JAKARTA. PT Budi Starch & Sweetener Tbk (BUDI), producer of Rose Brand flour, is developing a tapioca flour mill with a capacity of 60,000 tonnes in Lampung with an investment fund of Rp 50 billion.
According BUDI President Director Sudarmo Tasmin, the capacity increase took place in one of the mill facilities acquired from another company. So far the company has installed production equipment in the new mill.
"Production will commence [from the new mill] early next year," Mr Tasmin told IDNFinancials.com last week.
With the new mill, BUDI's production capacity will rise too 850,000 tonnes in 2020 while the number of the company's tapioca flour mills will increase to 15.
Until the end of 2019, BUDI projects net sales of Rp 3 trillion. Mr Tasmin is optimistic that the projection can be realised because the company recorded Rp 2.3 trillion in sales from January to September (9M) in 2019. "We estimate Rp 3 trillion [in sales] until the end of the year," said Mr Tasmin.
In addition, BUDI has no other significant competitor in Indonesia. Although there are several other tapioca flour producers in the country, their market shares are significantly smaller than BUDI's. (KR/MS)