Chinese dairy giant investments boost development and conservation in Indonesia

In December 2021, Yili was invited by Indonesia's Ministry of Investment to participate in the country's economic revitalization plan. In the same month, the Yili Indonesia Dairy Production Base was put into operation, producing Joyday ice cream and other products.

The first-phase investment of the project reached 867 million yuan ($128.4 million). Once the second phase is complete, the overall capacity will total 343 metric tons per day, and it will be the largest ice cream factory in Indonesia.

Addressing the launching ceremony, an Indonesian official expressed his appreciation about the base. The Joyday ice cream produced by Yili Indonesia Dairy Production Base will meet the growing demand of Indonesian people for dairy products, especially for high-quality ice cream products, the official said.

Pan said that thanks to the loyalty and trust of consumers, the group has gained confidence in long-term investment and development in Indonesia. Adhering to the high-quality standards, the group will keep an eye on sustainable development and continue to polish the localized management strategy, in a bid to improve the local people's livelihood and help boost Indonesia's economic and social development.

To date, the base has hired 728 employees in total, with the local employees accounting for more than 95 percent of the workforce. It is expected to create more than 5,000 job positions for local communities directly and indirectly after the first and second phases of the project are completed.

The recently concluded G20 summit event addressed the challenges posed by the pandemic and the disruptions of global supply chains and production chains, Chinese officials said.

Though based in Indonesia, the Yili Indonesia Dairy Production Base is not only eyeing on the local Indonesian market. Together with another ice cream production base in Thailand, Yili Group has established "dual centers" in Southeast Asia, in a key move to expand into the Southeast Asian market.

As key parts facilitating Yili Group's global expansion, the bases will coordinate and share resources with other subsidiaries of Yili Group in Asia, Europe, America, and Oceania to accelerate the expansion of the group's global business layout.

While providing Indonesian consumers with diverse products, Yili also participates in local economic construction and makes efforts to activate the upstream and downstream industrial chain.

During the COVID-19 pandemic, the group also donated a large number of epidemic prevention and daily-use materials and introduced a number of preferential subsidy policies for local dealers to help them resume production.

The opening of the Yili Indonesia Dairy Production Base has boosted the development of all-level enterprises in Indonesia. So far, the group has carried out 12 anti-epidemic rescue operations in Indonesia, benefiting a total of one million people.

Adhering to the theme of "Recover Together, Recover Stronger", the G20 Foreign Ministers' Meeting sent the message on addressing the issues of sustainable development.

Indonesia is the largest archipelago country in the world. Coastal and marine resources represented by coral reef ecosystems have made prominent contributions to its economic development over the years. However, the coral reefs ecosystems are already rapidly dying due to pollution and overfishing.

Yili Group has reached a cooperation agreement with the G20 Summit organizing committee and promised to jointly support the ecological protection campaign of coral reefs around the Komodo national park in eastern Bali Island, which contain nearly 80 percent of the world's coral species and more than one third of coral reef fish.

The actions include the rescue of coral reefs, the cleaning of beaches and underwater environment recovery, in pursuit of creating the sustainable growth of the economy and other social and environmental benefits.

Guided by a philosophy of green development, the Yili Indonesia Dairy Production Base is adopting a green supply chain management strategy during its production.

The wastewater treatment system has a daily treatment capacity reaching 2,800 tons. The irrigation water for plants in the factory is recycled from reclaimed water. The system helps the factory save 4,000 tons of water per year.

In terms of energy conservation and reducing emissions, the factory uses high-efficiency, energy-saving motors and natural gas boilers, which help the factory to cut electricity consumption by 1.21 million kilowatt hours per year and carbon dioxide emissions by 8,029 tons per year.