September 27, 2022

Cargill inaugurates corn wet mill in Indonesia to meet growing needs in feed markets in Asia

 

Cargill inaugurated on September 8 its corn wet mill in Surabaya, Indonesia, in an effort to meet the growing demand in feed as well as starch and sweetener markets in Asia and Indonesia.

This US$100 million facility, which is built during the pandemic, is also expected to benefit local economy by creating up to 4,000 new jobs and employment opportunities and help with the development of Indonesia's food and beverage industry.

The growth outlook of food and beverage industry in Indonesia is expected to be at 7% post-COVID era. This results in an expected increment in demand for corn starches, which quite often have to be imported from international markets.

Cargill's corn wet mill, which is based in Pandaan, Pasuruan, 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 export of value-added products.

Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, said in his speech: "In quarter one of 2022, the food and beverage industry contributed 37.77% 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 to 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 corn wet mill adopted advanced technologies, such as industry 4.0 practices, to optimise automation in the whole process from mill to packaging using robotics systems. It also applied the highest standards in waste management and water conservation, reducing electricity and water consumption, as well as maximising the effectiveness of wastewater purification.

- Cargill