MEDAN, N. Sumatra, July 21 Asia Pulse - PT Unilever Indonesia Tbk(JSX:UNVR) plans to expand its business and invest US$500 million indevelopment of its food, beverage and cosmetics industries in Indonesiaover the next 10 years, a spokesman said.

"Unilever will invest US$500 million in Indonesia over the next 10 yearsstarting in 2004," a company spokesman, Muhammad Saleh, said here Tuesday.

The funds, Saleh said, would be used to develop the company's mainindustries producing, among other things, soap, detergent, margarine,shampoo, milk, ketchup, ice cream, cosmetics, tooth paste and some foodand beverage products.

The company might also expand and build new factories in several cities inIndonesia.

Saleh expressed optimism about the prospects of the company's investmentand business in the country where it had been operating for 73 years andthe market potentials were expected to remain large over the next 10years.

Another factor that encouraged Unilever to expand its investment inIndonesia was the country's position as one of the world's major producersof palm oil which was one of the main raw materials in the company'sproducts.

"We hope that palm oil plantations in Indonesia can continue to developbecause security of supply (of raw materials) will guarantee the smoothrunning of Unilver industries in Indonesia," Saleh said.

Industries under the Unilver group are expected to absorb some 1.7 milliontons of CPO annually or some five percent of world CPO production whichcurrently standds at 22 million tons.

Unilver has expanded its business in more than 100 countries, includingIndonesia, he said.

(ANTARA)