Royalindo Investa Wijaya Shifts Business Focus to Investment Company

Strategic Business Transformation

PT Royalindo Investa Wijaya Tbk (INDO) has announced a significant strategic shift in its business operations, transitioning from a property company to an investment holding company. This transformation marks a major change in the company's business direction, enabling it to diversify into various new sectors.

Diversification Strategy

The company's management, led by CEO Leslie Soemedi, has outlined plans to expand into new business areas through both organic and inorganic growth strategies. This approach allows Royalindo to leverage both internal capabilities and external opportunities to drive future growth.

Initial Investment in Sugar Production

As its first major move under the new business strategy, Royalindo has established PT Ratu Gula Asia (RGA), a company focused on brown sugar production. The new subsidiary is strategically located in Kediri, East Java, a region known for its agricultural production capabilities. According to the company's statement, RGA has already completed the acquisition of a sugar production facility with an impressive monthly production capacity of 2,000-3,000 tons.

Market Implications

This business transformation positions Royalindo Investa Wijaya for potential growth in the agricultural sector, particularly in sugar production. The company's entry into this industry through PT Ratu Gula Asia represents a significant diversification from its previous focus on property development. The strategic partnership behind this new venture suggests a well-planned approach to entering the sugar production market.