Indonesian milk manufacturer tops out new plant, eyes growth in milk demand

Posted on January 29, 2012 by alaksir

Photo: Bisnis Jatim

Dairy processing company PT Indolakto, which is affiliated with PT Indofood CBP Sukses Makmur (ICBP:JKT), held a topping out ceremony of its fifth plant in East Java last week. The new plant, whose construction started in March last year, is expected to begin operations in the second quarter of 2013.

Indolakto’s Vice CEO Irsan Yazid said that the fifth plant will be the company’s largest, and is expected to boost the company’s production capacity by 40 percent. The new plant costs an estimated investment of US$130 million and will produce sweetened condensed milk (SCM), ultra high temperature milk and sterilized bottled milk to complement the company’s four existing facilities in Jakarta, West Java and East Java.

Indolakto is a member of the Indonesian Association of Milk Processors (AIPS), whose six members effectively control the Indonesian market for processed dairy products. The company was founded in 1967 as a joint venture called PT Australia Indonesian Milk Industry, and is majority owned by ICBP after it was acquired in 2008 for US$350 million.

According to a study by the IFC, Indolakto is a major player in the SCM and LM (liquid milk) segments of the Indonesian dairy market and has a significant share in the PM (powdered milk) segment. In the SCM segment, Indolakto’s brands Indomilk, Cap Enak and Tiga Sapi compete with Frisian Flag’s market-leading brand Susu Bendera, and together the two companies control more than 80 percent market share of the segment. The top four brands in the LM segment are Ultra Milk, Bear Brand, Indomilk and Frisian Flag owned by PT Ultra Jaya, Nestlé, Indolakto and Frisian Flag, respectively.

Growing demands for dairy products, coupled with significant growth opportunities presented by low per capita milk consumption in Indonesia relative to neighboring countries, have attracted investments in the sector. In September last year, Nestlé announced it was investing US$200 million in a new milk processing plant in Karawang, West Java, which it expected to begin production in early 2013.

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Tanjung Perak Port sees more development, increased traffic

Posted on January 26, 2012 by alaksir

Government-owned company that operates seaports in Java and Kalimantan PT Pelabuhan Indonesia (Pelindo) III is pursuing five strategic projects to develop Tanjung Perak port of Surabaya, East Java, according to Bisnis.com. According to PT Pelindo III Public Relations Head Edi Priyanto, those five projects are:

  1. Reconfiguration of terminals in the port to establish them as dedicated terminals.
  2. Acquisition of loading and unloading equipments, including seven harbor mobile cranes for the Jamrud terminal.
  3. Finishing the construction of Lamong Bay Multipurpose Terminal.
  4. Revitalization of the Surabaya west voyage line.
  5. Development of an international passenger terminal.

According to Priyanto, the company estimates the Lamong Bay project to require Rp2.2 trillion or about US$246.4 million, and the Surabaya west voyage line revitalization project to cost Rp654.97 billion or about Rp73.33 million.

Earlier, PT Pelindo III Director Djarwo Surjanto said to media that the Lamong Bay terminal construction is expected to complete at the end of 2013 and begin operations in early 2014. The terminal project is part of the government’s master plan to develop and improve economic infrastructures to accelerate the development of the eastern region of Indonesia.

Tanjung Perak port has seen increased container traffic in recent years. Container traffic volume in 2011, for example, was 2,643,518 TEUs (twenty-foot equivalent units), or an increase of about 10 percent over 2010. The port is the main gateway for the transportation of goods to and from the eastern region of Indonesia.

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