Indonesia has been identified as a potential top three Asian market by food and beverage processing conglomerate Nestlé, which plans to invest in manufacturing and human resources, the company’s top executive in Indonesia has said.
“For sure we [Indonesia] can be a top three Nestlé market in Asia, that will be our mission,” PT Nestlé Indonesia president director Dharnesh Gordhon told The Jakarta Post in an interview in Jakarta on Monday.
To achieve this goal, Gordhon said the company would continue investing in manufacturing and human resource development, such as technical and leadership training.
“The Indonesian market is very dynamic, as customers make different choices over time, creating a repertoire of products” he said.
The company recently expanded its factories in Karawang, West Java; Kejayan, East Java; and Bandar Lampung, Lampung, with an investment of $100 million (Rp 14 trillion).
Gordhon added that Indonesia still accounted for just 1 percent of Nestlé’s total business worldwide, partly because the company has also made mergers and acquisitions around the world.
The majority of the company’s factories in Asia are located in the Greater China Region with 32 factories, followed by Thailand with eight factories and India and Malaysia with seven factories each.
He went on to say that the company’s sales in Asia contributed significantly to its overall performance.
According to the company’s annual report, the ASEAN market accounted for 30.8 percent of Nestlé’s Asia, Oceania and sub-Saharan African sales in 2018, second only to Japan with 43.6 percent.
The report also stated that the company posted solid growth in Southeast Asia, underpinned by double-digit growth in Indonesia and Vietnam, led by Nestlé’s chocolate milk brand Milo and Bear Brand milk in particular.
The report only provides sales figures in several countries in Asia, namely the Greater China Region with 7 million Swiss francs (US$ 7 million), the Philippines with 2.5 million Swiss francs ($2.53 million), Japan with 1.7 million Swiss francs ($1.72 million) and India with 1.5 million Swiss francs ($1.51 million)
The Switzerland-based company is the world’s largest food and beverage company. Its sales increased 2.1 percent last year to 91.4 billion Swiss francs ($92.3 billion) from 89.6 billion Swiss francs in 2017, according to the company’s global annual report.