Nestle plans to spend US$100m on expanding its operations in Indonesia, its third such investment in 18 months.

The company said yesterday (16 June) that the latest investment would expand its new factory in West Java. The world's largest food maker had already announced in December that it would spend US$100m on the site.

The plant, located in Karawang, is under construction and Nestle plans to build it in two phases.

The first stage will see the creation of a 15ha site to produce Milo chocolate malt drinks and Cerelac infant cereal. This initial part of the facility is set to be completed by next year.

The second phase, earmarked for 2013 to 2015, will see Nestle expand the site to take in products including cereals and "value-added" liquid milks.

Frits van Dijk, director of Nestle's operations in Asia, Oceania, Africa and the Middle East, said: "We are very optimistic about the opportunities in Indonesia. Indonesia has a large, progressive population and the economic environment is very conducive for growth."

Nestle will also look to use the latest investment to expand the presence of its Popularly Positioned Products, or PPPs, in Indonesia. PPPs are fortified products sold to lower-income consumers.

The company's third investment in Indonesia over the last 18 months was announced earlier in 2010. Nestle said it would spend US$100m to up production at a milk processing facility in Kejayan in East Java.