FrieslandCampina to Take Control of Ultrajaya in Indonesia
Royal FrieslandCampina N.V. has agreed to acquire a controlling interest in PT Ultrajaya Milk Industry Tbk (ULTJ), creating a strategic partnership aimed at strengthening its position in Indonesia's dairy and ready-to-drink beverage market.
Under the agreement, Frisian Flag Indonesia (FFI) will become part of the Ultrajaya Group. FFI and Ultrajaya will continue to operate as separate businesses, retaining their respective brands, product portfolios and organisations while increasing cooperation with a focus on long-term value creation.
FrieslandCampina said the partnership is intended to combine Ultrajaya's strong Indonesian platform with FrieslandCampina's dairy expertise and investment capabilities. The company views the arrangement as a way to build a stronger, locally rooted dairy platform serving consumers across Indonesia.
The transaction has already received approval from FrieslandCampina's Members' Council, which represents the cooperative's member dairy farmers who collectively own the company. However, completion remains subject to customary conditions, including approval by Ultrajaya shareholders and relevant Indonesian authorities.
Once the transaction is completed, Ultrajaya is expected to remain a publicly listed company on the Indonesia Stock Exchange. Its headquarters, management and day-to-day operations will remain in Bandung, West Java.
Ultrajaya co-founder Sabana Prawirawidjaja is expected to continue as President Director, while the Prawirawidjaja family will remain a significant long-term shareholder in the company.
The transaction will also trigger a mandatory cash tender offer for minority shareholders of Ultrajaya under Indonesian regulations after FrieslandCampina obtains the controlling interest. Further details on the tender offer are expected to be disclosed through the Indonesia Stock Exchange.
The deal comes as Ultrajaya reports strong recent financial performance. The company recorded first-half 2026 revenue of IDR 5.49 trillion, representing a 34.5% year-on-year increase, according to Indonesian market reports.
For FrieslandCampina, the transaction represents a move toward greater scale in Indonesia, while for Ultrajaya it brings closer cooperation with a global dairy company. The partnership is expected to focus on expanding dairy nutrition and ready-to-drink beverage opportunities in the Indonesian market.
The transaction also highlights the increasing importance of Indonesia's consumer dairy and packaged-beverage market, where local distribution capabilities and international dairy expertise are being combined through strategic corporate partnerships.
The final ownership change will depend on the completion of the required shareholder and regulatory approvals.
Source: Dairynews7x7 19 Sep, 2026 Read full story here
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