Executive Summary

Key insights and market outlook

PT Unilever Indonesia Tbk (UNVR) has divested its Sariwangi tea business to PT Savoria Kreasi Rasa, part of the Djarum Group, for Rp1.5 trillion. The transaction, expected to complete by March 2, 2026, is part of Unilever's strategy to focus on core categories with higher growth potential. Analysts view this as a positive strategic move enhancing Unilever's efficiency and financial strength.

Full Analysis

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Deep Dive Analysis

Unilever Indonesia Divests Sariwangi Tea Business to Djarum Group

Strategic Divestment for Portfolio Optimization

PT Unilever Indonesia Tbk (UNVR) has signed a Business Transfer Agreement (BTA) to divest its Sariwangi tea business to PT Savoria Kreasi Rasa, an entity within the Djarum Group, for a total consideration of Rp1.5 trillion (excluding applicable taxes) ¹

²³. The transaction is expected to be completed by March 2, 2026, subject to customary closing conditions ².

Rationale Behind the Divestment

This strategic move is part of Unilever Indonesia's broader portfolio optimization strategy, focusing on core categories with higher growth potential and margins ¹

⁵. The tea segment, being relatively mature with limited growth prospects, contrasts with Unilever's core personal care and consumer foods segments that offer higher growth opportunities ¹.

Financial Impact and Future Plans

The divestment proceeds of Rp1.5 trillion will strengthen Unilever Indonesia's balance sheet and enable the company to focus on developing its core businesses ¹

. The transaction value represents approximately 45% of Unilever Indonesia's equity as of September 30, 2025 ³.

Market Reaction and Analyst Views

Analysts from Kisi Sekuritas view this divestment as a strategic decision to enhance efficiency and concentrate on higher-margin businesses ¹

. The tea business, while significant, constituted only about 2.5% of Unilever Indonesia's total assets ³.

Business Impact on Sariwangi

Unilever Indonesia acquired Sariwangi in 1989, making it a pioneer in the Indonesian tea market ⁶

. The divestiture is expected to strengthen Sariwangi's business position under the new ownership by PT Savoria Kreasi Rasa, according to Unilever Indonesia's President Director, Benjie Yap ⁵⁶.

References