DistantNews
Support us
🇮🇩 Indonesia /Economy & Trade

Corn Processing Plant in Central Java Receives Customs Facility, Eyes $80 Million Investment

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • PT Arena Agro Andalan, a corn processing company in Central Java, has received a customs facility (KITE Exemption) to support its export-oriented production.
  • The company projects an investment of up to Rp 1.2 trillion (approximately $80 million) by 2030 as it expands its processing capacity.
  • This expansion is expected to create jobs, with employment projected to increase to 1,150 by 2030, primarily benefiting the local Wonogiri community.

PT Arena Agro Andalan, a significant player in the corn processing industry in Wonogiri Regency, Central Java, has been granted the Import Facility for Export Purposes (KITE) Exemption by the Customs Office for Central Java and Yogyakarta. This strategic move supports the company's ambitious expansion plans, which project an investment value reaching Rp 1.2 trillion (approximately $80 million) by 2030.

The company specializes in processing corn into products such as corn starch, glucose, and corn grits, catering to both domestic and international markets, with the Philippines being a key export destination. The KITE Exemption allows PT Arena Agro Andalan to import raw materials, auxiliary materials, and packaging without import duties and value-added tax (PPN), provided they are used in the production of goods for export.

Agus Yulianto, Head of the Customs Office for Central Java and Yogyakarta, stated that the facility is designed to enhance the company's efficiency and production capacity. "The KITE Exemption facility is a form of Customs support for domestic export-oriented industries. We hope this facility is utilized optimally to increase production capacity and product competitiveness in the international market," Agus remarked.

The KITE Exemption facility is a form of Customs support for domestic export-oriented industries. We hope this facility is utilized optimally to increase production capacity and product competitiveness in the international market.

— Agus YuliantoExplaining the purpose and expected benefits of the customs facility granted to PT Arena Agro Andalan.

This development is expected to have a positive impact on local employment. Currently, PT Arena Agro Andalan employs around 950 people, with a significant 96% being residents of Wonogiri. The company anticipates this number will grow to 1,150 by 2030, reflecting the expanding operational scale and the industry's contribution to job creation in the region.

"As the company grows, its impact is expected to be felt by the community through increased job opportunities and economic activity," Agus added. Customs will continue to support businesses that comply with regulations by providing available customs facilities. The expansion of PT Arena Agro Andalan is poised to boost the corn processing industry, add value to the economy, and create substantial employment opportunities.

As the company grows, its impact is expected to be felt by the community through increased job opportunities and economic activity.

— Agus YuliantoHighlighting the anticipated positive effects of the company's expansion on the local community.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog