Tiga Pilar has been engaged in 4 business segments, these four segments are TPS Food in food sector,

TPS Agro in agribusiness, TPS Trading in distribution, and TPS Venture in energy. This company was built
by Joko. Joko graduated with a course in Food Technology and started a business in food. TPS Food is
the core business of the company having increase in profits by 17X form 12006 to 2010. TP Agro has also
reaped high growth with profits of IDR 72M in 2006 to 4.3B in 2010. TPS Trading has a significant
increase in revenues but still has negative net profits. And lastly TPS Venture which is still unable to
show good performance for 5 years.
TPS Food has acquired other food businesses throughout the years as a way to grow. Joko believes that
even if the diversification looks disoriented, food is still the core business. Anything related to food is
their core business. They have acquired different type of food business ranging from dry egg-noodles,
dry rice noodles, to instant noodles, biscuits and candies. They have now entered into the nutritional
food business to promote service to society. All their basic food business is market leaders in Indonesia.
TPS Agro is their agriculture arm and it has been very successful over the years, it is into palm plantation,
crude palm oil production, cassava flour production, spirulina supplementary food production, and sago
flour production. They expect palm production to continue growing for them. Indonesia has been the
worlds leading supplier of palm oil. Similar to TPS Food, the company has acquired other palm
plantation businesses to grow. They have acquired other business and worked with Universities to
research for new ways to keep improving. TPS has also entered into Distribution Company that will help
their TOPS Food and Agro. And TPS Venture is into energy and Chemical. This is viewed as a prospective
even though the performance is not that great. In support of the government, TPS Venture hopes to
supply power to Indonesia. Since Indonesian government doesnt want foreigners to enter into energy
business they have TPS Venture to help them with this. They also entered into chemical business where
the government is also a part owner of the company.
Leanings:
Part of their growth can be attributed to the growth of the country as whole. The company has
benefited in the rapid growth and the capital inflow of the country. A big company like Tiga Pilar is able
to capture this growth through vertical, horizontal, and unrelated diversification. In a developing
country, a big company like Tiga Pilar has the resources to grow into businesses that they see potential.
They can easily acquire other companies and continue growing. They have the reputation to partner
with the government and partner in growth prospects like TPS Venture. They can use the existing cash
flow from other successful business like their TPS food and continue into related or unrelated
diversification. The room for growth in one industry is quite limited for a developing country, thus they
have to grow by either acquiring a competitor, or by creating a new business related or unrelated.
Government policies that support local companies will further give companies like TIga Pilar more
opportunities. And if the government wants a reliable partner locally they have to use a big company
like Tiga Pilar. Lastly the company sees continuous improvement and growth but at the same time
makes sure that they are agile. They train their employees and support them to have good human
resource and make sure that they are agile enough to respond to the market changes and opportunities.