Indonesia expands free meal program with major dairy investment

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Indonesia’s Free Nutritious Meals (MBG) program will receive a boost from a Rp1.14 trillion (over US$67 million) investment from PT Ultrajaya Milk Industry & Trading Company, Industry Minister Agus Gumiwang Kartasasmita announced Saturday.

Ultrajaya Investment Supports Indonesia’s MBG Program

The investment will fund a new factory in the Cibitung industrial zone, Bekasi, West Java, which was inaugurated on December 8, 2025. The facility will produce ultra-high temperature (UHT) milk in 125 ml and 200 ml packages specifically for the MBG program.

Production capacity at the plant is expected to expand further in March 2026. Kartasasmita emphasized the importance of Indonesia’s milk processing industry meeting the program’s requirements for production capacity, product quality, and raw material supply.

The government is committed to fostering strong partnerships between industry and domestic dairy farmers, Kartasasmita added.

Acting Director General of Agroindustry Putu Juli Ardika noted that Ultrajaya’s new plant utilizes Industry 4.0 technologies to maximize 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.

To secure a consistent supply of raw materials, Ultrajaya currently operates two dairy farms in West Java and North Sumatra, housing approximately 7,000 cattle. The company plans to increase its herd by an additional 4,000 cattle in the near future.

The Ministry of Industry has also invited Ultrajaya to participate in the National Lighthouse Industry 4.0 initiative, aimed at strengthening Indonesia’s dairy sector, bolstering national food security, and supporting the MBG program.


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