The new plant will support the local expansion of the company's consumer brands Anlene, Anmum and Anchor Boneeto across Indonesia. It will also support more local secondary processing of the products, and help the company respond swiftly to the market needs.
Currently, Fonterra packs and blends its consumer brands either in New Zealand or through co-packers in Indonesia or in Asia, before distributing to the Indonesia market.
Fonterra CEO Theo Spierings said the dairy demand in Indonesia is forecast to grow by around 50% over the next eight years.
"With such rapid growth forecast in Indonesia, we want to increase our packing and blending capabilities on the ground to support the long term growth of our business," Spierings added.
The company is in talks with prospective partners and is evaluating possible structural options and locations. The plant is expected to be operational within 18 months.
This investment is a part of Fonterra's wider global strategy to sharpen its focus on the ASEAN region.
