Initially the plant will produce Cerelac infant cereals and Milo chocolate malt drinks. It will produce Dancow milk powder by 2014.
The plant's production capacity will be 65,000 tons, which will be primarily be used to cater to the needs of the domestic market, where the demand for dairy products has increased by 12% annually.
A part of the production will be for neighbouring countries in Southeast Asia and other countries, based on the global demand, reported the Jakarta Post.
Nestlé Indonesia president director Arshad Chaudhry said that sales in Indonesia contribute to less than 1% of Nestlé's total business globally, and the company plans to triple its size in the country over the next 10 years.
To achieve this, Nestlé will invest more to increase local production capacity, among others, Chaudhry added.
