PT Kaneka Foods Indonesia, the JV between Mitsubishi Corporation and Kaneka Corporation, is setting up a new plant to meet Indonesia’s growing demand for quality bakery ingredients.
The new US$46 million plant, located in Bekasi, will produce filling and other processed oil products such as margarine. Commercial production is expected to kick off in the 1st quarter of 2020, with production capacity expected to hit 15,000 metric tonnes each year.
The plant will also combine product knowledge and technical applications based on customers’ specific needs and accelerate product development.
“The move is aimed at enhancing Kaneka Food's presence in the confectionery and bakery ingredients markets in fast-growing Indonesia,” according to a statement by Mitsubishi. Mitsubishi has an optimistic outlook for Indonesia market as there is a growing lifestyle preference for baked products with compounded annual growth rate (CAGR) of 5%.
The new factory will allow Kaneka Foods to meet this growing lifestyle as well as spread the growing popularity of Japanese-style bakery and confectionery market in this region. For instance, it had previously introduced a soft bread with a novel texture unfamiliar to the Indonesian market.
Kaneka Foods hopes to achieve a sales target of Yen 10 billion (US$92 million) in sales. Presently, it supplies mainly to the Indonesian market but it plans to increase exports to other Asian countries like Philippines, Thailand, India and Myanmar. It currently produces jam, filling, dough improver, and softer.