Unilever to sell Indonesia tea business to Djarum Group for 1.5 trillion rupiah

[JAKARTA] Consumer goods giant Unilever is set to divest its tea business in Indonesia, selling the Sariwangi brand to a local company for 1.5 trillion rupiah (S$115 million).

Unilever, through its listed unit Unilever Indonesia, will sell Sariwangi to Savoria Kreasi Rasa, a subsidiary of Djarum Group.

In a regulatory filing on Wednesday (Jan 7), the company said both parties signed the business transfer agreement on Tuesday, with the transaction targeted for completion by Mar 2.

Benjie Yap, president director of Unilever Indonesia, said: “The transaction allows Unilever Indonesia to sharpen its focus on core segments with higher growth potential and underscores our commitment to creating sustainable value for our shareholders.”

Sariwangi is one of the leading brands in Indonesia’s tea-bag market, with a sizeable market share built over decades and strong brand recognition among local consumers.

Despite its prominence, the tea business accounted for a relatively modest share of Unilever Indonesia’s performance, contributing about 3.1 per cent of net profit and roughly 2.7 per cent of total revenue.

The tea transaction is valued at roughly 45 per cent of Unilever Indonesia’s total equity, based on the company’s financial statements as at Sep 30, 2025.

Beyond the tea divestment, Unilever has been pursuing a broader restructuring agenda in South-east Asia’s largest economy, aimed at streamlining its local portfolio. Last year, the company sold its ice cream business, Walls, to Magnum Ice Cream Indonesia for seven trillion rupiah.

The London-headquartered group has faced mounting competition in Indonesia’s fast-moving consumer goods market, compounded by consumer boycotts linked to the Gaza conflict.

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Despite these challenges, the company showed strong performance in Q3 2025, posting net sales of 9.4 trillion rupiah, up 12.4 per cent year on year. Net profit soared 117 per cent to 1.2 trillion rupiah, supported by improved operational efficiency and the sale of its ice cream business.