doing formulations, branding, and distribution under MKD and Indotani brands.

Up until 10 years ago, we were solely focused on the Indonesian market, but we have successfully entered new markets, including Europe and the US, and, more recently, Australia, Latin America, and the Philippines. Today, our revenues are evenly split (50:50) between the domestic and international markets, and we continue to make inroads in more countries.

The company is headquartered in Jakarta and our production plant sits in Merak.

Could you elaborate on your product portfolio and current market positioning?

Inti Everspring is one of only two private active ingredient producers in the country. Our active ingredient portfolio includes old-chemistry products - carbamates like BPMC, MIPC, carbofuran, propoxur, methomyl, and oxamyl – which are essential in the making of insecticides, herbicides, and fungicides. These are sold into both domestic and international markets. We also produce herbicide, insecticide, and fungicide formulations. In fact, we are very proud to be one of the few companies with R&D capabilities, so that we can innovate together with our partners. Our market positioning is in the premium generic market both from the manufacturing as well as brand and distribution stand point. We are proud of our manufacturing standard by Inti Everspring and the branded product under MKD family.

To keep up with the global trend we are also looking towards more environmentally, sustainable products. Recently, we have introduced our first biostimulant to the market, and we plan to add more bio-based products; to do that, we must identify the sweet spot between efficiency and affordability, since biologicals are more expensive than chemically synthesized products and have less consistent efficiency. Ultimately, we need to make sure our products remain accessible to the farmers, while also pushing for more sustainable products.

What will drive the company’s growth in the short to medium-term?

Salim Agro has doubled its size in the last decade and we anticipate further growth coming from two key pillars: the increased usage of crop protection in the domestic market, and capturing more export markets. Moreover, we offer contract manufacturing to partners looking to expand in Indonesia, and with the trend to diversify global supply chains, with our position in Indonesia, Southeast Asia.

What characterizes the crop protection market in Indonesia?

Despite the large population, the crop protection market in Southeast Asia has a comparatively lower dollar-per-capita usage compared to the West, but also other countries in APAC, including Australia, China, and India. However, the region is gradually catching up. The market remains vastly fragmented, both at the farmers level, with the average land ownership hovering at 2,500 to 3,000 meters square, and at the supplier level. There are about 300 industrial suppliers of crop protection formulations in Indonesia. Small farmers tend to rely more on mechanical spraying methods, which calls for a different approach, focused on reaching as many farmers as possible with small volumes, unlike in other parts of the world.

Supply chain challenges have affected the availability and price of raw materials in the last few years, but the market has been adjusting and the country weathered the storm. As food security has climbed up to become a top priority for most countries, the entire food-related value chain, including crop protection, is incredibly resilient. We expect the market to stabilize soon. Indonesia is a net food importer with one of the biggest populations in the world, therefore, the country is keen on investing in its agro-sector and developing more self-sufficiency.

What are your main objectives moving forward?

Salim Agro will continue to differentiate itself through uncompromising product quality and unflinching manufacturing standards. In the last decade alone, we have expanded our capacity three-fold, and we hope to continue this trajectory to support a greater number of customers with our basket of active ingredients, formulations, and toll manufacturing services. Located in the heart of ASEAN gives us a competitive edge in serving the entire region and attracting like-minded partners that share a similar growth vision.