Nestlé Indonesia begins building in Central Java
Nestlé Indonesia has started the construction of its new Nestlé Bandaraya factory in Batang, Central Java. It is being built on 20 hectares of land, will produce Bear brand liquid milk and ready-to-drink beverages Milo and Nescafé to fulfil growing demand, the company says. The site will provide about 200 new jobs.
“Despite the Covid-19 pandemic, we are optimistic about the growth opportunities in Indonesia, and our decision to invest for the new factory and capacity expansion of our existing factories is a demonstration of our long term commitment to invest in Indonesia, with primary focus to create more employment, to utilide as much as possible local raw materials, and to produce quality and nutritious food and beverages products that are safe and tasty for our consumers, and to contribute to the development of Indonesian economy,” says Ganesan Ampalavanar, president director of PT Nestlé Indonesia.
The new factory will be ready for commercial production in 2023 and will apply state-of-the-art technology to ensure the implementation of highest environmental-friendly operational standards. PT Nestlé Indonesia has also signed a memorandum of understanding with the regional government of Batang, to develop a partnership with prospective dairy farmers and farmer groups to develop dairy farming and fresh milk raw materials for the new factory.
Since 1975, Nestlé Indonesia has been partnering with dairy farmers and cooperatives in East Java by providing technical and financial assistance to improve the productivity and quality of fresh milk production. Every day, Nestlé Indonesia procures about 750,000 liters of fresh milk from 26,000 dairy farmers grouped under 42 dairy cooperatives and farmers groups to fulfill the fresh-milk requirement of Kejayan Factory in East Java. About IDR 4.6 billion is paid every day or IDR 1.6 trillion paid annually to dairy farmers in rural areas, thus supporting the rural economy development and dairy farmers’ livelihood.
Nestlé’s three existing factories, located in Karawang (West Java), Kejayan-Pasuruan (East Java) and Panjang (Lampung), are also undergoing expansion.