Nestlé Plans To Expand Further In Indonesia
News: Nestlé Indonesia, a subsidiary of Switzerland-based food company Nestlé, plans to expand further in Indonesia, following a US$200mn investment to open a new facility in the Indonesian city of Karawang. The expansion will strengthen the company's position in the Indonesian market, according to Nestlé Indonesia president, director Arshad Chaudhry. The company's Karawang unit has been operational since 2012, and the US$200mn investment came alongside a US$100mn investment to upgrade the company's factory in East Java.
BMI View: The consumer story in Indonesia continues to be one of the brightest in the world from a long-term perspective. Wage growth in Indonesia over the past few years has been strong, and will continue to expand. With so much room for incomes to grow, there will be many opportunities for well-placed, consumer-focused companies over the next few years.