Megmilk Snow Brand Indonesia, a joint venture between MEGMILK SNOW BRAND Co.,Ltd. and local company Rodamas, explained its localization strategy for expanding the cheese market. Although per-capita cheese consumption in Indonesia is low, there is room for market expansion, while expanding applications and ensuring stable supply remain challenges.
Megmilk Snow Brand Indonesia, a joint venture between MEGMILK SNOW BRAND Co.,Ltd. and Rodamas, has manufactured and sold processed cheese since its establishment in 2012. Indonesia’s per-capita cheese consumption is approximately 130g on a natural-cheese equivalent basis, low compared with approximately 2.5kg in Japan and approximately 1kg in Malaysia. Total consumption is estimated at approximately 30,000–40,000 tonnes, but because the average natural-cheese ratio is believed to be approximately 25%, the market for cheese products is estimated at approximately 120,000–160,000 tonnes. The market is recovering after the COVID-19 pandemic in 2020. Block products are the mainstay, and demand for cream cheese is also expanding. New opportunities in demand for school meals emerged in 2026.
In terms of the competitive environment, the local market leader is Prochiz, a domestic processed-cheese manufacturer, while foreign and Japanese manufacturers continue to enter the market. The company uses Japanese processed-cheese technology and Rodamas’ sales network, focusing on household and foodservice applications. It aims to expand the market by offering products tailored to local prices and preferences.
Under the division of responsibilities between Indonesia and Japan, the local entity does not handle product development, marketing or human resources. The Japanese side mainly handles production, quality control and development under the joint-venture structure. Rodamas handles the sales network and distribution, while the Japanese side is responsible for production, quality and product development. The policy is to give authority to the local entity while emphasizing research into and adaptation to the local market.
The business model, centered on ambient distribution, is designed to reflect the low rate of household refrigerator ownership and the fact that distributors mainly use ambient-temperature facilities. Because the business is highly dependent on imported raw materials and changes to import procedures may cause delays, a system that links procurement risks to management decisions is considered important.
Over the next 3–5 years, the company plans to develop the market by creating and proposing new applications, including cream cheese, while emphasizing product development suited to local eating habits, prices and distribution channels, as well as rapid decision-making. It stressed the importance of giving authority to the local entity and reflecting marketing and supply-chain information in management decisions.