The Jakarta Post
PT Sinar Mas Agribusiness and Food has signed a memorandum of understanding (MoU) with Canaan Enterprise Company Ltd to boost shipment of derivative products of crude palm oil (CPO) to Thailand.
The MoU was sealed during the 32nd Trade Expo Indonesia at International Convention Center (ICE) BSD City, Tangerang, Banten, on Thursday, witnessed by Trade Minister Enggartiasto Lukita, Indonesian Ambassador to Thailand Ahmad Rusdi, and Sinar Mas managing director Saleh Husein.
Under the MoU, Canaan is appointed to be Sinar Mas' sole agent with exclusive rights to distribute and resell margarin, shortening and lauric acid manufactured by the Indonesian conglomerate for Thailand market.
"The agreement is founded on a partnership between Sinar Mas Agribusiness and Food and Canaan that has been forged since 2013. We see good potential in the Thailand market," said Sinar Mas Agribusiness and Food director Gianto Widjaja, in a press statement.
In 2017, Sinar Mas Agribusiness and Food set a target to supply 2,000 tons of palm oil-based consumer products to Canaan, with an estimated value of US$1.5 million.
Canaan director Theeraphat Denprasert said the partnership helped the company to penetrate palm oil business in Thailand.
"Their knowledge and expertise in the market will ensure the sustainability of our success, amid the increasing demand in Thailand,” he said. (ags)