Cargill contemplates $1bn investment in Indonesia

American agricultural and industrial conglomerate is planning to invest around $1bn in Indonesia over the next three to four years, with special focus on the poultry sector.

The company also aims to expand its palm business in the South East Asian country.

The firm already owns palm oil plantations covering about 40,000ha in Indonesia and is the top producer of the edible oil.

Reuters quoted Cargill CEO David MacLennan as saying: "Japan is looking closely at Indonesian chicken and part of it is to replace volume that has fallen off from China through various industry issues that China has had. That is a good place for us to play in Indonesia."

Cargill has recently invested $100m in a cocoa processing plant in Indonesia, which has an initial capacity of 70,000t. It is Cargill’s first such facility in Asia.

The new $100m processing facility has been established in Gresik and has created more than 300 new jobs. It will produce Cargill’s premium brand Gerkens cocoa powders, as well as high-quality cocoa liquor and butter.

Cargill’s cocoa and chocolate business in Europe, Middle East, Africa and Asia president Jos de Loor said: "Our customers expect us to keep innovating and adding value to their products, and this investment focuses on delivering for their success.

"We have been sourcing cocoa in Indonesia since 1995, and we are committed to supporting sustainable agricultural production and a responsible cocoa supply in the country. We work with governments, communities and partners to help build a vibrant Indonesian cocoa industry with a long-term future."

Indonesia is the world’s third-largest cocoa producer and is rising with new facilities being built there by companies like Olam International and top chocolate maker Barry Callebaut.

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Image: At Cargill’s new state-of-the-art cocoa processing facility in Gresik, Indonesia, employees focus on innovation to help customers succeed. Photo: courtesy of Cargill.