Nivoba sets up starch plant in Indonesia with DGGF funding

The manufacturer Nivoba is to invest in the setup of a ‘green’ starch plant on the Indonesian island of Sumatra with DGGF funding. The company is the oldest existing manufacturer of equipment and installations for the production and processing of starch in the world.

Agreements and Funding

Nivoba is set to begin construction of the plant on Sumatra in the near future. Agreements in principle have already been signed by approx. 15,000 farmers (12,450 ha) for the supply of cassava roots, which will be processed into starch. At present, many local farmers still grow palm trees for the palm oil industry. However, they are being forced to switch to a new crop, given the near depletion of the soil and the presence of a bacterial disease in the soil that affects palm trees.

The starch plant is expected to generate 112 direct jobs, of which 30% will be female employees and 25% will be under the age of 25. Any waste water will be purified and cassava waste is to be converted into energy using a biodigester. In addition to Nivoba’s own capital and that of other investors/shareholders, the DGGF will provide € 8 million in funding to realise the construction of the plant.

Diverse use of Indonesian starch

The versatile starch products will be used as raw materials for industrial purposes, such as the manufacturing of paper and corrugated cardboard, or in the food industry. For years, global demand for starch has seen a steady increase both for traditional applications and from companies that use starch as a raw material for bioplastics. As a result of its numerous starch processing plants, Indonesia has been a major net importer of starch for many years.