US agribusiness giant Cargill is planning to build a new palm oil refinery in Indonesia, the company announced on 3 June.

Construction of the new US$200M facility in Lampung has begun and is due for completion late next year, according to the company.

Palm oil from the new refinery would be produced in line with the company’s Policy on Sustainable Palm Oil and would help improve transparency through increased traceability-to-plantation, Cargill said.

“This project is a key step for Cargill to increase the availability of sustainably sourced and produced edible oil ingredients for our customers,” said Cargill’s Asia Pacific president Robert Aspell.

Cargill entered the Indonesian market in 1974 with the establishment of a feed mill in Bogor, West Java, the company said.

Headquartered in Jakarta, the company’s Indonesian arm operates in 60 locations throughout the country. As well as its palm oil business, it is active in a range of other sectors including animal nutrition, cocoa, grain and oilseeds.