JAKARTA – PT Mulia Boga Raya Tbk (KEJU), the producer of Prochiz cheese, is planning to expand by building a new factory in Sumedang, West Java, with an investment of IDR 691.65 billion.

In a disclosure to the Indonesia Stock Exchange yesterday (12/3), the company explained that the new factory, along with its supporting facilities, will enhance KEJU's production capacity to anticipate increasing market demand.

“This expansion will strengthen the company’s position in the national cheese industry and support long-term business growth,” said Jeffry Halim, KEJU’s Corporate Secretary.

Construction will begin in 2025 and is expected to be completed by 2028, with a production capacity of 45,249 tonnes per year.

The new factory will be built on a 25,000 m² plot located at Blok Situbuntu Kavling A/6, Mangunarga Village, Cimanggung District, Sumedang Regency. KEJU had previously purchased the land from PT Garudafood Putra Putri Jaya Tbk (GOOD), KEJU’s controlling shareholder, for IDR 78.75 billion on 14 June 2024.

However, it should be noted that this expansion plan requires approval from the General Meeting of Shareholders (GMS) scheduled for April 22, 2025, as the transaction value is considered material, exceeding 50% of the company’s equity. As of 31 December 2024, KEJU’s equity stood at IDR 739.86 billion.

“In accordance with the Financial Services Authority Regulation (POJK) No. 17 of 2020, this transaction must obtain shareholder approval,” said Jeffry Halim, Corporate Secretary of KEJU. (DK/ZH)