INDONESIA Dutch company to invest US$300 million in Indonesia’s nutmeg (spices) sector January 2021
Netherlands-based food manufacturer, Verstegen Spices & Sauces has signaled its interest to invest up to Rp 4.2 trillion (US$298 million) to develop the Indonesian nutmeg industry, particularly in Fakfak regency in West Papua, according to Indonesia’s Investment Coordinating Board (BKPM).
The firm is committed to work with local nutmeg farmers in West Papua and to provide technology for the nutmeg stripping, drying and cleaning process, the BKPM said. The cooperation will potentially employ 50,000 Indonesian nutmeg farmers.
BKPM investment promotion deputy Ikmal Lukman said Indonesia is aiming to develop a downstream industry for nutmeg to add value to the commodity, as well as increase its competitiveness in the market. Lukman said, “World demand for nutmeg products will increase because the food, seasonings, cosmetics and pharmaceutical industries continue to [grow]. If we have a downstream industry, we will create added value for the industry and develop the national economy, particularly in eastern [Indonesia].”
Presently, the eastern part of Indonesia contributes 70% to total nutmeg production in the country. Indonesia is also the world’s largest exporter of nutmeg with 40% share of the export market. The Netherlands is one of Indonesia's main nutmeg export destinations along with Germany, Vietnam and Japan.
Indonesia now sees the huge potential in further developing its spices like nutmeg particularly focusing on the downstream industry as a means to add further value to its valuable commodity.
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