InfoSAWIT, JAKARTA – The Ministry of Industry (Kemenperin) affirms its commitment to strengthen the national industrial structure through the development of priority sub-sectors, including the palm oil industry which plays a strategic role in supporting Indonesia's economy. One tangible manifestation of national palm industrialization is seen from PT Pacrim Nusantara Lestari Food's step, part of Cargill, investing USD 200 million to build a high-tech palm oil refinery in Lampung Province.
Minister of Industry Agus Gumiwang Kartasasmita welcomed the investment, which is considered aligned with government efforts to strengthen domestic industrial competitiveness.
"We appreciate Cargill's strategic step in strengthening the national palm oil industrial structure through high-value industrialization investment. The presence of this facility not only increases national production capacity but also strengthens Indonesia's position as a major player in the global sustainable vegetable oil supply chain," he said in an official statement, written by InfoSAWIT, Thursday (23/10/2025).
The new refinery facility is designed with a production capacity of up to 1 million metric tons per year, and equipped with four own jetties that can serve mothervessel ships up to 65,000 DWT capacity. With this infrastructure, palm oil product exports can be carried out directly from Lampung without transshipment processes, making the distribution chain more efficient and competitive in the global market.
Plt. Director General of Agro Industry at Kemenperin Putu Juli Ardika added that palm oil industrialization plays a major role in creating added value for the national economy.
"The palm oil industry has provided supplies for various sectors—food, non-food, feed, to fuel. These products not only meet domestic needs but also support global market demand," he explained.
Kemenperin fully supports Cargill's investment in Indonesia, which is seen as tangible proof of the government's consistency in maintaining ease of doing business and encouraging national economic independence. This step is also in line with the positive performance of the agro industry sector during one year of the Prabowo Subianto Presidency and Vice President Gibran Rakabuming Raka, with investment realization reaching Rp 155.25 trillion and utilization rate of 57.56% in the period Quarter IV 2024 to Quarter II 2025.
"The government has prepared various facilities and conveniences so that industry players are increasingly comfortable building processing factories domestically—from Domestic Component Level (TKDN) calculations, Risk-Based Business Licensing, to various other incentives," said Putu.
From the company side, Penne Kehl, Asia Pacific Group President of Cargill Agriculture and Trading, emphasized that this investment marks a new era of partnership between Cargill and Indonesia.
"We are committed to building a resilient and sustainable supply chain, while supporting a safe and responsible global food system," he said.
Meanwhile, Azlan Adnan, Managing Director of Cargill's Tropical Oil Business, added that this project will strengthen integration from plantations to end customers, as well as ensure better traceability and sustainability.
Kemenperin hopes that the presence of new processing facilities in Lampung will not only strengthen the national palm oil supply chain but also open new economic opportunities in the region.
"We hope Cargill can expand its investment portfolio to other agro commodities. Indonesia's agro resource potential is still very vast and prospective," concluded Putu. (T2)
