Cold Chain Data

RI COLD LOGISTICS INSTALLATION, 2016

  1. Seafood Products : 633,700 ton (from 766 processing plants), 488,500 ton (from 277 rental cold storage). If the product’s circulation 5 times a year (incoming and outgoing), this cold logistics can storage annually 5,561,000 ton of seafood product and plus 1,712,000 ton / year from UPI fish (processing units of fish), grand total: 7,272,000 ton (equivalent capacity per year).
  2. Red Meat Products : 90,400 ton (from importers & local retailers), 37,300 ton (from rental cold storage). If the product’s circulation 5 times a year (incoming and outgoing), this cold logistics can storage annually 637,000 ton, grand total: 637,000 ton (equivalent capacity per year).
  3. Poultry & Chicken Products : 412,500 ton (from processing plants & slaughterhouses), 15,200 ton (from rental cold storage). If the product’s circulation 5 times a year (incoming and outgoing), this cold logistics can storage annually 2,138,500 ton, grand total 2,138,500 ton (equivalent capacity per year).
  4. Retail Market for Fresh Products : 25,250 ton (from hypermarket who have cold & chilled storage). If the product’s circulation 12 times a year (incoming and outgoing), this cold logistics can storage annually 300,250 ton, grand total 273,000 ton (equivalent capacity per year).

KONDISI UMKM (Usaha Mikro, Kecil dan Menengah) RI, 2016

(67% bergerak di sektor pangan): Usaha Mikro ada 55.883.206 unit dan menyerap Tenaga Kerja 100.829.512 orang; Usaha Kecil ada 637.418 unit dan menyerap Tenaga Kerja 4.637.040 orang; Usaha Menengah ada 50.898 unit dan menyerap Tenaga Kerja 3.372.025 orang. Total UMKM ada 56.571.522 unit dan menyerap Tenaga Kerja 107.657.509 orang. Total UMKM pada tahun 2016 naik (sementara) sekitar 3% dari tahun 2015.

Total Outlet of RI RETAIL STORE, 2016

Traditional store 2,774,200 outlets, mini market & convenience store 28,350 outlets, supermarket 1,545 outlets, hypermarket / warehouse 334 outlets.

Total Delivery of COLD TRANSPORTATION, 2016

Refrigerated truck (2-5 tons) for frozen food 5,172,500 tons; container (20 & 40 ft) for frozen & chilled food 3,633,000 tons; refrigerated truck (2-5 tons) for chilled food 715,000 tons.

Frozen Seafood Facility of East Java Province (2015) 

Total Unit Pengolahan Ikan (UPI – Fish Processing Unit) belongs to Marine Affairs & Fisheries district government 8,629 units where 38 units have freezing unit (fresh products) while 2,024 units use salting system. Total volume its frozen products 11,392 tons or about 9% from grand total of East Java production.

REVIEW: COLD STORAGE SITUATION 2011, JAKARTA & SUROUNDING AREA

INDONESIAN COMMERCIAL NEWSLETTER, August 2011

COLD STORAGE INDUSTRY IN JAKARTA AND SUROUNDING AREA

Business in cold storage service offering place to keep goods fresh serves to support a number of business in other sectors such as food processing industry, fishery industry, retail chains, restaurant chains and importers of meat, etc. Cold storage facilities are generally part of an integrated business but there are also ones operating as independent units for rent.

The Greater Jakarta area has around 40 cold storage companies. Some 28 of them have a total capacity of 75,056 tons.

Demand for cold storage facility could be estimated from the consumption of meat, fruits, vegetables, frozen potatoes, fish, shrimps, etc. In the Greater Jakarta areas. Consumption of the food products in the Greater Jakarta area in 2009 totaled around 441,000 tons/month with 25.8% or 114,000 tons of which needing cold storage. Realization, however, is that only 73,800 tons of them used cold storage facility that year including 9,600 tons of beef, 25,600 tons of fresh fish/frozen shrimps, 9,473 tons of fruits, 5,985 tons of vegetables, 2,364 tons  of frozen potatoes and other fresh products. The demand estimate is based on assumption that only 80% of imported meats in the Greater Jakarta area need cold storage facility for 30 days before they are sent to the end. Based on the assumption, 9,600 tons of the total consumption of 12,000 tons of meat in the Greater Jakarta area  are put in cold storage  for 30 days .

Demand for cold storage service has increased in the past several years to follow the expansion of retail business in the Greater Jakarta area. Most retail chains have outlets located in various areas that they need standard stock at each outlet for which they will need cold storage to keep their stock in good quality.

However, not all of the chain stores have enough cold storage rooms to hold their goods especially food products including frozen food, beverages, ice cream, fruits, meat,  fish, etc. With the limited capacity of their cold storage, some of the stores have to rent a space in the cold storage facility of other companies mainly logistic companies.

Most cold storage service companies in the Greater Jakarta are located in areas having adequate infrastructure and transport facility with easy access to toll roads to guarantee smooth distribution to consumers. The main locations of cold storage in the Greater Jakarta are North Jakarta, West Jakarta and Bekasi

Types of cold storage

Cold storage facilities are designed to have a certain temperature for the storage of various types of goods to keep them fresh and prevent them from damage.

Refrigerators consist of four type’s chilled room, freezer room, blast freezer, and blast chiller.

Chilled Room is a refrigerator with low temperature of 1 ~ 7 deg C. This room is used for the storage of fresh food, such as vegetables, fruits and other materials with an endurance of up to two months.

Chilled room could function as a thawing room for food processing industry used to increase the temperature of meat, chicken meat and fish after being frozen under a temperature of 7 to 10 deg C, before the process of cooking.

Freezer Room has a temperature of between -15 C ~ – 20 C  used  for  warehouse of fish, meat, sausage, milk, cheese , potato and all types of foodstuff and other materials  and other  materials  needed in freezing temperature.

Blast Chiller is used for fast refrigeration after the process of cooking with temperature targets of 1 C to 4 C.

Blast Freezer is used for fast freezing for processed foods and meat, fish and shrimp. The temperature targets are – 20 C ~ – 25 C.

Blast Chiller and blast freezer are used to:

1. Prevent contamination by bacteria.

2. Maintain the taste of foods

3. Prevent reduction of water content

4. Maintaining nutritional content

Meanwhile, by the capacity of refrigerator machine, there are two types of cold storage facilities commercial and industrial cold storage facilities.

Commercial cold storage facilities are generally designed and built for rent or main facility of business activities such as logistics and supply chain management.

Design include configuration of machines and storage system (racking) made flexible to suit the flows of goods. Machines of commercial cold storage are generally smaller in capacity but larger in number that could operated flexibly.

Examples of commercial cold storage facilities are those used for the storage of meat, fish, and vegetables at supermarkets and hypermarkets. The capacity of commercial cold storage in Indonesia is generally below 500 tons.

Industrial cold storage facilities generally function as part of production facilities.  The configuration of machine and facilities are like racking system. The capacity of industrial cold storage facilities in Indonesia   is generally larger than 500 tons.

Lately there are companies operating commercial cold storage facilities in large scale fully for rent. In addition, there are industrial cold storage facilities changing function into commercial cold storage facilities with the largest part of their space is rented out such as that of PT. Bonecom (BOSCO). In the beginning the entire capacity of cold storage facility of BOSCO was for own use of the company to support its shrimp export business. Later, however, when shrimp business was on the decline the space of its cold storage facility was rented out to other companies.

Products needing cold storage facility

Cold storage facilities are used for the storage of various products like meat, fish, vegetables, fruits and cooked foods, etc.

Those products have different characteristics and need different conditions in temperature and humidity.

The supply of cold storage in Indonesia

Generally cold storage are used to keep food products such as meat, fish, fruits, vegetables  and food basic materials,  fresh under freezing temperature or to prevent them from damage.

Many companies, however, do not have own cold storage as it will need large investment. They choose to rent that facility or cooperate with cold storage companies rather than buying one.

Business model of Cold storage companies in Indonesia

Based on business purposes in the Greater Jakarta area there are:

a. Cold Storage for own use (integrated with other business)

b. Cold Storage entirely for rent

Cold storage for own use

Some companies have the cold storage facility for their own use. The facility is integrated with other business of the owning company serving to support operation of the core business.

The main function of cold storage facility is to keep goods in stock for short or longer time. The owning company handles the job of keeping in cold storage or distributing and sending the goods later.

Cold storage having such functions is owned by companies operating in ice cream industry, exporters of fish and other sea food products, importers of meat, importers of fruits, vegetables and other fresh food products.

Sometimes, however, the companies rent part of the space in their cold storage facility to other companies having similar core business or products.

Examples of integrated cold storage those of PT. Samudra Dharma Fishing, which operates in the exports of sea fish products and PT. Unilever, which produces  Wall’s ice cream

Cold storage for rent

Lately cold storage rental business begins to flourish in the Greater Jakarta area. There are two types of companies operating in cold storage rental business:

–        Logistics and distribution companies , and

–        Companies specially renting out cold storage

Companies specially renting out cold storage

The need to rent cold storage began when a number of large scale food manufacturing companies have cold storage with limited capacity or have no such facility for their products that have to be kept in cold storage before being processed or distributed. Such companies, therefore, have to rent cold storage.

In the beginning most cold storage rental companies served only certain main customers, but later they offered their service to various other customers. Generally such rental companies have small size cold storage but larger in number.

There are also cold storage companies which have changed their functions. In the beginning they had cold storage for own use such as for shrimp exports, but when the shrimp business declined they offer the service of their cold storage to other users.

The rental fee is set per square meter space per month.  The companies that use the rental service are entirely responsible for all activities from the keeping of products   in the cold storage to sending then out.

Most products kept in rented cold storage are manufactured food products such as frozen food, fruits, vegetables, etc.

The main users of rented cold storage are producers of manufactured food products, importers of frozen food, importers of meat, importers of fruits, etc.

Logistics and distribution companies renting out cold storage

In the past several years’ cold storage business is operated more professionally by logistics or distribution companies.

Logistics service companies build their dry storage facilities and cold storage facilities entirely for rent. Operations of the two facilities become the core business of the companies. A logistics company handles everything from the transport of products from their original place to the cold storage and distribution from the storage facility to the final destination based on the request of the clients.

Indonesia has few logistic companies, which have own cold storage facility, serving also as distribution centre. Large logistic companies which also serve as distribution centre include PT. YCH, PT. Sukanda Djaya and PT. Wira Logitama Saksama. Logistic company DHL also begins to offer cold storage service by building own cold storage.

There are also logistic service companies which operate only in renting out space in their cold storage. The entire activities of storage and distribution of their products are handled by the renter.

Many logistics companies which have cold storage facility were established by their parent companies to serve as distribution companies the products of the parent companies. Distribution companies having large cold storage facility later expanded business to serve distribution of products of other companies. Among such companies are PT. Sukanda Djaya (SD) and PT. Wira Logitama Saksama (Wira Logistics). Cold storage facility owned by PT. Sukanda Djaya was originally built to keep in storage ice cream produced by its parent company PT. Diamond Ice Cream. As the cold storage facility has excess space PT. Sukanda Djaya rents out the space to other users.

Currently several large restaurant chains such as  Kentucky Fried Chicken, Pizza Hut  and  A & W  rent  space at the cold storage  of PT. Sukanda Djaya. Their goods include ice cream, potatoes and frozen chicken meat. Currently PT. Sukanda Djaya is the largest operator of cold storage having a number of cold storage facilities in Indonesia.

Cold storage facilities of Wira Logitama Saksama were established to support the operation of its parent company PT. Wicaksana Overseas International, which is a large distribution and whole sale company with products including foods and beverages. As a logistic company Wira Logitama Saksama serves not only members of its company group but also other customers that need cold storage and logistic services.

Number of cold storage facilities and their production capacities

Cold storage companies in Indonesia generally began business as an exporter of fishery products. This business expanded rapidly in the 1990s’ but declined in the following years.

According to the association of Cold Storage Indonesia (APCI) which deals with fishery companies and exporters of fish and shrimps, around 50% of 94 cold storage companies in Indonesia have stopped operation since 2004. Most of the cold storage facilities were owned by fishery companies and exporters of fish and shrimp. They could not continue operation on weak competitiveness of Indonesian shrimps in international markets. Thailand and China have strengthened their domination of the international markets.

Local products of shrimps are inferior in quality facing shrimps from rival producer like Thailand and China. Indonesia shrimps are less competitive not only in quality but also in price because of the soaring prices of feed.

Since 2004, many fishery companies have moved from Jakarta to Surabaya, East Java, where they could be more integrated with the sources of fish and shrimps. For the same reason APCI has moved its office to Surabaya, East Java, where there are still many or around 30-40 fishery companies in operation.

In the past several years fishery industry began to grow in Jakarta after the United States, the largest shrimp market in then world imposed import restriction of shrimp from rival producers including China. A number of cold storage facilities such as that of PT. AGB Tuna located at Muara Angke, have been busy handling the storage of fish/shrimps for exports and local market. Many cold storage facilities which have been left idles for several years began to show brisk activities.

Jakarta is not only the center of state administration but also the largest economic and business center in the country offering great opportunity for cold storage business to grow faster.

According to data at the Association of Indonesian Freezing Chain (ARPI), there were 92 cold storage companies in the country in 2004.

A field research carried out by Data Consult shows there are 40 cold storage companies in the Greater Jakarta areas Jakarta, Bogor, Tangerang and Bekasi and 26 of the companies have large capacity totaling 75,056 tons.

The companies include food processing companies and meat importers, slaughterhouses, fishery and shrimp companies, ice cream producers, importers of fruits and retailer networks.

Among the owners of cold storage facilities, 11 are independent operators of cold storage facilities renting out part or the entire space in their cold storage with a total capacity of 62,285 tons, and total space of 41,376 sq.m.

The largest in capacity among the 11 companies  is PT. Sukanda Jaya, which has a capacity of 45,000 tons,  followed by PT. Bonecom Servistama Compindo (Bosco)  with a capacity of  6,000 tons; and PT. Wirontono Cold Storage & Industry with a capacity of 3,840 tons.

Geographic distribution of cold storage in Greater Jakarta and surrounding areas

The Greater Jakarta area is the largest economic and business center in the country. The growing business in Jakarta requires larger cold storage facilities.

The Greater Jakarta areas could be divided into four regions – Northern, Eastern, Southern and Western regions. Cold storage business is the main supporting business for food processing and fishery industries, retailer network, restaurant chains, importers of meat, etc.

Modern retail business has grown fast in Jakarta and its satellite cities. The retail companies have outlets in various locations in the cities. Therefore, they need cold storage services.

Some of the retail companies have cold storage with limited space not enough to freeze their products of food, fruits, meat, fish, etc. They were forced to rent space in cold storage facilities owned by logistics companies.

The cold storage facilities are generally located in strategic areas having enough infrastructure facilities with good access to toll roads.

Most of the cold storage facilities for frozen food, meat, fish, fruits and vegetables, are located in Northern region of Jakarta including Ancol, Sunter, Muara Baru, Muara Karang and Pademangan. In that region, there are 7 cold storage companies

The location in the northern side of the city is strategic being close to the country’s largest port Tanjung Priok, making is easier in the shipments and loading and unloading.  That area is also linked with the Cawang-Tanjung Priok toll road and Tanjung Priok – Pluit toll road that cold storage companies in this area will gain in cheaper transport cost.

The western region such as Muara Angke, is close to the fish auction center, and places selling fresh sea fishes. Interaction with fish traders and exports is brisker. Muara Angke also is strategic in location being close access road to Pluit toll road leading to Jakarta’s Soekarno Hatta airport and to the Jakarta city center.

The cold storage warehouses are located area eastern region mainly in Cibitung where three largest logistics service companies in the country are located. Among the cold storage warehouses are owned by retailer company Superindo.

The Cibitung industrial zone is facilitated with good transport access. In the industrial estate of MM2100 Cibitung there are two logistics companies PT. Wira Logitama Saksama and PT. Sukanda Jaya. There is also PT. YCH in Cibitung outside the industrial estate.

The three logistics companies chose the location in Cibitung, as Cibitung offer ample space for office, warehouses and parking area close to toll road. Transport between Cibitung and Jakarta city center is facilitated with the Jakarta – Cikampek toll road.

Major players

PT. Sukanda Djaya

PT. Sukanda Djaya (SD) is one of the largest refrigerated food distribution companies in Indonesia. It is the only refrigerated food distribution company that operates on a national level. The company was established in 1978 and is wholly owned by PT. Diamond Cold Storage (DCS), the largest ice cream producer in Indonesia.

Part of ice cream production of PT. Diamond Cold Storage is kept in its own cold storage but the largest part is kept in the cold storage owned by PT. Sukanda Djaya.

PT. Sukanda Djaya also offers space of its cold storage to other companies. Currently its customers include a number of large restaurants in the Greater Jakarta area such as Pizza Hut, Mc Donald, Sizzler and A&W. They rent a space in the cold storage of PT. Sukanda Djaya for their frozen products including meat, chicken, potato and spices and other food flavors for restaurants. PT. Sukanda Djaya handles all work of distribution from the cold storage to all outlets of restaurants in Java.

The warehouse of PT. Sukanda Djaya located in Cibitung, is one of the largest cold storage warehouses in Indonesia. The warehouse of PT. Sukanda Djaya has a space of 14,000 sq.m with a cold storage capacity of 45,000 tons. Its has a fleet of 100 trucks to support its operation. It has 10 forklifts for handling activities in the warehouse.

PT. Sukanda Djaya has a number of branches of distribution centre located in various areas including Denpasar (Bali), Surabaya (East Java) and Bandung (West Java), and Balikpapan (East Kalimantan).

PT. Bonecom Servistama Compindo (BOSCO)

Bosco was established in 1989. It is one of the country’s largest cold storage companies. Bosco operates cold storage for fishery products including shrimp of its company group. When shrimp business was on the decline most of the space in its cold storage was rented out to other companies to keep meat, fish, chicken, and instant food products and frozen foods.

Currently, Bosco cold storage warehouse with space of 8,750 sq.m located in Muara Baru, North Jakarta. Bosco has three units of cold storage with a total capacity 6,000 tons.

The facility in the warehouse of Bosco include platform (special room) with a temperature of 5 ºC. The Platform allows the customers of Bosco to see the process of storing their products at Cold Storage. Currently PT. Bosco operates 14 loading docks to speed up the process of loading and unloading in the warehouse.

Bosco has a transport fleet of refrigerated lorries with a capacity of 2 tons, 4 tons, and 20 tons.

So far Bosco serves only customers in the Greater Jakarta area and Bandung. It hopes to expand its capacity to expand its service market to other large cities in the country.

Among the customers of Bosco are meat processing industry and large restaurants including PT. Japfa Comfeed, Kentucky Fried Chicken, Haagen-Dazs, Delfi Chocolate, Japfa Seafood (So Good), Gelare Ice Cream, etc.

PT.  Yap Cwe Hok Indonesia (YCH)

YCH Group was established in 1955 in Singapore. It operated integrated business as end-to-end supply chain management and logistics partner for a number of   multinational companies as producers of hi-tech/electronics, chemicals and manufactured consumer products.

YCH has a total area of 15 hectares in Cibitung but currently it has used only 6 hectares. Its cold storage facility occupies a land plot of 8,000 sq.m. YCH has 4 units cold storage with a total capacity 2,000 tons.

Currently the dry storage of YCCH is rented by PT. Danone Indonesia and PT. Frisian Flag (milk producer).

The entire cold storage facilities of YCH are rented by PT. Matahari Putra Prima, which operates Hypermart (hypermarket) and Foodmart (supermarket). Products kept in the cold storage include fruits, syrup, cake, chocolate, frozen foods, etc.

According to plan, YCH will expand its warehouse area with an additional 4 ha and its cold storage is to be expanded from 8,000 sq.m to 20,000 sq.m next year.