Sinar Mas’ Rp 9 trillion investment

This was published in Jakarta Globe yesterday.

Indonesian palm oil giant Sinar Mas Agro Resources & Technology Tbk and its affiliated companies will invest Rp 9 trillion (US$1 billion) in the space of four to five years to develop its downstream businesses.

“This Rp 9 trillion in investment is likely to absorb around 20,000 workers, directly and indirectly,” company chairman Franky Widjaja said after an inauguration ceremony for a palm oil refinery in Marunda, West Java, on Wednesday.

Sinar Mas Agro Resources & Technology is a division of Sinar Mas Group.

The Marunda refinery is worth Rp 2.3 trillion and is part of the company’s Rp 9 trillion commitment. It has a processing capacity of 300,000 tons of crude palm oil (CPO) per year and is set to produce 168,000 tons of cooking oil and 112,000 tons of margarine. Facilities in the refinery will, later, be expanded to enable it to produce 140,000 tons of cocoa butter substitute annually.

Widjaja said similar refineries would be built in Surabaya, Tarjun in South Kalimantan and Belawan in North Sumatra. “This effort is in line with the government’s policy to boost investment in the manufacturing sector,” he said.

Coordinating Minister for the Economy Hatta Rajasa, Industry Minister MS Hidayat, Trade Minister Mari Elka Pangestu, Chief Coordinating Minister Gita Wirjawan and West Java Vice Governor Dede Yusuf attended the the inauguration ceremony.

Rising commodity prices and efforts to boost the nation’s commodity processing sector have seen more companies pouring money into palm oil products, even though the industry faces challenges from environment activists, land acquisition issues and a complex bureaucracy.

Other food companies, including Nestle and palm oil giant Wilmar, have expressed their commitments to spend more money in Indonesia, the world’s largest producer of palm oil.

One Response to Sinar Mas’ Rp 9 trillion investment

  1. Good afternoon..

    I'm keken from batam..

    Does sinarmas stil intersting to planting palm oil trees?

    Because here in nearby batam I have land vacancies around50 hectare..
    The land is verygood for planting palm oil trees.

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