BT Cocoa to increase capacity this year

Tue, 03/20/2012 - 08:26
IN

Cocoa processing company PT Bumitangerang Mesindotama (BT Cocoa) plans to invest US$30 million to expand production capacity this year, Chairman and company founder Piter Jasman said.

“BT Cocoa will increase production capacity by 50,000 tons with investment of $30 million,” Piter told Investor Daily on Monday, pointing out that the expansion will raise the firm’s production capacity to 110,000 tons per year..

He said that about 80 percent of the financing requirement will come from bank loans, while the remainder from bank loans.

Piter explained that the move to increase production capacity was driven by strong demand for cocoa powder and cocoa butter, the company’s two main products, both at home and overseas.

He pointed out that export potential remains huge despite the ongoing economic crisis in Europe and the US as demand from India and China are expected to remain strong.  “Demand in China is projected to grow by about 20 percent per year, and growth in Indonesia is also quite solid at 10 percent per year,” he said.

BT Cocoa exports about 95 percent of its cocoa butter products, exports around 70 percent of the cocoa powder products.

Piter, who is also Chairman of the Indonesian Cocoa Industry Association (AEKI), said that two other cocoa processing companies will also increase their capacity this year including PT Petra Foods and PT Cocoa Ventures.

He explained that Petra will increase capacity from 80,000 tons to 120,000 tons per year, while Cocoa Ventures to raise capacity from 10,000 tons to 15,000 tons.

He added that the national production capacity will further increase with the construction of two new facilities in Makassar (South Sulawesi) and Surabaya (East Java), each with planned capacity of 30,000 tons.  The new facilities are expected to be completed in 2013.

The government’s policy to impose export tax on cocoa beans has contributed the development of the cocoa processing industry at home.  The government last year inaugurated 14 new cocoa processing facilities, increasing national production capacity to 689,750 tons from 531,675 tons in 2010. (rei)

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