Indonesia Expands Free Meal Program with Major Dairy Investment

Jakarta: Indonesia’s Free Nutritious Meals (MBG) program has gained support from a private dairy producer through an investment worth Rp1.14 trillion (more than USD67 million), Industry Minister Agus Gumiwang Kartasasmita said on Saturday.

The investment was made by PT Ultrajaya Milk Industry & Trading Company, which inaugurated a new factory in the Cibitung industrial area, Bekasi, West Java, on December 8, 2025.

The facility is dedicated to producing ultra-high temperature (UHT) milk in 125-milliliter and 200-milliliter packaging for distribution under the MBG program. Production capacity is expected to increase further starting in March 2026.

“Indonesia’s milk processing industry must be able to meet the program’s requirements in terms of production capacity, product quality, and a reliable supply of raw materials,” Kartasasmita said, quoted from Antara, Monday 26 January 2026.

He added that the government is encouraging stronger partnerships between dairy processors and domestic milk producers to support the sustainability of the program.

Acting Director General of Agroindustry Putu Juli Ardika said Ultrajaya’s new plant has adopted Industry 4.0 technologies to improve efficiency and competitiveness.

The facility uses automated guided vehicles, autopilot forklifts, manufacturing execution systems, and automated storage and retrieval systems, as well as an ultrafiltration-based wastewater treatment plant.

To secure raw material supplies, the company currently operates two dairy farms in West Java and North Sumatra, with a combined herd of about 7,000 cattle. The herd is planned to expand by an additional 4,000 cattle in the near future.

The Industry Ministry has also invited Ultrajaya to join the National Lighthouse Industry 4.0 program, which aims to strengthen Indonesia’s dairy industry, support national food security, and back the implementation of the MBG program.