The move by the Dutch company highlights the increasing number of opportunities for formulators dealing with specialty ingredients in South-East Asia.
To capitalise on this expected growth, Friesland Foods Kievet - the group's powdered ingredients division - announced it will spend €21m on increasing capacity at its Salatiga plant in Java, through the construction of a new spray-drying installation.
The additional site will house a variety of multipurpose equipment for the manufacture of higher added value ingredients like creamers and powders to be used in soups, instant drinks, and enhanced nutrition products.
This will expand its existing spray-drying operations within Indonesia, allowing the group to consolidate its position in the country's ingredients sector.
With construction ongoing, Friesland spokesperson Rob Van Dongen confirmed that the expansion is set to be completed, "through the course of 2007."
The opening also follows the construction of new sales offices for the company, which opened in Salatiga on 1 January 2007.
The company added that the site will allow it to work more closely with its local partners and clients, as well as strengthening its ability to exploit market developments.