The blending and packing plant in Cikarang, West Java, will support the growth of Fonterra's dairy nutrition brands in Indonesia - Anmum, Anlene and Anchor Beneeto.
At full capacity, the plant will pack around 16,000 tonnes of dairy ingredients a year - the equivalent of 87,000 packs of Anlene, Anmum and Anchor Boneeto.
The investment, Fonterra's largest in South East Asia in the last decade, will help meet growing Indonesian demand for dairy nutrition.
“The country’s large and increasingly affluent population is looking for highly nutritious foods for all ages," said Johan Priem, managing director for Asia, Africa and the Middle East, Fonterra.
"This is fuelling dairy demand growth which is expected to increase by 5% every year to 2020,” he said.
'Exciting step forward'
Fonterra executives, including Priem and the cooperative's chairman, John Wilson, were joined by Paula Bennett, the New Zealand Minister of Local Government, Social Housing and State Services, and Ibu Musdhalifah Machmud, Indonesia’s Deputy Minister for Food and Agriculture and Coordinating Minister of Economic Affairs, for the opening.
“Fonterra has been supplying high quality dairy nutrition to Indonesia for more than 30 years and today it is one of our most important global markets," said Wilson.
"The opening of our new plant is an exciting step forward in our relationship with the country and local dairy industry.”
It reflects the strength of New Zealand's relationship with Indonesia, Bennett added.
“On behalf of the New Zealand government, I wish to congratulate Fonterra on today’s official opening – it reflects the increasingly interconnected nature of global value chains, and more closely links our economies together,” she said.
“Our governments have set a target to grow two-way trade to NZ$4bn by 2024 and dairy continue to be a critical part of this relationship.”