REPUBLIKA.CO.ID, JAKARTA -- Milk producers from New Zealand Fonterra Brands Indonesia has set into operation a new milk processing and packaging factory in Cikarang, West Java.

The first factory built by the company in the country constitute its largest investment in ASEAN in the past decade.

Johan Priem, Managing Director of Asia, Middle East and Africa (ASIA MEA) of Fonterra Co-operative Group Limited said in the commissioning ceremony on Tuesday the factory was built with an investment of Rp340 billion with packaging capacity of 16,000 tons of milk-based basic material a year equivalent to 87,000 packages per day.

Priem said the factory will produce milk to provide alternative product with high nutrition in the Indonesian market.

"In long term the factory will help us meet growing milk demand in Indonesia," he said.

He said Indonesia is the 10 largest market for his company , which also produces other food products.

The new factory is focused on the domestic market in sale but he did not rule out exports especially to other Asean countries.

Site operation manager of PT Fonterra Brands Manufacturing Indonesia Ali Nasution said the factory built over a 2 hectare plot of land will produce powdered milk with the brands of Anlene, Anmum and Anchor Boneeto.

"The milk basic material is imported from New Zeland, but the packaging material like carton paper , and sugar, flavor and flour are locally supplied," he said.

The factory provides 160 jobs after it is fully operational, he added.

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