Bahlil Succeeded in Convincing FrieslandCampina to Add IDR 4 Trillion of Investment

Amsterdam, 20 November 2020 - On the first day of a working visit to Amsterdam, the Netherlands, Wednesday (18/11), the Indonesia Investment Coordinating Board (BKPM) Chairman Bahlil Lahadalia successfully convinced Susu Bendera manufacturer Friesl andCampina to increase their investment in Indonesia. The investment realization of IDR 4 trillion is planned to start in early 2021.

Bahlil welcomed the Company’s willingness to meet the three requirements put forward by the Indonesian Government, namely involving local companies in the construction process of new factories, involving Micro, Small and Medium Enterprises (MSMEs) in the supply chain, and involving local entrepreneurs in the Company’s logistics business activities.

“I am grateful for FrieslandCampina’s investment interest. We are ready to pick up the ball. We also have already agreed that Friesland will fulfil the three conditions set by the Indonesian Government. The Government also offers free land for five years in the Batang Integrated Industrial Estate, Central Java, to establish the factory,” Bahlil explained.

Although initially, he seemed quite surprised with the investment requirements proposed by the Government, the CEO of FrieslandCampina Hein Schumacher said he was ready to do so. On the other hand, the global chairman of FrieslandCampina highly appreciated the fiscal incentive facilities, which were swiftly decided by the BKPM Chairman, both tax holiday and tax allowance.

“I did not expect that the BKPM Chairman’s decision to be that fast. Indeed, Indonesia has changed a lot. The Government has made reforms in various fields. Amid the COVID-19 pandemic, BKPM is still eager to facilitate us. I will report this investment agreement to the General Meeting of Shareholders (GMS) in December 2020, said Schumacher.

Friesland Campina plans through its Company in Indonesia, Frisian Flag Indonesia, will re-invest between EUR 220 million to EUR 270 million or IDR 3.7 trillion to IDR 4.5 trillion in Indonesia. The Company will engage in the industry of fresh milk, cream, condensed milk, and its derivatives.

The meeting with FrieslandCampina is part of a series of meeting agendas of BKPM Chairman with four Chief Executive Officers (CEOs) of multinational companies (MNCs) or global corporations involved in various industrial sectors in Amsterdam, the Netherlands.

Royal FrieslandCampina N.V. is a multinational company based in Amersfoort, the Netherlands, has branches in 36 countries, and employs approximately 24,000 employees. The Company’s annual turnover amounted to EUR 11.6 billion in 2018. Whereas in Indonesia, FrieslandCampina has been around for almost 100 years and has become the most iconic milk brand in Indonesia, known as Frisian Flag or Susu Bendera. The Company has two production facilities situated in Pasar Rebo and Ciracas, Jakarta Timur. (***)