Cargill inagurated its corn wet mill in Pandaan as part of an effort to meet growing demand for corn-based starches, sweeteners and feed markets in Indonesia and Asia. The facility, which cost US$100 million, was built during the pandemic and is expected to create up to 4000 new jobs and employment opportunities for the local community.
The growth of the food and beverage industry in Indonesia is expected to sit at around 7% post-pandemic. This has resulted in growing demand for corn starches, which often have to be imported. Cargill’s new mill will bring these in-demand ingredients to local markets.
“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,” explained Ming Peng, Managing Director of Cargill Starches, Sweeteners and Texturizers Asia. “We believe with the new mill we can better support 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.”
Sweetener producers in Indonesia use corn starches to make products such as glucose, sorbitol and maltodextrin, which are exported to more than 40 countries in Asia and Africa including Japan, South Africa and Vietnam.
The new mill incorporates industry 4.0 practices to optimise automation in the process such as packaging using robotics systems. It includes waste management and water conservation, to reduce electricity, water consumption and maximise wastewater purification.
“Cargill’s investment is expected to enrich the competitiveness of the food and beverage industry, and certainly to increase the domestic processing of starch and sweeteners,” said Airlangga Hartarto, Coordinating Minister for Economic Affairs. “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.”
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