With an investment of USD 100 million (IDR 1.3 trillion), the new facility is expected to help grow the country’s food and beverage industry as well as strengthen the local economy.
Cargill inaugurated its corn wet mill in Pandaan, Pasuruan, and Surabaya to meet the growing demand for starches, sweeteners, and feed markets in Asia and Indonesia. This USD 100 million (IDR 1.3 trillion) facility, built during the pandemic, is also expected to benefit the local economy by creating up to 4,000 new jobs and employment opportunities and help develop Indonesia’s food and beverage industry.
The growth outlook of the food and beverage industry in Indonesia is expected to be at 7 percent post-COVID era. This results in an anticipated increase in demand for corn starches, which often have to be imported from international markets. Cargill’s new corn wet mill in Pandaan will bring the much-needed high-quality ingredients to these industries. This aligns with the Indonesian government’s vision of import substitution while also increasing the export of value-added products.
The Coordinating Minister for Economic Affairs, Airlangga Hartarto said in his speech, “In Quarter 1 of 2022, the food and beverage industry contributed 37.77 percent of the GDP of the non-oil and gas industry. Cargill’s investment is expected to enrich the competitiveness of the food and beverage industry and certainly increase the domestic processing of starch and sweeteners. The government continues to ensure the availability of raw materials from both domestic and global markets so that this kind of investment continues to grow and allow Indonesia to compete in the global market.”
“The new facility allows us to purchase corn and convert it into corn-based starches and sweeteners so that we can better meet customer needs both in Indonesia and international markets. We believe with the new mill; we can better support the government in growing Indonesia’s food and beverage industry by enhancing capacity as well as competitiveness in the international markets. We are also grateful for the strong support we have received from governments at all levels with this project,” said Ming Peng, Managing Director of Cargill Starches, Sweeteners, and Texturizers Asia.
Sweetener producers in Indonesia use corn starches to make specialty products with high added value, such as glucose, sorbitol, and maltodextrin, which are exported to more than 40 countries in Asia and Africa, such as Japan, the Philippines, India, South Africa, Australia, Vietnam, and Egypt.
The new corn wet mill has adopted advanced technologies, such as industry 4.0 practices, to optimize automation in the whole process from mill to packaging using robotics systems.
The new facility has also applied the highest standards in waste management and water conservation, reducing electricity and water consumption and maximizing the effectiveness of wastewater purification.
In addition, Cargill has also established an ecosystem management model through a land rehabilitation program by planting more than 60,000 trees to support biodiversity conservation.