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Coca-Cola to invest $500m in Indonesian soft drink business

DBR Staff Writer Published 17 May 2013

Coca-Cola Amatil Indonesia (CCAI), a producer and distributor of the Coca-Cola beverages, is set to invest $500m in Indonesia in the next three to four years to meet growing demand in the country.

The funds will be used for growth initiatives including infrastructure development, capacity building and increased support for the provision of a diluent cooler.

Of the total investment, the company plans to use $90m in 2013, out of which $40m is for a new production plant and warehouse in Semarang, $20m is for a new carbonated soft drink production line in Surabaya, East Java and $30m is for a new mineral water production line in Cibitung.

CCAI finance director Stuart Comino was quoted by thejakartapost.com as saying that 25% of the investment will be used for cooler units throughout the market and the rest for manufacturing infrastructure.

"In the past, the majority of expenditure has been in manufacturing infrastructure capacity. But today, logistic capacity and the availability of refrigeration units are important as well," Comino added.

"We have production capacity over the market demand, but making sure that our products are available in the market is very important."

The company has also opened a new $15m regional distribution center in Cibitung, West Java on 14 May 2013.

CCAI president director Erich Rey said that they intend to invest more amount in Indonesia to gain advantage from the business opportunities in the market.

"We believe in Indonesia because this is the country where we will grow. With all the investment, we expect growth in all areas [production, logistics, sales, etc.]," Rey added.