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REUTERS/Nestle to relocate SE Asia factories to Indonesia: Paper
Brata T Hardjosubroto, spokesman for Nestle's Indonesia unit, told daily business newspaper Kontan that the firm would announce details of the relocation in November. Nestle has six factories in Malaysia including one making one of its key beverage brands Milo, and four factories in the Philippines, the paper said.
Indonesian Deputy Trade Minister Mahendra Siregar told the paper Nestle's factory relocation was based on its need to be close to raw material sources.
Nestle is in negotiations with Indonesian cocoa powder producer PT Bumitangerang Mesindotama to supply cocoa for the relocated factories, said Bumitangerang Mesindotama's President Director Piter Jasman.
Indonesia, Southeast Asia's largest economy, is attracting investor interest for its economic resilience during the financial crisis, improved political stability and abundance of natural resources.
The world's largest listed palm oil firm Wilmar is planning to invest $2 billion, including possibly in sugar plantations in a planned giant food estate in the Papua region, the head of the country's investment board said on Monday. But the country has lagged neighbours in attracting foreign direct investment because of worries over regulatory uncertainty, rampant graft and inadequate infrastructure.
