Cargill Opens New Factory in Gresik

TEMPO.CO, Gresik - American-based company Cargill, has officially opened its first cocoa processing facility in Manyar Industrial Park, Gresik, East Java on December 11, 2014. The facility, which was claimed to be the first in Asia, is set to process high grade cocoa powder, cocoa liquor, and cocoa butter for the Asian market. "An investment value of more than US$ 100 million has opened up 300 new job opportunities," said President and CEO of Cargill Dave MacLennan on Wednesday, December 10, 2014.

Minister of Industry Salih Husin, said that the government is committed to provide incentives to investors who wish to do business in Indonesia by implementing certain policies in the cocoa industry sector, including import duty exemption on machinery, goods, and raw materials, and also policies on cocoa beans export to ensure domestic supply of raw materials.

In addition, Salih said that the government will provide income tax reduction for new investors and expanding investments. "This covers tax holiday and tax reduction for pioneer industries, an investment plan of more than Rp 1 trillion, and commercial productions," said Husin.

Husin added that the cocoa processing industry plays a vital role in increasing the state’s income because of the low consumption of cocoa in Indonesia. “This is very small compared to European countries that consumed eight kilograms of cocoa annually,” he said.

Cargill's cocoa processing facility has a production capacity of 70,000 metric tons (MT). "We produce cocoa liquor with a production capacity of 6,000 MT, cocoa butter 21,000 MT, and cocoa powder 28,000 MT. The end result is approximately 55,000 to 65,000 MT," said Jos de Loor, President of Cargill Cocoa & Chocolate Europe, Middle East, Africa (EMEA),and Asia.

ARTIKA RACHMI FARMITA