Cargill Considers Indonesia Palm Oil Expansion to Tap Growth

Cargill Inc., the world’s biggest agriculture company, plans to add a palm-oil crushing plant in Indonesia as it taps growth in Southeast Asia’s biggest economy.

Cargill plans to build the plant near its plantation in South Sumatra, according to John Hartmann, chief operating officer of Cargill Tropical Palm Holdings Pte. Ltd.

Cargill Tropical hasn’t decided the plant’s capacity as it’s still working on a plan for land expansion, Hartmann told reporters in Jakarta today, without providing further details.

Palm oil output from Indonesia, the largest producer, may rise to 26.5 million metric tons in 2012 from an estimated 25.2 million tons this year, Dorab Mistry, director of Godrej International Ltd., said Dec. 2.

Cargill, through its two Indonesian units, has 41,000 hectares of oil palm plantations on Sumatra and Borneo islands, according to its website. The company also operates four mills with a total capacity of 320 tons per hour.

To contact the reporter on this story: Eko Listiyorini in Jakarta at elistiyorini@bloomberg.net

To contact the editor responsible for this story: Greg Ahlstrand at gahlstrand@bloomberg.net

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