Investors Urged to Invest in Turkey Following Indofood's Success
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15 July 2019 12:13 WIB
TEMPO.CO, Jakarta - Indonesian Minister of Trade Enggartiasto Lukita encouraged domestic businesses to invest and make use of the business potential in Turkey following the success of Indofood in producing its known instant noodle product, Indomie.
Indomie is said to have gleaned 90 percent of Turkey’s instant noodle market share. Enggartiasto said that the economic potential will grow even larger after the Indonesia-Turkey Comprehensive Economic Partnership Agreement is enacted.
“We are all aware of Turkey’s vast market potential, this is why the government encourages Indonesian businesses to invest in capital and establish factories in Turkey, as was done by Indofood. The advantage is that raw materials can still be exported from Indonesia,” he said on Monday.
According to the minister, Indomie’s raw material is at least 45 percent supplied from Indonesia that is valued at USD 20 million annually. Those imported from Indonesia are used to produce the instant noodle’s seasoning, packaging, and palm oil.
He expects the value will grow two-folds once the IT-CEPA is officially enacted.
The Indomie plant in Turkey is able to produce Indomie noodles up to 450,000 cartons monthly and 50,000 cartons of Indomie Cup each month.
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