Coca-Cola to Invests US$300 Million in Three Years Period

Photo by CCAI

JAKARTA (TheInsiderStories) – PT Coca-Cola Amatil Indonesia (CCAI), has announced that it intends to continue investing here, projecting an additional US$300 million over the next three years. This would continue previous investments worth $445 million over the last five years.

Coca-Cola Amatil Indonesia Supply Chain Director Gigy Philip explained, that this investment is expected to increase employment, as the soft drink company plans to recruit 11,000 employees.

In previous investments, Coca-Cola has built a production facility and distribution center in Pandaan, Pasuruan, East Java with an investment of $42 million. In addition, the company has recently expanded its production capacity in Medan, North Sumatra to 15 thousand bottles per day, with an investment of $20 million.

“This effort is one of the stages of our investment commitment which is expected to be a spur for the development of the national food and beverage industry,” said Philip in a press statement.

He added, the new factory has a storage capacity of 40 million bottles and a pre-form manufacturing facility that is able to produce 1 billion plastic bottles a year.

At present, the company already has eight bottle factories with a total of 11,000 workers in various regions in the country, including in Lampung, Bandung, Surabaya and Denpasar, Bali. It also operates three mega distribution centers in Medan, Cibitung and Semarang that run businesses with 765,000 direct customers.

In 2015, Amatil and The Coca-Cola Company commenced a targeted expansion of production, warehousing and cold-drink infrastructure in Indonesia. Operating in Indonesia, a market with a fast-growing middle class and half its population of 260 million under 30, Coca Cola Amatil Indonesia is the second biggest volume contributor to Amatil business.

Minister of Industry Airlangga Hartarto has said that Australian Coca Cola Amatil had committed to investing a total of $500 million in Indonesia within the 2015-2018 period, of which $300 million has already been realized.

According to the Industry Ministry, Indonesia’s soft drink industry is currently dominated by packaged drinking water products with a market share of 84 percent.

Food and beverage (F&B) is a strategic sector in Indonesia industry. Central Bureau of Statistics recorded the F&B contribution to Gross Domestic Product (GDP) at 6.06 percent and has a growth performance of 7.69 percent in the first half this year.

F&B sub-sector also contributes to non-oil and gas industry GDP, reaching 33.63 percent in the first half of 2017.

In addition, the realization of investment in the food and beverage industry in the same period amounted to Rp21.6 trillion for domestic and $1.18 billion for foreign direct investment.

Writing by Elisa Valenta