Cloud: Smart production transforms dairy plant

Embracing digitalization is helping Indolakto manage growth, uphold quality, optimize cost savings, and maintain its strong position in Indonesia’s highly competitive dairy market. MindSphere apps as part of the Xcelerator portfolio help to make data useful – or “smart.”

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Every year, well over 500,000 tons of dairy products roll off Indolakto’s lines – milk, butter, ice cream, and more. While the majority of product is destined for consumption in Indonesia, Indolakto has also entered markets in Africa and the Middle East with its range of sweetened condensed milk and ultra-high-temperature milk. But the home market holds the most promise. 

That’s because dairy consumption is increasing in Indonesia, and market analysts see room for expansion. “Indonesia still has a gap to be filled,” sums up Steven Tan, Deputy Division Head of PT Indolakto. The Covid-19 pandemic has boosted demand further. But as Indolakto grows, it must not be at the expense of quality: consumers are discerning and expect nothing less than the best.

Big savings and more within two years

Embracing digitalization is helping Indolakto manage growth, uphold quality, optimize cost savings, and maintain its second place in the country’s highly competitive dairy market. The company’s digitalization journey began at the Surabaya plant in the framework of a collaboration between Siemens and the Indonesian Ministry of Industry.


In the meantime, Indolakto has opened new plant in Purwosari, East Java – and it has been digital from the start. The results of introducing Industry 4.0 technologies here are impressive: aside from increasing production capacity by 25 percent within two years, the plant also upped flexibility and efficiency.


Three major digitalization building blocks have been instrumental in Indolakto’s digitalization efforts: MindSphere, Control Performance Analytics, and Simatic.


Data has always been collected at Indolakto’s factories. But it takes special tools to make that data useful – or “smart,” as Wahyu Widodo, GM Corporate Engineering at PT Indolakto, says. Specifically, the MindSphere Control Performance Analytics (CPA) which is used to analyze PID Control.

Control Performance Analytics

The smart data is then made available to Control Performance Analytics, another cloud-based MindSphere app. Through data analysis, recommendations are made to improve energy efficiency and lengthen equipment lifespan.

Simatic PLCs

Siemens’ flagship automation system intelligently controls automated guided vehicles (AGV) and automated storage and removal systems (ASRS) to transport and store pallets. The benefits are an optimized manufacturing flow, reduced warehouse size and more flexible logistics processes. 

A strategy built on addressing pain points

Indolakto’s management is committed to continuing the digitalization journey. The strategy is to start with the pain points and look for a technological solution that can address them. It’s about technology with purpose. “Our vision is to be a role model of the digital transformation in the dairy industry,” says Wahyu Widodo. So far, Indolakto is well on its way to doing just that.

Established in 1967, PT Indolakto is one of Indonesia’s local producers of dairy goods. The company, a subsidairy of Indofood, offers a host of dairy brands, such as Indomilk, Cap Enaak, and Indofood Ice Cream. Over the years, the dairy company has penetrated markets in Africa and the Middle East with its range of sweetened condensed milk and ultra-high temperature milk.

Indomilk (website)

April 2021

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