Nestle makes US$100m investment to target emerging wealth in Indonesia

Located in West Java, the new facility is the second US$100 million investment Nestlé has made in Indonesia this year, following the expansion of production capacity at its milk processing factory in Kejayan, East Java.

Underlining the company's long-term commitment to Indonesia, Frits van Dijk, Nestlé executive vice president and zone director for Asia, Oceania, Africa and Middle East, said, “We are very optimistic about the opportunities in Indonesia. It has a large, progressive population and the economic environment is very conducive for growth.” 

The latest investment boost also marks Nestlé’s drive to expand its Popularly Positioned Products (PPPs) business model in Indonesia.

PPPs meet the specific needs of around three billion consumers with lower income levels, many of whom are entering into the cash economy and buying branded goods for the first time. As such, PPPs are adapted in terms of nutritional composition, price, accessibility and format to meet their specific requirements.

Available in smaller or ‘daily-portion’ packs to be bought on a regular basis, PPPs are manufactured from local raw materials to minimise value chain costs and fortified with essential nutrients to specifically address some of the most common micronutrient deficiencies among lower-income consumers in emerging markets.

The new facility will manufacture some of the PPP products including Milo Choco Blazz fortified with iron, Koko Krunch, fortified with iron, eight vitamins, calcium and whole grains and Ideal Danco, fortified with iron, calcium and proteins.

Van Dijk explained, "PPPs make a big difference in a country like Indonesia, where better nutrition positively impacts not only the health, development and education of lower-income consumers but also the local economy. They will continue to be one of Nestlé’s main growth drivers for the years to come.”