Indonesia: Nestle to Invest $100m in Indonesia

Nestle is planning to invest $100m in Indonesia for the third time in 18 months to expand its operations at a new factory currently under construction in Karawang, West Java.

The company revealed that it would spend $100m on the new factory in December 2010.

This followed another investment of $100m made by the company earlier in 2010 to increase production at its milk processing factory in Kejayan, East Java.

Construction of the multi-category factory is planned in two phases. The first, scheduled for completion by 2012, will see the creation of a 15-hectare complex for the production of Milo chocolate malt drinks and Cerelac infant cereal.

The second phase, earmarked for 2013 to 2015, will see an expansion to other types of product categories, such as breakfast cereals and value-added liquid milks.

Arshad Chaudhry, president director for Indonesia at Nestle, said: “This significant investment in West Java, especially when coupled with our investment in East Java, means we will have the local capacity to strengthen our market leadership in Indonesia, while also delivering on our commitment to create shared value along our value chains.”

The facility will apply advanced manufacturing principles to ensure its operations conform to the highest environmental standards. It will also meet halal requirements.

The latest investment boost also marks Nestle’s drive to expand its popularly positioned products business model in Indonesia.