Syrian businessman Ayman Bergenjiki, owner of Indomie Syria, announced that the factories producing the instant noodles have permanently ceased operations in Syria. He then reversed this declaration by indicating that it could potentially resume work.
On Tuesday, Bergenjiki wrote on Facebook: “Goodbye to my labour of 25 years, today was the last day. Goodbye Indomie Syria.” He wrote in another post: “Trade Minister Amr Salem contacted me as soon as he heard that the factory had closed and asked for us to continue with production, promising to overcome all relevant obstacles.”
Bergenjiki added that the main reason for the factory’s closure is the lack of raw materials necessary for manufacturing and the difficulty of securing those resources for reasons directly related to the war imposed on the Syrian people. A meeting will be held with the minister to discuss solutions as soon as possible to resume production.
What appeared to be a retreat from Bergenjiki from his decision came against the backdrop of promises he received from the minister in the regime’s government, mostly related to taxes. The minister reached this interpretation by mentioning “war conditions,” on which the owner inferred that the minister’s decision did not and will not change within mere minutes.
This inference is supported by economic adviser Dr. Rifaat Amer, who confirmed to Al-Modon that “in regime-controlled areas, there is no longer a tax system in the economically accepted sense, but mere royalties.”
Amer explained that the regime today “randomly” estimates the value of the taxes it imposes on industrialists and traders. It is evident that, after the intensification of the economic crisis on the regime, it has tended to increase taxes significantly.
The economic adviser added that the regime’s funding sources are no longer able to provide it with minimal funds, especially after the tightening of regional and international control over the Captagon drug trade, on which the regime relies heavily to finance itself.
On the other hand, it is possible to consider the economic reasons related to the domestic market that led to the cessation of Indomie production in Syria.
Because of its relatively low price (1,000 Syrian pounds per packet), Indomie — known as the “meal of the poor” — is widely consumed. But high production costs, the difficulty of securing foreign exchange to import raw materials, and the weak purchasing power of most Syrians forced the company to decide to close.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.