Ali Nasution, third right, the site operations manager of Fonterra Brands Indonesia, gives a tour of the company's new Rp 340 billion ($23.7 million) blending and packing plant in Bekasi on Tuesday. (Photo courtesy of Fontera)

Dairy Giant Fonterra Opens First Factory in Indonesia


SEPTEMBER 08, 2015

Jakarta. Fonterra Brands Indonesia began operations at its Rp 340 billion ($23.7 million) blending and packing plant in Bekasi, east of Jakarta, on Tuesday as part of efforts to meet growing demand for milk and dairy products in the country.

The factory, which the company began building in March last year, is the New Zealand dairy cooperative's first investment in Indonesia and its biggest in Southeast Asia in a decade, according to a statement released on Tuesday.

"Fonterra has supplied dairy-based nutrition with the best quality to Indonesia for more than 30 years. To this day, it has become one of the most important market globally," John Wilson, Fonterra's chairman, said in the statement. "The opening of this factory is an exciting step for the continuation of our relationship with Indonesia, as well as the local dairy industry."

Located within an industrial estate in the Cikarang area of Bekasi, the new plant can produce up to 87,000 packages of Anlene, Anmum and Anchor Boneeto powdered milk products daily.

Johan Priem, Fonterra's managing director for Asia, the Middle East and Africa, said the plant placed Fonterra in a strategic place to supply the increasing demand for dairy products in Indonesia, which is projected to grow by 5 percent annually until 2020.

The company supplied 41 million packages of Anlene, Anmum and Anchor Bonneeto to Indonesia last year, according to a statement.

The new plant is also hoped to the strengthen the trade relationship between New Zealand and Indonesia, according to New Zealand's minister of state services, Paula Bennett.

"The New Zealand government targets bilateral trade with Indonesia to reached 4 billion New Zealand dollars [$2.5 billion] in 2024, and dairy-based products will be a important component to this relationship," Bennett said.