PANDAAN, INDONESIA — Cargill inaugurated on Sept. 8 its new corn wet mill in Pandaan, Indonesia, which will help meet the demand for starches, sweeteners and feed in Asia and Indonesia.

The $100 million facility was built during the pandemic and features automation in the entire process, from mill to packaging. It also has applied the highest standards in waste management and water consumption, reducing electricity and water consumption as well as maximizing the effectiveness of wastewater purification.

“The new facility allows us to purchase corn and convert it into corn-based starches and sweeteners, so that we can better meet customer needs both in Indonesia and international markets,” said Ming Peng, managing director of Cargill Starches, Sweeteners and Texturizers Asia. “We believe with the new mill we can better support government in growing Indonesia’s food and beverage industry by enhancing capacity as well as competitiveness in the international markets. We are also grateful for the strong support we have received from governments at all levels with this project.”

Sweetener producers in Indonesia use corn starches to make specialty products with high added value, such as glucose, sorbitol, and maltodextrin, which are exported to more than 40 countries in Asia and Africa, such as Japan, the Philippines, India, South Africa, Australia, Vietnam and Egypt.

The growth outlook of the food and beverage industry in Indonesia is expected to be at 7% post-COVID era. The growth is expected to drive demand for corn starches, which quite often have to be imported from international markets. Cargill’s new corn wet mill in Pandaan will bring the ingredients to these industries.

“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,” said Airlangga Hartarto, coordinating minister for economic affairs. “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.”