Nestlé Indonesia has started construction works on its new dairy plant in Batang, Central Java, with an investment of $220m.

The new Nestlé Bandaraya factory will be built on a 20ha land area and will produce Bear Brand liquid milk products and Milo and Nescafé ready-to-consume drinks.

Set to create 200 new employment opportunities, the plant will also open new business opportunities for the community in dairy farming.

Nestlé Indonesia president director Ganesan Ampalavanar said: “Despite the Covid-19 pandemic, we are optimistic about the growth opportunities that exist in Indonesia and our decision to invest in new factories and expand the capacity of our existing factories is a testament to our long-term commitment to investing in Indonesia, with a focus on creating more employment, use as much local raw materials as possible and produce quality and nutritious food and beverage products that are safe and delicious for our consumers and contribute to Indonesia’s economic development.”

The new facility will feature advanced technologies and is planned to be built according to the highest environmentally friendly operational standards. It will begin commercial production by 2023.

Additionally, Nestlé Indonesia has signed a memorandum of understanding (MoU) with the Regional Government of Batang Regency.

Under the MoU, the company plans to develop dairy farming and fresh milk raw materials for the new factory by engaging with dairy farmers and farmer groups.

Republic of Indonesia Minister of Investment and Investment Coordinating Board head Bahlil Lahadalia said: “We welcome Nestlé’s investment in a new plant and other plant capacity expansion. Nestlé Indonesia will work with the Batang Regency Government to develop a dairy farm in Batang.”