Indonesia Business Report 2018

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Discovery Reports

Brewing partnerships key to KBP Chakra’s entry to new markets

PUBLISHED : Tuesday, 03 July, 2018, 12:50pm
UPDATED : Thursday, 05 July, 2018, 10:42am

With demand steadily growing for different varieties of tea, stringent industry regulations are enforced to maximise its health benefits and to keep consumers safe. Proudly certified by the Rainforest Alliance and UTZ, Indonesian tea expert Kabepe (KBP) Chakra ensures that teas from its plantations adhere to environmental, social and economic sustainability standards set by these organisations.

Celebrating its 62nd year in the tea industry, Chakra started with only one plantation in West Java. From this one plantation named Dewata, the family-owned company persevered and grew its business to a total of six plantations and five tea factories.

“We have lasted this long in this industry because of one key factor: human resource”
Rachmat Badruddin, president and director, Kabepe Chakra

“We have lasted this long in this industry because of one key factor: human resource. You can take away my factory, my office and other things, but not my people,” says Rachmat Badruddin, president and director.

Chakra supplements its harvest with tea sourced from smallholder farmers and private owners to help them grow their business. With its passion for and commitment to reinvigorating the industry, the company regards these suppliers as partners. In the same spirit, Chakra seeks to acquire mismanaged tea plantations to turn them into more profitable and more sustainable farms.

Serving the global market, Chakra exports 75 per cent of its harvest to tea packers and traders in Europe, the United States, China and other Asian countries. One particular market where the company would like to strengthen its footprint in is Morocco, the country with the highest green tea consumption worldwide. Chakra seeks to work with Chinese tea producers to develop a unique green tea blend specifically for Morocco.

“I would like to partner with a company who can work with us hand-in-hand, for better and for worse, and enter new markets together. I want a partner who shares our philosophy of making prosperous not only the owners but also our employees,” Badruddin says.