Salim Group Expanded Its Sugar Business to Brazil.

JAKARTA (TheInsiderStories) – Indofood Agri Resources Ltd (IndoAgri) through its subsidiary IndoAgri Brazil joined with JF Investimentos S.A., agreed to form a new joint venture Canapolis, said the spokeswoman in official announcement on Monday (19/02).

The subsidiary of PT Indofood Sukses Makmur Tbk (IDX: INDF) and JV Investimentos will own a 50 percent interest in the joint venture each. Both parties will deposit initial capital of US$14.4 million. INDF Corporate Secretary Elly Putranti said, Indoagri has inject the capital on Feb. 15.

She added, Canapolis will focus on producing sugar. The company had previously acquired a sugar factory with a capacity of 1.8 million tons of sugar cane milling.

In addition to the plant, Canapolis controlled a land area of ​​6,048 hectares through a local court auction process, after the previous owners declared bankrupt.

The acquisition value at that time was $42 million, which was paid in installments until June 2019. Canapolis expects to start operations in 2020, after planting sugar cane and rehabilitation of the factory.

Salim group, is one of Indonesia’s biggest conglomerate with assets including INDF, the world’s largest instant noodle and PT Bogasari Flour Mills, a large flour-milling operation. The group was founded in October 1972 by Sudono Salim (16 July 1916 – 10 June 2012), also known as Liem Sioe Liong.
The Group also owns major oil plantations–about 1,000 kilometers– and logging concessions. The Group has been involved in property development and the leisure industry for around 30 years. Its businesses include hotel and resort development, golf courses, and commercial real estate.