Corn Starch Factory Worth Rp 1.3 Trillion Stands in Pasuruan Thanks to Investment from Cargill Indonesia

JAKARTADAILY.ID – The Ministry of Industry (KEMENPERIN) appreciates Cargill Indonesia for realizing an investment of Rp 1.3 trillion through PT Sorini Agro Asia Corporindo to build a corn wet milling factory in Pasuruan, East Java.

"Cargill's corn wet milling factory adopts industry 4.0 aspects by optimizing automation in the entire process from milling to product packaging using a robotic system," said Director General of Agro-Industry, Ministry of Industry, Putu Juli Ardika reported by kemenperin.go.id Tuesday, September 13, 2022

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The Ministry of Industry noted a downward trend in imports of these commodities. In 2019, the import value was Rp 2.99 trillion, then it fell to Rp 2.69 trillion in 2020, and fell back to Rp 1.56 trillion in 2021.

“Maize starch products have high added value as raw materials for the vermicelli industry, sweeteners such as glucose, fructose, sorbitol, and maltodextrin.

In addition, corn starch can be used as auxiliary material in the biscuit industry, meat processing industry, and textiles," said the Director General of Agro-Industry at the Ministry of Industry, Putu Juli Ardika.

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Currently, the corn starch and sweetener industry is still faced with the challenge of meeting corn raw materials. Corn raw materials received by the processing industry must have aflatoxin levels below 20 parts per billion (ppb) and starch content above 70 percent.

"To provide certainty of corn supply for the industry and support the achievement of the corn import substitution program, the Ministry of Industry has proposed a Corn Commodity Balance in 2023.

With the Commodity Balance, it is hoped that data on the availability and demand for corn raw materials will be transparent and accountable," Putu continued.

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In addition to the Commodity Balance, the Ministry of Industry also hopes that the company can partner with corn farmers in order to increase the production and absorption of corn raw materials in accordance with the required specifications.

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