Nestlé Indonesia invests $100m on expansion

By Jim Cornall contact

- Last updated on GMT

Nestlé Indonesia aims to increase its current production capacity by 25%.
Nestlé Indonesia aims to increase its current production capacity by 25%.

Related tags: Nestlé, Indonesia, Milo, Nescafe

PT Nestlé Indonesia announced on July 31 it is expanding three factories in Karawang (West Java), Kejayan (East Java) and Panjang (Lampung).

With the $100m investment, Nestlé Indonesia aims to increase its current production capacity by 25%. The expansion is planned to produce both current and upcoming Nestlé products in Indonesia, such as Bear Brand, Milo and Maggi.

Dharnesh Gordhon, president director of Nestlé Indonesia, said, “We recognize 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.”

The additional investment is intended for a new production line for liquid drinks such as Milo and Nescafé Ready-to-Drink, pure sterilized 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,”​ Gordhon said.

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