Indonesian food and beverage industry, PT Nestlé Indonesia, adds an investment of US $ 100 million or around Rp1.4 trillion. Photo by: PT Nestle Indonesia

JAKARTA (TheInsiderStories) –Indonesian food and beverage industry, PT Nestlé Indonesia Invests US $ 100 million or Rp1.4 trillion for Plant Expansion. This investment increases production capacity, from 620,000 tons per year to 775,000 tons per year, up 25 percent.

Minister of Industry Airlangga Hartarto says Nestlé had a large growth potential because it was supported by abundant natural resources and large domestic demand. Therefore, a number of producers are still confident to increase investment and expand to meet market demand, both in domestic and export.

“It also shows that optimism and trust from investors towards opportunities in Indonesia is still very large. Moreover, it is supported by a conducive business climate,” Hartarto said at PT Nestlé Indonesia’s Factory Expansion inauguration in Karawang, West Java on Wednesday (07/31)

PT Nestlé Indonesia expansion includes three factories located in Karawang, Pasuruan and Bandar Lampung. PT Nestlé Indonesia produces liquid drinks (Milo) at Karawang factory, then at Pasuruan (East Java) factory for Bear Brand, and at Bandar Lampung factory to produce cooking spices (Maggi).

“We appreciate the efforts made by PT Nestlé Indonesia in supporting the development of the food and beverage industry in the country, thereby encouraging national economic growth,” Hartarto said.

Ministry of Industry reported, in the first quarter of 2019, food and beverage industry growth reached 6.77 percent or above the economic growth that touched 5.07 percent. In addition, the food and beverage industry contributed 35.58 percent to the GDP of the non-oil and gas industry.

Furthermore, food and beverage industry has made a significant contribution to increase in investment value of $ 383 million (Foreign Investment) and Rp.8.9 trillion (Domestic Investment) in the first half of this year.

“Total employment of food and beverage industry reaches 1.2 million people,” he said.

Hartarto says, his side continued to encourage an increase in milk consumption per capita in Indonesian society, which is still around 16.9 kg per capita per year.

“The growth potential of the milk processing industry in Indonesia is still very high,” he said.

Therefore, the expansion and increase in production of PT Nestlé Indonesia is the right step in fulfilling the needs of dairy products and instant cooking spices for the people of Indonesia.

He added that the natural fulfillment of raw materials, PT Nestlé Indonesia has carried out partnerships for more than 40 years with approximately 50,000 dairy farmers, coffee, cocoa and rice farmers by making various efforts to improve the quality and productivity of raw materials.

“The Indonesian government appreciates this business model and will use the Nestle model for the development of farmers in Indonesia,” he said

He hopes that the partnership efforts, especially for partnerships with dairy farmers, can continue to be increased so that imports of raw materials for milk processing industry can decline.

Meanwhile, PT Nestlé Indonesia President Director Dharnesh Gordhon said, he saw business opportunities in Indonesia increasingly conducive to the growth of consumer demand for nutritious and high-quality food and beverage products.

“Providing value-added products is one manifestation of our efforts to improve quality of life and continue to contribute to a healthier future for Indonesian people,” he said on Wednesday (07/31)

Gordhon added, factory expansion is a tangible form of Nestle Indonesia’s commitment to creating mutual benefits, not only through high-quality and nutritious products, but at the same time providing a long-term positive impact to the community at large through all activities carried out by the company.

“Through this investment, we hope to increase farmers and breeders productivity as suppliers of our raw materials, and also the quality of production, which is in line with our goals to improve the quality of life and contribute to a healthier future,” he said.

Written By Willy Matrona