A Giant Who Lose Their Grip On The Market: A Case of PT. Sariwangi

Sariwangi, was originally, founded by PT Sariwangi Agricultural Estate Agency (1962). However, the brand Sariwangi was first introduced to the market with its teabag concept in 1973. Tea of Sariwangi comes from good quality leaf carefully selected to then be produced naturally by fermentation without any coloring and preservative ingredients involved to get tea with a high quality of color, taste, and smell. 

Indonesia for the past years has faced lower productivity and profitability due to climate change that affected the tea plantation. In general, tea production has declined in line with reduced cultivation. According to the Indonesian Tea Association, the number of productions and exports of tea has declined while the imports surged more than 400%. SAEA was trying to improve tea plantation production by investing in a drainage system. Despite the big sum of money that was invested in the new technology, things just did not go as well as planned for SAEA.