Frisian Flag Indonesia Launches EUR 257 Million Factory in Cikarang

August 2024

With an investment of EUR 257 million (or IDR 3.8 trillion), Frisian Flag Indonesia (FFI) has launched a factory in Sukamahi village, Cikarang district, Bekasi regency. This 25.4-hectare plant is the largest production investment by Friesland Campina, the parent company of FFI, worldwide. This facility is capable of processing 400,000 kilograms of milk per day, translating to 700 million kilograms of dairy products annually. There is also the potential to expand its capacity to 1 billion kilograms. The factory produces fluid milk and sweet condensed milk.

Berend van Wel, the president director of FFI, stated that the factory’s construction aims to enhance milk consumption across Indonesia. The 2021 data from the Central Statistics Agency (BPS) indicated that Indonesians consume only 16.27 kilograms of milk per person per year. This consumption level falls short compared to neighboring countries like Malaysia, where the per capita consumption is 50 kilograms annually, Thailand at 44 kilograms, and the Philippines at 24 kilograms. On top of that, in Indonesia, one-quarter of children experienced stunted growth.

In addition, the Ministry of Industry reports that the dairy processing sector plays a vital role in enhancing the performance of the food and beverage (F&B) industry. In the first quarter of 2024, the F&B sector experienced a growth of 5.87%, which is higher than the national economic growth rate of 5.11%.

(Source: Tempo and Indonesia Business Post)

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