New sugar mill planned

Jakarta
Singapore-listed plantation firm Indofood Agri Resources Ltd could invest at least $150 million to build a new sugar mill in Indonesia to meet rising demand there, its chief executive said on Tuesday.
Indofood Agri and other companies such as PT Tunas Baru Lampung Tbk are seeking to expand their sugar processing capacity in Southeast Asia’s largest economy as its middle class develops a sweeter tooth.
Indonesia produces 2.5 million to 2.6 million tonnes of sugar a year but consumes up to 5.5 million, Mark Wakeford, CEO of Indofood Agri, said in an interview in Jakarta.
“If you look at the Indonesian domestic sugar market, it’s significantly short of sugar.” Indofood Agri, which already has two sugar mills in Indonesia as well as businesses in palm oil and rubber, would prefer to build a new mill as there are very few opportunities for acquisitions and a lot of the existing mills need to be upgraded, Wakeford said.