Louis Dreyfus Company Invests Big in Indonesia This Year
Jakarta. Last September, the agricultural goods giant Louis Dreyfus Company (LDC) announced its 2025 first-half consolidated financial results, highlighting a strong financial performance driven by a 4.4 percent year-on-year volume growth amid geopolitical, regulatory, and environmental challenges.
One of the key highlights in the global report was the inauguration of its new glycerin refining plant and edible oil packaging line in Lampung.
In May 2025, LDC made a significant investment in Indonesia with the opening of a new glycerin refining plant, boasting an annual capacity of 55,000 tons, and a new edible oil packaging line capable of producing 64,800 metric tons per year.
Rajat Dutt, LDC Country Head for Indonesia, told the Jakarta Globe that plant-based refined glycerin was a vital ingredient in food, cosmetics, pharmaceuticals, and animal nutrition. It could also serve both the domestic and other Asian markets.
The company has an extensive asset footprint in the country, including estates in Lampung and Balikpapan, where they conduct midstream and upstream operations for both exported and imported commodities.
These are part of LDC's global operations, spanning over 170 years and encompassing more than 100 countries, with a focus on the origination, processing, and shipping of coffee, cotton, sugar, food and feed solutions, grains, oilseeds, and rice to global markets.
“With our over 25 years of presence, Indonesia is a very important country to us. We understand the market and the farmers here,” Rajat said.
“Our sustainability team works very closely with big plantation companies on the ISCC and RSPO-standard sustainability. In coffee, we work very closely with small-scale farmers on how they can improve their yields with better practices that we bring from our global presence and the knowledge we have learned for more than 100 years.”
LDC offers and expands its support to help farmers improve yields, empower women working in the fields, and diversify income from their crops, backed by the Louis Dreyfus Foundation.
The Louis Dreyfus Foundation regularly organizes seminars with farmers in various areas of Indonesia, including the developing regions, to help them adopt the latest agricultural practices. It partners with NGOs and local agencies to engage with the farmers in Indonesia's remote areas.
LDC's 2025 investments in Indonesia mainly focus on moving further down the value chain, with the glycerin refining plant and new edible oil packaging line clearly demonstrating the company's long-term commitment to the country.
The company's other downstream initiative this year is expanding its B2C (business-to-customer) operation with the launch of premium juice sourced from LDC's own plantation in Brazil. LDC's juice products are available in nearly eight categories. The company intends to enhance its market share further as it moves forward in the premium juice category.
"For us, when we invest, it is a well-considered decision based on research, market conditions, and a strategy of progressing downstream. So, when we choose a project, a market, or a product, it is grounded in analysis related to exports or imports, and then we proceed to commit to a project," Rajat said.
He admitted that there would always be challenges and opportunities. Still, the company leverages its strength in learning from diverse economies, countries, products, and a historical perspective to navigate the commodity space and address challenges.
He also believed that LDC has strengths in risk management and supply chain resilience, thanks to the company's global network and risk management expertise.
“We invest in technology, farmer training to improve yields, aligning with the economic emphasis on AI and data as crucial drivers, along with sustainability and certification. We embrace the growing regional and local trend of adopting national sustainability goals to meet both local and international standards,” Rajat said.
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