Nestle has announced today (9 December) it will invest US$100m in a new facility in Indonesia to meet growing customer demand.

The site in West Java is the manufacturer’s second $100m investment in the country this year, following the expansion of production capacity at its milk processing factory in Kejayan, East Java.

The factory will be developed in two phases. The first, scheduled for completion by 2012, will see the creation of a 15 hectare complex for the production of Milo chocolate malt drinks and Cerelac infant cereal. The second phase, earmarked for 2013 to 2015, will see the expansion to other types of product categories, such as breakfast cereals and value-added liquid milks.

Arshad Chaudhry, director of Nestle Indonesia, said: “This significant investment in West Java, especially when coupled with our investment in East Java, means we will have the local capacity to strengthen our market leadership in Indonesia, while also delivering on our commitment to create shared value along our value chains. We will be able to create more employment, buy more local raw materials for our production and generate more economic activities.”

The company said the facility will apply advanced manufacturing principles to ensure its operations conform to the highest environmental standards. It will also meet halal requirements.

Nestle said it is working to expand its Popularly Positioned Products (PPPs) business model in the country. It said its PPPs are fortified to specifically address some of the most common micronutrient deficiencies among lower income consumers in emerging markets.

“PPPs make a big difference in a country like Indonesia, where better nutrition positively impacts not only the health, development and education of lower-income consumers but also the local economy. They will continue to be one of Nestlé’s main growth drivers for the years to come,” said Frits van Dijk, Nestle executive vice president and zone director for Asia, Oceania, Africa and the Middle East.