Jakarta, CNBC Indonesia – A global company from the US, Cargill invested US $ 100 million or the equivalent of Rp 1.4 trillion (exchange rate of Rp. 14,000 / US $) in its sweetener factory, PT Sorini Agro Asia Corporindo, located in Pandaan, East Java, to build Corn Wet Mill factory.
The investment fund is also to add Starch dryers to meet growing customer demand for starches, sweeteners and animal feed ingredients. This facility is planned to be ready to operate in early 2022.
Sorini Agro Asia Corporindo was previously listed on the Indonesia Stock Exchange (IDX) with the ticker code SOBI, but was delisted on July 3, 2017.
“The new Corn Wet Mill will allow us to buy corn and turn it into starch and sweeteners,” said Franck Monmont, Managing Director, Cargill Starches, Sweeteners & Texturizers (CSST) Asia, in an official statement, Wednesday (11/25/2020 ).
“With our expanded product portfolio and much larger production capacity, we are well positioned to support our customers’ growth plans,” said Franck Monmont.
He emphasized that this investment also demonstrates Cargill’s commitment to continue growing in Indonesia and provides significant support to the local economy by providing access for farmers to a source of income.
Cargill’s factory facility in Pandaan, Pasuruan Regency, began operations in 1983 and currently imports starches (tapioca and corn) and converts them into sweeteners, such as glucose, sorbitol and maltodextrin.
With this expansion, Cargill will be able to continue producing existing sweeteners and add new products such as corn starch, corn gluten meal, corn gluten feed and corn germ.
As such, Cargill will be better equipped to collaborate with customers to meet their increasing needs, starting from the candy industry (confectionary), dairy products (dairy), ready-to-cook food (convenience foods), personal care products, paper products industry to animal feed industry.
“Our investment is in developing and expanding our sweetener factory in Pandaan carried out in conjunction with the Indonesian government’s efforts to identify the need for increasing investment in the agricultural sector, “said Sunit Dhoka, Cargill Starches, Sweeteners & Texturizers (CSST) Managing Director for Southeast Asia as well as Country Representative for Indonesia.
He said, according to data from the Investment Coordinating Board (BKPM), only 3% of foreign direct investment in Indonesia in 2019 entered the agricultural sector, a sector that accounts for 29% of total employment in Indonesia.
“We are optimistic that our investment will bring positive benefits, because our operational activities create a sustainable demand to support upstream agricultural activities in Indonesia, particularly in East Java,” he said.
Cargill currently has 20,000 employees in 60 locations across Indonesia. In addition, Cargill’s total direct investment in Indonesia in the past 5 years was valued at US $ 800 million.
Cargill has also contributed more than US $ 5 million to various non-profit organizations in Indonesia to support health, education and community economic empowerment.
Globally, Cargill has 155,000 employees in 70 countries. In Indonesia, Cargill started its business in Indonesia in 1974 by establishing a feed mill in Bogor, West Java.
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