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Foreigners more agressive in flavoring business

Rabu, 21 September 2016 / 16:44 WIB

Foreigners more agressive in flavoring business

JAKARTA. Business of food and beverages flavoring in Indonesia becomes more attractive. Within the last six months, two global flavoring companies launched expansion to Indonesia.

Recently, Japanese flavoring company PT Takasago Indonesia will invest US$ 19.5 million to establish a new factory at 16,000 meter square of area in Bekasi, West Java. According to Financial Advisor at PT Takasago Indonesia Leni Burhan, the construction of the factory will start at the beginning of 2017. The factory, which will have 3,000 ton of production capacity per year, is expected to start operating in 2018.

Previously, PT Takasago Indonesia had built factory in Purwokerto, Central Java.

Aside of Takasago, another Japanese flavoring company PT Ajinomoto will expand its factory in Karawang Industrial Zone, West Java.

In June 2016, Nikkei news agency reported that Ajinomoto announced factory expansion with a total of investment of US$23 million.

Another food flavoring company PT Indofood Sukses Makmur Tbk also predicted that flavoring business in Indonesia will steadily grow. “The business will keep growing, since people have always to eat,” said Director of PT Indofood Sukses Makmur Tbk Fransiscus Welirang on Tuesday (20/9).

According to Chairman of Committee for Small and Medium Enterprises Development at the Association of Food and Beverages Enterprises (GAPMMI) Irwan Widjaja, flavoring and flavoring business is attached with food and beverages business.  In other words, the grow in food and beverages business will be followed by flavoring and flavoring business growth.

“The consumption of instant flavoring and ingredients have become a part ot consumer’s lifestyle. It’s simple, efficient, and instant,” Irwan said.

According to GAPMMI notes, the sales of food and beverages in 2015 amounted to IDR 1,250 trillion. Irwan estimated that market shares of flavoring and ingredients will increase to 25% -35% of the total of food and beverages sales in 2015.

Deputy Planning at Capital Investment Cordinating Board Tamba Hutapea expected that the new investments will increase the growth of flavoring and ingredients industry. “This sector has direct impact to people, who always need food”, Tamba said. (Translator: Muhammad Farid)

Reporter: Umi Kulsum, Yusuf I Santoso
Editor: Sanny Cicilia
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