PT Frisian Flag Indonesia, build a new factory in Cikarang, Bekasi with an initial investment of EUR225 million (US$267.86 million) until 2021 to produce liquid milk products, sweetened condensed milk, and creamer - Photo by Industry Ministry Office

JAKARTA (TheInsiderStories) – Milk producer, PT Frisian Flag Indonesia, start the development of new factory in Cikarang, Bekasi, West Java, with an initial investment of EUR225 million (US$267.86 million) until 2023, said the president director today. The unit of Dutch manufacturer, FrieslandCampina BV, plans to produce liquid milk products, sweetened condensed milk, and creamer.

“This new factory will include production or processing facilities for ready-to-drink liquid milk and sweetened condensed milk, logistics and distribution centers and offices using modern technology and certainly environmentally friendly technology,” said president director of Frisian Flag Indonesia, Maurits Klavert, in an official statement.

He continued, the new factory covering an area of ​​25 hectares and will has a capacity of 244 million liters of liquid milk and 476,000 tones of sweet creamy cream per year. 90 percent of the total productions are targeting for domestic market and 10 percent for export market.

While, industry minister, Agus Gumiwang Kartasasmita, stated that the milk processing industry is one of the manufacturing sectors that became the government’ priority based on the 2015 – 2035 National Industrial Development Master Plan. This industry is still faced a challenges to fulfilling the raw materials caused the domestic market only supplied 22 percent of the needs.

His office targeting to realize 35 percent of import substitution by 2022. Currently, milk consumption for Indonesians is still around 16.9 kg per capita. To raises the consumption, he said, the ministry has spurred several strategic efforts, including proposing incentives for import duty. In 2020, the government has allocated a budget of Rp583.2 billion ($37.37 million) for 33 industrial players affected by the COVID-19 pandemic, one of the receiver was Frisian Flag.

Based on the government data, food and beverage industry was still able to grow by 1.58 percent in 2020 and above the growth of the non-oil and gas processing industry which contracted by 2.52 percent. However, the contribution only 39.01 percent of the non-oil and gas processing industry.

In the same year, exports of the food and beverage industry around $31.1 billion, equivalent to 23.7 percent of total exports of non-oil and gas processing industries. These industry also was able to attract investment of $29.4 billion in 2020 and a workforce of 1.1 million people.

Frisian Flag Indonesia opened a new milk processing factory in Indonesia since 1969. The story began when Friesche Vlag products were first imported in 1922. Based on the packaging, Indonesian called the products “Susu Cap Bendera” meaning “Flag Brand Milk”.

US$1: EUR0.84, Rp14,400

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