L’Oreal to invest $50m in Indonesia

Indonesian Trade Minister Gita Wirjawan has revealed that France-based beauty products manufacturer L’Oreal Paris is expected to build a $50m worth cosmetics plant in West Java, Indonesia .

Earlier in February 2011, L’Oreal had announced its investment plan, saying that it would invest $50m in Indonesia toward a facility construction in Jababeka Industrial Estate in West Java, which was expected to open by the end of last year.

The factory has not yet started operating, but once it is ready it would be L’Oreal’s biggest factory in the world, said The Jakarta Globe.

According to the minister, L’Oreal, which produce its Garnier brand hair products and Maybelline brand cosmetics, is aiming to produce 500 million units in Indonesia by 2015.

"L’Oreal Paris, for example, plans to invest up to $50 million in Indonesia and intends to make Indonesia a production base for Asia," Wirjawan said.

L’Oreal Indonesia president director Jean-Christophe Letellier said with operations at the new factory, the company has targeted a 30% growth in its annual sales in Indonesian market.

"The company also expected to attract 50 million new customers in the country by 2020, up from about 20 million. L’Oreal has two factories in Asia, one in China and one in East Jakarta," Letellier said.

Gita Wirjawan, who is also chairman of the Investment Coordinating Board (BKPM), said he is also hoping that the licensing process for L’Oreal’s expansion in Indonesia would move quickly.

L’Oreal Paris is eyeing the Asian markets to increase its profits, as they have contributed €3.6bn to its sales in 2011, representing almost 18% of the company’s global sales revenue in the previous year of €20.3bn, reported the newspaper.