Nestlé Indonesia Invests USD 100 Million For Factory Expansion In Indonesia
Tuesday, August 13th, 2019 | 353 Views
PT Nestlé Indonesia has announced the expansion of its three factories in Karawang (West Java), Kejayan (East Java) and Panjang (Lampung). With the USD 100 million (CHF 99 million) investment, Nestlé Indonesia aims to increase its current production capacity by 25 percent. The cumulative expansion is planned to produce both current and upcoming Nestlé products in Indonesia, such as BEAR BRAND, MILO and MAGGI.
“We recognise 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,” said Dharnesh Gordhon, President Director of Nestlé Indonesia.
Minister of Industry of the Republic of Indonesia Airlangga Hartarto, who officiated the groundbreaking ceremony for Nestlé’s factory expansion in Karawang, said, “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.”
The additional investment is intended for a new production line for liquid drinks such as MILO and NESCAFÉ Ready-to-Drink, pure sterilised milk BEAR BRAND and MAGGI seasoning. 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.
“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,” said Dharnesh Gordhon.
The groundbreaking ceremony that marked the commencement of constructions for the expansion in all three factories is conducted at Karawang Factory and was attended, among others, by the Minister of Industry of the Republic of Indonesia Airlangga Hartarto.