Dutch Company Celebrates Nutmeg Investment In Fakfak West Papua, Bahlil Lahadalia Holds Red Carpet For Licensing

Investment Minister/Head of BKPM Bahlil Lahadalia in a meeting with Verstegen (ANTARA/HO)

JAKARTA - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia met with CEO of Verstegen Spices & Sauces BV Michel Driessen, a Dutch company that plans to invest in nutmeg development in Fakfak, West Papua.

The meeting, which was held at the Verstegen Headquarters in Rotterdam, the Netherlands, Thursday, October 14, was a follow-up to the previous meeting in November 2020.

The spice company expressed its interest in participating in the rejuvenation and planting program for nutmeg and its processing industry in Fakfak Regency, West Papua Province. Currently, Verstegen has established a Foreign Company Representative Office (KPPA) in Indonesia.

"Verstegen doesn't have to worry about land affairs in the region. The Ministry of Investment / BKPM is ready to facilitate and manage the permits. For the implementation, we can do it in stages. Starting from an area of 10 thousand hectares first, then we will monitor and study for future expansion ," Bahlil said in a written statement in Jakarta, Antara, Saturday, October 16.

Bahlil said the plan to develop a nutmeg plantation was in line with President Joko Widodo's direct mandate to the Ministry of Investment/BKPM to restore the glory of Indonesian spices.

This is also stated in Presidential Instruction No. 9 of 2020 concerning the Acceleration of Welfare Development in Papua and West Papua.

The former Chairperson of Hipmi explained that currently there are 40 thousand hectares of land available in Fakfak which can be used to build nutmeg plantations and processing industries. This plan for the development of the nutmeg industry has also been supported by the results of a study from the Bogor Agricultural University (IPB).

Furthermore, Bahlil said that Verstegen's experience and network would be very much needed to make this project a reality.

According to Bahlil, Verstegen can become an investor in nutmeg plantations, as well as market the final product and assist in the distribution network with his expertise and connections.

CEO of Verstegen Spices & Sauces BV Michel Driessen explained that Verstegen's usual business model is to work with local partners who own plantation land, not become land owners. Verstegen will focus more on product distribution, training of local farmers, and knowledge transfer.

"We are grateful for the support from the Ministry of Investment / BKPM and are ready to cooperate. Next, we will immediately send a team to Fakfak to study all the details of the proposals offered, including estimated costs, possible partnerships, post-harvest processes, and others," said Michel .

The development of an integrated spice industry for nutmeg plantations will later be able to secure both sides, namely supply (supply) and international market demand (demand) for spices from Indonesia.

The Netherlands itself, based on data from the Ministry of Investment/BKPM, recorded an investment realization of US$1.3 billion and was ranked 4th after Singapore, Hong Kong, and China during the first semester (January-July) 2021.