Fonterra, a New Zealand-based dairy co-operative, is planning to establish a $35m milk plant in Indonesia to meet the increasing consumer demand for milk.
The move forms a part of the company's strategy to expand into rising Asian markets, reported Reuters.
To be located in Bekasi, West Java province, the proposed milk plant will have a capacity to process 20,000 tons of milk every year. It is expected to become operational in November 2014.
Initially, the company had plans to establish a packaging and blending facility in the country, which is a key importer of New Zealand milk powder.
Earlier this month, Fonterra has opened the China-New Zealand Dairy Exchange Centre in Beijing to boost the sustainable development of the dairy industry in China and New Zealand.
The center, which was developed as a joint initiative between Fonterra and China's National Dairy Industry and Technology System, will oversee research on dairy industry policy and technologies by dairy experts from both the countries.