BOD Speech

BOD Speech

Utilizing Opportunity to Continue Growing

Wheat flour mills industry went through a rapid growth in the last decade. From only five mills in 1970 to 29 mills from the period of 1970-2014. This rapid growth shows the number of demand for wheat flour continue to rise from year to year, which is reflected from the amount of imported wheat flour that rise more than 6% a year.

On the otherside, we saw a gap between the wheat flour mills capacity to produce high quality product with the ever-growing customer expectations. These mills also have to overcome challenges such as the huge market demands, geographical condition, technological and logistic problems. We saw these as challenges and opportunities.

Based on those challenges, PT Bungasari Flour Mills was established in the year of 2012. Bungasari believe, the capacity and capability that we possess are able to bridge the gap in this industry.

As a developing country, Indonesia's market demand for wheat flour reach the number of 25 kg/person/capita. However, this number is still below if compared to the market's demand in Malaysia and Singapore which can reach up to 40 kg / person / capita.

Nevertheless, the number of middle class society in Indonesia is predicted to be doubled from 74 million by 2020. This middle class society grow with greater purchasing power and better health awareness which indicates a change in the less healthy diet from rice to other healthier products such as wheat flour based breads and noodles. This number continue to grow to 11% throughout 2008-2013 and did not decline ever since.

The shift in diet from rice to wheat based food products is not just a market niche, but also an opportunity for Bungasari to contribute and encourage indonesian people to live a better and healthier life by providing them with affordable nutritious products.

That is why Bungasari is commited to produce only the best wheat flour. With high quality ingredients, advance research facility and technologies and experts, Bungasari is capable to produce a hygenic, affordable and high quality wheat flour.

This commitment have to be supported by good communication with customers and the hard work of all employees.

''Philosophy of Kaizen (continuous improvement) as a fundamental character for each employee.''

That is why Bungasari instill the philosophy of Kaizen (continuous improvement) as a fundamental character for every employee. Through this philosophy, the company encourages employees to not get satisfied, and always find opportunity for improvement and development of self-start progress to a larger scale in order to achieve production efficiency.

I hope the commitment, hard work and support from the facility that we have are able to bring us one step closer to realize our vision of becoming the leading flour producers in Indonesia and help make Indonesia healthier.

Grant Lutz
President Director of PT Bungasari Flour Mills Indonesia