Thomas Tjhie, a senior executive for the company told the Reuters news agency last week that 80 per cent of the group's $175m (€130m) outgoings would be invested into increasing its output within the country.

The news comes as food processors in the country are facing growing pressure to meet increasing demand for its products.

Tjhie stressed that in order to meet this growing demand, Indofood will look to expand output of its noodle to 14.5bn packs from 1bn less the previous year.

The announcement follows the company's strongest full year results in 13 years, which saw operating profit rise by 18.5 per cent to during the 2006 financial year.

The growth was attributed to strong performances throughout Indofoods four main business segments, which alongside noodles includes seasonings, snack foods, and diet and nutrition products.

In particular, the group's edible oils are becoming increasingly important to the company's operations throughout Asia, especially in terms of demand for palm oil.

In February this year, Indofood Agri, the company's edible oils division, saw a massive surge in value on its Singapore stock exchange debut due to the reported health benefits of palm oils, which are free of unpopular trans fats.

Indofood Agri was valued at around €1.2bn after floating itself on the market, having seen its shares rise to as high €0.9 each, having begun trading at €0.6 each.

The performance reflects growing consumer spending particularly on food and beverage products in the country.

According to consumer analyst Euromonitor, by the end of the year Indonesia's expenditure on food will rise to $167bn (€124bn) from $147bn (€110bn) in 2003.