Adding value: A shopper holds rupiah at a market in Jakarta. Indonesia hopes PepsiCo’s investment in the country will benefit its community while building partnerships with local entrepreneurs. — Bloomberg
JAKARTA: Food and beverage (F&B) maker PepsiCo is set to build a snack factory in Cikarang, West Java, with an investment of US$200mil.
PepsiCo Indonesia, the local subsidiary of US-based PepsiCo, has committed itself to investing in the snack factory over a 10-year period and is expected to commence production in 2025.
According to a statement published by the company, the plant is designed with an environmental focus by utilising 100% renewable electricity and including a complete water recycling system.
The company said it will adopt a “net water positive approach” to water usage.
PepsiCo Indonesia chief executive officer Asif Mobin announced that the groundwork for building the manufacturing plant will commence this month.
“In Indonesia, our expansion signifies more than growth.
“The policies set forth by the Indonesian government resonate with our strategy, emphasising a shared vision for sustainable development,” Asif was quoted as saying.
PepsiCo first made its entry into the country back in 1973 by selling its carbonated drinks.
The latest investment marked its re-entry to the country’s market after PepsiCo’s affiliate Fritolay Netherlands Holding and Indofood CBP, a subsidiary of Indonesia’s F&B giant Indofood Group, ended a 30-year joint venture in 2021 without providing any reason, when Indofood bought PepsiCo’s minority stake.
The firm also discontinued its carbonated drinks after its expiration of the contract with PT Anugerah Indofood Barokah Makmur, the entity holding the licence for Pepsi’s production, sale and distribution in the country during that period.
Asif noted that the firm’s recent investment would support the downstream expansion of the F&B industry.
He added that the manufacturing plant would attract local talent, process domestically-sourced raw materials and aid local farmers in adopting sustainable agricultural practices.
Investment Coordinating Board chairman Bahlil Lahadalia hailed PepsiCo’s investment as a substantial and enduring commitment to the country’s advancement.
During the announcement event, he welcomed the company’s decision to establish a manufacturing plant in Indonesia, emphasising the nation’s status as the largest country in South-East Asia with economic growth surpassing that of advanced economies, such as the United States, Japan and European countries.
Bahlil praised the firm’s commitment to enhancing downstream initiatives within the country and expressed confidence that PepsiCo could cater to local market demand and potentially expand toward export markets.
“We hope this investment brings knowledge and technology transfer to the people of Indonesia and benefits the community while building partnerships with local entrepreneurs,” he said. — The Jakarta Post/ANN
