Pretty much everybody agrees that Indomie Goreng is one of the best things to come out of our country, but did you know the salty and savory snack has turned its manufacturer, Indofood, into a rapidly growing international powerhouse of noodle production?
That’s according to the 2014 Boston Consulting Group Global Challengers report. The study lists the top companies from emerging markets to rise to the international competitiveness and included Indonesian companies Indofood and Golden Agri Resources amongst the challengers.
The emphasis on this year’s report from the highly-respected consulting group is on the rapidly changing dynamics of what economists have traditionally thought of as emerging markets.
As stated in the report, “Emerging markets are no longer emerging. Many of them have arrived—and they are fueling about two-thirds of global GDP growth. With young populations, growing middle classes, and rising consumption, these markets are becoming more prosperous and, despite recent headlines, more stable.”
The BCG report also notes that, “Increasingly, the global economy is shaped by parallel worlds – the slow-growth mature markets and fast growth but volatile emerging markets.”
The report said Indofood, owned by the Salim Group, is a good example of a company taking advantage of the power of emerging markets.
“Indonesia’s Indofood, maker of instant noodles and other products, generates more than twice its revenue in emerging markets as it does in mature markets.”
Indomie has proven especially popular in countries such as Nigeria, where the product is so beloved that they’ve written rap songs about its noodly goodness.
Also cited as a new global challenger from Indonesia is Sinar Mas Group’s Golden Agri Resources, which is one of the largest palm oil production companies in the world.
The Global Challenger report said that a shortage of talent is one of the biggest obstacles to the success of companies from emerging markets.
“The shortage of talent threatens to undermine growth plans for all global challengers, but especially those seeking to move into new markets. In Indonesia—a country BCG has studied extensively—a 40 to 60 percent gap between the demand for middle managers and the supply will have developed by 2020.”
Photo: Indomie Facebook
