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Coca-Cola Amatil plans to add two new production lines at its Indonesian facility

DBR Staff Writer Published 04 April 2016

Coca-Cola Amatil is planning to deploy two new production lines at its Cikekodan Plant in Bekasi, West Java in Indonesia.

coca-cola indonesia

The expansion of the Cikekodan plant marks the first of the major investments being made by the company in Indonesia.

Coca-Cola plans to invest around $500m in the country to accelerate growth in the next three to four years.

Coca-Cola is also planning to invest $63m in the construction of a new distribution center in Surabaya, Indonesia, making it the fourth mega distribution center operated by the subsidiary of Australian-based Coca-Cola Amatil.

Coca-Cola Company chairman and CEO Muhtar Kent said: "We consider Indonesia a dynamic and promising market and one of the growth engines to achieve our long-term vision.

"Our company's US $500 million investment reaffirms our belief in Indonesia and will help us capture the growth opportunity in one of the largest and most dynamic countries in the world as we enable our system to be even more responsive to consumer and customer needs.

"We believe by creating more jobs and where possible sourcing locally, we can promote the local economy and contribute to economic growth in Indonesia."

This latest investment is expected to have give a huge boost to local jobs, taking the Coca-Cola's total direct and indirect employment in Indonesia from around 60,000 to a total of 135,000 within a span of three to four years.

However, the investment is yet to receive Indonesian regulatory approval and also subject to CCA non-associated shareholder approval.

In last October, Coca-Cola announced plans to set up a joint venture with Coca-Cola Amatil's local Indonesia subsidiary to invest $500m for an equity ownership interest of 29.4%.

The funding was invested into Coca-Cola Amatil Indonesia (CCAI) operations in Indonesia to expand production, warehousing and cold-drink infrastructure.

In the past three years, CCAI has commissioned 18 new production lines, installed 150,000 coolers and built three distribution centers to increase production capacity and build local capability with total investments of more than $300m.

CCA group chairman David Gonski said: "These two new production lines commissioned today are an excellent example of how the US $500 million cash injection is being invested. Coca-Cola Amatil is committed to building a future hand-in-hand with our partners, customers and consumers in Indonesia.

"The upcoming joint venture is an important step for us in accelerating our efforts to create a strong future for our communities and businesses in the areas in which we operate."

Image: Coca-Cola expands Indonesian plant capacity with new production lines. Photo: Courtesy of THE COCA-COLA COMPANY.