JAKARTA - PT Nestle Indonesia invested USD 220 million (approximately IDR 3.1 trillion) to build a new factory in Bandaraya, Batang Regency, Central Java, as well as expand production capacity at three factories namely Karawang, West Java; Kejayan, Pasuruan, East Java; and Panjang, Lampung.
Nestle Indonesia President Director Ganesan Ampalavanar in the groundbreaking of the Bandaraya plant and the inauguration of the expansion of Nestle Indonesia's factory in Batang, Central Java, Thursday, said the investment is a testament to the Swiss company's long-term commitment to Indonesia.
"The decision to invest USD 220 million for new factories and the expansion of the capacity of our existing factories is a testament to our long-term commitment in Indonesia", he said as broadcast online via BKPM TV's YouTube channel, quoted from Antara, Thursday, May 20.
Ganesan said the investment is also in line with the company's strategy to increase domestic production, especially value-added and high-quality products to meet the increasing needs of consumers.
Furthermore, the new factory in Batang will use advanced technology to ensure high environmentally friendly operational standards.
He also confirmed that like other Nestle factories in Indonesia, the Bandaraya factory will meet the halal requirements of the Indonesian Ulema Council (MUI).
"The Bandaraya factory in Batang will employ 200 people by producing liquid milk products and ready-to-consume beverages when it is fully operational by 2023", he added.
On the same occasion, The Minister of Investment/Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia appreciated Nestle's commitment to continue to expand and even build new factories despite the pandemic.
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According to Bahlil, not only the value of the investment that needs to be appreciated but also the business system that will be applied in the new factory.
"Nestle does not create a business design where their raw materials are invested, but they cooperate with farmers in villages, sub-districts, which then the results become raw materials for later processing", he said.
Meanwhile, Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan expressed his appreciation and welcomed Nestle's investment in order to continue to develop the dairy and ready-to-eat food business in Indonesia.
"Additional investment is certainly very important and good news in an effort to revive the national economy and provide jobs for people who are currently in difficult conditions due to the COVID-19 pandemic", he said.
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