Yes, Investment Minister Bahlil Lahadalia Withdraws $350 Million From Cargill

Minister of Investment/Head of BKPM Bahlil Lahadalia (third right) during a meeting with Cargill in Washington DC, USA, Monday 12 July. (Doc Antara/HO Ministry of Investment/BKPM)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia managed to secure an investment of US$350 million from Cargill, during his working visit to the United States.

"We appreciate Cargill's longstanding presence in Indonesia and has contributed to providing benefits for both parties. The Ministry of Investment team is ready to help realize Cargill's next investment plan," Bahlil said in a written statement in Jakarta, Thursday.

Bahlil had a meeting with Ambassador David Nelson as a representative from Cargill on Monday morning July 12 in Washington DC, USA.

On that occasion, he emphasized that Indonesia has now entered a new phase after fundamental changes were made. After the ratification of the Job Creation Act (UUCK), which is a combination of 79 laws, the Government of Indonesia is implementing it in stages to make the investment climate more conducive.

"BKPM has also become a Ministry and has full authority to issue business permits centrally. This is in order to provide certainty, convenience, efficiency, and transparency," explained Bahlil Lahadalia at the meeting.

Ambassador David Nelson as Cargill's representative explained the prospect of Cargill's investment diversification in Indonesia. Indonesia, as the country with the fourth-largest population in the world, according to David, is still a very attractive investment destination.

David also said that Cargill, which has been in Indonesia since 1974, has plans for expansion and new investments in the next 2-3 years worth US$350 million.

This investment plan consists of a $50 million business expansion; a US$100 million corn processing plant in East Java that will be commercially operational in early 2022; and a US$200 million palm oil refinery facility in Lampung which has been started and is targeted for completion by the end of 2022.

"Cargill has been working closely with local and small and medium-sized entrepreneurs in investment locations, and will continue to be committed to it," said David when conveying Cargill's commitment to further investments.

David also appreciated the efforts of the Indonesian government in making regulatory breakthroughs for investment. "Innovation in regulatory simplification, transparency, and acceleration of licensing are important things in business licensing and are key issues to drive investment, especially in the Ease of Doing Business (EoDB) ranking," David added as reported by Antara.

Cargill is a global company based in Minnesota with 155,000 employees worldwide and whose mission is to provide nutrition for the world.

Present in Indonesia since 1974, Cargill pioneered by establishing an animal feed factory in Bogor, West Java, and has now ventured into the palm oil, protein, sweetener, cocoa, and copra processing industries. Currently, Cargill's head office is located in Jakarta with more than 20,000 employees spread across 60 locations in Indonesia.

As Minister of Investment, Bahlil Lahadalia really appreciates Cargill's presence as one of the important investors in Indonesia. And this company has been investing in the motherland for decades.