Inaugurates Groundbreaking of Nestlé’s New Factory, Minister of Investment/Chairman of BKPM Ensures Collaboration with Regional MSMEs

Publication / Press Release / May 2021
The Minister of Investment/Chairman of BKPM, Bahlil Lahadalia, attended the groundbreaking ceremony for Nestlé Bandaraya's new factory in Batang Regency, Central Java Province, on May, 20. He appreciates the commitment of PT Nestlé Indonesia which continues to increase its investment in Indonesia amid the COVID-19 pandemic and also supports the efforts of PT Nestlé Indonesia to consistently cooperate with MSMEs. He also said that the increase in investment from Switzerland in the first quarter of 2021 indicates that international trust is getting better in Indonesia.

“We are working based on the President's order not to withhold permission. Withholding permits is the same as withholding employment, restraining the pace of economic growth, and withholding regional or state revenues. Let's make this a moment of the revival of investment. We are also very pleased to know that Nestlé Indonesia will work closely with Batang Regency to develop a dairy farm to obtain fresh milk for its new factory, which will ultimately benefit dairy farmers and the rural economy in Central Java. Nestlé's investment can be an example of the multiplier effects of an investment, which can create jobs at the central and regional levels,” said Bahlil.

Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, who was present virtually conveyed the government's commitment to support all investment entering Indonesia. "The government is working hard to create a conducive and open investment climate for all parties, the UUCK and its derivative regulations provide guarantees for this convenience by taking into account the interests of the community, the environment, and workers," said Luhut in his virtual speech.

Assistant to the Government and People's Welfare of the Regional Secretariat of Central Java Province, Yulianto Prabowo, expressed his hope that this Nestlé investment could have a wide impact in Central Java, such as reduce unemployment, work together with dairy farmers, coffee farmers, and other local business partners in meeting the supply of raw materials and production support materials.

On behalf of the Embassy of Switzerland in Indonesia, Philippe Strub expressed his greatest appreciation for the 70 years of diplomatic cooperation between Indonesia and Switzerland. With the cooperation between Nestlé and Indonesia for more than 50 years, he hopes that diplomatic cooperation between Indonesia and Switzerland will be even better in the future.

President Director of PT Nestlé Indonesia, Ganesan Ampalavanar, said that despite the COVID-19 pandemic, Nestlé remains optimistic about the growth opportunities that exist in Indonesia. With a focus on creating more jobs, using as many local raw materials as possible, and producing quality and nutritious food and beverage products that are safe and delicious for consumers, Nestlé is proud to contribute to Indonesia's economic development.

PT Nestlé Indonesia is an FDI from Switzerland that has been established in Indonesia since 1971 and has employed around 3,600 workers. PT Nestlé Indonesia currently uses more than 750,000 liters per day of fresh milk from 26,000 dairy farmers who are members of 42 dairy cooperatives. The Switzerland company added investment of USD 220 million for the construction of its Bandaraya factory in Batang and the expansion of factories in Panjang (Lampung), Kejayan (East Java), and Karawang (West Java). The completion of the capacity expansion carried out by Nestlé Indonesia for its three factories in 2020 with an investment of USD 100 million. With this expansion, the plant's capacity increased by 25% to 775,000 tons/year. The Bandaraya factory will operate commercially in 2023. (*)