So great is the dependence
on the use of imported raw materials, both for fragrance and aroma/flavor that
the expansion or establishment of a new factory in this field will reduce a lot
of import dependence. Vice Minister of Industry, Alex S.W Retraubun, when
inaugurating PT Firmenich Aromatics Indonesia (FAI) plant expansion in
Karawang, West Java on Friday (October 25) stated that to produce fragrance, it
takes approximately 1.500 raw materials, and to produce aroma/flavor, it takes
approximately 3,400 raw materials.
“Therefore, the inauguration of FAI factory is in line
with downstreamization spirit in order to optimize and strengthen domestic and
international market domination. Moreover, those who are utilizing this
industry is about 3 billion people in the world. Thus, the utilization of these
natural resources will increasingly strengthen Indonesia’s position, because to
Indonesia, these products can be applied with industry standards as criteria of
fulfillment of product category”, Alex said.
The increase of food and beverage industry ranging from
large industry, small and medium industry to household industry, small and
medium industry to household industry causes an increase of demand of flavor
for food and beverages. Food and beverages industry sectors are heavily
dependent on the availability of flavor. With an additional investment of USD
33 million that generates a production capacity of 27 thousand MT/year, it will
strengthen the structure of the food and beverage industry.
And, the establishment of the new factory Durarome will
put Firmenich Group as one of the world’s largest producers and flavor. As an
illustration, Durarome is an encapsulated flavor applied to the food, beverage,
and pharmaceutical industry as powder soft drinks, confectionery, nutrition
& dietary, savory (in citrus tonalities), hot drinks and pharma. According
to Alex, the investment climate in the country was increasingly improving,
supported by the increase of purchasing power. Therefore, the company is
expected to continue to strengthen supply chain network with upstream producers
as well as partners in the user industries in the downstream sector.
As stated by Deputy of Investment Implementation Control
at BKPM (Investment Coordinating board), Azhar Lubis, Firmenich is one of 150
Swiss companies that invest in Indonesia. Indonesia’s conductive investment
climate is proven by the expansion of a number of automotive factories and also
a number of cement plants, such as Holcim, which is estimated that as nearly as
40% is in the form of investment and business expansion or addition of plants.
Reduce Raw Materials
Advisor of Indonesian Essential Oil council (DAI), Wien
O. Gunawan, told Business News that roughly about two years after the plant was
officially established, import of flavor raw material can be reduced up to
50%of the needs that so far has been imported from Europe and United States.
Even, with its operation that will make Indonesia as a production base for
fragrances in Cileungsi and flavor in Karawang, in addition to meet the needs
in the Asia-Pacific region. Even later, it is estimated that import can be
reduced up to 95%, he said.
With
utilization of production that has reached a series of industries, in addition
to utilizing natural resource potential, the resulting efficiency is quite
high, so that this industry is ready to compete in facing the ASEAN Economic
Community 2015.
Business News - October 30, 2013
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