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Nestlé Indonesia announces US$100 million expansion of production capacity

From the July 2019 issue.

Nestlé Indonesia has announced a US$100 million expansion of its three factories to increase their current production capacity by 25 per cent.

Currently, the Nestlé factories in Karawang, West Java; Kejayan, East Java; and Panjang, Lampung produce Nescafé instant coffee, Cerelac infant cereal, Milo chocolate malt drink, as well as Dancow and Lactogrow milk powder.

The investment is intended for a new production line for liquid drinks such as Nescafé and Milo, pure sterilised milk Bear Brand, and Maggi seasoning.

“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,” says Dharnesh Gordhon, President Director of Nestlé Indonesia.

“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.”

A ground-breaking ceremony was held at Karawang Factory on 31 July. It was attended, among others, by the Minister of Industry of the Republic of Indonesia, Airlangga Hartarto.

“We welcome Nestlé’s decision to increase its investment and production capacity in Indonesia. After 48 years of operating its 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,” Hartarto says.

“This also shows the optimism of a multinational company on the existing opportunities in Indonesia, and we hope that more companies will follow suit.”

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