INDONESIA – Nestlé has announced a US$100 million investment to expand three factories in Indonesia, as the company aims to increase its current production capacity in the country by 25%.
The investment will be used for the expansion of production sites; Karawang in West Java, Kejayan in East Java and Panjang in Lampung and will also encompass both current and upcoming Nestlé products lines in Indonesia.
Currently, Nestlé factories in Indonesia produce Cerelac infant cereal, Milo chocolate malt drink, Dancow and Lactogrow milk powder as well as Nescafé instant soluble coffee and coffee mixes.
The new production lines will be used for liquid drinks including Milo and Nescafé Ready-to-Drink, sterilized milk Bear Brand and Maggi seasoning.
Dharnesh Gordhon, president director of Nestlé Indonesia said: “We recognize an increasingly conducive business opportunity in Indonesia, coupled with the growing consumer demand towards Nestlé’s nutritious and high-quality food and beverage products.
“Producing value-added products has been one of our efforts to enhance quality of life and continue to contribute to a healthier future for Indonesians.
“This expansion is a demonstration of Nestlé Indonesia’s commitment in Creating Shared Value, not only through producing nutritious and high-quality products, but also providing long-term positive impact for the society through all the activities that we do as a company while we grow our business.
“Through this investment, we hope to increase the quality of raw materials as well as the productivity of farmers who supply to us.”
Minister of Industry of the Republic of Indonesia Airlangga Hartarto, who officiated the groundbreaking ceremony for Nestlé’s factory expansion in Karawang, added: “We welcome Nestlé’s decision to increase their investment and production capacity in Indonesia.
“After 48 years of operating their business in the country, Nestlé continues to strengthen its commitment in advancing the industry throughout its business value chain and contribute to the country’s economic growth.
“This also shows the optimism of a multinational company on the existing opportunities in Indonesia, and we hope that more companies will follow suit.”
Dharnesh notes that Nestlé Indonesia currently sources its 92% of its raw materials locally and is committed to meeting the growing demand from consumers within Indonesia.
“Indonesia has shown promising growth opportunities, and we recognize that the conducive business environment has allowed for a growing demand for our products,” he adds