Coca-Cola Amatil Indonesia and Dynapack Asia to construct a polyethylene terephthalate (PET) recycling facility located in Bekasi, West Java - Photo by Medan Major Office

JAKARTA (TheInsiderStories) – Coca-Cola Amatil Indonesia and Dynapack Asia to construct a polyethylene terephthalate (PET) recycling facility located in Bekasi, West Java, the companies announced today. The new factory need costs around A$50.51 million (US$38.55 mllion.

“This facility will be operating in 2022 and has the capacity to reduce the amount of new plastic resin the company uses by around 25,000 tones annually, industrial expansion and accelerate the rate of recycling,” said president director of Amatil Indonesia, Kadir Gunduz, in a virtual event, on Monday (04/05).

Both parties plans to create a closed-loop for beverage plastic packaging by producing plastic pellets that are safe for food and beverages made from bottles. post-consumption plastics. Amatil Indonesia is committed to creating a closed cycle in packaging by achieving a recycling rate in each packaging around 50 percent by 2030.

The projects will run by PT Amandina Bumi Nusantara to operate a PET facility and reprocess low-quality PET waste into high-quality PET using advanced renewable technology. The beverages producers has signed an agreement with the provider of packaging and plastics catering to the South East Asia & China Market in 2020.

According Gunduz, the plant would reduce the usage of new plastic resin by the company by approximately 25,000 tones per year by 2022 and will help Indonesia’ ambitious plan to achieve 70 percent reduction in the nation’ marine plastic debris by 2025.

In the same year, the parent Coca-Cola Amatil Ltd., (ASX: CCL) says it will write down the value its Indonesian assets to around A$160 million to A$190 million as a result of the pandemic. These expected impairments are non-cash accounting adjustments and we remain very confident about the long-term prospects for our Indonesian business.

The director, Alison Watkins, the Group’ trading volumes in June 2020 were down approximately 9 percent compared to June 2019. This resulted in a second quarter decline of approximately 23 percent compared to the prior corresponding period. In New Zealand, where significant easing of restrictions has taken place, Amatil June’ volumes increased approximately 4 percent compared to June 2019.

In Australia, the volumes declined approximately 3 percent (non-alcoholic ready to drink volumes declined 4 percent). In Indonesia, where COVID-19 infection rates remain high, the sales volume dropped around 23 percent from a year ago. As noted at the May trading update, margins, particularly in Australia, have been adversely impacted by changing consumer behavior due to COVID restrictions.

Watkins stated, “Its encouraging to see the improvement in our volumes as the pandemic restrictions were lifted across a number of our markets. We nevertheless remain cautious, given the reinstatement of lockdown measures from July in Melbourne and the rising COVID- 19 infection rate in Indonesia.“

In 2019, Amatil Indonesia has inaugurated the second $24 million affordable single serve package production line at the Pasuruan factory in East Java. The new line will support the manufacturer to supply high-quality lightweight plastic with a glass coating that will increase packaging durability by 260 million bottles annually throughout East Java and Eastern Indonesia, including Bali and the Eastern Islands, Sulawesi, East Kalimantan and South Kalimantan.

At present, East Java contributes 30 percent of the total national production of Amatil Indonesia through the factory which houses seven production lines. Total production at the Pasuruan factory will significantly increase production output by 130,000 preforms per hour, as well as product storage capacity of 40.3 million bottles and 7,100 preform pallets.

In the same year, Amatil Indonesia and restaurant operator, PT Fast Food Indonesia Tbk (IDX: FAST) announced a five-years cooperation for its products. Through this collaboration millions of Indonesian people can enjoy Coca-Cola, Fanta, and Sprite soft drink products at more than 700 KFC outlets across the archipelago.

At present, Amatil Indonesia serves more than 500,000 customers, in modern and traditional markets throughout Indonesia. The company also operates eight manufacturing facilities, two preform factories and four Mega Distribution Centers.

Since 2014, the unit of American-based Coca-Cola Amatil has invested more than $379 million in Indonesia, including 22 production lines in South Sumatra, North Sumatra, and Cikedokan plant in West Java. The latest line was built to assist the company in serving the growing market in eastern Indonesia, along with facilities that were inaugurated in 2017, Mega Distribution Center and Preform factory with a total investment of $68 million.

While, Dynapack has been a long-term packaging partner of Coca-Cola Amatil Indonesia, in several initiatives involving collection and recycling of beverage containers.

US$1: A$1.31

Written by Staff Editor, Email: theinsiderstories@gmail.com