DXN to open Indonesian plant

JAKARTA (JP): Herbal medicine producer DXN International of Malaysia is to set up a plant in Cikarang, West Java, to strengthen its business in Indonesia.

DXN Indonesia, the Malaysian company's official distributor, said on Saturday that work on the plant costing Rp 4 billion (US$530,000) would start early next year.

The company said Indonesia is a potential market for traditional medicines, adding that demand for herbal medicines was still increasing despite the economic crisis.

"A new plant is needed to tap the country's growing demand for herbal medicines," it said.

The company said that it will initially import ling zhi (red mushroom), its basic raw material, from China, but said it plans to conduct research into cultivating the mushroom here.

DXN, which sell its products through a Multi Level Marketing system, entered Indonesia in October last year. Its sells its products to a number of Asian countries, including Singapore, Thailand, Hong Kong, and Brunei. (gis)