Nestlé invests US$ 220 million in beverage factory in Indonesia

Nestlé broke ground on the construction of a new factory in Batang, Indonesia. The factory will create about 200 new jobs in the Central Java province. It will produce Bear Brand liquid milk and ready-to-drink beverages, Milo and Nescafé, to fulfill growing consumer demand. It will be built on 20 hectares of land and will encourage the further development of the dairy sector in the region.

Nestlé Indonesia has been partnering with dairy farmers and cooperatives in East Java since 1975, providing them with technical and financial assistance to improve the productivity and quality of fresh-milk production. With the construction of the new factory, the company has signed a memorandum of understanding with the regional government of Batang to develop a partnership with prospective dairy farmers and farmer groups to source additional raw materials for production.

"Despite the Covid-19 pandemic, we are optimistic about the growth opportunities in Indonesia," said Ganesan Ampalavanar, the market head of Nestlé Indonesia. "Our decision to invest in this new factory and to expand our capacity is a demonstration of Nestlé's long-term commitment to Indonesia. We aim to increase employment, to utilize local raw materials to the extent possible, to contribute to the development of the Indonesian economy, and to produce high-quality, nutritious food and beverage products that are safe and tasty for our consumers."

The new Nestlé Bandaraya factory, located at Batang Industrial Park, will be ready for commercial production in 2023 and will apply state-of-the-art technology to ensure the highest environmental standards.