P&G opens 1st plant in Indonesia, plans No. 2

Expanding its reach for Asian market share, Procter & Gamble officially opened its first plant in Indonesia – and disclosed it will build a second one.

The Jakarta plant will primarily produce Pampers diapers for the local market, but also serve as a P&G regional hub for raw materials supplies. Under construction since 2011, the US$100 million plant will provide diapers for 8 million Indonesian babies within the next 5 years, company officials said. It will employ 300.

P&G said it would build a second $100 million facility in the future as part of its long-term manufacturing expansion plan.

“Indonesia’s growth is accelerating and we believe this is the right time for P&G to accelerate our investments in Indonesia. Indonesia is a strong emerging market and this investment bears testimony to our long-term commitment to the country,” said Dimitri Panayotopoulos, Vice Chairman,P&G.

With a population of nearly 250 million, Indonesia is the fourth-largest country behind China, India, and the US. Its $878 billion economy is also growing at a robust 6.2%, according to the World Bank.
Asia has tied Western Europe as P&G’s second-largest market, accounting for 18% of worldwide revenues.