Global food producer from United States, Cargill Inc., invested US$100 million in PT Sorini Agro Asia Corporindo, to build a corn wet mill factory in Pandaan, East Java - Photo by the Company

JAKARTA (TheInsiderStories) – Global food producer from United States, Cargill Inc., invested US$100 million in PT Sorini Agro Asia Corporindo, to build a corn wet mill factory in Pandaan, East Java, the manufacturer announced on Thursday (11/26). The new facility is planned to operate in early 2022.

Franck Monmont, the managing director of Cargill Starches, Sweeteners & Texturizers, said the investment is also aimed to meet the growing demand for starches, sweeteners and animal feed ingredients. He continued, this investment also demonstrates the company’ commitment to continue growing in Indonesia and provides significant support to the local economy by providing access for farmers to a source of income.

Its factory facility in Pandaan, started the operations in 1983 and currently imports starches (tapioca and maize) 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.

In this way, the company will be better equipped to collaborate with customers to meet their increasing needs, from the confectionary industry, dairy products, convenience foods, personal care products, the paper products industry to animal feed industry.

Sunit Dhoka, Cargill’ managing director for Southeast Asia, revealed the Investment Coordinating Board data showed only 3 percent of foreign direct investment (FDI) entered in the agricultural sector. Until now, the company’ has invested $800 million in the past five years.

The agency reported, FDI dropped by 5.1 percent from Rp317.8 trillion ($22.54 billion) in nine months (9M) of 2019 to Rp301.7 trillion in the same period of 2020. However, the domestic direct investment jumped 9.3 percent to Rp309.9 trillion from Rp293.5 trillion in 9M of 2019.

In total, the country posted an investment realization of Rp611.6 trillion or only rose by 1.7 percent compared to 2019 with worth of Rp601.3 trillion. In third quarter only, total investment jumped 8.9 percent from Rp205.7 trillion to Rp209.0 trillion. While, The FDI rose 8.7 percent, a first growth in this year, to Rp106.1 trillion from Rp105.0 trillion and the DDI up 9.1 percent from Rp100.7 trillion to Rp102.9 trillion.

Based on areas, the realization of investment in Java is Rp98.6 trillion or 47.2 percent of the total investment and Rp110.4 trillion or 52.8 percent is located outside Java.

US$1: Rp14,100

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