Nestle is investing US$220 million to construct a new Nestle Bandaraya factory on a 20 hectare site near Batang Industrial Park in Central Java.
The factory will produce Bear Brand liquid milk and RTD beverages like Milo and Nescafe to fulfil growing domestic demand. The state-of-the-art ‘environmentally-friendly’ factory will be operational in 2023.
With the construction of the new factory, the company has signed a memorandum of understanding (MoU) with the regional government of Batang to develop a partnership with prospective dairy farmers and farmer groups to source additional raw materials for production, as well as set up a dairy farm in Batang.
Ganesan Ampalavanar, Market Head of Nestle Indonesia said, “Despite the COVID-19 pandemic, we are optimistic about the growth opportunities in Indonesia. Our decision to invest in this new factory and to expand our capacity is a demonstration of Nestle’s long-term commitment to Indonesia. We aim to increase employment, to utilise local raw materials and to produce high-quality, nutritious food and beverage products that are safe and tasty for our consumers.”