Indofood, Nestle form joint venture

PT Indofood Sukses Makmur, the world's largest instant noodle producer, announced on Thursday the forming of a joint venture firm with Switzerland-based food giant Nestle S.A., in a bid to expand the operation of the two companies locally and abroad.

In a press statement, the publicly listed Indofood said the joint venture firm was called PT Nestle Indofood Citarasa Indonesia, with both Indofood and Nestle having an equal share in the firm.

The firm is expected to engage in manufacturing, selling, marketing and distributing culinary products in Indonesia and eventually for export.

Indofood, which was founded by tycoon Sudono Salim -- a close pall of former president Soeharto -- will license to the new joint-venture firm its food brands, such as Indofood and Piring Lombok.

Meanwhile, Nestle will initially give licenses for the firm to use its Maggi brand.

The joint-venture firm is expected to commence operation by April 1.

Indofood shares ended lower by Rp 10 to Rp 950 on the Jakarta Stock Exchange on Thursday. -- JP