Indonesia expands free meal program with major dairy investment

Indonesia’s Free Nutritious Meals (MBG) program is set to receive a significant boost through a substantial investment from a leading domestic dairy company. PT Ultrajaya Milk Industry & Trading Company will contribute Rp1.14 trillion (over US$67 million) to support the initiative, according to an announcement made by Industry Minister Agus Gumiwang Kartasasmita on Saturday.

New Facility Dedicated to MBG Program

The investment will fund a new factory inaugurated on December 8, 2025, in the Cibitung industrial zone, Bekasi, West Java. This facility is specifically designed for the production of ultra-high temperature (UHT) milk in 125 ml and 200 ml packages intended exclusively for the MBG program. Production capacity is expected to increase further in March 2026.

Industry Modernization and Partnerships

Minister Kartasasmita emphasized the importance of the Indonesian milk processing industry’s ability to meet the MBG program’s demands regarding production capacity, product quality, and a consistent raw material supply. He also highlighted the government’s commitment to fostering strong collaborations between industry stakeholders and local dairy farmers.

Did You Know? PT Ultrajaya Milk Industry & Trading Company currently operates two dairy farms, one in West Java and another in North Sumatra, collectively housing around 7,000 cattle.

Acting Director General of Agroindustry, Putu Juli Ardika, noted that Ultrajaya’s new plant incorporates Industry 4.0 technologies to enhance efficiency and competitiveness. These technologies include automated guided vehicles, autopilot forklifts, manufacturing execution systems, and automated storage and retrieval systems, as well as an advanced ultrafiltration wastewater treatment plant.

Securing the Supply Chain

To ensure a reliable supply of raw materials, PT Ultrajaya Milk Industry & Trading Company plans to expand its cattle herd by an additional 4,000 animals in the near future. The company’s current herd consists of approximately 7,000 cattle spread across farms in West Java and North Sumatra.

Expert Insight: This investment signals a strategic move towards strengthening Indonesia’s domestic food production capabilities. By leveraging Industry 4.0 technologies and expanding raw material sources, the partnership aims to create a more resilient and efficient supply chain for the MBG program.

The Ministry of Industry has extended an invitation to PT Ultrajaya Milk Industry & Trading Company to participate in the National Lighthouse Industry 4.0 initiative. This initiative seeks to fortify Indonesia’s dairy sector, enhance national food security, and provide support for the MBG program.

Frequently Asked Questions

What is the total investment amount?

The investment from PT Ultrajaya Milk Industry & Trading Company is Rp1.14 trillion, which is equivalent to over US$67 million.

When was the new factory inaugurated?

The new factory in the Cibitung industrial zone, Bekasi, West Java, was inaugurated on December 8, 2025.

What types of technologies are being implemented in the new facility?

The facility integrates Industry 4.0 technologies, including automated guided vehicles, autopilot forklifts, manufacturing execution systems, automated storage and retrieval systems, and an advanced ultrafiltration wastewater treatment plant.

How might this investment impact the availability of nutritious meals for Indonesians in the coming years?