In the colonial era, the Dutch government had established a trading company in Indonesia. Among these companies were known as The Big Five with the aim of exporting spices to Europe.
Then, after Indonesian independence, the Indonesian government nationalized all these trading companies to become state-owned companies and were called Niaga in the 1950s.
The nationalized companies were responsible for trading and distributing basic commodities such as staple foods (rice, flour, maize, etc.) in addition to traditional spices, and they were also responsible for the trade and distribution of agricultural commodities ( fertilizers and pesticides, chemicals and others) and consumer products (textiles, automotive, etc.). For this reason, the government provides special rights to operate in terms of regulations, capital and assets.
In June 2003, the Government of Indonesia decided to merge the remaining three Niaga or trading companies namely PT. Tjipta Niaga (Persero), PT. Dharma Niaga (Persero) and PT. Pantja Niaga (Persero), became only one trading company, namely PT Perusahaan Perdagangan Indonesia (Persero) (PT PPI) or also known as Indonesia Trading Company (ITC) which became effective from March 31, 2003 based on the Government Regulation of the Republic of Indonesia No. 22 of 2003.
PT PPI later became a trading company wholly owned by the Indonesian government. The implementation of the third merger of ex-BUMN Niaga is aimed at improving management efficiency, maximizing profits, business integration and increasing asset ownership.
Milestone PT PPI