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Jakarta Post

Ultra Milk spends Rp 1t in new facility to meet free meal demands

Milk is a key component of President Prabowo Subianto’s free nutritious meal program, as promised during his presidential campaign, despite Indonesia’s limited domestic capacity to meet a significant surge in demand.

Deni Ghifari (The Jakarta Post)
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Mon, January 26, 2026 Published on Jan. 26, 2026 Published on 2026-01-26T12:56:36+07:00

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A worker uses a tractor to clean up feed on March 6, 2025, at a farm operated by dairy producer Greenfield Indonesia in Blitar regency, East Java. A worker uses a tractor to clean up feed on March 6, 2025, at a farm operated by dairy producer Greenfield Indonesia in Blitar regency, East Java. (JP/Wahyoe Boediwardhana)

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ublicly listed PT Ultrajaya Milk Industry & Trading Company has spent Rp 1.14 trillion (US$67.9 million) on a new facility erected to meet demand from the government’s free nutritious meal (MBG) program, according to the Industry Ministry.

The Indonesian company, known for its flagship brand Ultra Milk, established the facility in Bekasi regency, West Java, specifically to produce 125 and 200 milliliter ultra-high temperature (UHT) milk suitable for the program.

“The national milk processing industry has to be able to meet the demands from the MBG program, be they from the production capacity side, product quality or sustainability of raw material supply,” said Industry Minister Agus Gumiwang Kartasasmita in a statement on Saturday.

Ultrajaya is seeking to increase productivity at the new facility by installing top-of-the-line technology, the statement said. The facility has been operating since Dec. 8, 2025.

The company also runs a dairy farm in Bandung, West Java, and another in North Sumatra, housing 7,000 dairy cows and is looking to increase the number by a further 4,000.

During a public expose on Dec. 19, 2025, Ultrajaya said it does not project its support for the MBG program to make a “material” contribution to revenue or profit this year. Still, the company views the initiative as a medium-term opportunity and said it would continue to weigh its commercial and sustainability aspects.

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