Ministry Of Industry: Frisian Investment Flag IDR 3.8 Trillion, Build Third Factory In Cikarang

JAKARTA - The Ministry of Industry (Kemenperin) said that milk producer PT Frisian Flag Indonesia (FFI) invested IDR 3.8 trillion by building its third factory in Cikarang, West Java, which is capable of producing 400 thousand kilograms of fresh milk every day, and 700 million kilograms of milk products every year.

Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika in his statement in Jakarta, Tuesday, July 2, said this investment could strengthen the contribution of the dairy processing industry in creating jobs, increasing partnerships with cattle breeders, optimizing added economic value, and realizing the vision of Indonesia Gold 2045.

"In addition to increasing investment, we also appreciate PT Frisian Flag Indonesia for making partnerships in fulfilling fresh milk raw materials involving 30,000 farmers from 20 cooperatives," he said, as reported by Antara.

According to him, every year PT Frisian Flag Indonesia is able to purchase fresh milk raw materials with a total of Rp800 billion, so that the operation of this new factory is estimated to increase the absorption of domestic fresh milk by 130 thousand per year.

Furthermore, he said that the inauguration of this factory also supports one of the work programs of the President-elect 2024-2029 to drink milk for schoolchildren (school mile) which is expected to encourage increased nutrition and consumption of milk in the community.

On the other hand, Frisian Flag Indonesia President Director Berend Van Wel said the inauguration of the factory in Cikarang marked an important moment for FrieslandCampina and FFI which made the company to play a bigger role in supporting the promotion of the Indonesian economy.

"With a strong commitment to sustainability and innovation, we are dedicated to producing nutritious dairy products for Indonesian families while minimizing our ecological footprint as much as possible, contributing positively to the community and the planet," he said.

The Ministry of Industry noted that the dairy processing industry made a significant contribution to the performance of the food and beverage industry (mamin). This was recorded in the first quarter of 2024, the food and beverage industry was able to grow by 5.87 percent or surpass the national economic growth which reached 5.11 percent.

In the same period, the food and beverage industry contributed 39.91 percent to the GDP of the non-oil and gas processing industry, making it the largest contribution sub-sector.

Meanwhile, in 2023, the export value of the food and beverage industry broke 41.68 billion US dollars, thus contributing 22.42 percent to the total export value of the non-oil and gas processing industry.

Meanwhile, the food and beverage industry was able to attract investment of IDR 26.09 trillion until the first quarter of 2024, with a foreign investment investment value (PMA) of 508.2 million US dollars, and a domestic investment investment (PMDN) of IDR 18.46 trillion.