A global food and BIO company from South Korea, CJ Jedang, through its Indonesian unit, has announced to invests US$150 million in the country - Photo by BKPM Office

JAKARTA (TheInsiderStories) – A global food and BIO company from South Korea, CJ Jedang, through its Indonesian unit, has announced to invests US$150 million in the country. The investment commitment was signed directly by the deputy at the Investment Coordinating Board, Imam Soejoedi, with President Director of PT CJ Indonesia, Shin Hee Sung, on Nov. 25.

The South Korean company is currently building a new factory that will produce cysteine ​​with a production capacity of 3,000 tons a year and a total investment of $100 million. The new ​​plant is expected to start production and export the first production by the end of 2020. 100 percent of the production will be exported to several countries in North America, Europe and Asia.

In addition, CJ Indonesia will also start the developing of polyhydroxyl-alkanoate factory to produces 100 percent environmentally friendly plastic (biodegradable). The total investment for this projects is estimating $50 million with a production capacity 5,000 tones per annum also aimed for export market.

Soejoedi stated, that this export-oriented industry is one of the priority investments by the government. While, Sung hope that this new factory will contribute significantly to Indonesia’ trade balance in the midst of this pandemic.

CJ Indonesia has started its business since 1988 and now has six business networks, such as biotechnology, food, animal feed, logistics, cinema, and bakery. So far, the company has invested $1.6 billion increasing the country’ foreign exchange revenues of $455 million in 2019 .

During January – September 2020, the agency noted that investment realization from South Korea was in ranked seventh with a total investment of $683 million. As much as 70 percent of the partnering country’ investment realization is centered on the island of Java, with the dominating investment sectors including electricity, water gas ($228.4 million).

Then, chemical and pharmaceutical industry ($148.4 million), textile industry ($60.8 million), leather goods and footwear industry ($50.9 million), also food industry ($14.8 million). Currently, there are around 2,000 South Korean companies from various sectors that have invested and operated in Indonesia.

Written by Editorial Staff, Email: theinsiderstories@gmail.com