JAKARTA: A local unit of New Zealand-based Fonterra, the world’s biggest dairy exporter, is considering investing an additional 300 billion rupiah (RM82 million) in a new plant currently under construction in Indonesia to double its capacity, in light of growing demand.
“Milk sales will grow five per cent annually until 2020, so we need to prepare an expansion plan to respond to the growth,” said Fonterra Brands Indonesia human resources and corporate communications director Bagus Kuncoro last Thursday.
Indonesia’s dairy market grew 12 per cent last year and 10 per cent in 2012, data from the Industry Ministry showed.
The company is building its first powdered milk plant in Indonesia with an annual production of 12,000 tonnes of powdered milk.
The plant is located at an industrial estate in Cikarang, Bekasi.
Bagus said construction of the 357 billion rupiah plant is expected to be completed in March next year.