FKS Multi Agro

PT FKS Multi Agro Tbk. was incorporated on 27^th June 1992. The deed of incorporation was approved by Indonesia’s Law Minister on 21^st October 1992 and published in the state gazette on 15^th December 1992.

In 1993, the Company commissioned its fish processing line and became a producer of industrial fishery products. It was the first Indonesian company utilizing whole fish for production of fish meal and fish oil in the country. The fish meal plant is based in Muncar (a fishing village) in Banyuwangi, East Java.

Expansion of Manufacturing Facility in 1997, the Company increased its existing capacity for processing whole fish and also broadened the manufacturing scope by processing poultry feathers to produce hydrolyzed feather meal, a high protein feed ingredient. The following year in the grip of SEA’s financial crisis of 1998, Indonesian rupiah witnessed unprecedented depreciation of its currency. While steep depreciation severely affected imports, it was an opportunity for exporters, as the competitiveness of domestic goods got a sudden boost due to weaker rupiah. The domestic feed output had plunged due to its reliance on import of feed ingredients. Amidst falling domestic demand, export activities boosted Company’s revenue as well as net income during the period.

In order to deal with dwindling wild fish stock in the La Nina year of 1999, the Company decided to process tuna waste (head & tail) to deal with volatility in marine catch of small pelagic fish.

After two good years of raw fish supply in 1997 & 1998, changing weather pattern from El Nino to La Nina exposed the vulnerability of fish availability. Consequently, this had an adverse impact on Company’s revenue. This prompted the Company to reduce its total dependence on manufacturing of feed ingredients and to try and explore opportunities for importing feed ingredients which were neither produced by the Company nor produced domestically. As soybean meal was the largest feed ingredients imported in the country, the Company began trading ingredients by importing soybean meal

On 18^th January 2002, the Company’s shares were listed on Jakarta Stock Exchange (JSX), which had subsequently changed its name to Indonesian Stock Exchange (IDX). The Company offered 80 million shares to public during its IPO. Public offering constituted 16.66% of the total number of shares available for listing. These shares were offered at Rp 125 per share, which was at 25% premium to par value of Rp 100 per share

In 2005, Company installed a cold storage facility which have storage capacity of 300 MT to sell high value fish. The frozen fish is mainly used as fishing baits. The ice required for storage is also made at the plant.

In 2006, for the first time ever, Company’s revenue crossed Rp 1 trillion. The Company also changed its name to FKS Multi Agro. While FKS represents the abbreviation of older name, the letters FKS also stand for the 3 broad product lines namely "F" for Fishery, "K" for Kernel of corn and "S" for Soya. Multi Agro was added to represent the transition from industrial fisheries to a broader feed ingredient base which was made of multiple agro based feed ingredients such as the oilseed meals and corn.

The Company built a warehouse for storing imported feed ingredients with a storage capacity of 20,000 MT. This was built specially for storing cargoes imported in containers near Jakarta. As for bulk imports, the Company already had adequate arrangements for storage within port areas.

A decade after the Asian financial crisis, 2008 had turned out to be another year of financial crisis. Unlike the one in 1998, this was a global event. However, there was no adverse impact to Company’s revenue, rather it recorded reasonable growth and along-side crossed Rp 2 trillion in net sales. While the first trillion in net sales was achieved in Company’s 14^th year since starting commercial operations, the subsequent Rp 1 trillion in revenue was added in a matter of two years.

The Company’s growth story continued to be on fast track and witnessed doubling of revenue from Rp 2 trillion in 2008 to Rp 4 trillion in 2010.

From feed to cover food ingredients as well, the Company in 2011 added soybeans to its portfolio of traded products. This move broadened and diversified Company’s product range to cover feed as well as food ingredients. This new line of business, together with sustained growth of feed ingredients, provided strong impetus to growth wherein net sales grew from Rp 4 trillion in 2010 to Rp 7.6 trillion.

The financial result of 2012 gave the Company a billion reasons to smile as it joined ranks with the other billion dollar enterprises listed on Indonesian Stock Exchange (IDX). It was very heartening to see FISH joined the galaxy of big stars shining in the IDX universe in the so called age of Pisces. It was a very eventful year with other first time accomplishments as well. The Company was awarded the prestigious ‘Indonesia Business Award’ for demonstrating significant contribution in domestic trade, services and investment. The Company received ‘Agricultural Business Partner Award’ from United States Grain Council (USGC) for being the largest importer of corn. The Company was also felicitated with an award for being the largest importer of soybeans in South East Asia. It was co-presented by three parties namely American Soybean Asssociation (ASA); United Soybean Board (USB) and US Soybean Export Council (USSEC). A syndicated revolving loan facility for USD 128 million was received from six participating banks namely Rabobank, HSBC, Sumitomo Mitsui Banking Corporation, Bank of Tokyo Mitsubishi UFJ, Bank of China and Indonesia’s EXIM Bank.

The Company invested towards acquiring warehouse facilities in Medan, Lampung, Cigading, Semarang and Makassar. The decision to acquire warehouses was done with a view to garner better control over storage requirements as the total volume of the cargo sold by the Company had reached 2 million tons annually. The Company also formed a join venture logistic company along with Charoen Pokphand and Japfa Comfeed while retaining a majority stake. PT Nusa Prima Logistik is located in Teluk Lamong and will serve as a dry bulk transit storage facility for handling grains and feed ingredients. The logistic facility is slated to become fully operational towards the end of 2016.