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Coca Cola to invest upto $1bn in Indonesian operations

DBR Staff Writer Published 15 October 2014

The Coca Cola Company will earmark between $600m and $1bn for expansion of its operations in Indonesia.

Coca-Cola

The company is likely to form a joint venture with its Australian subsidiary Coca Cola Amatil (CCA), to build new plants across Indonesia.

The expansion is anticipated to increase competition between Coca-Cola and Peru-based soft drinks maker Aje Group.

Indonesian Soft Drink Industry Association secretary general Suroso Natakusuma was quoted by Indonesia-Investments as saying that the domestic soft drinks industry, particularly bottled drinks, is expected to grow at a pace of about six to seven percent year-on-year in the country.

Investors from Australia, Japan and South Korea have shown interest in expanding their business to Indonesia, Natakusuma added.

Coca-Cola has so far invested $1.3bn in the country.

Through Coca Cola Amatil Indonesia (CCAI), the company owns nine factories in North Sumatra, West Sumatra, South Sumatra, East Java, Central Java, West Java and Bali.

CCAI is aiming to increase its production capacity to 2.1 billion liters of drinks in 2015.


Image: Coca Cola Company plans investment to expand production capacity. Photo: courtesy of The Coca-Cola Company.