Bella Bulgaria has initiated a $72 million investment endeavor by establishing a halal meat joint venture in Indonesia.
The Sofia-based supplier, offering meat cuts, sausages, salami, minced products, and ham, has confirmed the establishment of a “trade and investment cooperation” memorandum with Indonesia’s PT Garuda Mitra Utama.
In addition to producing pastry products, cheese, frozen vegetables, and cooking oils, Bella Bulgaria disclosed that the four-year agreement was sealed this week during the Indonesia-Europe Business Forum in Jakarta, organized under the auspices of the Ministry of Foreign Affairs of Indonesia.
Out of the entire investment sum, $38 million will be allocated for the establishment of a meat products factory in Indonesia, while the remaining $34 million will be directed toward the acquisition and provision of spices and herbs. Mitra Utama will integrate these ingredients into its own product range.
Bella Bulgaria manages a network of nine European factories situated in various markets, including its domestic market, as well as Greece, Romania, and Hungary. Among these facilities, there is a dedicated halal production plant located in Plovdiv, Bulgaria, where it manufactures rendang-padang, a well-loved spiced meat dish in Indonesia.
“By actively developing the activity of the rendang-padang factory in Plovdiv, we accumulated knowledge and experience, which we want to implement on a much larger scale in Indonesia,” Dimitar Mitev, Bella Bulgaria’s chief operating officer, said in a statement.
“The analyses of the markets and the taste preference of consumers in the southern hemisphere showed a potential for business growth in the field of meat processing in Indonesia and niches for new players in the market.”
Bella Bulgaria has enrolled in the “Indonesia: Spice Up the World” initiative initiated by President Joko Widodo, aimed at promoting Indonesian products on the global stage, stimulating the local economy, and fostering job opportunities.
Hendro Santoso, the CEO of Mitra Utama, said, “This is our first work project for cooperation with a European company and we have the opportunity to produce products based on traditional recipes with spices and herbs that are part of Indonesia’s cultural heritage.”
Speaking with the Indonesia Business Post, Hendro Santoso said the partnership has yet to determine the location of the joint-venture factory but it could be based in Jakarta or Bali.
“Our spices and seasonings will come from a collaboration with small and medium-sized enterprises from Sumatra to preserve the authentic flavour but the meat will come from Bulgaria. In essence, we can say it’s a collaborative effort, where it’s cooked there but under the supervision of both parties,” he told the publication.
