Starch Strengthens Bonds With Indonesia

Starch Strengthens Bonds With Indonesia | The Cultivator Autumn 2019

Despite digital disruption, the paper industry continues to grow globally – putting Manildra Group in pole position as a premier supplier of starch to South East Asia’s biggest economy.

For more than 30 years, we have grown to become one of Indonesia’s biggest suppliers of industrial wheat starches for the paper and pulp industry, one of the world’s leading paper producers.

With demand for paper tipped to stay strong in South East Asian nations (as well as the United States), the Indonesian government aims to expand the country’s annual production capacity by about one-third – from 7.93 million tonnes to 10.53 million tonnes.

Already a major foreign exchange earner (about US$3.78 billion in 2016), paper and pulp accounts for about 6.7 per cent of the Indonesian processing sector’s gross domestic product.

“Manildra Group’s network of on-the-ground logistics and transport staff is unrivalled by other starch manufacturers, ensuring our products are delivered on time, every time, to non-metropolitan Indonesian regions” – Peter Simpson, Manildra Group General Manager

The national industry also supports about 260,000 direct jobs and 1.1 million indirect workers in what is the world’s fourth-most populous country, home to more than 254 million people.

As the world’s largest agricultural producer and 16th largest economy – projected to become the world’s seventh-largest economy by 2030 – in nominal gross domestic product, Indonesia remains an important market for Australia, including a substantial portion of Australia’s AU$2.3 billion of agricultural commodity exports in 2015.

It was some three decades ago when Manildra Group Chairman Dick Honan and General Manager Peter Simpson saw an opportunity to introduce Australian-owned, grown and made vital wheat gluten, flours, wheat starches, glucose and sugars to the Indonesian market.

Today, a significant volume of our domestic starch production is exported to Indonesia.

Mr Simpson said the family-owned company had strong relationships with all leading Indonesian paper mills – supplying a range of “premium Australian industrial-grade starches”.

“As a company, we have grown with the paper and packaging industries globally to expand our range of wheat starches – including size-press starch, wet-end starch, corrugating starch, and starches for carbonless paper and coating,” Mr Simpson said.

“Manildra Group’s network of on-the-ground logistics and transport staff is unrivalled by other starch manufacturers, ensuring our products are delivered on time, every time, to non-metropolitan Indonesian regions.

“With staff based in Manildra Group offices in Jakarta and Surabaya, we ensure the most efficient and cost-effective solutions for paper packaging and industrial paper products – including linerboards (the basic material for making cardboard paper boxes), corrugated mediums (also used in cardboard boxes and packaging), corrugating shipping containers, boxboards, and specialty coloured paper.

“Our specialised technical team, led by our International Business Manager (Industrial) Adam Cox, includes seven staff dedicated to value-adding to the paper and packaging industry. They can advise customers on the ideal wheat starch solution for individual functionality and production requirements.”

Manildra Group produces Australian-grown and made wheat-based starches at our state-of-theart Shoalhaven Starches manufacturing plant in Nowra, NSW.

“We have significantly increased dry starch production capacity at Nowra to meet the requirements of our customers, including the paper and packaging industries in Japan and Indonesia,” said Mr Simpson.

Manildra Group also supplies Indonesia’s food industry with Australian-made starches, vital wheat gluten, glucose and maltodextrin.

Starch Strengthens Bonds With Indonesia