10/10/2011 (Jakarta Post) - Swiss-based food giant Nestle SA plans to invest US$200 million in a cacao plantation in Indonesia because it believes the industry still offers promise for years to come, a businessman says.

Indonesian Cacao Association (Askindo) chairman Zulhefi Sikumbang said the government should support the plan, as it could provide new jobs.

“We are optimistic the cacao industry will develop as foreign investors have shown interest in investing in this industry and it will help the stalled industry grow,” Zulhefi said Friday as quoted by Antara news wire.

He added that Nestle had previously established a cacao plant in Malaysia, but because market results ended up being somewhat disappointing, the firm had rethought their expansion targets here.

The present Indonesian cacao industry has declined significantly, by as much of 50 percent of output, because many cacao farmers had refocused their businesses to rubber and palm oil.

Domestic consumption of Indonesian cacao is now 200,000 tons per year, while the existing production capacity is only 170,000 tons.