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RFC invests quarter billion in Indonesia
On Wednesday (30 September), the FrieslandCampina Members' Council approved the construction of a new dairy factory and associated distribution center for Frisian Flag Indonesia in Indonesia. The project involves an investment of €250 million.
The plan consists of two parts. There will be a new location in the Jakarta region and the current production site in Pasar Rebo will also be tackled. With the construction of the new production location, the dairy processor wants to continue to grow and contribute to the development of the Indonesian economy and dairy sector, says CEO Hein Schumacher.
Activities
Construction of the new dairy center is due to start in April 2021. The location focuses on the production of condensed and pasteurized milk. The total production capacity is more than half a billion kilos of finished product, with the possibility of expanding to 1 billion kilos.
In addition to the construction of a new location in the Jakarta region, the current location in Pasar Rebo is also being tackled. This factory will be converted into a production center for local infant nutrition brands for the Asian market. Both the new construction and the conversion of the current location will start at the same time and must be completed in the first half of 2024.
Frisian Flag Indonesia
Frisian Flag Indonesia, known to the Indonesian population as Susu Bendera, has grown into a well-known brand among the population in the almost 100 years that they have been operating on the Indonesian market, FrieslandCampina says. The Dutch parent company sees the investment as a necessity to keep up with one of its largest and fastest growing markets. Frisian Flag is currently one of the largest dairy companies in Indonesia.
FrieslandCampina reports that a total of approximately 3.000 employees work at Frisian Flag Indonesia, of which approximately 2.000 are salespeople who travel daily via distributors to supply all 350.000 points of sale in Indonesia with dairy products.
Jorine Cosse
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