Tuesday, July 16, 2024

Frisian Flag to build third dairy factory in Cikarang with Rp3.8 trillion investment

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The Ministry of Industry has announced that PT Frisian Flag Indonesia (FFI) plans to construct its third dairy factory in Cikarang, West Java, with an investment of Rp3.8 trillion (US$232.5 million).

The new factory is expected to produce 400,000 kilograms of fresh milk daily, supporting the milk consumption program advocated by President-elect Prabowo Subianto.

Putu Juli Ardika, Director General of Agro Industry at the Ministry of Industry, said that this investment would enhance the dairy processing industry’s contribution to job creation.

It will also strengthen partnerships with dairy farmers, optimize economic value addition, and contribute to the vision of Indonesia Emas 2045.

“In addition to the investment, we appreciate PT Frisian Flag Indonesia for its partnerships in fulfilling fresh milk supply, involving 30,000 farmers from 20 cooperatives,” Ardika said in a statement, as quoted by Antara on Wednesday, July 3, 2024.

He noted that Frisian Flag Indonesia purchases fresh milk worth a total of Rp 800 billion annually. The new factory’s operation is expected to increase domestic fresh milk absorption by 130,000 tons per year.

The factory’s inauguration aligns with one of the key programs of the 2024-2029 President-elect, which promotes milk consumption among school children. This program aims to improve nutrition and milk consumption in the community.

Frisian Flag Indonesia’s President Director, Berend Van Wel, highlighted the significance of the new factory for FrieslandCampina and FFI in supporting Indonesia’s economic 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, contributing positively to society and the planet,” he said.

The Ministry of Industry notes that the dairy processing industry significantly contributes to the performance of the food and beverage (F&B) industry. The F&B industry grew by 5.87 percent in Q1 2024, surpassing the national economic growth rate of 5.11 percent.

The F&B industry accounts for 39.91 percent of the GDP of non-oil and gas processing industries, making it the largest contributing subsector. The export value of the F&B industry reached US$41.68 billion, contributing 22.42 percent to the total export value of non-oil and gas processing industries.

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