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Yakult pours $40 million into E. Java plant
Fermented milk drink producer PT Yakult Indonesia Persada is investing US$40 million in its second plant at the Ngoro industrial park in Mojokerto, East Java
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ermented milk drink producer PT Yakult Indonesia Persada is investing US$40 million in its second plant at the Ngoro industrial park in Mojokerto, East Java.
The new plant, which was inaugurated earlier this week, was built to meet the growing demand for probiotic drinks in the country over the last five years, said the company's managing director, Indra Tjahjono.
'The growing demand shows that people are now more concerned about their health. Around 3.4 million Indonesians consume our products,' he said.
He added that Indonesia was among the Japanese drink maker's top five markets. The others are Japan, South Korea, China and Mexico.
The East Java plant ' the second one after that in Sukabumi, West Java ' produces up to 1.2 million bottles every day before its capacity is gradually increased to 3.6 million bottles per day ' the same capacity of Yakult's first plant.
However, the future production capacity would still fall short of demand in East Java and the eastern part of Indonesia, where populations amounted to 32 million and 120 million, respectively, said Indra.
Deputy East Java Governor Saifullah Yusuf said the province was an ideal place to invest, especially for foreign investors. 'After Singapore, Japan is the second-biggest investor in East Java. Japan is on top at the national level,' he said during the inauguration.
According to the East Java Capital Investment Board, there are 100 Japan companies and 700 Japanese workers in East Java.
Saifullah said Yakult was expected to use milk produced by local milk farmers who lived in milk production centers near the plant, to feed the plant.
He said East Java supplied 60 percent of the country's milk needs.
Indra said Yakult required skimmed milk or powdered milk with zero fat, which had yet to be produced domestically.
'The problem is that Indonesian milk farmers are not capable yet of producing skimmed milk with zero fat, so we have to import it from Australia, Belgium, New Zealand and other European countries,' he said.
'If local milk farmers can produce milk that meets our standards, we will be pleased to use it as it will be easier for us on the supply side.'
Indra said skimmed milk demand reached 60 tons per month for the Mojokerto plant and 180 ton per month for the Sukabumi plant.
Japanese vice consul general in East Java Toshimichi Koga, however, expected the provincial administration to build better infrastructure and not just call for Japanese investors to pour their money into the region.
'There are many problems in East Java, such as loading and unloading that takes a long time at Surabaya's port and the expected electricity-tariff increases,' Koga said.
'Those problems should be fixed. We also expect regulation to be relaxed for our citizens who are willing to live in this country.'
In response to Koga's statement, Saifullah said that the administration was improving the province's infrastructure to lure more investors through a number of projects, including sea dredging works along the Surabaya Western Shipping Route (APBS) in Tanjung Perak Port to allow bigger vessels to be moored and construction of the Teluk Lamong Port, which was designed to match Singapore's port.
East Java generated Rp 53.7 trillion in trade surplus last year, up from Rp 50.45 trillion in 2012 and Rp 34.57 trillion in 2011, according to East Java provincial administration data. (alz)
