After eight years of delays, Malaysia’s CAB Cakaran is finally moving forward with its long-awaited poultry joint venture in Indonesia.
The first phase of the five-year plan will see a USD 10 million investment to establish a food processing facility. Operations are targeted to begin in Q2 2026.
The facility will be leased, with land and building costs excluded from the initial outlay.
“We are excited to finally kickstart our Indonesian expansion plans and get it up and running by the second quarter of 2026,” CAB Cakaran Managing Director Christopher Chuah Hoon Phong said.
Building an integrated poultry business
The joint venture faced delays due to the Covid-19 pandemic and policy uncertainty following Indonesia’s change in government.
Originally signed in November 2017, the deal involves CABINDO Poultry, a wholly owned subsidiary of CAB Cakaran, and Ternak Ayam Terpadu Indonesia, a unit of Indonesia’s largest conglomerate Salim Group.
Salim Group is best known for Indofood Sukses Makmur, the world’s largest instant noodle producer under the Indomie brand. Salim Group, which also holds a 15.2% stake in CAB Cakaran, does not currently operate in poultry.
For CAB Cakaran, the venture marks the first step of its broader strategy to build a fully integrated poultry operation in Indonesia. The plan includes breeding, processing, and distribution.
Under the partnership, CAB Cakaran and Salim Group will produce halal poultry products for Indonesia’s domestic market. They will leverage Salim Group’s extensive retail network, including Indomaret, which operates more than 22,000 outlets nationwide.
Unlocking market opportunities
Indonesia presents a major growth opportunity. Despite having a population eight times larger, per capita chicken consumption stands at just 8.4kg annually, compared to 50.5kg in Malaysia.
“The opportunity in the Indonesian market is massive by virtue of their population and Salim Group’s sheer network,” Mr Chuah said.