Seeds Of Success

Seed producer Bisi International is already the market leader in the maize seed business, but it still has ambitious plans for growth.

- Ardian Wibisono

As the second-most important food commodity, Indonesia’s maize production has continued to significantly increase in the past five years. The country’s maize production was around 19 million tonnes in 2014 and last year it passed 30 million tonnes, almost 50% growth in five years. The growth is in line with growing domestic consumption of animal protein such as eggs and chicken, since maize comprises 50% of animal feed. And despite the growing appetite, Indonesia’s consumption per capita of chicken and eggs is still relatively low compared with neighboring countries, which means there is plenty of room for further growth.

Seed producer PT Bisi International is riding the growth trend. The company controls nearly 50% of the market share in hybrid maize seeds. Hybrid maize is one of the main factors that have boosted productivity. In the past five years, the company’s top line has been growing at a steady 14.42% CAGR, while the bottom line grew by 20% CAGR in the same period, and this has mostly been contributed by the maize seed business. The constant growth in the company’s financial performance has seen Bisi frequently listed among Forbes Indonesia’s Best of the Best list, which ranks the 50 best listed companies in Indonesia based on their long-term financial performances.

“There’s a huge opportunity for maize production in Indonesia and the government has also been supportive in policy and imports. That’s why the maize price has been in a good balance for farmers and the poultry industry. Farmers’ incomes are improving and we see new areas of cornfields especially outside Java in line with an improved irrigation system,” says Jemmy Eka Putra, president director of Bisi International. Jemmy has been with the company since 1990 and became the president director in 2009.