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View all search resultsMilk 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.
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.
Read also: RI milk deficit may swell to 8.5m tonnes due to free meals program: Minister
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