PETALING JAYA: After an eight year delay, poultry farming and food processing company CAB Cakaran
Corp Bhd has announced that it is finally kickstarting its Indonesian operations with partner The Salim Group, one of Indonesia’s biggest conglomerates.
The venture for a food processing plant is expected to be up and running by the second quarter of next year(2Q26).
In a filing with Bursa Malaysia, CAB Cakaran said that after several years of delay in implementation due to the Covid pandemic as well as awaiting clear policy guidelines following the change in government in Indonesia, the joint venture partners have agreed to adopt a new five-year business plan, with the first phase involving an investment of US$10mil or about RM45mil for setting up a food processing plant, excluding cost of land and factory building, which will be leased.
The five-year business plan will cover the implementation of the fully integrated poultry business in Indonesia.
CABIndo Poultry Sdn Bhd, a wholly owned subsidiary of CAB Cakaran, entered into an agreement with PT Ternak Ayam Terpadu Indonesia (TAT) to establish several joint-venture companies on Nov 1, 2017.
TAT is a unit of the Salim Group.
The objective of the agreement was to combine the resources and expertise of both parties to produce halal poultry products for the Indonesian consumer market.
With the deal, CAB Cakaran said it had both a local partner in Indonesia, and a ready customer base for its products.
“After a long delay due to Covid and various setbacks, we are excited to finally kick start our Indonesian expansion plans and get it up and running by 2Q26.
“The Indonesian market is massive by virtue of its population and Salim’s big network. We look forward to adding value with our partner Salim, and having a fruitful and productive relationship,” CAB Cakaran group managing director Christopher Chuah Hoon Phong said in the filing.
