Malaysia’s CCK Consolidated Holdings has strong growth potential in Indonesia, with rising minimum wage boosting its retail operations, according to Public Investment Bank.
The Sarawak-based poultry company is building a new further processing plant in Boyolali, Indonesia which is projected to triple its current annual production capacity to about 60,000 tons, said the research house.
“The strategic location of this new plant, closer to key raw material sources, is expected to generate significant cost savings,” stated Public Investment Bank, noting significant contribution to earnings beginning 2027.
Beyond poultry, CCK runs a retail chain across East Malaysia offering fresh and frozen products, including burger patties and frankfurters. Its Indonesian operations, which contributes about 20% to its revenue, is backed by private equity firm Creador.
Both Malaysia and Indonesia raised their minimum wage in 2025, which will increase labor cost. However, Public Investment Bank noted the impact is likely minimal, with higher wages expected to boost consumer spending and overall consumption.
It added that CCK may also adjust pricing to offset any rise in costs.
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