JAKARTA (TheInsiderStories) - The world’ largest nutmeg producer, Verstegen Spices & Sauces B.V., is interested to develop the nutmeg factory in Fakfak Regency, West Papua. The company prepared an investment valued of Rp4.2 trillion (US$297.87 million) in this project and will empower 50,000 nutmeg farmers.
Deputy for Investment Coordinating Board, Ikmal Lukman, said in an official statement on Thursday (12/17), the government pushed the involvement of Verstegen caused the demand for Dutch nutmeg has continued to decline in the last five years. He noted, Indonesia is a producer and became the world’ largest exporter of nutmeg.
“Indonesia’ contribution was 40 percent of total world exports, three times bigger than India and 4.5 times bigger than Dutch exports,” said the deputy by adding, supply from the global producers has continued to weaken, including from Indonesia.
In 2015 the Netherlands imported $21.36 million but in 2019 it fell to only $11.56 million form the total world imports of nutmeg of $157.90 million. Lukman said, that the government’ targets is to build a downstream industry of nutmeg caused the commodity is very strategic for West Papua.
Eastern Indonesia is currently the largest producer of nutmeg in Indonesia. As much as 70 percent of Indonesian production comes from the region and the main export destinations are the Netherlands, Germany, Vietnam and Japan.
Auri Steel Invest in Kendal
Earlier, local manufacturer, PT Auri Steel Metalindo, announced to topping off its new factory in Kendal Industrial Estate, Central Java. The company will produce lightweight steel roofs with a capacity of up to 400,000 tones per year.
President director of Auri Steel, Auripallas Pramana, revealed the construction has been carried out since early 2020 joint with PT Jababeka Tbk (IDX: KIJA) and Sembcorp from Singapore. The company prepared $4.9 million for the project.
Secretary general of the industry ministry, Achmad Sigit Dwiwahjono, metal industry is one of the prospective sectors in the future because of the large of domestic demand, especially from the automotive and construction sectors.
The government is determined to accelerate the 35 percent import substitution program by 2022, one of them is the metal industry sector. To reach the targets, the country has implemented several strategic policies included the implementation of steel import regulations based on supply-demand and facilities for the natural gas price for the industrial sector of $6 per MMBtu.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
