Procter & Gamble will invest $100 million in the oleochemical sector in Indonesia, according to the country's industry Minister, M.S.Hidayat. "P&G is anticipating the need for 200,000 MT of fatty alcohol in the coming 10 years from Indonesia," Hidayat said following the meeting with P&G officials at his office last month. To meet the need, the company is preparing at least $100 million to set up a joint venture with a local partner in the sector.
High commodity prices and government efforts to boost downstream industries have started to attract investment in Indonesia over the past year. Indonesia plans to offer fiscal incentives and restructure its export tax policy on crude palm oil to do more to spur downstream processing in the country. The country is still reliant on exports of raw materials and is aiming to move up the value chain. (UCAP Bulletin)
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