business

The Ministry Of Industry Appreciates The Dairy Processing Industry For Pouring In An Investment Of Rp 3.8 Trillion

The Ministry of Industry appreciates PT Frisian Flag Indonesia for investing Rp3.8 trillion (€257 million) to build a third factory in Cikarang, West Java. The new milk factory will produce 400,000 kilograms of fresh milk per day to generate 700 million kilograms of dairy products annually, using environmentally friendly modern technology.

"This investment will support one of the working programs of the President-elect for 2024-2029, which is the school milk program aimed at promoting improved nutrition and milk consumption among the Indonesian population," said the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, representing the Minister of Industry at the Inauguration of the Cikarang Plant of PT Frisian Flag Indonesia in Bekasi Regency, West Java, on Tuesday (2/7).

The Director General of Agro Industry hopes that through this new factory, PT Frisian Flag Indonesia can strengthen its contribution to creating job opportunities, enhancing partnerships with dairy farmers, optimizing added value domestically, boosting national economic growth, and preparing a healthy Indonesian society for Indonesia Emas 2045.

"In addition to the increased investment, we also appreciate PT Frisian Flag Indonesia for partnering in sourcing fresh milk raw materials involving 30,000 farmers from 20 cooperatives," Putu expressed.

Every year, PT Frisian Flag Indonesia is able to purchase fresh milk raw materials totaling Rp800 billion per year. The operation of this new factory is expected to increase the absorption of fresh milk by 130,000 per year. "This will certainly provide opportunities and motivation for partner farmers domestically to continue improving their income and welfare," he added.

During the same period, the food and beverage industry contributed 39.91 percent to the non-oil and gas manufacturing industry GDP, making it the subsector with the largest GDP contribution.

Meanwhile, in 2023, the food and beverage industry's exports reached USD41.68 billion (including palm oil), contributing 22.42 percent to the total value of non-oil and gas manufacturing industry exports. On the other hand, the food and beverage industry attracted investments amounting to Rp26.09 trillion until the first quarter of 2024, with FDI worth USD508.2 million and DDI worth Rp18.46 trillion.

Jan Derck van Karnebeek, the CEO of Royal FrieslandCampina N.V., stated that the new FrieslandCampina milk factory in Cikarang is the company's dedication to investing in the dairy sector in Indonesia. "As our largest global production investment to date, this facility will serve as a connecting hub for Southeast Asia," he said.

The factory is a realization of the company's commitment to providing high-quality and nutritious dairy products for the current and future generations in Indonesia and the Southeast Asian region, supported by modern technology that balances environmental sustainability. "Frisian Flag Indonesia is in line with the government's efforts to improve access to affordable and nutritious dairy products, as well assupporting welfare in several Southeast Asian regions," he emphasized.

The President Director of Frisian Flag Indonesia, Berend van Wel, stated that the inauguration of the factory in Cikarang marks an important moment for FrieslandCampina and FFI, enabling the company to play a larger role in supporting Indonesia's progress.

"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 society and this planet," he explained.

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Tag: Cikarang Ministry Of Industry PT Frisian Flag Indonesia