Dow Jones, Jakarta<\/p>\n
Indonesian instant noodle producer Indofood Sukses Makmur said
\nFriday it has delayed the construction of a milk plant in East
\nJava worth US$36 million.<\/p>\n
\"We have delayed the project because we want to focus on our
\ncore business,\" Indofood's Chief Administration Officer Indra
\nJosepha told Dow Jones Newswires.<\/p>\n
Indofood's core businesses are instant noodles, in which it
\nholds around a 90 percent market share, and cooking oil.<\/p>\n
Indra said the company hasn't yet decided when it will resume
\nthe development of the plant.<\/p>\n
\"If the time comes, we will then restart the project,\" he
\nsaid, adding that there have been changes in the economic climate
\nrecently that have pushed Indofood to delay the project.<\/p>\n
He didn't offer further explanation.<\/p>\n
Previously, Indofood said that the milk plant was expected to
\nproduce a 60,000 tons of sweetened condensed milk and would start
\noperation in 2004.<\/p>\n
Daniel Perdana, an analyst with Samuel Securities said that
\nthe delay is aimed at making Indofood more efficient, and that
\nthe market for the milk industry in Indonesia is still weak.<\/p>\n
He said Indofood may switch the funds, which it initially
\nplanned to invest in the milk plant, to cover the high costs of
\nbuying crude palm oil - prices in the first half this year rose
\nsignificantly.<\/p>\n
Indofood is expected to buy almost 350,000 tons of crude palm
\noil, or around 60 percent of its total needs this year, to
\nproduce cooking oil.<\/p>\n
Hong Kong's First Pacific Co. has a 48.7 percent stake in
\nIndofood.<\/p>\n
Shares in Indofood at 0340 GMT (10:40 am Jakarta time) Friday
\nwere unchanged at Rp 975.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dow-jones-jakarta-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}