Nestlé believes in potential of Indonesia

Nestlé believes Indonesia has the potential to become one of the top three Asian markets, said Nestlé Indonesia president director Dharnesh Gordhon. To achieve this goal, the company will continue to invest in both manufacturing and human resource development.

Nestlé’s confidence in this market is demonstrated by the recent expansion of its factories in Karawang, West Java, Kejayan, East Java and Bandar Lampung involving an investment of US $100 million. Indonesia still accounts for just 1% of Nestlé’s total business worldwide, but the market is seeing double-digit growth driven by the brands Milo and Bear Brand.

Most of the Swiss multinational’s production in the Asian market is in the Greater China Region where it has 32 factories, followed by Thailand with 8 factories and India and Malaysia with 7 factories each.

In 2018, the ASEAN market accounted for 30.8% of Nestlé’s sales in Asia, Oceania and sub-Saharan Africa, second only to Japan with 43.6%. The same year, the company posted sales of CHF 7 billion in China, CHF 2.5 billion in the Philippines, CHF 1.7 billion in Japan and CHF 1.5 billion in India.

Global sales amounted to CHF 91.4 billion, 2.1% up on the CHF 89.6 billion of 2017.