Ultrajaya Plans Rp 1.14 Trillion Investment to Supply Free Nutrition Program Milk
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JAKARTA, Investortrust.id — PT Ultrajaya Milk Industry & Trading Company Tbk or ULTJ plans to invest Rp 1.14 trillion, equal to $70.5 million, on Tuesday, Jan 27, 2026 in Jakarta to strengthen UHT milk supply for the government’s free nutritious meal program, a move aimed at securing food quality and long term domestic capacity. The investment supports Indonesia’s priority agenda to expand access to nutritious food while reinforcing local dairy processing.
Industry Minister Agus Gumiwang Kartasasmita said the dairy processing industry plays a strategic role in ensuring food security and supporting flagship social programs. He said the government expects producers to scale capacity, maintain quality, and secure sustainable raw material supply.
“The national dairy processing industry must be able to meet the needs of the free nutritious meal program, in terms of production capacity, product quality, and raw material sustainability,” Agus said in a written statement. “The government is encouraging continued investment and stronger partnerships with domestic dairy farmers.”
Ultrajaya has already begun operating a new factory at the MM 2100 Industrial Estate in Cibitung, Bekasi Regency, since Dec 8, 2025. The facility currently runs three production lines for 125 milliliter and 200 milliliter UHT milk packaging dedicated to the free meal program.
Additional production lines are scheduled to be added in March 2026 to further boost output. The expansion is expected to strengthen supply reliability as program coverage widens nationwide.
Acting Director General of Agro Industry Putu Juli Ardika said Ultrajaya’s factory has adopted Industry 4.0 technologies to improve competitiveness and efficiency. He said automation and digital systems had delivered tangible productivity and energy savings.
“The application of Industry 4.0 technology has proven effective in improving efficiency, saving energy, increasing productivity, and maintaining product quality,” Putu said.
Technologies deployed at the facility include automated guided vehicles, autopilot forklifts, a manufacturing execution system, and an automated storage and retrieval system for warehouse management. The plant is also equipped with a wastewater treatment facility using ultrafiltration technology to recycle liquid waste.
Upstream integration remains a key focus of the company’s strategy. Ultrajaya currently manages two dairy farms in Bandung and North Sumatra with a combined herd of around 7,000 dairy cows.
The company is preparing further investment to add 4,000 cows to strengthen domestic fresh milk supply and reduce reliance on imports.
The Industry Ministry said it would continue to encourage Ultrajaya to increase the use of locally sourced fresh milk for the free nutritious meal program. The company is also being urged to participate in the National Lighthouse Industry 4.0 selection as a model for technology driven dairy processing.
The government has also rolled out a digitalization program for milk collection centers to preserve quality and protein content through investment, digital tools, and collaboration with farmers and cooperatives.