Nestle has begun construction on a US$200m factory in West Java, Indonesia.

The factory in Karawang is set to produce Milo chocolate malt drinks, Dancow milk powder, and Cerelac infant cereals. Nestle said today (14 September) that the factory will "strengthen its leadership in emerging markets".

Production is expected to commence in early 2013.

"Our decision to invest $200m in Karawang is consistent with the growth in demand and our confidence in the rapidly developing economy of Indonesia," said Nestlé Indonesia's president director, Arshad Chaudhry.

"We are very optimistic about the growth opportunities in Indonesia," he added. "It has a large, progressive population and the economic environment is very conducive for growth."

The Karawang factory is Nestle's fourth factory in Indonesia and is expected to create more than 600 jobs.