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P&G breaks ground in Indonesia

August 12, 2011

The new diaper plant will serve the country's massive baby population.

Procter and Gamble (P&G) has kicked off construction on its factory in Karawang, West Java, its first in Indonesia, with an anticipated investment of $100 million – for the production of baby diapers.

"Indonesia is an important market for the baby-care industry,” says Mohamed Ismael, president and director, P&G Indonesia. He spoke during the laying of the cornerstone foundation on the Indonesian factory at the ground-breaking ceremony. Construction on the factory located will take two years to complete before it can start full operations, the company says.

P&G follows other international consumer goods companies who have been expanding into Indonesia, the world’s fourth most populous nation with 240 million people.

Asia is home to six out of 11 nations that have the largest populations, Ismael says, adding that Indonesia has a population of 17 million who are less than 4 years old. P&G says in a statement that within 5 years, it could fulfill diaper demand for about 8 million babies in Indonesia.

Industry Minister M.S. Hidayat, who attended the ceremony on Wednesday, said he hoped P&G could help spur growth of Indonesia’s consumer-goods sector by creating jobs with its investment.

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