FrieslandCampina to take controlling interest in Ultrajaya

FrieslandCampina and Ultrajaya Milk Industry have agreed to enter into a strategic partnership that will see Frisian Flag Indonesia (FFI) become part of the Ultrajaya Group.

Under the proposed transaction, FrieslandCampina will obtain a controlling interest in Ultrajaya, subject to the completion of the deal and customary regulatory and shareholder approvals.

FFI and Ultrajaya will continue to operate as separate businesses, retaining their respective brands, portfolios and organisations. The companies said their cooperation will instead be intensified around long-term value creation.

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The move brings FFI, which has been part of Indonesian society for more than a century, into Ultrajaya's broader ready-to-drink beverage platform. FrieslandCampina said the partnership is intended to create a more resilient platform serving consumers across Indonesia while supporting its focus on expanding access to dairy nutrition in Asia.

For Ultrajaya, the partnership adds FrieslandCampina's dairy expertise and investment to its existing Indonesian operations. FrieslandCampina's Business Group Asia, meanwhile, will gain a strengthened local platform combining Indonesian leadership with its expertise in dairy development.

"Both companies share a long-term commitment to Indonesian consumers and high-quality nutritional dairy products," FrieslandCampina said.

Ultrajaya is expected to remain an Indonesian listed company, with its headquarters, leadership and day-to-day operations continuing to be based in Bandung.

Sabana Prawirawidjaja, co-founder of Ultrajaya, will remain president director, while the Prawirawidjaja family will continue as substantial long-term shareholders.

The transaction has already received approval from FrieslandCampina's Members' Council, which represents the cooperative's member dairy farmers. Completion remains subject to further approvals, including approval from Ultrajaya's shareholders and relevant Indonesian authorities.

Once FrieslandCampina obtains a controlling interest in Ultrajaya, Indonesian regulations will require it to launch a mandatory cash tender offer for Ultrajaya's minority shareholders. Further details are expected to be disclosed through the Indonesian Stock Exchange (IDX).

Discover what's next in Indonesia's fast-moving digital landscape at DMA Indonesia 2026 on 13 October in Jakarta, where marketing leaders will explore how AI, creator ecosystems, social commerce, and omnichannel strategies are reshaping customer engagement and business growth.

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