Unilever Indonesia on shaky ground

Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.

Hello reader,

Have you seen the 2010 movie 127 Hours? It follows a man whose arm gets trapped underneath a dislodged boulder while hiking alone in a canyon. After exploring different options, he resorts to amputating his arm, literally cutting it off to free himself.

I’ve often thought about what I might do in that situation. Would I be willing to make that sacrifice to have a better chance at survival?

Unilever Indonesia appears to have made a similar choice, selling its ice cream business in an attempt to improve its financial position. It’s a significant move, but the firm has been in a tough spot recently. Our story for today dives into what the consumer goods giant has been going through.

Today we look at:

• Unilever Indonesia’s latest troubles
• Yudiz CFO’s resignation
• Other newsy highlights such as SenseTime’s goal to spin off its healthcare platform and the launch of Douyin’s new ride-hailing feature.

Premium summary

Beset on all sides

Image credit: Timmy Loen

Unilever Indonesia’s last few years have been rather tough. Just take a look at its financials: its market share, net profits, and share prices are all down. The company sold its ice cream business for around US$440 million in November 2024 to plug the gap, but will this be enough?

• The sacrifice: Unilever’s food and refreshment category, which included the ice cream business, used to make up 35% of its total revenue. However, the said venture’s sale could push the segment’s contribution down to 28%.
• The Indonesian market: In 2023, Indonesia accounted for nearly 4% of Unilever’s total global sales. However, boycotts reportedly associated with the Israel-Palestine conflict – alongside shifting consumer habits and tough competition – have triggered a drop in the firm’s sales in the country, which has the largest Muslim population in the world.
• Filling the gap: As Unilever faces these challenges, its homegrown rivals – including Wings Group and Mayora, are looking to solidify their positions as alternatives.

Read more: Competition, boycotts threaten to sink Unilever Indonesia’s reign

Startup spotlight

Greener pastures

Work smarter this year – join our waitlist now

Quick bytes