Two Cooking Oil Producers Report Increased Profits in 2021

There are two cooking oil producers listed on the Indonesia Stock Exchange (IDX): PT Sinar Mas Agro Resources and Technology Tbk (SMART) and PT Salim Ivomas Pratama Tbk (SIMP).

SMART produces Filma, Kunci Mas, and Mitra cooking oil brands. Meanwhile, SIMP produces Bimoli and Delima.

In 2021, SMART recorded a net profit of Rp2.83 trillion. This is an 84% increase from Rp1.54 trillion in 2020.

Furthermore, SIMP recorded a net profit of Rp984.4 billion in 2021. This net profit increased by 320% compared to Rp234.28 billion in 2020.

These two cooking oil companies are part of two Indonesian conglomerates. SMART is part of the Widjaja family's Sinar Mas Group, while SIMP is part of the Salim Group.

Recently, the Indonesian Business Competition Supervisory Commission (KPPU) found alleged cartel practices in the cooking oil industry involving eight major players. Although it has not yet revealed the eight businesses, the KPPU stated that they control 72% of the crude palm oil market share in Indonesia.

KPPU mentioned that they have found evidence obtained from direct statements from 44 parties related to cooking oil, distribution letters, and product orders.