Nestle has begun building work on a US$200m factory in West Java, Indonesia.

The new factory in Karawang is set to produce Cerelac infant cereals, Milo chocolate malt drinks and Dancow milk powder.

Nestle says it is building the factory to “strengthen its leadership in emerging markets”. It is due to begin production in early 2013.

“Our decision to invest $200m in Karawang is consistent with the growth in demand and our confidence in the rapidly developing economy of Indonesia,” said Arshad Chaudhry, president director of Nestlé Indonesia.

“We are very optimistic about the growth opportunities in Indonesia. It has a large, progressive population and the economic environment is very conducive for growth.”

The Karawang factory is Nestle’s fourth factory in Indonesia and is expected to create more than 600 jobs.

Speaking at the ground breaking ceremony yesterday (12 September), M.S. Hidayat, Indonesia’s Minister of Industry, said: “The new project will give positive contribution for growth of the industry and economy, provides new employment opportunities, which in turn improving income and livelihoods of the society.”