CJ Indonesia, which has been expanding its business since its entry into the Indonesian market in 1988, has embarked on a mission to grow together with local SMEs.
CJ signs an MOU for a One Village One Product program with KOTRA, the Indonesian Ministry of SMEs, and local cooperatives
▲ Commemorative photo of officials who attended the OVOP Program MOU signing ceremony
(From left) Hee-seong Shin (head of CJ Indonesia), Mustakim (president of Guyub Santoso Chocolate Cooperative),
Victoria Simanungkalit (KUKM vice-minister), Jumarie Adi (president of Manunggal Coffee Cooperative), and Byeong-sam Kim (KOTRA Jakarta Office director)
On June 27, 2019, CJ Indonesia announced that it had signed an MOU for a One Village One Product (OVOP) program with KOTRA, the Indonesian Ministry of Cooperatives and SMEs (KUKM), Manunggal Coffee Cooperative in Semarang in Central Java, and Guyub Santoso Chocolate Cooperative (Koperasi Serba Usaha Guyub Santoso) in Blitar in East Java.
OVOP is a Korea–Indonesia economic cooperation project that aims to revitalize the local economy by developing locally specialized products. A project that KOTRA and KUKM have been jointly conducting since 2015, OVOP helps businesses and rural communities join forces and develop tourism products out of resources and farm produce unique to the rural community.
An agreement ceremony took place on June 27 at CGV's dedicated sports entertainment theater FX Mall in Jakarta, and the ceremony was attended by many high-ranking officials including Korean Ambassador to Indonesia Chang-beom Kim, KOTRA Jakarta Office director Byeong-sam Kim, advisor to CJ Indonesia Bernard Kent Sondakh, head of CJ Indonesia Hee-seong Shin and KUKM's vice minister and presidents of local cooperatives.
CJ plans to improve the quality of the coffee produced by local cooperatives and expand the coffee's sales channels, as well as developing products that make use of chocolate and helping the cooperatives establish marketing strategies
Concluding the MOU, CJ Indonesia pledged to help improve the quality of the coffee produced by local cooperatives and expand the coffee's sales channels, as well as providing support for developing products that make use of chocolate and helping the cooperatives establish marketing strategies. The products developed under the MOU will be sold in Indonesia via Tous Les Jours and CGV. In addition, CJ also expressed its commitment to growing together with local communities and protecting the environment, as well as showing a willingness to continuing its win-win activities by means such as developing and selling locally specialized products based on its strong consumer contact capabilities.
"CJ Group is carrying out various social contribution activities in Indonesia under our business philosophy of 'Contribute to National Advancement through Business Patriotism,'" said a CJ official, adding "We will commit ourselves to grow together not only with local businesses but also with local communities by means such as providing support for developing locally specialized products aimed to increase the income of local residents."
Meanwhile, CJ Indonesia is carrying out a range of OVOP programs through cooperation with KOTRA, KUKM, and various local cooperatives. One good example is the OVOP program that CJ Indonesia has been running since 2015 in conjunction with Yogyakarta-based Jati Rogo Cooperative. Through this OVOP program, CJ Indonesia regularly buys coconut sugar produced by local residents and uses it for making apple cinnamon pastries, cakes and quiche, which are sold at Tous Les Jours locations run by CJ Foodville's Indonesian subsidiary. The revenue from sales of these products as of the end of last year amounts to 600 million KRW.