"Indonesia`s milk demand is predicted to grow around 50 percent in the next eight years and so we wish to increase our processing packaging capacity here to support our long-term business growth," the company`s CEO, Theo Spierrings, said on the sidelines of the visit of New Zealand`s Prime Minister John Key here on Monday.
Fonterra, the producer of Anlene, Anmum and Anchor Boneeto, has so far processed and packaged the product in New Zealand or through a packaging company in Indonesia or Asia before distributing it to the country.
"The Fonterra products will continue to use raw materials from New Zealand while the new plant will support the secondary process of production and help respond market needs quickly," he said.
The President Director of PT Foterra Brands Indonesia, Yon Handoyo, said Fonterra right now is seeking a partner to set up and run a processing and packaging factory in Indonesia.
"Right now we are still on a stage of discussing it with several candidates to find alternatives for a cooperation structure, location and we hope the new plant will have been operational in 18 months` time and meet the Fonterra quality standard," he said.
Spierrings said Fonterra`s investment plan in Indonesia is part of the company`s global strategy to focus more on the ASEAN region.
"Global milk demand will increase 100 billion liters in the next eight years and 60 percent of the growth demand will come from China, India and Indonesia. Investment in local packaging and processing capacity will help assure the fulfillment of the milk demand that grows fast in the region," Spierrings.
Every year Fonterra produces two million tons of milk and its derivative products and 80 percent of the products have been processed and packaged in various countries.
Indonesia is Fonterra`s tenth biggest market in Asia and the Middle East. Indonesia contributes the biggest namely around 28 percent.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
