INDONESIA – Buhler and the wheat flour division of Bogasari Flour Mill, PT Indofood Sukses Makmur have signed an agreement to build a new flour mill in Cibitung, Indonesia.
The partnership aims at investing in Bogasari’s flour milling business in Cibitung with latest technology and food safety standards.
The project include two new Bühler milling lines with a capacity of 750 tonnes per day each in addition to bringing all milling lines, including the existing ones, on the latest control system in order to operate the entire plant out of one platform.
In collaboration with a team in Bogasari, Buhler has developed the latest process flow sheets to build a plant focused on high yields and low energy consumption.
During the signing, Franciskus Welirang, chief executive officer of Bogasari highlighted the challenges and also opportunities in the rising Indonesian flour milling market.
With the two new milling lines in Cibitung, Bogasari cements its long-term partnership with Bühler that started with multiple milling lines for the Bogasari plant in Surabaya.
He added that wheat consumption is expected to total 8.5 million tonnes in 2018 and by 2020, wheat consumption is expected to increase to 11 million tonnes annually.
According to him, improved infrastructure and positive market condition were major drivers in the prospective flour milling business.
As part of its long-term partnership, Buhler pledged to support Bogasari in implementation of new automation as well as hiring the right people with the right skills for future challenges.
Expanding flour milling industry
The flour milling industry in Indonesia is expected to increase at a progressive rate, reflecting price competitiveness of wheat-flour based foods in relation to rice and other staple foods.
According to data from the Indonesian Flour Mills Association, while only five flour mills in the country operated between 1970 and 1998, there are 31 operational flour mills with a total installed capacity of 11.4 million tonnes in 2017.
In its March 30, 2017 report, USDA noted that according to the Indonesian Flour Mills Association, the total installed capacity of Indonesian flour mills will reach approximately 14.2 million tonnes by the 2024-25.